research report-1
-
Upload
deepika-pandey -
Category
Documents
-
view
142 -
download
18
Transcript of research report-1
A RESEARCH PROJECT REPORT
ENTITLED
ldquoABSENTEEISM IN PUNJAB NATIONAL BANKrdquo
Submitted in Pursuant to the Fulfilment of the Requirements for Award
of the Degree of
MASTER OF BUSINESS ADMINISTRATION
Of
UPTU LUCKNOW
Project Supervisor Submitted By
Namita Gupta Areeba Nisar
Lecturer Roll No 0812070009
Dept of Business Administration IV Semester
DEPARTMENT OF BUSINESS ADMINISTRATION
INSTITUTE OF TECHNOLOGY amp MANAGEMENT
GIDA GORAKHPUR
2009-2010
1
PREFACE
There is a famous saying ldquoThe theory without practical is lame and practical
without theory is blindrdquo
Absenteeism is a serious workplace problem and an expensive occurrence for
both employers and employees seemingly unpredictable in nature The term
absenteeism refers to the failure to attend to work It is one of the major problems faced
by companies across the globe today Unscheduled absenteeism badly hurts the progress
of an organization resulting in loss of productivity increased costs in hiring additional
staff and low morale among the workers It is high time that employers address this
problem on a priority basis
Employees can be absent for a variety of reasons including sickness lethargic attitude
family emergencies too much workload and stress monotonous work or a general
dissatisfaction with the job A sales professional cites some other reasons like workplace
politics long commute strained relationship with the immediate supervisor and lack of
belongingness towards the organization as reasons for being absent from work Whatever
be the reason absenteeism is not at all a healthy practice and steps should be taken to
manage it effectively
2
Innocent absenteeism refers to being absent for those reasons that are beyond the control
of the employees like accidents or illnesses Under such circumstances the employees
should not be blamed for not turning up at work Culpable absenteeism on the other hand
is when employees absent themselves at a time when they are fully capable to attend
office This type of no shows should always be discouraged for it can become a burden to
the organization in the long run
Absenteeism is a vital issue that requires immediate attention by both employers and
employees Employees should enjoy the work they are doing and employers on their part
should help them in whatever way they can to make their experience a pleasant one After
all satisfied and happy employees look forward to report to work regularly and absent
themselves only for genuine reasons
Thus this research project explores my abilities and strength to its fullest extent
for the achievement of my personal goal
3
ACKNOWLEDGEMENT
I would like to express my appreciation and gratitude to various persons who
have shared their valuable time and made this research project possible through
their direct and indirect cooperation
My heartful thanks to Mr Wasi Ahmad Khan General Manager-1 of Punjab National
Bank Gorakhpur for giving information to carry on the project
I would like to acknowledge with great pleasure my deep sense of
gratitude to my supervisor Namita Gupta Lecturer Institute of Technology amp
Management GIDA Gorakhpur for her supervision and valuable guidance I am also
grateful to Prof SN Chaturvedi Head Dept of Business Administration Institute of
Technology amp Management GIDA Gorakhpur for his constant encouragement and
guidance
I am highly thankful to my parents for motivation and support throughout the period of
my study in the institute
Date AREEBA NISAR
MBA (IV Sem)
ITM GIDA
4
From - Prof SN Chaturvedi
Head
Dept Business Administration
CERTIFICATE
It is hereby certified that MsAreeba Nisar a student of MBA IV Semester has
completed the Research Project Report titled ldquoABSENTEEISM IN PUNJAB
NATIONAL BANKrdquo in pursuant to requirements for the award of the degree of
MBA of UPTU Lucknow To the best of my knowledge and belief it is her
original work
Date (Prof SN Chaturvedi)
5
CERTIFICATE
This is to certify that MsAreeba Nisar has completed the Research Project Report titled
ldquoABSENTEEISM IN PUNJAB NATIONAL BANKrdquo in the partial fulfilment of the
requirements for the award of the degree of Master of Business Administration under my
guidance To the best of my knowledge and belief it is her original work
Date Project Supervisor
Namita Gupta
Lecturer
Dept of Business Administration
6
DECLARATION
I hereby declare that this project report is based on the research work done by me This is
my original work and no part thereof has been submitted anywhere else for any other
academic purpose
Date
(AREEBA NISAR)
7
TABLE OF CONTENTS
CONTENTS PAGE NO
1 Preface i
2 Acknowledgement ii
3 Certificate by HOD iii
4 Certificate by Faculty iv
5 Declaration by Student v
CHAPTER-1 1-6
11 Introduction
12 Objectives of the Study
13 Research Methodology
14 Limitations of the Study
CHAPTER-2 COMPANY-PROFILE 7-17
8
21 Introduction of the Company
22 History of the company
23 Organizational Structure of the Company
24 Review of performance
25 Awards and Achievements
CHAPTER-3 18-52
31 Concept of Credit Appraisal
32 Stages of Credit Appraisal
33 Process of Credit Appraisal
34 Credit Policy
35 Credit Delivery
36 Statutary Restrictions on loans and advances
37 Selective Credit Control
38 Credit Risk Management
39 Credit Risk Rating
310 Data Analysis amp Interpretation
9
CHAPTER-4 53-58
41 Findings
42 Conclusion
43 Suggestions amp Recommendations
6 Bibliography x-xi
7 Annexure xii-xv
- Questionnaire
10
11 INTRODUCTION
12 OBJECTIVES OF THE STUDY
13 RESEARCH METHODOLOGY
14 LIMITATIONS OF STUDY
11
11 INTRODUCTION
Absenteeism in Indian organization is not a new phenomenon The Royal Commission on
Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to
rural orientationrdquo
Absenteeism is one of the common factor which affects the growth of the organization
When the absenteeism control programmes are introduced to the absentees continues to
reduce the corporate profit severely
If the person employed is absent for few days then the management has to take severe
action regarding this problem So management has to go for recruitment of suitable
employees
Substitute workers and such workers are to be well trained because of this management
are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which
we can measure the employeersquos job interest and their commitment to work Apart from
this employeersquos attitude about job can be known since it affects productivity to a large
extent
12
12 OBJECTIVES OF STUDY
The overall objectives of this project report are ndash
To find out level of absenteeism among employees in the organization
To identify the rate of absenteeism of employees
To identify the various causes of absenteeism
To suggest remedial measures to control absenteeism rate
13
13 RESEARCH METHODOLOGY
Research in a common parlance refers to search for knowledge It is a careful
investigation or inquiry especially through search for new facts in any branch of
knowledge
Research methodology is a way to systematically solve the research problem It may be
understood as a science of studying how research is done scientifically
Research Design
A research design is the arrangement of condition for collection of data and analysis of
data in a manner that aims to combine relevance to the research purposes with economy
in procedure In this study descriptive research design has been used
Sample Selection amp Size
The population of absentees comprises of current year The sample size of the study is 50
ie sample of 50 employees were used as a baseline of conducting research programme
Data Collection amp Statistical Tool
The sources of data for the purpose of study were both primary and secondary Primary
was collected through questionnaire Questionnaire (enclosed in Annexure) mainly
contain closed-ended questions Great care was taken in preparation of questionnaire so
14
that reliable data can be obtained Secondary data was collected from the records of the
department of the organization
Percentage method is used for analysis of data and bar graph is used to represent that
data
15
14 LIMITATIONS OF THE STUDY
There are some limitations of the study which are as follows-
Respondent were reluctant were suspicious in responding to the questions
Accuracy is another problem as data from sample may not reveal the fact
The respondentrsquos opinion can be biased
There may be error due to the bias of the respondents
They donrsquot tell truth because of job insecurity
16
17
21 PROFILE OF THE COMPANY
22 HISTORY OF THE COMPANY
23ORGANIZATIONAL STRUCTURE
24REVIEW OF PERFORMANCE
25 AWARDS AND ACHIEVEMENTS
PUNJAB NATIONAL BANK
21 INTRODUCTION
Punjab National Bank (PNB) was registered on May 19 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest
government-owned commercial bank in India with about 4904 branches across 764
cities It serves over 37 million customers The bank has been ranked 248th biggest bank
in the world by Bankers Almanac London The banks total assets for financial year 2007
were about US$60 billion PNB has a banking subsidiary in the UK as well as branches
in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and
Shanghai
PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices PNB has continued to retain
its leadership position amongst the nationalized banks The bank enjoys strong
fundamentals large franchise value and good brand image Besides being ranked as one
of Indias top service brands PNB has remained fully committed to its guiding principles
of sound and prudent banking Apart from offering banking products the bank has also
entered the credit card amp debit card business bullion business life and non-life insurance
18
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
PREFACE
There is a famous saying ldquoThe theory without practical is lame and practical
without theory is blindrdquo
Absenteeism is a serious workplace problem and an expensive occurrence for
both employers and employees seemingly unpredictable in nature The term
absenteeism refers to the failure to attend to work It is one of the major problems faced
by companies across the globe today Unscheduled absenteeism badly hurts the progress
of an organization resulting in loss of productivity increased costs in hiring additional
staff and low morale among the workers It is high time that employers address this
problem on a priority basis
Employees can be absent for a variety of reasons including sickness lethargic attitude
family emergencies too much workload and stress monotonous work or a general
dissatisfaction with the job A sales professional cites some other reasons like workplace
politics long commute strained relationship with the immediate supervisor and lack of
belongingness towards the organization as reasons for being absent from work Whatever
be the reason absenteeism is not at all a healthy practice and steps should be taken to
manage it effectively
2
Innocent absenteeism refers to being absent for those reasons that are beyond the control
of the employees like accidents or illnesses Under such circumstances the employees
should not be blamed for not turning up at work Culpable absenteeism on the other hand
is when employees absent themselves at a time when they are fully capable to attend
office This type of no shows should always be discouraged for it can become a burden to
the organization in the long run
Absenteeism is a vital issue that requires immediate attention by both employers and
employees Employees should enjoy the work they are doing and employers on their part
should help them in whatever way they can to make their experience a pleasant one After
all satisfied and happy employees look forward to report to work regularly and absent
themselves only for genuine reasons
Thus this research project explores my abilities and strength to its fullest extent
for the achievement of my personal goal
3
ACKNOWLEDGEMENT
I would like to express my appreciation and gratitude to various persons who
have shared their valuable time and made this research project possible through
their direct and indirect cooperation
My heartful thanks to Mr Wasi Ahmad Khan General Manager-1 of Punjab National
Bank Gorakhpur for giving information to carry on the project
I would like to acknowledge with great pleasure my deep sense of
gratitude to my supervisor Namita Gupta Lecturer Institute of Technology amp
Management GIDA Gorakhpur for her supervision and valuable guidance I am also
grateful to Prof SN Chaturvedi Head Dept of Business Administration Institute of
Technology amp Management GIDA Gorakhpur for his constant encouragement and
guidance
I am highly thankful to my parents for motivation and support throughout the period of
my study in the institute
Date AREEBA NISAR
MBA (IV Sem)
ITM GIDA
4
From - Prof SN Chaturvedi
Head
Dept Business Administration
CERTIFICATE
It is hereby certified that MsAreeba Nisar a student of MBA IV Semester has
completed the Research Project Report titled ldquoABSENTEEISM IN PUNJAB
NATIONAL BANKrdquo in pursuant to requirements for the award of the degree of
MBA of UPTU Lucknow To the best of my knowledge and belief it is her
original work
Date (Prof SN Chaturvedi)
5
CERTIFICATE
This is to certify that MsAreeba Nisar has completed the Research Project Report titled
ldquoABSENTEEISM IN PUNJAB NATIONAL BANKrdquo in the partial fulfilment of the
requirements for the award of the degree of Master of Business Administration under my
guidance To the best of my knowledge and belief it is her original work
Date Project Supervisor
Namita Gupta
Lecturer
Dept of Business Administration
6
DECLARATION
I hereby declare that this project report is based on the research work done by me This is
my original work and no part thereof has been submitted anywhere else for any other
academic purpose
Date
(AREEBA NISAR)
7
TABLE OF CONTENTS
CONTENTS PAGE NO
1 Preface i
2 Acknowledgement ii
3 Certificate by HOD iii
4 Certificate by Faculty iv
5 Declaration by Student v
CHAPTER-1 1-6
11 Introduction
12 Objectives of the Study
13 Research Methodology
14 Limitations of the Study
CHAPTER-2 COMPANY-PROFILE 7-17
8
21 Introduction of the Company
22 History of the company
23 Organizational Structure of the Company
24 Review of performance
25 Awards and Achievements
CHAPTER-3 18-52
31 Concept of Credit Appraisal
32 Stages of Credit Appraisal
33 Process of Credit Appraisal
34 Credit Policy
35 Credit Delivery
36 Statutary Restrictions on loans and advances
37 Selective Credit Control
38 Credit Risk Management
39 Credit Risk Rating
310 Data Analysis amp Interpretation
9
CHAPTER-4 53-58
41 Findings
42 Conclusion
43 Suggestions amp Recommendations
6 Bibliography x-xi
7 Annexure xii-xv
- Questionnaire
10
11 INTRODUCTION
12 OBJECTIVES OF THE STUDY
13 RESEARCH METHODOLOGY
14 LIMITATIONS OF STUDY
11
11 INTRODUCTION
Absenteeism in Indian organization is not a new phenomenon The Royal Commission on
Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to
rural orientationrdquo
Absenteeism is one of the common factor which affects the growth of the organization
When the absenteeism control programmes are introduced to the absentees continues to
reduce the corporate profit severely
If the person employed is absent for few days then the management has to take severe
action regarding this problem So management has to go for recruitment of suitable
employees
Substitute workers and such workers are to be well trained because of this management
are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which
we can measure the employeersquos job interest and their commitment to work Apart from
this employeersquos attitude about job can be known since it affects productivity to a large
extent
12
12 OBJECTIVES OF STUDY
The overall objectives of this project report are ndash
To find out level of absenteeism among employees in the organization
To identify the rate of absenteeism of employees
To identify the various causes of absenteeism
To suggest remedial measures to control absenteeism rate
13
13 RESEARCH METHODOLOGY
Research in a common parlance refers to search for knowledge It is a careful
investigation or inquiry especially through search for new facts in any branch of
knowledge
Research methodology is a way to systematically solve the research problem It may be
understood as a science of studying how research is done scientifically
Research Design
A research design is the arrangement of condition for collection of data and analysis of
data in a manner that aims to combine relevance to the research purposes with economy
in procedure In this study descriptive research design has been used
Sample Selection amp Size
The population of absentees comprises of current year The sample size of the study is 50
ie sample of 50 employees were used as a baseline of conducting research programme
Data Collection amp Statistical Tool
The sources of data for the purpose of study were both primary and secondary Primary
was collected through questionnaire Questionnaire (enclosed in Annexure) mainly
contain closed-ended questions Great care was taken in preparation of questionnaire so
14
that reliable data can be obtained Secondary data was collected from the records of the
department of the organization
Percentage method is used for analysis of data and bar graph is used to represent that
data
15
14 LIMITATIONS OF THE STUDY
There are some limitations of the study which are as follows-
Respondent were reluctant were suspicious in responding to the questions
Accuracy is another problem as data from sample may not reveal the fact
The respondentrsquos opinion can be biased
There may be error due to the bias of the respondents
They donrsquot tell truth because of job insecurity
16
17
21 PROFILE OF THE COMPANY
22 HISTORY OF THE COMPANY
23ORGANIZATIONAL STRUCTURE
24REVIEW OF PERFORMANCE
25 AWARDS AND ACHIEVEMENTS
PUNJAB NATIONAL BANK
21 INTRODUCTION
Punjab National Bank (PNB) was registered on May 19 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest
government-owned commercial bank in India with about 4904 branches across 764
cities It serves over 37 million customers The bank has been ranked 248th biggest bank
in the world by Bankers Almanac London The banks total assets for financial year 2007
were about US$60 billion PNB has a banking subsidiary in the UK as well as branches
in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and
Shanghai
PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices PNB has continued to retain
its leadership position amongst the nationalized banks The bank enjoys strong
fundamentals large franchise value and good brand image Besides being ranked as one
of Indias top service brands PNB has remained fully committed to its guiding principles
of sound and prudent banking Apart from offering banking products the bank has also
entered the credit card amp debit card business bullion business life and non-life insurance
18
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
Innocent absenteeism refers to being absent for those reasons that are beyond the control
of the employees like accidents or illnesses Under such circumstances the employees
should not be blamed for not turning up at work Culpable absenteeism on the other hand
is when employees absent themselves at a time when they are fully capable to attend
office This type of no shows should always be discouraged for it can become a burden to
the organization in the long run
Absenteeism is a vital issue that requires immediate attention by both employers and
employees Employees should enjoy the work they are doing and employers on their part
should help them in whatever way they can to make their experience a pleasant one After
all satisfied and happy employees look forward to report to work regularly and absent
themselves only for genuine reasons
Thus this research project explores my abilities and strength to its fullest extent
for the achievement of my personal goal
3
ACKNOWLEDGEMENT
I would like to express my appreciation and gratitude to various persons who
have shared their valuable time and made this research project possible through
their direct and indirect cooperation
My heartful thanks to Mr Wasi Ahmad Khan General Manager-1 of Punjab National
Bank Gorakhpur for giving information to carry on the project
I would like to acknowledge with great pleasure my deep sense of
gratitude to my supervisor Namita Gupta Lecturer Institute of Technology amp
Management GIDA Gorakhpur for her supervision and valuable guidance I am also
grateful to Prof SN Chaturvedi Head Dept of Business Administration Institute of
Technology amp Management GIDA Gorakhpur for his constant encouragement and
guidance
I am highly thankful to my parents for motivation and support throughout the period of
my study in the institute
Date AREEBA NISAR
MBA (IV Sem)
ITM GIDA
4
From - Prof SN Chaturvedi
Head
Dept Business Administration
CERTIFICATE
It is hereby certified that MsAreeba Nisar a student of MBA IV Semester has
completed the Research Project Report titled ldquoABSENTEEISM IN PUNJAB
NATIONAL BANKrdquo in pursuant to requirements for the award of the degree of
MBA of UPTU Lucknow To the best of my knowledge and belief it is her
original work
Date (Prof SN Chaturvedi)
5
CERTIFICATE
This is to certify that MsAreeba Nisar has completed the Research Project Report titled
ldquoABSENTEEISM IN PUNJAB NATIONAL BANKrdquo in the partial fulfilment of the
requirements for the award of the degree of Master of Business Administration under my
guidance To the best of my knowledge and belief it is her original work
Date Project Supervisor
Namita Gupta
Lecturer
Dept of Business Administration
6
DECLARATION
I hereby declare that this project report is based on the research work done by me This is
my original work and no part thereof has been submitted anywhere else for any other
academic purpose
Date
(AREEBA NISAR)
7
TABLE OF CONTENTS
CONTENTS PAGE NO
1 Preface i
2 Acknowledgement ii
3 Certificate by HOD iii
4 Certificate by Faculty iv
5 Declaration by Student v
CHAPTER-1 1-6
11 Introduction
12 Objectives of the Study
13 Research Methodology
14 Limitations of the Study
CHAPTER-2 COMPANY-PROFILE 7-17
8
21 Introduction of the Company
22 History of the company
23 Organizational Structure of the Company
24 Review of performance
25 Awards and Achievements
CHAPTER-3 18-52
31 Concept of Credit Appraisal
32 Stages of Credit Appraisal
33 Process of Credit Appraisal
34 Credit Policy
35 Credit Delivery
36 Statutary Restrictions on loans and advances
37 Selective Credit Control
38 Credit Risk Management
39 Credit Risk Rating
310 Data Analysis amp Interpretation
9
CHAPTER-4 53-58
41 Findings
42 Conclusion
43 Suggestions amp Recommendations
6 Bibliography x-xi
7 Annexure xii-xv
- Questionnaire
10
11 INTRODUCTION
12 OBJECTIVES OF THE STUDY
13 RESEARCH METHODOLOGY
14 LIMITATIONS OF STUDY
11
11 INTRODUCTION
Absenteeism in Indian organization is not a new phenomenon The Royal Commission on
Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to
rural orientationrdquo
Absenteeism is one of the common factor which affects the growth of the organization
When the absenteeism control programmes are introduced to the absentees continues to
reduce the corporate profit severely
If the person employed is absent for few days then the management has to take severe
action regarding this problem So management has to go for recruitment of suitable
employees
Substitute workers and such workers are to be well trained because of this management
are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which
we can measure the employeersquos job interest and their commitment to work Apart from
this employeersquos attitude about job can be known since it affects productivity to a large
extent
12
12 OBJECTIVES OF STUDY
The overall objectives of this project report are ndash
To find out level of absenteeism among employees in the organization
To identify the rate of absenteeism of employees
To identify the various causes of absenteeism
To suggest remedial measures to control absenteeism rate
13
13 RESEARCH METHODOLOGY
Research in a common parlance refers to search for knowledge It is a careful
investigation or inquiry especially through search for new facts in any branch of
knowledge
Research methodology is a way to systematically solve the research problem It may be
understood as a science of studying how research is done scientifically
Research Design
A research design is the arrangement of condition for collection of data and analysis of
data in a manner that aims to combine relevance to the research purposes with economy
in procedure In this study descriptive research design has been used
Sample Selection amp Size
The population of absentees comprises of current year The sample size of the study is 50
ie sample of 50 employees were used as a baseline of conducting research programme
Data Collection amp Statistical Tool
The sources of data for the purpose of study were both primary and secondary Primary
was collected through questionnaire Questionnaire (enclosed in Annexure) mainly
contain closed-ended questions Great care was taken in preparation of questionnaire so
14
that reliable data can be obtained Secondary data was collected from the records of the
department of the organization
Percentage method is used for analysis of data and bar graph is used to represent that
data
15
14 LIMITATIONS OF THE STUDY
There are some limitations of the study which are as follows-
Respondent were reluctant were suspicious in responding to the questions
Accuracy is another problem as data from sample may not reveal the fact
The respondentrsquos opinion can be biased
There may be error due to the bias of the respondents
They donrsquot tell truth because of job insecurity
16
17
21 PROFILE OF THE COMPANY
22 HISTORY OF THE COMPANY
23ORGANIZATIONAL STRUCTURE
24REVIEW OF PERFORMANCE
25 AWARDS AND ACHIEVEMENTS
PUNJAB NATIONAL BANK
21 INTRODUCTION
Punjab National Bank (PNB) was registered on May 19 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest
government-owned commercial bank in India with about 4904 branches across 764
cities It serves over 37 million customers The bank has been ranked 248th biggest bank
in the world by Bankers Almanac London The banks total assets for financial year 2007
were about US$60 billion PNB has a banking subsidiary in the UK as well as branches
in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and
Shanghai
PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices PNB has continued to retain
its leadership position amongst the nationalized banks The bank enjoys strong
fundamentals large franchise value and good brand image Besides being ranked as one
of Indias top service brands PNB has remained fully committed to its guiding principles
of sound and prudent banking Apart from offering banking products the bank has also
entered the credit card amp debit card business bullion business life and non-life insurance
18
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
ACKNOWLEDGEMENT
I would like to express my appreciation and gratitude to various persons who
have shared their valuable time and made this research project possible through
their direct and indirect cooperation
My heartful thanks to Mr Wasi Ahmad Khan General Manager-1 of Punjab National
Bank Gorakhpur for giving information to carry on the project
I would like to acknowledge with great pleasure my deep sense of
gratitude to my supervisor Namita Gupta Lecturer Institute of Technology amp
Management GIDA Gorakhpur for her supervision and valuable guidance I am also
grateful to Prof SN Chaturvedi Head Dept of Business Administration Institute of
Technology amp Management GIDA Gorakhpur for his constant encouragement and
guidance
I am highly thankful to my parents for motivation and support throughout the period of
my study in the institute
Date AREEBA NISAR
MBA (IV Sem)
ITM GIDA
4
From - Prof SN Chaturvedi
Head
Dept Business Administration
CERTIFICATE
It is hereby certified that MsAreeba Nisar a student of MBA IV Semester has
completed the Research Project Report titled ldquoABSENTEEISM IN PUNJAB
NATIONAL BANKrdquo in pursuant to requirements for the award of the degree of
MBA of UPTU Lucknow To the best of my knowledge and belief it is her
original work
Date (Prof SN Chaturvedi)
5
CERTIFICATE
This is to certify that MsAreeba Nisar has completed the Research Project Report titled
ldquoABSENTEEISM IN PUNJAB NATIONAL BANKrdquo in the partial fulfilment of the
requirements for the award of the degree of Master of Business Administration under my
guidance To the best of my knowledge and belief it is her original work
Date Project Supervisor
Namita Gupta
Lecturer
Dept of Business Administration
6
DECLARATION
I hereby declare that this project report is based on the research work done by me This is
my original work and no part thereof has been submitted anywhere else for any other
academic purpose
Date
(AREEBA NISAR)
7
TABLE OF CONTENTS
CONTENTS PAGE NO
1 Preface i
2 Acknowledgement ii
3 Certificate by HOD iii
4 Certificate by Faculty iv
5 Declaration by Student v
CHAPTER-1 1-6
11 Introduction
12 Objectives of the Study
13 Research Methodology
14 Limitations of the Study
CHAPTER-2 COMPANY-PROFILE 7-17
8
21 Introduction of the Company
22 History of the company
23 Organizational Structure of the Company
24 Review of performance
25 Awards and Achievements
CHAPTER-3 18-52
31 Concept of Credit Appraisal
32 Stages of Credit Appraisal
33 Process of Credit Appraisal
34 Credit Policy
35 Credit Delivery
36 Statutary Restrictions on loans and advances
37 Selective Credit Control
38 Credit Risk Management
39 Credit Risk Rating
310 Data Analysis amp Interpretation
9
CHAPTER-4 53-58
41 Findings
42 Conclusion
43 Suggestions amp Recommendations
6 Bibliography x-xi
7 Annexure xii-xv
- Questionnaire
10
11 INTRODUCTION
12 OBJECTIVES OF THE STUDY
13 RESEARCH METHODOLOGY
14 LIMITATIONS OF STUDY
11
11 INTRODUCTION
Absenteeism in Indian organization is not a new phenomenon The Royal Commission on
Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to
rural orientationrdquo
Absenteeism is one of the common factor which affects the growth of the organization
When the absenteeism control programmes are introduced to the absentees continues to
reduce the corporate profit severely
If the person employed is absent for few days then the management has to take severe
action regarding this problem So management has to go for recruitment of suitable
employees
Substitute workers and such workers are to be well trained because of this management
are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which
we can measure the employeersquos job interest and their commitment to work Apart from
this employeersquos attitude about job can be known since it affects productivity to a large
extent
12
12 OBJECTIVES OF STUDY
The overall objectives of this project report are ndash
To find out level of absenteeism among employees in the organization
To identify the rate of absenteeism of employees
To identify the various causes of absenteeism
To suggest remedial measures to control absenteeism rate
13
13 RESEARCH METHODOLOGY
Research in a common parlance refers to search for knowledge It is a careful
investigation or inquiry especially through search for new facts in any branch of
knowledge
Research methodology is a way to systematically solve the research problem It may be
understood as a science of studying how research is done scientifically
Research Design
A research design is the arrangement of condition for collection of data and analysis of
data in a manner that aims to combine relevance to the research purposes with economy
in procedure In this study descriptive research design has been used
Sample Selection amp Size
The population of absentees comprises of current year The sample size of the study is 50
ie sample of 50 employees were used as a baseline of conducting research programme
Data Collection amp Statistical Tool
The sources of data for the purpose of study were both primary and secondary Primary
was collected through questionnaire Questionnaire (enclosed in Annexure) mainly
contain closed-ended questions Great care was taken in preparation of questionnaire so
14
that reliable data can be obtained Secondary data was collected from the records of the
department of the organization
Percentage method is used for analysis of data and bar graph is used to represent that
data
15
14 LIMITATIONS OF THE STUDY
There are some limitations of the study which are as follows-
Respondent were reluctant were suspicious in responding to the questions
Accuracy is another problem as data from sample may not reveal the fact
The respondentrsquos opinion can be biased
There may be error due to the bias of the respondents
They donrsquot tell truth because of job insecurity
16
17
21 PROFILE OF THE COMPANY
22 HISTORY OF THE COMPANY
23ORGANIZATIONAL STRUCTURE
24REVIEW OF PERFORMANCE
25 AWARDS AND ACHIEVEMENTS
PUNJAB NATIONAL BANK
21 INTRODUCTION
Punjab National Bank (PNB) was registered on May 19 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest
government-owned commercial bank in India with about 4904 branches across 764
cities It serves over 37 million customers The bank has been ranked 248th biggest bank
in the world by Bankers Almanac London The banks total assets for financial year 2007
were about US$60 billion PNB has a banking subsidiary in the UK as well as branches
in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and
Shanghai
PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices PNB has continued to retain
its leadership position amongst the nationalized banks The bank enjoys strong
fundamentals large franchise value and good brand image Besides being ranked as one
of Indias top service brands PNB has remained fully committed to its guiding principles
of sound and prudent banking Apart from offering banking products the bank has also
entered the credit card amp debit card business bullion business life and non-life insurance
18
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
From - Prof SN Chaturvedi
Head
Dept Business Administration
CERTIFICATE
It is hereby certified that MsAreeba Nisar a student of MBA IV Semester has
completed the Research Project Report titled ldquoABSENTEEISM IN PUNJAB
NATIONAL BANKrdquo in pursuant to requirements for the award of the degree of
MBA of UPTU Lucknow To the best of my knowledge and belief it is her
original work
Date (Prof SN Chaturvedi)
5
CERTIFICATE
This is to certify that MsAreeba Nisar has completed the Research Project Report titled
ldquoABSENTEEISM IN PUNJAB NATIONAL BANKrdquo in the partial fulfilment of the
requirements for the award of the degree of Master of Business Administration under my
guidance To the best of my knowledge and belief it is her original work
Date Project Supervisor
Namita Gupta
Lecturer
Dept of Business Administration
6
DECLARATION
I hereby declare that this project report is based on the research work done by me This is
my original work and no part thereof has been submitted anywhere else for any other
academic purpose
Date
(AREEBA NISAR)
7
TABLE OF CONTENTS
CONTENTS PAGE NO
1 Preface i
2 Acknowledgement ii
3 Certificate by HOD iii
4 Certificate by Faculty iv
5 Declaration by Student v
CHAPTER-1 1-6
11 Introduction
12 Objectives of the Study
13 Research Methodology
14 Limitations of the Study
CHAPTER-2 COMPANY-PROFILE 7-17
8
21 Introduction of the Company
22 History of the company
23 Organizational Structure of the Company
24 Review of performance
25 Awards and Achievements
CHAPTER-3 18-52
31 Concept of Credit Appraisal
32 Stages of Credit Appraisal
33 Process of Credit Appraisal
34 Credit Policy
35 Credit Delivery
36 Statutary Restrictions on loans and advances
37 Selective Credit Control
38 Credit Risk Management
39 Credit Risk Rating
310 Data Analysis amp Interpretation
9
CHAPTER-4 53-58
41 Findings
42 Conclusion
43 Suggestions amp Recommendations
6 Bibliography x-xi
7 Annexure xii-xv
- Questionnaire
10
11 INTRODUCTION
12 OBJECTIVES OF THE STUDY
13 RESEARCH METHODOLOGY
14 LIMITATIONS OF STUDY
11
11 INTRODUCTION
Absenteeism in Indian organization is not a new phenomenon The Royal Commission on
Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to
rural orientationrdquo
Absenteeism is one of the common factor which affects the growth of the organization
When the absenteeism control programmes are introduced to the absentees continues to
reduce the corporate profit severely
If the person employed is absent for few days then the management has to take severe
action regarding this problem So management has to go for recruitment of suitable
employees
Substitute workers and such workers are to be well trained because of this management
are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which
we can measure the employeersquos job interest and their commitment to work Apart from
this employeersquos attitude about job can be known since it affects productivity to a large
extent
12
12 OBJECTIVES OF STUDY
The overall objectives of this project report are ndash
To find out level of absenteeism among employees in the organization
To identify the rate of absenteeism of employees
To identify the various causes of absenteeism
To suggest remedial measures to control absenteeism rate
13
13 RESEARCH METHODOLOGY
Research in a common parlance refers to search for knowledge It is a careful
investigation or inquiry especially through search for new facts in any branch of
knowledge
Research methodology is a way to systematically solve the research problem It may be
understood as a science of studying how research is done scientifically
Research Design
A research design is the arrangement of condition for collection of data and analysis of
data in a manner that aims to combine relevance to the research purposes with economy
in procedure In this study descriptive research design has been used
Sample Selection amp Size
The population of absentees comprises of current year The sample size of the study is 50
ie sample of 50 employees were used as a baseline of conducting research programme
Data Collection amp Statistical Tool
The sources of data for the purpose of study were both primary and secondary Primary
was collected through questionnaire Questionnaire (enclosed in Annexure) mainly
contain closed-ended questions Great care was taken in preparation of questionnaire so
14
that reliable data can be obtained Secondary data was collected from the records of the
department of the organization
Percentage method is used for analysis of data and bar graph is used to represent that
data
15
14 LIMITATIONS OF THE STUDY
There are some limitations of the study which are as follows-
Respondent were reluctant were suspicious in responding to the questions
Accuracy is another problem as data from sample may not reveal the fact
The respondentrsquos opinion can be biased
There may be error due to the bias of the respondents
They donrsquot tell truth because of job insecurity
16
17
21 PROFILE OF THE COMPANY
22 HISTORY OF THE COMPANY
23ORGANIZATIONAL STRUCTURE
24REVIEW OF PERFORMANCE
25 AWARDS AND ACHIEVEMENTS
PUNJAB NATIONAL BANK
21 INTRODUCTION
Punjab National Bank (PNB) was registered on May 19 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest
government-owned commercial bank in India with about 4904 branches across 764
cities It serves over 37 million customers The bank has been ranked 248th biggest bank
in the world by Bankers Almanac London The banks total assets for financial year 2007
were about US$60 billion PNB has a banking subsidiary in the UK as well as branches
in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and
Shanghai
PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices PNB has continued to retain
its leadership position amongst the nationalized banks The bank enjoys strong
fundamentals large franchise value and good brand image Besides being ranked as one
of Indias top service brands PNB has remained fully committed to its guiding principles
of sound and prudent banking Apart from offering banking products the bank has also
entered the credit card amp debit card business bullion business life and non-life insurance
18
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
CERTIFICATE
This is to certify that MsAreeba Nisar has completed the Research Project Report titled
ldquoABSENTEEISM IN PUNJAB NATIONAL BANKrdquo in the partial fulfilment of the
requirements for the award of the degree of Master of Business Administration under my
guidance To the best of my knowledge and belief it is her original work
Date Project Supervisor
Namita Gupta
Lecturer
Dept of Business Administration
6
DECLARATION
I hereby declare that this project report is based on the research work done by me This is
my original work and no part thereof has been submitted anywhere else for any other
academic purpose
Date
(AREEBA NISAR)
7
TABLE OF CONTENTS
CONTENTS PAGE NO
1 Preface i
2 Acknowledgement ii
3 Certificate by HOD iii
4 Certificate by Faculty iv
5 Declaration by Student v
CHAPTER-1 1-6
11 Introduction
12 Objectives of the Study
13 Research Methodology
14 Limitations of the Study
CHAPTER-2 COMPANY-PROFILE 7-17
8
21 Introduction of the Company
22 History of the company
23 Organizational Structure of the Company
24 Review of performance
25 Awards and Achievements
CHAPTER-3 18-52
31 Concept of Credit Appraisal
32 Stages of Credit Appraisal
33 Process of Credit Appraisal
34 Credit Policy
35 Credit Delivery
36 Statutary Restrictions on loans and advances
37 Selective Credit Control
38 Credit Risk Management
39 Credit Risk Rating
310 Data Analysis amp Interpretation
9
CHAPTER-4 53-58
41 Findings
42 Conclusion
43 Suggestions amp Recommendations
6 Bibliography x-xi
7 Annexure xii-xv
- Questionnaire
10
11 INTRODUCTION
12 OBJECTIVES OF THE STUDY
13 RESEARCH METHODOLOGY
14 LIMITATIONS OF STUDY
11
11 INTRODUCTION
Absenteeism in Indian organization is not a new phenomenon The Royal Commission on
Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to
rural orientationrdquo
Absenteeism is one of the common factor which affects the growth of the organization
When the absenteeism control programmes are introduced to the absentees continues to
reduce the corporate profit severely
If the person employed is absent for few days then the management has to take severe
action regarding this problem So management has to go for recruitment of suitable
employees
Substitute workers and such workers are to be well trained because of this management
are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which
we can measure the employeersquos job interest and their commitment to work Apart from
this employeersquos attitude about job can be known since it affects productivity to a large
extent
12
12 OBJECTIVES OF STUDY
The overall objectives of this project report are ndash
To find out level of absenteeism among employees in the organization
To identify the rate of absenteeism of employees
To identify the various causes of absenteeism
To suggest remedial measures to control absenteeism rate
13
13 RESEARCH METHODOLOGY
Research in a common parlance refers to search for knowledge It is a careful
investigation or inquiry especially through search for new facts in any branch of
knowledge
Research methodology is a way to systematically solve the research problem It may be
understood as a science of studying how research is done scientifically
Research Design
A research design is the arrangement of condition for collection of data and analysis of
data in a manner that aims to combine relevance to the research purposes with economy
in procedure In this study descriptive research design has been used
Sample Selection amp Size
The population of absentees comprises of current year The sample size of the study is 50
ie sample of 50 employees were used as a baseline of conducting research programme
Data Collection amp Statistical Tool
The sources of data for the purpose of study were both primary and secondary Primary
was collected through questionnaire Questionnaire (enclosed in Annexure) mainly
contain closed-ended questions Great care was taken in preparation of questionnaire so
14
that reliable data can be obtained Secondary data was collected from the records of the
department of the organization
Percentage method is used for analysis of data and bar graph is used to represent that
data
15
14 LIMITATIONS OF THE STUDY
There are some limitations of the study which are as follows-
Respondent were reluctant were suspicious in responding to the questions
Accuracy is another problem as data from sample may not reveal the fact
The respondentrsquos opinion can be biased
There may be error due to the bias of the respondents
They donrsquot tell truth because of job insecurity
16
17
21 PROFILE OF THE COMPANY
22 HISTORY OF THE COMPANY
23ORGANIZATIONAL STRUCTURE
24REVIEW OF PERFORMANCE
25 AWARDS AND ACHIEVEMENTS
PUNJAB NATIONAL BANK
21 INTRODUCTION
Punjab National Bank (PNB) was registered on May 19 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest
government-owned commercial bank in India with about 4904 branches across 764
cities It serves over 37 million customers The bank has been ranked 248th biggest bank
in the world by Bankers Almanac London The banks total assets for financial year 2007
were about US$60 billion PNB has a banking subsidiary in the UK as well as branches
in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and
Shanghai
PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices PNB has continued to retain
its leadership position amongst the nationalized banks The bank enjoys strong
fundamentals large franchise value and good brand image Besides being ranked as one
of Indias top service brands PNB has remained fully committed to its guiding principles
of sound and prudent banking Apart from offering banking products the bank has also
entered the credit card amp debit card business bullion business life and non-life insurance
18
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
DECLARATION
I hereby declare that this project report is based on the research work done by me This is
my original work and no part thereof has been submitted anywhere else for any other
academic purpose
Date
(AREEBA NISAR)
7
TABLE OF CONTENTS
CONTENTS PAGE NO
1 Preface i
2 Acknowledgement ii
3 Certificate by HOD iii
4 Certificate by Faculty iv
5 Declaration by Student v
CHAPTER-1 1-6
11 Introduction
12 Objectives of the Study
13 Research Methodology
14 Limitations of the Study
CHAPTER-2 COMPANY-PROFILE 7-17
8
21 Introduction of the Company
22 History of the company
23 Organizational Structure of the Company
24 Review of performance
25 Awards and Achievements
CHAPTER-3 18-52
31 Concept of Credit Appraisal
32 Stages of Credit Appraisal
33 Process of Credit Appraisal
34 Credit Policy
35 Credit Delivery
36 Statutary Restrictions on loans and advances
37 Selective Credit Control
38 Credit Risk Management
39 Credit Risk Rating
310 Data Analysis amp Interpretation
9
CHAPTER-4 53-58
41 Findings
42 Conclusion
43 Suggestions amp Recommendations
6 Bibliography x-xi
7 Annexure xii-xv
- Questionnaire
10
11 INTRODUCTION
12 OBJECTIVES OF THE STUDY
13 RESEARCH METHODOLOGY
14 LIMITATIONS OF STUDY
11
11 INTRODUCTION
Absenteeism in Indian organization is not a new phenomenon The Royal Commission on
Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to
rural orientationrdquo
Absenteeism is one of the common factor which affects the growth of the organization
When the absenteeism control programmes are introduced to the absentees continues to
reduce the corporate profit severely
If the person employed is absent for few days then the management has to take severe
action regarding this problem So management has to go for recruitment of suitable
employees
Substitute workers and such workers are to be well trained because of this management
are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which
we can measure the employeersquos job interest and their commitment to work Apart from
this employeersquos attitude about job can be known since it affects productivity to a large
extent
12
12 OBJECTIVES OF STUDY
The overall objectives of this project report are ndash
To find out level of absenteeism among employees in the organization
To identify the rate of absenteeism of employees
To identify the various causes of absenteeism
To suggest remedial measures to control absenteeism rate
13
13 RESEARCH METHODOLOGY
Research in a common parlance refers to search for knowledge It is a careful
investigation or inquiry especially through search for new facts in any branch of
knowledge
Research methodology is a way to systematically solve the research problem It may be
understood as a science of studying how research is done scientifically
Research Design
A research design is the arrangement of condition for collection of data and analysis of
data in a manner that aims to combine relevance to the research purposes with economy
in procedure In this study descriptive research design has been used
Sample Selection amp Size
The population of absentees comprises of current year The sample size of the study is 50
ie sample of 50 employees were used as a baseline of conducting research programme
Data Collection amp Statistical Tool
The sources of data for the purpose of study were both primary and secondary Primary
was collected through questionnaire Questionnaire (enclosed in Annexure) mainly
contain closed-ended questions Great care was taken in preparation of questionnaire so
14
that reliable data can be obtained Secondary data was collected from the records of the
department of the organization
Percentage method is used for analysis of data and bar graph is used to represent that
data
15
14 LIMITATIONS OF THE STUDY
There are some limitations of the study which are as follows-
Respondent were reluctant were suspicious in responding to the questions
Accuracy is another problem as data from sample may not reveal the fact
The respondentrsquos opinion can be biased
There may be error due to the bias of the respondents
They donrsquot tell truth because of job insecurity
16
17
21 PROFILE OF THE COMPANY
22 HISTORY OF THE COMPANY
23ORGANIZATIONAL STRUCTURE
24REVIEW OF PERFORMANCE
25 AWARDS AND ACHIEVEMENTS
PUNJAB NATIONAL BANK
21 INTRODUCTION
Punjab National Bank (PNB) was registered on May 19 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest
government-owned commercial bank in India with about 4904 branches across 764
cities It serves over 37 million customers The bank has been ranked 248th biggest bank
in the world by Bankers Almanac London The banks total assets for financial year 2007
were about US$60 billion PNB has a banking subsidiary in the UK as well as branches
in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and
Shanghai
PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices PNB has continued to retain
its leadership position amongst the nationalized banks The bank enjoys strong
fundamentals large franchise value and good brand image Besides being ranked as one
of Indias top service brands PNB has remained fully committed to its guiding principles
of sound and prudent banking Apart from offering banking products the bank has also
entered the credit card amp debit card business bullion business life and non-life insurance
18
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
TABLE OF CONTENTS
CONTENTS PAGE NO
1 Preface i
2 Acknowledgement ii
3 Certificate by HOD iii
4 Certificate by Faculty iv
5 Declaration by Student v
CHAPTER-1 1-6
11 Introduction
12 Objectives of the Study
13 Research Methodology
14 Limitations of the Study
CHAPTER-2 COMPANY-PROFILE 7-17
8
21 Introduction of the Company
22 History of the company
23 Organizational Structure of the Company
24 Review of performance
25 Awards and Achievements
CHAPTER-3 18-52
31 Concept of Credit Appraisal
32 Stages of Credit Appraisal
33 Process of Credit Appraisal
34 Credit Policy
35 Credit Delivery
36 Statutary Restrictions on loans and advances
37 Selective Credit Control
38 Credit Risk Management
39 Credit Risk Rating
310 Data Analysis amp Interpretation
9
CHAPTER-4 53-58
41 Findings
42 Conclusion
43 Suggestions amp Recommendations
6 Bibliography x-xi
7 Annexure xii-xv
- Questionnaire
10
11 INTRODUCTION
12 OBJECTIVES OF THE STUDY
13 RESEARCH METHODOLOGY
14 LIMITATIONS OF STUDY
11
11 INTRODUCTION
Absenteeism in Indian organization is not a new phenomenon The Royal Commission on
Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to
rural orientationrdquo
Absenteeism is one of the common factor which affects the growth of the organization
When the absenteeism control programmes are introduced to the absentees continues to
reduce the corporate profit severely
If the person employed is absent for few days then the management has to take severe
action regarding this problem So management has to go for recruitment of suitable
employees
Substitute workers and such workers are to be well trained because of this management
are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which
we can measure the employeersquos job interest and their commitment to work Apart from
this employeersquos attitude about job can be known since it affects productivity to a large
extent
12
12 OBJECTIVES OF STUDY
The overall objectives of this project report are ndash
To find out level of absenteeism among employees in the organization
To identify the rate of absenteeism of employees
To identify the various causes of absenteeism
To suggest remedial measures to control absenteeism rate
13
13 RESEARCH METHODOLOGY
Research in a common parlance refers to search for knowledge It is a careful
investigation or inquiry especially through search for new facts in any branch of
knowledge
Research methodology is a way to systematically solve the research problem It may be
understood as a science of studying how research is done scientifically
Research Design
A research design is the arrangement of condition for collection of data and analysis of
data in a manner that aims to combine relevance to the research purposes with economy
in procedure In this study descriptive research design has been used
Sample Selection amp Size
The population of absentees comprises of current year The sample size of the study is 50
ie sample of 50 employees were used as a baseline of conducting research programme
Data Collection amp Statistical Tool
The sources of data for the purpose of study were both primary and secondary Primary
was collected through questionnaire Questionnaire (enclosed in Annexure) mainly
contain closed-ended questions Great care was taken in preparation of questionnaire so
14
that reliable data can be obtained Secondary data was collected from the records of the
department of the organization
Percentage method is used for analysis of data and bar graph is used to represent that
data
15
14 LIMITATIONS OF THE STUDY
There are some limitations of the study which are as follows-
Respondent were reluctant were suspicious in responding to the questions
Accuracy is another problem as data from sample may not reveal the fact
The respondentrsquos opinion can be biased
There may be error due to the bias of the respondents
They donrsquot tell truth because of job insecurity
16
17
21 PROFILE OF THE COMPANY
22 HISTORY OF THE COMPANY
23ORGANIZATIONAL STRUCTURE
24REVIEW OF PERFORMANCE
25 AWARDS AND ACHIEVEMENTS
PUNJAB NATIONAL BANK
21 INTRODUCTION
Punjab National Bank (PNB) was registered on May 19 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest
government-owned commercial bank in India with about 4904 branches across 764
cities It serves over 37 million customers The bank has been ranked 248th biggest bank
in the world by Bankers Almanac London The banks total assets for financial year 2007
were about US$60 billion PNB has a banking subsidiary in the UK as well as branches
in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and
Shanghai
PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices PNB has continued to retain
its leadership position amongst the nationalized banks The bank enjoys strong
fundamentals large franchise value and good brand image Besides being ranked as one
of Indias top service brands PNB has remained fully committed to its guiding principles
of sound and prudent banking Apart from offering banking products the bank has also
entered the credit card amp debit card business bullion business life and non-life insurance
18
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
21 Introduction of the Company
22 History of the company
23 Organizational Structure of the Company
24 Review of performance
25 Awards and Achievements
CHAPTER-3 18-52
31 Concept of Credit Appraisal
32 Stages of Credit Appraisal
33 Process of Credit Appraisal
34 Credit Policy
35 Credit Delivery
36 Statutary Restrictions on loans and advances
37 Selective Credit Control
38 Credit Risk Management
39 Credit Risk Rating
310 Data Analysis amp Interpretation
9
CHAPTER-4 53-58
41 Findings
42 Conclusion
43 Suggestions amp Recommendations
6 Bibliography x-xi
7 Annexure xii-xv
- Questionnaire
10
11 INTRODUCTION
12 OBJECTIVES OF THE STUDY
13 RESEARCH METHODOLOGY
14 LIMITATIONS OF STUDY
11
11 INTRODUCTION
Absenteeism in Indian organization is not a new phenomenon The Royal Commission on
Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to
rural orientationrdquo
Absenteeism is one of the common factor which affects the growth of the organization
When the absenteeism control programmes are introduced to the absentees continues to
reduce the corporate profit severely
If the person employed is absent for few days then the management has to take severe
action regarding this problem So management has to go for recruitment of suitable
employees
Substitute workers and such workers are to be well trained because of this management
are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which
we can measure the employeersquos job interest and their commitment to work Apart from
this employeersquos attitude about job can be known since it affects productivity to a large
extent
12
12 OBJECTIVES OF STUDY
The overall objectives of this project report are ndash
To find out level of absenteeism among employees in the organization
To identify the rate of absenteeism of employees
To identify the various causes of absenteeism
To suggest remedial measures to control absenteeism rate
13
13 RESEARCH METHODOLOGY
Research in a common parlance refers to search for knowledge It is a careful
investigation or inquiry especially through search for new facts in any branch of
knowledge
Research methodology is a way to systematically solve the research problem It may be
understood as a science of studying how research is done scientifically
Research Design
A research design is the arrangement of condition for collection of data and analysis of
data in a manner that aims to combine relevance to the research purposes with economy
in procedure In this study descriptive research design has been used
Sample Selection amp Size
The population of absentees comprises of current year The sample size of the study is 50
ie sample of 50 employees were used as a baseline of conducting research programme
Data Collection amp Statistical Tool
The sources of data for the purpose of study were both primary and secondary Primary
was collected through questionnaire Questionnaire (enclosed in Annexure) mainly
contain closed-ended questions Great care was taken in preparation of questionnaire so
14
that reliable data can be obtained Secondary data was collected from the records of the
department of the organization
Percentage method is used for analysis of data and bar graph is used to represent that
data
15
14 LIMITATIONS OF THE STUDY
There are some limitations of the study which are as follows-
Respondent were reluctant were suspicious in responding to the questions
Accuracy is another problem as data from sample may not reveal the fact
The respondentrsquos opinion can be biased
There may be error due to the bias of the respondents
They donrsquot tell truth because of job insecurity
16
17
21 PROFILE OF THE COMPANY
22 HISTORY OF THE COMPANY
23ORGANIZATIONAL STRUCTURE
24REVIEW OF PERFORMANCE
25 AWARDS AND ACHIEVEMENTS
PUNJAB NATIONAL BANK
21 INTRODUCTION
Punjab National Bank (PNB) was registered on May 19 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest
government-owned commercial bank in India with about 4904 branches across 764
cities It serves over 37 million customers The bank has been ranked 248th biggest bank
in the world by Bankers Almanac London The banks total assets for financial year 2007
were about US$60 billion PNB has a banking subsidiary in the UK as well as branches
in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and
Shanghai
PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices PNB has continued to retain
its leadership position amongst the nationalized banks The bank enjoys strong
fundamentals large franchise value and good brand image Besides being ranked as one
of Indias top service brands PNB has remained fully committed to its guiding principles
of sound and prudent banking Apart from offering banking products the bank has also
entered the credit card amp debit card business bullion business life and non-life insurance
18
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
CHAPTER-4 53-58
41 Findings
42 Conclusion
43 Suggestions amp Recommendations
6 Bibliography x-xi
7 Annexure xii-xv
- Questionnaire
10
11 INTRODUCTION
12 OBJECTIVES OF THE STUDY
13 RESEARCH METHODOLOGY
14 LIMITATIONS OF STUDY
11
11 INTRODUCTION
Absenteeism in Indian organization is not a new phenomenon The Royal Commission on
Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to
rural orientationrdquo
Absenteeism is one of the common factor which affects the growth of the organization
When the absenteeism control programmes are introduced to the absentees continues to
reduce the corporate profit severely
If the person employed is absent for few days then the management has to take severe
action regarding this problem So management has to go for recruitment of suitable
employees
Substitute workers and such workers are to be well trained because of this management
are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which
we can measure the employeersquos job interest and their commitment to work Apart from
this employeersquos attitude about job can be known since it affects productivity to a large
extent
12
12 OBJECTIVES OF STUDY
The overall objectives of this project report are ndash
To find out level of absenteeism among employees in the organization
To identify the rate of absenteeism of employees
To identify the various causes of absenteeism
To suggest remedial measures to control absenteeism rate
13
13 RESEARCH METHODOLOGY
Research in a common parlance refers to search for knowledge It is a careful
investigation or inquiry especially through search for new facts in any branch of
knowledge
Research methodology is a way to systematically solve the research problem It may be
understood as a science of studying how research is done scientifically
Research Design
A research design is the arrangement of condition for collection of data and analysis of
data in a manner that aims to combine relevance to the research purposes with economy
in procedure In this study descriptive research design has been used
Sample Selection amp Size
The population of absentees comprises of current year The sample size of the study is 50
ie sample of 50 employees were used as a baseline of conducting research programme
Data Collection amp Statistical Tool
The sources of data for the purpose of study were both primary and secondary Primary
was collected through questionnaire Questionnaire (enclosed in Annexure) mainly
contain closed-ended questions Great care was taken in preparation of questionnaire so
14
that reliable data can be obtained Secondary data was collected from the records of the
department of the organization
Percentage method is used for analysis of data and bar graph is used to represent that
data
15
14 LIMITATIONS OF THE STUDY
There are some limitations of the study which are as follows-
Respondent were reluctant were suspicious in responding to the questions
Accuracy is another problem as data from sample may not reveal the fact
The respondentrsquos opinion can be biased
There may be error due to the bias of the respondents
They donrsquot tell truth because of job insecurity
16
17
21 PROFILE OF THE COMPANY
22 HISTORY OF THE COMPANY
23ORGANIZATIONAL STRUCTURE
24REVIEW OF PERFORMANCE
25 AWARDS AND ACHIEVEMENTS
PUNJAB NATIONAL BANK
21 INTRODUCTION
Punjab National Bank (PNB) was registered on May 19 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest
government-owned commercial bank in India with about 4904 branches across 764
cities It serves over 37 million customers The bank has been ranked 248th biggest bank
in the world by Bankers Almanac London The banks total assets for financial year 2007
were about US$60 billion PNB has a banking subsidiary in the UK as well as branches
in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and
Shanghai
PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices PNB has continued to retain
its leadership position amongst the nationalized banks The bank enjoys strong
fundamentals large franchise value and good brand image Besides being ranked as one
of Indias top service brands PNB has remained fully committed to its guiding principles
of sound and prudent banking Apart from offering banking products the bank has also
entered the credit card amp debit card business bullion business life and non-life insurance
18
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
11 INTRODUCTION
12 OBJECTIVES OF THE STUDY
13 RESEARCH METHODOLOGY
14 LIMITATIONS OF STUDY
11
11 INTRODUCTION
Absenteeism in Indian organization is not a new phenomenon The Royal Commission on
Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to
rural orientationrdquo
Absenteeism is one of the common factor which affects the growth of the organization
When the absenteeism control programmes are introduced to the absentees continues to
reduce the corporate profit severely
If the person employed is absent for few days then the management has to take severe
action regarding this problem So management has to go for recruitment of suitable
employees
Substitute workers and such workers are to be well trained because of this management
are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which
we can measure the employeersquos job interest and their commitment to work Apart from
this employeersquos attitude about job can be known since it affects productivity to a large
extent
12
12 OBJECTIVES OF STUDY
The overall objectives of this project report are ndash
To find out level of absenteeism among employees in the organization
To identify the rate of absenteeism of employees
To identify the various causes of absenteeism
To suggest remedial measures to control absenteeism rate
13
13 RESEARCH METHODOLOGY
Research in a common parlance refers to search for knowledge It is a careful
investigation or inquiry especially through search for new facts in any branch of
knowledge
Research methodology is a way to systematically solve the research problem It may be
understood as a science of studying how research is done scientifically
Research Design
A research design is the arrangement of condition for collection of data and analysis of
data in a manner that aims to combine relevance to the research purposes with economy
in procedure In this study descriptive research design has been used
Sample Selection amp Size
The population of absentees comprises of current year The sample size of the study is 50
ie sample of 50 employees were used as a baseline of conducting research programme
Data Collection amp Statistical Tool
The sources of data for the purpose of study were both primary and secondary Primary
was collected through questionnaire Questionnaire (enclosed in Annexure) mainly
contain closed-ended questions Great care was taken in preparation of questionnaire so
14
that reliable data can be obtained Secondary data was collected from the records of the
department of the organization
Percentage method is used for analysis of data and bar graph is used to represent that
data
15
14 LIMITATIONS OF THE STUDY
There are some limitations of the study which are as follows-
Respondent were reluctant were suspicious in responding to the questions
Accuracy is another problem as data from sample may not reveal the fact
The respondentrsquos opinion can be biased
There may be error due to the bias of the respondents
They donrsquot tell truth because of job insecurity
16
17
21 PROFILE OF THE COMPANY
22 HISTORY OF THE COMPANY
23ORGANIZATIONAL STRUCTURE
24REVIEW OF PERFORMANCE
25 AWARDS AND ACHIEVEMENTS
PUNJAB NATIONAL BANK
21 INTRODUCTION
Punjab National Bank (PNB) was registered on May 19 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest
government-owned commercial bank in India with about 4904 branches across 764
cities It serves over 37 million customers The bank has been ranked 248th biggest bank
in the world by Bankers Almanac London The banks total assets for financial year 2007
were about US$60 billion PNB has a banking subsidiary in the UK as well as branches
in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and
Shanghai
PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices PNB has continued to retain
its leadership position amongst the nationalized banks The bank enjoys strong
fundamentals large franchise value and good brand image Besides being ranked as one
of Indias top service brands PNB has remained fully committed to its guiding principles
of sound and prudent banking Apart from offering banking products the bank has also
entered the credit card amp debit card business bullion business life and non-life insurance
18
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
11 INTRODUCTION
Absenteeism in Indian organization is not a new phenomenon The Royal Commission on
Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to
rural orientationrdquo
Absenteeism is one of the common factor which affects the growth of the organization
When the absenteeism control programmes are introduced to the absentees continues to
reduce the corporate profit severely
If the person employed is absent for few days then the management has to take severe
action regarding this problem So management has to go for recruitment of suitable
employees
Substitute workers and such workers are to be well trained because of this management
are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which
we can measure the employeersquos job interest and their commitment to work Apart from
this employeersquos attitude about job can be known since it affects productivity to a large
extent
12
12 OBJECTIVES OF STUDY
The overall objectives of this project report are ndash
To find out level of absenteeism among employees in the organization
To identify the rate of absenteeism of employees
To identify the various causes of absenteeism
To suggest remedial measures to control absenteeism rate
13
13 RESEARCH METHODOLOGY
Research in a common parlance refers to search for knowledge It is a careful
investigation or inquiry especially through search for new facts in any branch of
knowledge
Research methodology is a way to systematically solve the research problem It may be
understood as a science of studying how research is done scientifically
Research Design
A research design is the arrangement of condition for collection of data and analysis of
data in a manner that aims to combine relevance to the research purposes with economy
in procedure In this study descriptive research design has been used
Sample Selection amp Size
The population of absentees comprises of current year The sample size of the study is 50
ie sample of 50 employees were used as a baseline of conducting research programme
Data Collection amp Statistical Tool
The sources of data for the purpose of study were both primary and secondary Primary
was collected through questionnaire Questionnaire (enclosed in Annexure) mainly
contain closed-ended questions Great care was taken in preparation of questionnaire so
14
that reliable data can be obtained Secondary data was collected from the records of the
department of the organization
Percentage method is used for analysis of data and bar graph is used to represent that
data
15
14 LIMITATIONS OF THE STUDY
There are some limitations of the study which are as follows-
Respondent were reluctant were suspicious in responding to the questions
Accuracy is another problem as data from sample may not reveal the fact
The respondentrsquos opinion can be biased
There may be error due to the bias of the respondents
They donrsquot tell truth because of job insecurity
16
17
21 PROFILE OF THE COMPANY
22 HISTORY OF THE COMPANY
23ORGANIZATIONAL STRUCTURE
24REVIEW OF PERFORMANCE
25 AWARDS AND ACHIEVEMENTS
PUNJAB NATIONAL BANK
21 INTRODUCTION
Punjab National Bank (PNB) was registered on May 19 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest
government-owned commercial bank in India with about 4904 branches across 764
cities It serves over 37 million customers The bank has been ranked 248th biggest bank
in the world by Bankers Almanac London The banks total assets for financial year 2007
were about US$60 billion PNB has a banking subsidiary in the UK as well as branches
in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and
Shanghai
PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices PNB has continued to retain
its leadership position amongst the nationalized banks The bank enjoys strong
fundamentals large franchise value and good brand image Besides being ranked as one
of Indias top service brands PNB has remained fully committed to its guiding principles
of sound and prudent banking Apart from offering banking products the bank has also
entered the credit card amp debit card business bullion business life and non-life insurance
18
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
12 OBJECTIVES OF STUDY
The overall objectives of this project report are ndash
To find out level of absenteeism among employees in the organization
To identify the rate of absenteeism of employees
To identify the various causes of absenteeism
To suggest remedial measures to control absenteeism rate
13
13 RESEARCH METHODOLOGY
Research in a common parlance refers to search for knowledge It is a careful
investigation or inquiry especially through search for new facts in any branch of
knowledge
Research methodology is a way to systematically solve the research problem It may be
understood as a science of studying how research is done scientifically
Research Design
A research design is the arrangement of condition for collection of data and analysis of
data in a manner that aims to combine relevance to the research purposes with economy
in procedure In this study descriptive research design has been used
Sample Selection amp Size
The population of absentees comprises of current year The sample size of the study is 50
ie sample of 50 employees were used as a baseline of conducting research programme
Data Collection amp Statistical Tool
The sources of data for the purpose of study were both primary and secondary Primary
was collected through questionnaire Questionnaire (enclosed in Annexure) mainly
contain closed-ended questions Great care was taken in preparation of questionnaire so
14
that reliable data can be obtained Secondary data was collected from the records of the
department of the organization
Percentage method is used for analysis of data and bar graph is used to represent that
data
15
14 LIMITATIONS OF THE STUDY
There are some limitations of the study which are as follows-
Respondent were reluctant were suspicious in responding to the questions
Accuracy is another problem as data from sample may not reveal the fact
The respondentrsquos opinion can be biased
There may be error due to the bias of the respondents
They donrsquot tell truth because of job insecurity
16
17
21 PROFILE OF THE COMPANY
22 HISTORY OF THE COMPANY
23ORGANIZATIONAL STRUCTURE
24REVIEW OF PERFORMANCE
25 AWARDS AND ACHIEVEMENTS
PUNJAB NATIONAL BANK
21 INTRODUCTION
Punjab National Bank (PNB) was registered on May 19 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest
government-owned commercial bank in India with about 4904 branches across 764
cities It serves over 37 million customers The bank has been ranked 248th biggest bank
in the world by Bankers Almanac London The banks total assets for financial year 2007
were about US$60 billion PNB has a banking subsidiary in the UK as well as branches
in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and
Shanghai
PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices PNB has continued to retain
its leadership position amongst the nationalized banks The bank enjoys strong
fundamentals large franchise value and good brand image Besides being ranked as one
of Indias top service brands PNB has remained fully committed to its guiding principles
of sound and prudent banking Apart from offering banking products the bank has also
entered the credit card amp debit card business bullion business life and non-life insurance
18
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
13 RESEARCH METHODOLOGY
Research in a common parlance refers to search for knowledge It is a careful
investigation or inquiry especially through search for new facts in any branch of
knowledge
Research methodology is a way to systematically solve the research problem It may be
understood as a science of studying how research is done scientifically
Research Design
A research design is the arrangement of condition for collection of data and analysis of
data in a manner that aims to combine relevance to the research purposes with economy
in procedure In this study descriptive research design has been used
Sample Selection amp Size
The population of absentees comprises of current year The sample size of the study is 50
ie sample of 50 employees were used as a baseline of conducting research programme
Data Collection amp Statistical Tool
The sources of data for the purpose of study were both primary and secondary Primary
was collected through questionnaire Questionnaire (enclosed in Annexure) mainly
contain closed-ended questions Great care was taken in preparation of questionnaire so
14
that reliable data can be obtained Secondary data was collected from the records of the
department of the organization
Percentage method is used for analysis of data and bar graph is used to represent that
data
15
14 LIMITATIONS OF THE STUDY
There are some limitations of the study which are as follows-
Respondent were reluctant were suspicious in responding to the questions
Accuracy is another problem as data from sample may not reveal the fact
The respondentrsquos opinion can be biased
There may be error due to the bias of the respondents
They donrsquot tell truth because of job insecurity
16
17
21 PROFILE OF THE COMPANY
22 HISTORY OF THE COMPANY
23ORGANIZATIONAL STRUCTURE
24REVIEW OF PERFORMANCE
25 AWARDS AND ACHIEVEMENTS
PUNJAB NATIONAL BANK
21 INTRODUCTION
Punjab National Bank (PNB) was registered on May 19 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest
government-owned commercial bank in India with about 4904 branches across 764
cities It serves over 37 million customers The bank has been ranked 248th biggest bank
in the world by Bankers Almanac London The banks total assets for financial year 2007
were about US$60 billion PNB has a banking subsidiary in the UK as well as branches
in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and
Shanghai
PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices PNB has continued to retain
its leadership position amongst the nationalized banks The bank enjoys strong
fundamentals large franchise value and good brand image Besides being ranked as one
of Indias top service brands PNB has remained fully committed to its guiding principles
of sound and prudent banking Apart from offering banking products the bank has also
entered the credit card amp debit card business bullion business life and non-life insurance
18
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
that reliable data can be obtained Secondary data was collected from the records of the
department of the organization
Percentage method is used for analysis of data and bar graph is used to represent that
data
15
14 LIMITATIONS OF THE STUDY
There are some limitations of the study which are as follows-
Respondent were reluctant were suspicious in responding to the questions
Accuracy is another problem as data from sample may not reveal the fact
The respondentrsquos opinion can be biased
There may be error due to the bias of the respondents
They donrsquot tell truth because of job insecurity
16
17
21 PROFILE OF THE COMPANY
22 HISTORY OF THE COMPANY
23ORGANIZATIONAL STRUCTURE
24REVIEW OF PERFORMANCE
25 AWARDS AND ACHIEVEMENTS
PUNJAB NATIONAL BANK
21 INTRODUCTION
Punjab National Bank (PNB) was registered on May 19 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest
government-owned commercial bank in India with about 4904 branches across 764
cities It serves over 37 million customers The bank has been ranked 248th biggest bank
in the world by Bankers Almanac London The banks total assets for financial year 2007
were about US$60 billion PNB has a banking subsidiary in the UK as well as branches
in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and
Shanghai
PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices PNB has continued to retain
its leadership position amongst the nationalized banks The bank enjoys strong
fundamentals large franchise value and good brand image Besides being ranked as one
of Indias top service brands PNB has remained fully committed to its guiding principles
of sound and prudent banking Apart from offering banking products the bank has also
entered the credit card amp debit card business bullion business life and non-life insurance
18
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
14 LIMITATIONS OF THE STUDY
There are some limitations of the study which are as follows-
Respondent were reluctant were suspicious in responding to the questions
Accuracy is another problem as data from sample may not reveal the fact
The respondentrsquos opinion can be biased
There may be error due to the bias of the respondents
They donrsquot tell truth because of job insecurity
16
17
21 PROFILE OF THE COMPANY
22 HISTORY OF THE COMPANY
23ORGANIZATIONAL STRUCTURE
24REVIEW OF PERFORMANCE
25 AWARDS AND ACHIEVEMENTS
PUNJAB NATIONAL BANK
21 INTRODUCTION
Punjab National Bank (PNB) was registered on May 19 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest
government-owned commercial bank in India with about 4904 branches across 764
cities It serves over 37 million customers The bank has been ranked 248th biggest bank
in the world by Bankers Almanac London The banks total assets for financial year 2007
were about US$60 billion PNB has a banking subsidiary in the UK as well as branches
in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and
Shanghai
PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices PNB has continued to retain
its leadership position amongst the nationalized banks The bank enjoys strong
fundamentals large franchise value and good brand image Besides being ranked as one
of Indias top service brands PNB has remained fully committed to its guiding principles
of sound and prudent banking Apart from offering banking products the bank has also
entered the credit card amp debit card business bullion business life and non-life insurance
18
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
17
21 PROFILE OF THE COMPANY
22 HISTORY OF THE COMPANY
23ORGANIZATIONAL STRUCTURE
24REVIEW OF PERFORMANCE
25 AWARDS AND ACHIEVEMENTS
PUNJAB NATIONAL BANK
21 INTRODUCTION
Punjab National Bank (PNB) was registered on May 19 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest
government-owned commercial bank in India with about 4904 branches across 764
cities It serves over 37 million customers The bank has been ranked 248th biggest bank
in the world by Bankers Almanac London The banks total assets for financial year 2007
were about US$60 billion PNB has a banking subsidiary in the UK as well as branches
in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and
Shanghai
PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices PNB has continued to retain
its leadership position amongst the nationalized banks The bank enjoys strong
fundamentals large franchise value and good brand image Besides being ranked as one
of Indias top service brands PNB has remained fully committed to its guiding principles
of sound and prudent banking Apart from offering banking products the bank has also
entered the credit card amp debit card business bullion business life and non-life insurance
18
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
PUNJAB NATIONAL BANK
21 INTRODUCTION
Punjab National Bank (PNB) was registered on May 19 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest
government-owned commercial bank in India with about 4904 branches across 764
cities It serves over 37 million customers The bank has been ranked 248th biggest bank
in the world by Bankers Almanac London The banks total assets for financial year 2007
were about US$60 billion PNB has a banking subsidiary in the UK as well as branches
in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and
Shanghai
PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices PNB has continued to retain
its leadership position amongst the nationalized banks The bank enjoys strong
fundamentals large franchise value and good brand image Besides being ranked as one
of Indias top service brands PNB has remained fully committed to its guiding principles
of sound and prudent banking Apart from offering banking products the bank has also
entered the credit card amp debit card business bullion business life and non-life insurance
18
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
business Gold coins amp asset management business etc
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital PNB has achieved significant growth in business
which at the end of March 2010 amounted to Rs 435931 crore Today with assets of
more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after
SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including
5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the
bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital
adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio
at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA
ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority
Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted
Net Bank Credit at 197 was also higher than the stipulated requirement of 40
amp18
The Bank has maintained its stake holderrsquos interest by posting an improved NIM of
357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The
Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per
share improved to Rs 51477 (Rs 41674 Marrsquo09)
Punjab National Bank continues to maintain its frontline position in the Indian banking
industry In particular the bank has retained its NUMBER ONE position among the
nationalized banks in terms of number of branches Deposit Advances total Business
Assets Operating and Net profit in the year 2009-10 The impressive operational and
financial performance has been brought about by Bankrsquos focus on customer based
19
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
business with thrust on CASA deposits Retail SME amp Agri Advances and with more
inclusive approach to banking better asset liability management improved margin
management thrust on recovery and increased efficiency in core operations of the Bank
The performance highlights of the bank in terms of business and profit are shown below
Rs in Crore
Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at
ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are
under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business
and providing lsquoAnytime Anywherersquo banking facility to all customers including customers
of more than 3000 rural amp semi urban branches The bank has also been offering Internet
banking services to the customers of CBS branches like booking of tickets payment of
bills of utilities purchase of airline tickets etc Towards developing a cost effective
alternative channels of delivery the bank with more than 350 ATMs has the largest ATM
network amongst Nationalized Banks
With the help of advanced technology the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned With its policy of inclusive
growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The
Bank has launched a drive for biometric smart card based technology enabled Financial
Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as
20
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
to reach out to the last mile customer The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction
workers etc Under Branchless Banking model the Bank is implementing 40 projects in
16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch
points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach
Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh
beneficiaries
Backed by strong domestic performance the bank is planning to realize its global
aspirations Bank continues its selective foray in international markets with presence in 9
countries with branches at Kabul and Dubai Hong Kong amp representative offices at
Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture
with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in
Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway
and is in the process of setting up a representative office in Sydney Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan
Bank has been a recipient of many awards and accolades during the year-
bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance
2009 by Standing Conference of Public Enterprises
bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is
identified as the best bank among the nationalized banks in terms of overall ranking
bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in
Delhi and Chennai in terms of customer satisfaction
bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized
21
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
banks with a global ranking of 695 substantial improvement over last yearrsquos placement at
946th position
bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of
2010
bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in
Bulandshahr District Uttar Pradesh
bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights
22
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
22 HISTORY
1895 PNB commenced its operations in Lahore PNB has the distinction of
being the first Indian bank to have been started solely with Indian capital that
has survived to the present (The first entirely Indian bank the Oudh
Commercial Bank was established in 1881 in Faizabad but failed in 1958)
PNBs founders included several leaders of the Swadeshi movement such as
Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali
Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram
and Lala Dholan Dass Lala Lajpat Rai was actively associated with the
management of the Bank in its early years
1904 PNB established branches in Karachi and Peshawar
1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi
circle
1947 Partition of India and Pakistan at Independence PNB lost its premises
in Lahore but continued to operate in Pakistan
1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank
became Bharat Nidhi Ltd
1961 PNB acquired Universal Bank of India
23
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
1963 The Government of Burma nationalized PNBs branch in Rangoon
(Yangon)
September 1965 After the Indo-Pak war the government of Pakistan seized
all the offices in Pakistan of Indian banks including PNBs head office which
may have moved to Karachi PNB also had one or more branches in East
Pakistan (Bangladesh)
1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue
1969 The Government of India (GOI) nationalized PNB and 13 other major
commercial banks on July 19 1969
1976 or 1978 PNB opened a branch in London
1986 The Reserve Bank of India required PNB to transfer its London branch
to State Bank of India after the branch was involved in a fraud scandal
1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The
acquisition added Hindustans 142 branches to PNBs network
1993 PNB acquired New Bank of India which the GOI had nationalized in
1980
1998 PNB set up a representative office in Almaty Kazakhstan
2003 PNB took over Nedungadi Bank the oldest private sector bank in
Kerala At the time of the merger with PNB Nedungadi Banks shares had
zero value with the result that its shareholders received no payment for their
shares PNB also opened a representative office in London
24
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
2004 PNB established a branch in Kabul Afghanistan PNB also opened a
representative office in Shanghai PNB established an alliance with Everest
Bank in Nepal that permits migrants to transfer funds easily between India and
Everest Banks 12 branches in Nepal
2005 PNB opened a representative office in Dubai
2007 PNB established PNBIL - Punjab National Bank (International) - in the
UK with two offices one in London and one in South Hall Since then it has
opened a third branch in Leicester and is planning a fourth in Birmingham
2008 PNB opened a branch in Hong Kong
2009 PNB opened a representative office in Oslo Norway and a second
branch in Hong Kong this in Kowloon
2010 PNB received permission to upgrade its representative office in the
Dubai International Financial Centre to a branch
VISION
ldquoTo be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Genetics Plains providing entire range of financial products
and services under one roofrdquo
MISSION
Banking for the unbanked
25
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
A need was felt to have a vision to stretch the bankrsquos potential with well defined
strategiesAccordinglythe honorable board of directors in the meeting held in Shimla
in May 2008proposed the concept of vision 2013 and set goals which were to be
achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the
country
PNB VISION 2013
QUANTITATIVE DIMENSIONS-
a Deposits to increase from Rs166457 Crore in March 2008 to
Rs582000 Crore in March 2013at an average growth of 32
b Advances to increase from Rs119502 Crore in March 2008 to
Rs418000 Crore in March 2013at an average growth of 28
c Total business to increase from Rs285959 Crore in March
2008 to Rs1000000 Crore in March 2013at an average
growth of 28
d Operating profit to increase from Rs4006 Crore in March
2008 to Rs15000 Crore in March 2013 with a CAGR of 302
e Net profit to increase from Rs2049 Crore in March 2008 to
Rs7500 Crore in March 2013at an average growth of 30
26
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
f The Return on Assets RoA to increase from 115 in March
2008 to 130 in March 2013 This ratio is comparable to the
RoA of the peer banks and is also better than all bankrsquos ratio
of 1 as on March 08
g The Return on Equity RoA to increase from 19 in March
2008 to 21 in March 2013
h 15 Crore in March 2013
i To have a rural coverage of 100000 villages in the Indo-
Gangetic Plains by March 2013
QUALITATIVE DIMENSIONS
1 A leader and front runner amongst nationalized banks
a In Financial inclusion
b In all domestic operations
c In adopting best risk management practices
d In adopting global best practices in Corporate Governance amp
Corporate Social Responsibility
e In HR policies to raise skills morale and productivity
27
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
2 To be Global Bank
a Among the top 3 Indian banks with global presence in Middle East
South East Asia China UK Australia Canada etc
b Bring best global practices to effectively compete with global players
in India
3 Become a universal bank
Provider of complete range of financial services
4 To be the most profitable Bank amongst nationalized banks
by focusing on
a Fee based incomeoff-balance sheet exposures
b Mid Cap segment Retail lending SME Advances amp Agriculture
c Reduction in Gross NPAs
d Expenditure Control
e Low cost deposits
f Ensuring higher spreads (return on advances minus cost of
depositsfunds)
5 Capitalize on IT initiatives
a Provide more value added services
28
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
b Expand reach of ATMs
c Bank Office Centralization of all CBS branches
d Provide IT advisory services to other banks
6 Explore options of in-organic growth
a Merger of PrivatePublic Sector Banks
7 Enlargement of customer base and retention of existing
customers
8 Ensure smooth transition to adopting Basel II norms ahead
of schedule
9 Develop robust Management Information System for better
decision making and policy prescription
10 Further entrench brand image of the bank
29
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
23 ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which
the branches function The delegation of powers is decentralized upto the branch level to
facilitate quick decision making Its organizational structure is shown below
Circle Offices (58)
Branches (4267)
Highlights of the performance for the quarter ended
June 2010
Profit
bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at
Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of
337
1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706
crore in Q1 FY11 from Rs121086 crore in Q1 FY10
Head Office
30
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to
Rs83205 crore in the corresponding quarter of previous year registering a YOY
growth of 284
1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach
Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10
Business
bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939
crore in June 2009 showing a y‐o‐y growth of 20
bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as
compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y
basis
bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10
recording a growth of 243
o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago
bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as
against Rs157979 crore as on 30062009
bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09
Income and Expenses
bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164
in interest income
31
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
o Net Interest Income rose by spectacular 454 on YoY basis to reach
Rs261857 crore in Q1 FY11
o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of
109 to touch Rs67415 crore
bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010
have registered a growth of 34 only from a year ago
1048766 While growth in Interest expenses was contained at a miniscule 08
Non‐Interest expenses growth was restricted to mere 102 during the first
quarter of 2010‐11 despite recent wage revision and provisions made for pension
fund
Important Ratios
bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10
bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10
bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70
bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010
from 324 in corresponding quarter of last year
bull Return on Assets improved to 138 in the quarter ended June 2010 as against
131 last year
bull Low increase in interest amp operating expenses and a satisfactory interest income
growth led to substantial reduction in Cost to Income Ratio to 3988 for the
32
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
quarter ended June 2010 as against 4459 last year
bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010
as against Rs10555 last year
1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as
on June 2009
bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870
Tier‐II
Capital 507)
bull Return on Equity improved to 2470 in the quarter ended June 2010 as against
2382 last year
Priority Sector
bull PS advances grew by more than 25 to reach Rs64452 crore
o Outstanding Agricultural advances grew by around 27 to cross Rs30000
crore
o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking
cumulative number of KCCs issued to 3342 lakh since inception
Small amp Medium Enterprise
bull Credit to MSME sector reached Rs37018 crore including retail trade advances of
Rs3905 crore at the end of June 2010 recording a YoY growth of 29
bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been
operationalised to provide single window services to SME borrowers
33
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE
amongst the member lending institutions of CGTMSE
bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at
Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral
free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and
800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME
clusters for cluster based lending approach taking total to 41 clusters
Retail Credit
bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to
Rs19410 crore at the end of June 2010
o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan
(39) and Housing loans (16)
Financial Inclusion
bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000
General Credit Cards
bull Implemented 39 ICT based projects in 16 states
bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow
Patna Shimla and Raipur
bull Bank has been allocated 4700 villages with population of over 2000 in the country
for providing Banking services PNB propose to cover these by 2012
34
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
International Forays
bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp
representative offices at Almaty Dubai Shanghai and Norway a wholly owned
subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan
bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged
branch and is in the process of setting up a representative office in Sydney Australia
and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada
IT Initiatives
bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit
cardholders
of the Bank transacting at more than 60000 ATMs of various Banks and at over 3
million POS terminals across the country
bull Bank has introduced Online Credit Proposal Tracking System in order to enable
customers online access to view the status of their loan applications
bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party
accounts in respect of Retail Internet Banking Users for protecting our valued
customers from online frauds amp phishing attacks
bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of
PNB
and endorsed by Master Card for the premium customers Bank is also planning to
35
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
launch Platinum Credit Cards shortly
bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing
SMS alert facility
CSR initiatives
bull A board approved CSR policy has been adopted by the Bank to take CSR agenda
forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this
a ldquoGreenrdquo drive has been implemented across the organization to conserve
energyoptimize resource and lower costs
bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by
financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)
bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been
trained till June 2010 at Bankrsquos cost including more than 51000 women
bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes
(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255
persons have been trained in these centres of which 5518 are women
bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation
Camps were arranged during Q1 FY11
bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers
in Bulandshahar District Uttar Pradesh with support of Mother Diary
36
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
AWARDS
Awards amp Achievements of Punjab National Bank in Recent Times
Best IT Team of the Year Award
at the IDRBT Banking Technology awards for the year 2005-06
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking amp Financial Services Industry - 2004
by NASSCOM in partnership with Economic Times
Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
37
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
Directors
FICCIs Rural Development Award
for Excellence in Rural Development - 2005
Skotch Challenger Award for Exemplary use of Technology
for becoming a pioneer in Public Banks - 2005
Golden Peacock National Training - 2004 amp 2005
by Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005
Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005
Jointly Adjudged by IBA Finacle amp TFCI
Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005
Niryat Bandhu Gold Trophy
for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
by the leading Financial Daily The Economic Times June 2005
9th amongst Indias Top 50 Most Trusted Service Brands
AC Nielson Survey The Economic Times Dec 2004
3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers Almanac January 2006
368 amongst Top 1000 Global Banks
The Banker London July 2005
Skoch Challenger Award for
Exemplary Use of Technolgy
Winner for becoming a pioneer in
public banks by Skoch consultancy
38
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
services pvt ltd Gurgaon 2005
FICCIs Rural Development
Award
Award for excellence in rural
development 2005
Amity Global Corporate
Excellence Award
Amity Business School Noida has
conferred the Award to PNB after an
in-depth research to analyse the
strengths and core competencies of the
Global 500 companies and banks
which have already made an indelible
most admired impression on the Indian
economy 2008
amp 2007 amp 2005
Banking Technology Awards
IBA Finacle amp TFCI jointly adjudged
PNB as runner up in Best IT Team of
the year Award 2005
PC Quest Usersrsquo Choice
Award
Best IT Implementation 2007
amp 2005
Symantec Visionary Award Information Security Impact 2005
Money Outlook Award
Money Outlok adjudged PNB as
runner up in Best Bank (Public
Sector) of the year Award 2005
Banking Technology Awards
IBA Finacle amp TFCI runner up Award
for Outstanding Achiever of the Year
(Individual) 2005
Golden Peacock Innovative
ProductService Award 2010 (for BCP implementation)
Golden Peacock Award for
Excellence in Corporate
Winner in the lsquoLarge Joint Entryrsquo2009
amp
39
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
Governance 2007 amp 2005
Skoch Challenger Award for
Change Management
For upliftment of Weaker sections of
society 2006
IDRBT Banking Technology
AwardsBest IT Team of the Year Award 2006
National Award For
Excellence in lending to Tiny
sector
First Prize by By Ministry of Small
Scale Industries2006
Skoch Challenger Award for
capacity building for FTC
initiative
Skoch Consultancy Services Pvt Ltd
2007
Computer Associates
Excellence AwardExcellence in EMS Roll Out 2007
CIO 100 AwardFor Best IT Implementation by IDG
Media Pvt Ltd2007 2008 amp 2009
National Award for Excellence
in Lending to Micro
Enterprises
For Lending to Micro enterprises 2007
Award for the use of
Technology for Financial
Inclusion
Institute for Development and
Research in Banking Technology
(IDRBT) Hyderabad 2008
Dun amp Bradstreet Award for
ldquoPriority Sector Lending
including Financial Inclusionrdquo
Dun amp Bradstreet 2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in NORTH
ZONE
Khadi amp Village Industry Commission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
40
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme)
2009
National Award for Excellence
in Lending for Institutional
Finance in Propagating KVI
Programmes in
NATIONAL LEVEL
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Interest Subsidy Eligibility Certificate
Scheme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
NORTH ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
National Award for Excellence
in Lending for Institutional
Finance for Propagating KVI
Programmes in
CENTRAL ZONE
Khadi amp Village IndustryCommission
Ministry of Micro Small amp Medium
Enterprises Govt of India
(Prime Minister Employment
Generation Programme) 2009
India Pride Award by dainik
Bhaskar and Daily News
analysis
Excellence in PSU 2009
Indira Gandhi Rajbhasha Promoting Hindi 2009
41
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
Shield
Emerson Uptime Champion
Awards 2009
ldquoBest InfoSphere Warehouse
Solutionrdquo Award by IBM 2009 (for implementation of Enterprise
Wide Data Warehouse)
CSR Excellence Award by
the Associated Chamber of
Commerce
2010
42
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
31 CONCEPT OF ABSENTEEISM
32 MEASUREMENT OF ABSENTEEISM RATE
33 TYPES OF CHRONIC ABSENTEES
34 TYPES OF ABSENTEEISM
35 CAUSE OF ABSENTEEISM
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS
37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM
38 THE BRADFORD FACTOR amp ABSENTEEISM
39 DATA ANALYSIS amp INTERPRETATION
ABSENTEEISM
31 CONCEPT OF ABSENTEEISM
43
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
It refers to workers absence from their regular task when he is normally schedule to work
According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an
absentee and an absentee is one who habitually stays away from workrdquo
According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost
because of absence as percentage of total number of man shifts scheduled to workrdquo
In other words it signifies the absence of employee from work when he is
scheduled to work Any employee may stay away from work if he has taken leave to he
entitled or on ground of some sickness or some accident or without any previous sanction
leave Thus absenteeism may be authorized or unauthorized willful or caused by
circumstances beyond onersquos control
May even worse than absenteeism it is obvious people such as malingerers and those
unwilling to pay their part in the work place can also have a decidedly negative impact
Such team members need individual attention from frontline supervisors and
management
Indeed as prevention is better than cure where such a problem occur it always important
to review the recruitment procedure to identify how such people are employed in first
place
For any business owner or manager to cure excessive absenteeism it is essential to find
and then eliminate the cause of discontent among team members
Any effective absentee control program has to locate cause of discontent or modify those
causes or eliminate them entirely Any investigation into absenteeism needs to look at
real reason for it
44
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
Sometime team member call in sick when they really do not want to go to work They
would not call you up and say ldquoIrsquom not coming today because my supervisor abuses
merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo
There are few essential questions to consider at the outlet if you want to make a
measurable improvement to your absenteeism figure
It has been observed that the phenomenon of absenteeism does not exist in Indian
industry It may differ according to the make ndash up of the work force Workers need
monetary benefits for his services
32 MEASUREMENT OF ABSENTEEISM RATE
For calculating the rate of absenteeism two facts are required-
i The number of persons scheduled to work
ii The number of actually present
Thus absenteeism can be calculated by following formula-
For Example
a) Average number of employees in work force = 100
b) Number of available workdays during period = 20
c) Total number of available workdays (a x b) = 2000
d) Total number of lost days due to absences during the period =93
e) Absenteeism rate (dc) x 100 = 465
45
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
Since absenteeism is a major barometer of employee
morale absenteeism above 5 has to be considered as very serious (across most
industries 3 is considered standard)
Absenteeism Rate at PNB
33 TYPES OF CHRONIC ABSENTEES
These are as follows-
46
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
1 Entrepreneurs This class of absentees considers that their jobs are very small
for their total interest and personal goals They engage themselves in other social
and economic activities of to fulfill their goals
2 Status Seekers These types of absentee enjoy or perceive a higher ascribed
social status and are keen on maintaining it
3 Epicureans This class of absentees does not like to take up the jobs which
demand initiative responsibility discipline and discomfort They wish to have
money power status but unwilling to work for their achievement
4 Family Oriented This type of absentees is over identified with the family
activities
5 Sick and Old These categories of absentees are mostly unhealthy weak
constitution or old people
34 TYPES OF ABSENTEEISM amp THEIR CONTROL
47
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
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
cannot be remedied or treated by disciplinary measures
2 CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization
for reasons which are within their control For instance an employee who is on
sick leave even though heshe 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
48
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
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
hisher 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 employees right to be sick There is a point at which the
employers right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employees right to be sick At such a
point the termination of the employee may be justified as will be discussed
The procedure an employer may take for innocent absenteeism is as follows
1 Initial counselling(s)
2 Written counselling(s)
3 Reduction(s) of hours andor job reclassification
4 Discharge
1) 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 heshe returns
to work If absence is prolonged keep in touch with the employee regularly and
49
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
stay updated on the status of hisher 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
2) Written Counselling
If the absences persist you should meet with the employee formally and provide
himher with a letter of concern If the absenteeism still continues to persist then
the employee should be given a second letter of concern during another formal
meeting This letter would be stronger worded in that it would warn the
employee that unless attendance improves termination may be necessary
3) Reduction(s) of Hours and or Job Reclassification
50
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
In between the first and second letters the employee may be given the option to
reduce hisher hours to better fit hisher personal circumstances This option
must be voluntarily accepted by the employee and cannot be offered as an
ultimatum as a reduction in hours is a reduction in pay and therefore can be
looked upon as discipline
If the nature of the illness or injury is such that the employee is unable to fulfil
the requirements of hisher job but could for example benefit from modified
work counsel the employee to bid on jobs of such type if they become available
(NB It is inadvisable to build a job around an employees incapacitates
particularly in a unionized environment The onus should be on the employee to
apply for an existing position within hisher capabilities)
4)Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered An Arbitrator would consider the following in ruling on an innocent
absenteeism dismissal case
a) Has the employee done everything possible to regain their health and
return to work
b) Has the employer provided every assistance possible (ie counselling
support time off)
c) Has the employer informed the employee of the unworkable situation
resulting from their sickness
51
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
d) Has the employer attempted to accommodate the employee by offering a
more suitable position (if available) or a reduction of hours
e) Has enough time elapsed to allow for every possible chance of recovery
f) Has the employer treated the employee prejudicially in any way
As is evident a great deal of time and effort must elapse before dismissal can
take place
These points would be used to substantiate or disprove the following two fold
test
1 The absences must be shown to be clearly excessive
2 It must be proven that the employee will be unable to attend work on a
regular basis in the future
CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
As already indicated culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve hisher
attendance
Presuming you have communicated attendance expectations generally have
identified the employee as a problem have met with himher as part of your
attendance program made your concerns on his specific absenteeism known and
52
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
have offered counselling as appropriate with no improvement despite your
positive efforts disciplinary procedures may be appropriate
The procedures for correctiveprogressive 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
1) 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 hisher
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 employees
income protection records at regular intervals Where a marked improvement has
53
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
been shown commend the employee Where there is no improvement a written
warning should be issued
2) Written Warning
Interview the employee again Show himher 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 heshe will be given a
written warning Be specific in your discussion with himher 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 written warning and place a copy of
hisher file The written warning should identify any noticeable pattern
If the amount andor 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 (ie
suspension) will depend on a number of factors Such factors are the severity of
the problem the credibility of the employees explanations the employees
general work performance and length of service
54
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
3) 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 heshe is to be suspended The length of the
suspension will depend again on the severity of the problem the credibility of
the employees explanation the employees general work performance and length
of service Subsequent suspensions are optional depending on the above
condition
4) Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and
procedures have been met The employee upon displaying no satisfactory
improvement would be dismissed on the grounds of hisher unwillingness to
correct hisher absence record
55
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
35 CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian labour is
due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn
modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad
working conditions aggravate that feeling for change among industrial worker and some
time impel them to visit their village home frequently for rest and relaxationrdquo
There are various reasons of absenteeism Some of them are discussed below-
1 Social and Religious Ceremonies Social and religious functions divert the
workers attention from the work In a large number of the proportion of
absenteeism due to sickness accident is not as a high as it is due to other causes
including social and religious ceremonies
2 Unsatisfactory Housing Condition This another one of the cause of
absenteeism in an organization ie unsatisfactory housing condition at the work
place Health conditions are naturally bad leading to consequent ill- health
3 Industrial Fatigue Industrial fatigue compels the workers to remain outside
the work place
56
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
4 Unhealthy Working Conditions The poor and intolerable working
conditions in the factories irritate the workers Excess heat noise either too much
or too low lighting poor ventilation dust smoke etc causes poor health of the
workers These factors cause the workers to be absent
5 Poor Welfare Facilities Though a number of legislations concerning
welfare facilities are enacted many organizations fail to provide welfare facilities
This is either due to the poor financial position of the companies or due to
exploitive attitude of the employer The poor welfare facilities include poor
sanitation washing bathing first aid appliances ambulance rest rooms drinking
water canteen shelter cregraveches etc Dissatisfied workers with these facilities to
prefer to be away from the work place
6 Alcoholism Workers mostly prefer to spend money on the consumption of
liquor and enjoyment after getting the wages Therefore the rate of absenteeism is
more during the first week of every month
7 Indebtness The low level wages and unplanned expenditure of the workers
force them to borrow heavily The research studies indicate that workers borrow
more than 10 times of their net pay Consequently workers fail to repay the
money Then they try to escape from the place in order to avoid the money
lenders This leads to absenteeism
57
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
8 Maladjustment with the Job Demand The fast changing technology
demands higher level of skills from the workers Some worker fails to meet these
demands due to their level of education and or absence of training
9 Unsound Personnel Policies The improper and unrealistic personnel
policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers
to be away from the wok place
10 Inadequate Leave Facilities The inadequate leave facilities provided by
employer forces him to depend upon ESI leave which allows the workers to be
away from the work for 56 days in a year on half pay
11Low Level of Wages Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees Therefore
employees go for other employment during their busy seasons and earn more
money Further some employees take up part- time jobs Thus the employment
resorts to moonlighting and absent them from work
58
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
36 EFFECT OF ABSENTEEISM ON INDUSTRIAL
PROGRESS
It quite evident that absenteeism is a common feature of industrial labour in India It
hinders industrial growth and it effect in two fold-
1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos
is reduced to a large extent It is because there is a general principle of ldquono work ndash
no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers
2 Loss to Employers On the other hand the employer has to suffer a greater
loss due to absentees It disturbs the efficiency and discipline of industries
consequently industrial production is reduced In order to meet the emergency
and strikes an additional labour force is also maintained by the industries On
certain occasions those workers are employed who present themselves at factory
gates During strikes they are adjusted in place of absent workers Their
adjustment brings serious complications because workers do not generally prove
themselves up to work Higher absenteeism is an evil both for worker and the
employers and ultimately it adversely affects the functioning of the industries
59
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
37 GUIDELINES amp MEASURES FOR CONTROL OF
ABSENTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate
itself through the use of sound management practices To cure excessive
absenteeism one has to know the exact causes and then examine the available
workable and proven solutions to apply against those causes
To embark upon a successful absenteeism reduction program you need to make
sure you have some basic information and facts about absenteeism in your company
Consider the following four questions which should help you further focus your ideas
and put a plan into action
Q Why is your present absenteeism policy ineffective
Absenteeism policies vary in effectiveness Most ineffective policies I have
reviewed have a common denominator They allow excused absences whereas
those that do work are no fault policies
Q Where and when is excessive absenteeism occurring
Numerous studies have concluded that under trained supervisors is one of the
main causes of absenteeism Therefore any company experiencing absenteeism
of greater than 3 percent should consider supervisors as a potential contributor to
60
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
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 youve begun to uncover the obvious
under trained supervisors If however your research reveals that the rate of
absenteeism is almost equally distributed throughout your factory you will need
to investigate other possible causes
Q What are the real causes for absences
People-oriented companies are very sensitive to employee opinions They
often engage in formal mini-studies to solicit anonymous employee opinions on
topics of mutual interest These confidential worker surveys commonly ask for
employee opinion regarding higher-than-normal absenteeism
In other words employees revealed that repetitive boring jobs coupled with
uncaring supervisors andor physically unpleasant workplaces led them to make
up excuses for not coming to work such as claiming to be sick
One way to determine the causes of absenteeism is to question your
supervisors about their employees excessive absenteeism including what causes
it and how to reduce it
61
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
Q How much formal training have your supervisors received on
absenteeism containment and reduction
If you find that your supervisors hesitate to provide meaningful answers to your
questions then youre 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 cant be far behind The fact of the matter is you cannot ask a person to
do a job he or she has never been trained to do
Following are the measures to control absenteeism-
1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY
The selection of employees on the basis of command linguistic and family
consideration should be avoided The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes Application blanks should invariably be used for a
preliminary selection and tools for interviews The personal officer should play
more effective role as coordinator of information provided that he has acquired
job knowledge in the function of selection Employers should also take into
account the fact that selection should be for employeersquos development their
reliance They should as far as possible rely on employment exchange
62
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
2) PROVISION OF HEALTHFUL AND HYGENIC WORKING
CONDITION
In India where the climate is warm and most of the work involves manual
labour it is essential that the workers should be provided with proper and
healthy working conditions The facilities of drinking water canteens lavatories
rest rooms lighting and ventilation need to be improved Where any one of these
facilities is not available it should be provided and all these help in keeping the
employee cheerful and increase productivity and the efficiency of operations
throughout the plant
3) PROVISION OF REASONABLE WAGES amp ALLOWANCES amp
JOB SECUITY TO WORKERS
The wages of an employee determine his as well as his family standard of living
This single factor is important for him than other The management should
therefore pay reasonable wages and allowances taking into account the capacity
of the industry to pay
4) MOTIVATORS WELFARE AND SOCIAL MEASURES
63
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
The management should consider the needs of workers and offer them adequate
and cheap housing facilities free of subsidized food free medical and transport
facilities free education facilities for their children and other monetary benefits
As for social security is concern the provision of Provident Fund SBI facilities
Gratuity and Pension all those need to be improved
5) IMPROVED COMMUNICATION AND PROMPT
REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them
Meetings and concealing are called for written communication becomes
meaningful only when workers can readied understood them too many notices
should be avoided only the essential ones should be put on the boards which
should be placed near the entrance inside the canteen and in areas which are
frequently visited by the workers so that they are aware of the policies of the
company and any sort changes being made
6) LIBERAL GRANT OF LEAVE
The managementrsquos strict attitude in granting leave and holidays even when the
need for them is genuine tempts workers to go on ESI leave for under this
scheme they can have 56 days leaves in years on half pay An effective way of
dealing with absenteeism is to liberalize leave rules
7) SAFETY AND ACCIDENT PREVENTION
64
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
Safety at work can be maintained and accidents can be prevented if the
management tries to eliminate such personal factors as negligence
overconfidence carelessness vanity etc and such material factorizes unguarded
machinery and explosives defective equipment and hand tools Safe methods of
operation should be taught In addition consistent and timely safely instruction
written instructions (manual) in the regional language of the area should be given
to the work force
8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND
WORKERS
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained Cordial
relations between the supervisors and these workers are therefore essential for
without them discipline cannot be increased One of the consequences of
unhealthy relations between supervisors and subordinates is absenteeism
9) DEVELOPMENT OF WORKERS BY TRAINING
The system of workerrsquos education should be so designed as to take into account
their educational needs as individuals for their personal evaluation as operatives
for their efficiency and advancement as citizens for happy integrated life in the
community as members of a trade union for the protection of their interests The
educational programs according to their national commission on Labour should
be to make a worker-
65
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
a) A responsible committed and disciplines operative
b) Aware of his rights and obligations
c) Lead a calm clean and health life based on a firm ethical
foundation
d) A responsible and alter citizen
38 THE BRADFORD FACTOR amp ABSENTEEISM
The Bradford Factor is a Human Resources tool used by many organizations to measure
and identify areas of absenteeism The theory is that short frequent and unplanned
absences are more disruptive than longer absences
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods and which are more likely to be suffering from a
genuine illness
However employees taking odd unplanned days off here and there actually cause more
disruption to the business If this pattern is repeated regularly the employee will have a
high Bradford Factor score which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is-
66
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in
a rolling 52 week period
So for employees with a total of 10 days absence in one year the Bradford Factor score
can vary enormously depending on the number of episodes of absence involved For
example
One absence episode of 10 days is 10 points (ie 1 x 1 x 10)
Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)
Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)
How do organizations use the Bradford Factor
There are no set rules for using the Bradford Factor it is down to each organization to
determine the ways in which it uses the score
However used effectively the Bradford Factor can reduce absenteeism dramatically
serving as a deterrent and a method for tackling persistent absenteeism
Studies have shown that by educating staff about the Bradford Factor and then showing
them their score on a regular basis absenteeism can be reduced by over 20 This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score The Bradford Factor places a value on the
absence which an employee can clearly see Where the absence is not absolutely
necessary this can serve to deter absenteeism
67
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
When this is used in conjunction with a points system the Bradford Factor can be
effectively utilized to deter unnecessary absenteeism
For example the Bradford Factor can be utilized by creating ldquotriggersrdquo whereby certain
actions are taken when an employeersquos Bradford score reaches a certain point For
example the UK Prison Service has used the following triggers
51 points ndash verbal warning
201 points ndash written warning
401 points ndash final warning
601 points ndash dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor
It is usually advisable to use the Bradford Factor as one of a number of absence policies
However setting these triggers and making staff aware of them in addition to taking
action resulted in the Prison Service reducing absenteeism by 18
By implementing mandatory procedures for tackling absenteeism across an organization
led by the Bradford Factor an organization can remove the potential for differences
across teams and management and remove the difficulties and reluctance that line
managers often face when having to discipline a close staff member
68
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
The Bradford Factor can provide organizations with a two pronged method for tackling
absence proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition However calculating the Bradford Factor over a rolling 52 week
period across multiple teams and locations and considering different types of absence is
a very difficult task
As a result of the exponential nature of the formula E x E x D even the slightest
mistakes in calculation can result in a wide variance of an employeersquos Bradford Factor
score
For example For an employee who has had 10 days off in a year in total on two
separate occasions
2 X 2 X 10 = 40 which does not trigger a warning ndash fewer than 50
However if their absence is either not recorded correctly or is calculated wrong by just
one day
3 X 3 X 10= 90 which does trigger a warning ndash over 50
69
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
You can see that their score is more than double despite the small mistake Getting the
formula the wrong way round can have even more significant results
10 X 10 X 2 = 200 which would trigger disciplinary proceedings ndash over 200
If an organization wants to tackle absenteeism effectively using the Bradford Factor
including using an employeersquos Bradford Factor score in potential disciplinary
proceedings then the process for calculating the Bradford Factor has to be full proof
consistent and equal
To achieve this an organization will need to ensure
Absence reporting and monitoring is consistent equal and accurate both
over time and across the whole organization
The calculation of an employeersquos Bradford Factor score is based on these
accurate equal and updated absence records
Management and staff have access to updated Bradford Factor scores
Without these processes in place the calculation of the Bradford Factor is extremely
difficult and time consuming In addition to this unequal processes for reporting and
calculating the Bradford Factor could be discriminatory everyonersquos Bradford Factor
score should be subject to the same indisputable criteria
70
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
39 DATA ANALYSIS
amp
INTERPRETATION
The method of statistical representation is through bar diagram The primary data
obtained through questionnaire are analyzed and interpreted below-
Q For how many years you are working with Punjab National Bank
0
10
20
30
40
50
60
0-2 Years 2-5 Years 5-15Years gt20 Years
Employees
71
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
Interpretation It can be seen that 56 of the employees of PNB are working
for more than 20 years whereas 36 are working for more than 5 yrs
Q How often you remain absent in a month
Interpretation It can be seen that 96 of employees do not remain absent
Q According to you what are the main reasons for employees absent
72
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
Interpretation According to 78 employees personal problem is the reason for
being absent While 22 think that stress can also be the reason
Q Your views regarding present Absenteeism Policy of Punjab National Bank
Interpretation It can be seen that 76 employees rates the present absenteeism
policy as good whereas 22 as excellent and 2 rates as fair
Q Are you clear about your work job responsibilities
73
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
Interpretation 94 employees are well-cleared about their work job
responsibilities 4 employees have good knowledge about it and only 2 are
fairly cleared idea about their work
Q Are you satisfied with your work
Interpretation 82 of the employees are fully satisfied with their work whereas
16 employees think their work as good
Q Views regarding working environment of Punjab National Bank
74
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
Interpretation 82 employees feel that the working environment at PNB is good
amp 14 feel it as excellent
Q Your relations with your superiors
Interpretation 50 employees have good relations with the superiors whereas
30 have excellent relations with the superiors15 says that they fair relation
with their superior while 5 poor relation with superior
75
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
Q Yours superiors behaviour towards your problem
Interpretation 32 employees think that their superiorrsquos behaviour toward
their problems is excellent amp 56 employees consider it as good7 thinks that
it is fair while 2 assumes it poor
Q Yours views regarding facilities provided by Punjab National Bank
76
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
Interpretation 86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
77
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
41 FINDINGS
42 CONCLUSIONS
43 SUGGESTIONS amp RECOMMENDATIONS
78
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
41 FINDINGS
From the analysis I got following result-
Almost 56 of the employees at Punjab National Bank are working for
more than 20 years whereas 36 are working for more than 5 yrs
Almost 96 of the employees do not remain absent
According to 78 employees personal problem is the reason for being
absent 22 think that stress can also be the reason
Almost 76 employees rate the present absenteeism policy as good
whereas 22 rate it as excellent
Almost 94 of the employees at Punjab National Bank are clear
regarding their work responsibilities
82 of the employees are fully satisfied with their work whereas 16
workers think their work as good
14 of employees feel that working environment of Punjab National
Bank is excellent while 82 employees consider as good
50 employees have good relations with the superiors whereas 30
have excellent relations with the superiors15 says that they fair
relation with their superior while 5 poor relation with superior
79
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
32 employees think that their superiorrsquos behaviour toward their
problems is excellent amp 56 workers consider it as good7 thinks
that it is fair while 2 assumes it poor
86 employees consider that facilities provided to them are good
whereas 10 consider them as excellent
80
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
42 CONCLUSION
Absenteeism is considered an important factor in determining the organizational
effectiveness The objective of the organization is to maximize its profit
If the organization has to achieve its objectives then they should concentrate on
employees The management has to find out causes for absenteeism
Based on the cause certain suggestions are to make to control the further rate of
absenteeism The measures taken by the management should not be offensive and its
should be control in a simple manner
81
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
43 SUGGESTIONS amp RECOMMENDATIONS
Absenteeism is a serious problem for management because it involves heavy
additional expenses The management should take the following measures to
reduce the rate of absenteeism-
1) Provide Incentives - An incentive boost the morale of employees and also
motivates them and avoid unnecessary absenteeism Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot
2) Employee Assistance Program - If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP
3) Sickness Reporting ndash Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return
82
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
4) Return to Work Interview- When an employee returns to work then ensure
that they have a lsquoreturn to work interviewrsquo
5) Bradford factor It can also be used to identify and cure excessive
absenteeism
83
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
84
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
BIBLIOGRAPHY
In the completion of this research report I have consulted various books and also
internet
BOOKS
CB Mamoria Personnel Management Himalaya Publishing House Mumbai
NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons
Publishing New Delhi
TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New
Delhi
WEBSITES
wwwwikipediacom
wwwinformaworldcom
wwwjoemorg
wwwemployer-employeecom
85
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
86
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
QUESTIONNAIRE
Personal Information
Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
1) For how many years you are working with Punjab National Bank
(a) 0-2 yr (b) 2-5yr
(c) 5-10yr (d) gt 20yr
2) How often you remain absent in a month
(a) Nil (b) Once
(c)Twice (d) gt Twice
3) According to you what is the main reason for employees absent
(a) Health problem domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
87
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
4) Your views regarding the present Absenteeism Policy of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Donrsquot know
5) Are you clear about your work job responsibilities
(a) Well clear (b) Good
(c) Fairly clear (d) Donrsquot know
6) Are you satisfied with your work
(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied
7) Your views regarding the working environment of Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
8) How are your relations with your superiors co-workers
(a) Excellent (b) Good
(c) Fair (d) Poor
88
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-
9) Your superiorrsquos behaviour towards your problems
(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by Punjab National
Bank
(a) Excellent (b) Good
(c) Fair (d) Poor
Any suggestions Comments
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
89
- 1 INNOCENT ABSENTEEISM
- Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
- 2 CULPABLE ABSENTEEISM
- COUNSELLING INNOCENT ABSENTEEISM
- CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
- 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
- If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
- 38 THE BRADFORD FACTOR amp ABSENTEEISM
-