Absenteeism is related to new values & norms which are

developing among the work force as a result of

technological development work & leisure are now
cherished by the worker & thus he wants to enjoy
along with the monetary benefits he gets for his
monetary benefits he gets for his services. The economic
consideration therefore decides whether one would like
to be absent from the work. high absenteeism
among labour is due to is rural orientation & its frequent
urge for rural exodus.

Absenteeism is high in industries due to the fact that

the labour wants some rest from daily routine of work.
the incidence of industries fatigue, trying climate,
universal malnutrition and the appallingly bad working
condition aggravate the feeling for change among
industrial workers & sometimes impel them to visit their
village labour frequently for rest & relaxation.

The absenteeism is also due to the internal

administration of on organization the work milieu is very
important since a large part of the workers daily life is
spent there the atmosphere obtaining in a plant,
therefore, affect his attitude to his work ,and either
persuades him to attend regularly or keeps him away.
Irritating uncertainty, irregularity and confusion in the
factory are likely to be important cause of absenteeism.
the attitude & practice of the management also
contribute to the absenteeism.

A traditional management treats workers as hireling

while an enlightened management treats them as human
being. This difference in behavior leads, in the former
situation, to light absenteeism and in the situation to a
close affinity with the organization, the result being
lower absenteeism in my survey I find that the major
cause of absenteeism in reliance infocomm is festival
carnal 40% in my survey come to a major conclusion that
in festivals seasons employees taken more leaves another
major cause of absenteeism is family reasons the worker
may take leave due to some family/ personal reasons this
may include of illness of wife/ children/ other family
member.

a. Construction of building etc

b. Guests
c. Parents meeting or call of father in children school
d. Marriage, Death of family members

Since any one of this may come in an individual life at any

time the employees takes leaves to help their family
member during illness, death, marriage etc the employees
also takes leaves at their children school. The problem of
absenteeism is more when the employees have big family
since they have to take care of a large sector of member,
they take leave for arrangement & for purchasing of
goods

The other major important reason for absenteeism is

illness.the employees may fall ill due to various reason &
accordingly tooks leave to take some rest. But in my
opinion I come to conclude that even though the workers
are medically fit they take extra leave to take some rest
from routine job by showing that they are ill & are unable
to work on that particular day the worker may fall ill due
to.

a. Change of seasons
b. Bad working condition
c. No balance diet
d. Food poising
e. Wine, alcohol
f. Genetic, inheridittery dieses

In the survey we also found that the next major reason

for absenteeism in private undertaking inboard from
routine and repetitive nature of job. The employee may
feel bore of their routine job & takes leave for the
freshness of their mind the employees some time want
some new job to do & when they can not get it for a fairly
long period of time they take leave for enjoyment for e.g.
in RELIANCE INFOCOMM We noticed that many
employees feel bored of their job because they have
been doing the some job for a long period time. the other
important reason for absenteeism is reprimands from
boss.

We also found that the organization have already

improved the working condition for it employee for e.g.
the RELIANCE INFOCOMM give various types of facility
to its employee such as : light facility, photo state
machine ,air conditioners & phone. But even though the
bad working condition (which might include non-conducive
climate for work) is yet another factor of absenteeism.

Non-availability of transport and other reasons are also

responsible for high rate of absenteeism in modern day
enterprise the management of both the organization has
taken step to solve & reduce the rate of labour turnover
and absenteeism. The management of both the private
and government sector companies has provided a lot of
facility to its workers. In reliance the management of the
companies has adopted new managerial technique to make
and healthy relationship between management and
workers.

Some important features of absenteeism are as follows:

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

increase considerable on the days following the payment
of wages & bonus.
b. The younger employees are not regular & punctual or
old employee are most irregular.

c. The rate of absenteeism is varies from department to

department in reliance, the distribution of reliance
mobile bills takes more leave then officials pins etc.

d. The percentage of absenteeism is high in during

festival seasons & during the seasons of roping.

Hence, we can conclude that the major reasons for

absenteeism is :-

1. Festivals

2. Countable working condition

3. Unfavorable mental attitudes arising out of boredom,

resentment against
supervisions
4. Social exigencies

5. Family reasons etc.

Absenteeism is a serious problem for a management.

Because it involves heavy additional expanses. The
management should take necessary steps to deal with the
problem of absenteeism. The government undertaking
should take immediate steps to reduce this problem of
absenteeism. The government undertaking must introduce
some incentives to reduce this problem & to encourage
the workers to come to their work place regularly this
problem also in private undertaking this problem is not
creating much problem for the management but to reduce
the cost of the various factor of production in is
necessary for the both private & government undertaking
to take steps to solve this problem of absenteeism.

A high rate of labour turnover is bad both for the worker

and the industry. Hence effort should be made to
reduce it

The heavy rate of labour turnover is great handicap for

workers and industry a like, for it implies and reduction in
skill & efficiency an the part of the workers & reduced
output for the industry low ever some amount of labour
turnover is inevitable & even natural particularly when it
stems from the retirement of old employees and the
accession of new blood. But both the management of
government undertaking & private undertaking must take
serious steps to solve this problem as soon as possible.

Dealing effectively with absence or labour turnover call a

continuous and co-ordinate effort by personnel
managers, line managers, including first-line supervisors,
and worker representatives.

High absence or labour turnover can often be a symptom

of workers’ dissatisfaction with their jobs. Sound
fair and consistent policies and procedures can provide a
framework within which labour turnover and
absence problems can be better handled.

RECOMMENDATIONS

Absenteeism is a serious problem for a management

because it involves heavy additional express resaves &
understudies are kept in readiness to take the place of
absenteeism, fairly which the overlade cost of idle
equipment les to be faced. Industrial employees do not
usually also for absence in advance or even give notice
during their absence as to low long they would be away
the management is generally incretion about the probable
duration of on employees absence cannot take
appropriate measure to feel.

It should be noted no single measure can be effective in

controlling absenteeism; but a skilfull combination of
various measures would definitely lead to the desired
result there resources are as follows

1. Proper working condition in the factory, so that worker

can devote their full effort & energy for
achieving the production gasket assigned to them by the
management

2. Adequate wage as that worker may be satisfied & will

be able to full fill their daily needs & they will not
go to search for another wags of earning money this will
help him to concentrate more on a particular
more & thus they will be able to do the job more
effectively & efficiently.

3. Protection from accident & sickness. This enable the

workers to feel season from this factor & they can
utilize their fall energy for the well being of the
organization
.
4. Facilities for obtaining leave for rest by this the
management will be able to known in advance low
many workers would take leave on a particular day or date
this enable the management to engage extra
manpower force on that particular date so that the
production to get for that day many be achieved.

5. The personal management should encourage

notification, especially in cases of sickness when the
duration of absences is likely to be long.

6. In case of personal & family e.g. illness of children in

case of married woman employees which make
absences unavoidable, leave should be granted liberally.

7. To reduce unavoidable absence due to side ness &

industrial accident, program of industrial hygiene
& safety should be strengthened.

8. Regularity in attendance can be encouraged to some

extent by the offer of a bonus & other pecuniary
inducement
9. Adaptation of a well defined recruitment procedures

10. The selectmen of employees on the basis of communal

linguistic & family consideration should be
discouraged or avoided the management should look for
aptitude & ability in the prospective employees
and should not easily yield to pressure on personal likes &
dislikes.

11. Job security for workers.

12. Motivation of worker; workforce & social measures.

The management should recognized the needs of
the workers and offer them adequate & cheap lousing
facility, or subsidized food, free medical aid and
transportation facilities to & from their residence, free
educational facility to their children’s & other
monetary & non- monetary benefits.

13. Their genuine difficulties like their need of money at

the time of the marriage, death & family illness
should be recognizes by the management and it should
try to help them in this regard. As for social
security measure such as the provisions of provident
find, e.s.i facilities gratuity & passion, all this
needs to be improved, so that workers may have a same
of belonging.

14. Liberal grants or leave.

15. Improved common & prompt redressed of

consciences.

16. Cordial & health relationship between the senior &

junior, b/w the management & the work ness.

Reforms
Modifying labor laws to enhance flexibility in labor
markets was envisaged as part of the economic reform
program that commenced in 1991. However, the lack of
consensus and political instability at the center has
delayed the passage of industrial relations reforms. A
handful of changes have been initiated in recent years.
For instance, as part of the restructuring of unprofitable
public-sector enterprises, a voluntary retirement scheme
(assisted by the National Renewal Fund) was instituted by
the government to reduce their workforce. This, in turn,
triggered similar programs in the private sector. In
2002, the government decided to amend the Industrial
Disputes Act of 1947 (summarized in the next section),
allowing companies to lay off employees without seeking
its permission, if they employ less than 1,000 workers.
This change is likely to impact 95 percent of Indian
enterprises, provide employers with greater freedom in
their labor decisions and improve labor market flexibility
Xi. The Manufacturing Sector
In India, employment in manufacturing grew at an
average annual rate of 1.83 percent over the 1972–1992
period, while real wages grew at an average annual rate of
1.12 percent. This is in stark contrast to East Asian
countries where the corresponding figures are 6.4
percent and 5.3 percent. In the last two decades, the
registered manufacturing sector has witnessed an
investment boom; growth in fixed investment increased
from 9 percent per year in the 1980s to 15 percent per
year in the 1990s. Most of this investment was
domestically financed, with realized inward FDI only
about $9 billion since the reforms (Nagaraj, 2002). As a
result of this investment boom, employment growth in
registered manufacturing, improved in the 1990s,
accelerating to approximately 3.7 percent.
However, there seems to be no association between
growth in earnings and employment across industries. In
13 of the 28 industries the share of wages fell by more
than 10 percent after structural reforms were
undertaken. In only two industry groups (paper and other
nonmetallic mineral products) did the share of wages rise.
Comparing 1998 to 1993, we see that for most industry
groups the share of wages was stagnant and even in cases
where they did rise (e.g., other manufactured products),
they never recovered to pre-reform levels. Next, simple
tests performed on real wage per employee reveal that
there is no evidence for a significant acceleration in the
growth rate of real wage per employee. Labor market
regulations seem to have created certain rigidities in the
Indian labor markets, especially in the organized sector.
Therefore, I conclude here by suggesting some possible
labor market reforms that could, could in principle,
overcome some of the existing rigidities. There should be
a match between labor laws that are legislated and the
ability of the
state to enforce them. For example, the Minimum Wage
Act for the unorganized sector has been totally beyond
the capacity for implementation.
Partnership rather than antagonism between labor and
management should be encouraged through an incentive
system. For example, the bonus system provides a linkage
between wages and profitability: it creates an incentive
for labor to help increase productivity while at the same
time providing flexibility to the management when
profitability declines.
While flexibility in the hiring and firing of workers is
desirable, the costs of such decisions should not be
disproportionately borne by workers. These costs can be
mitigated through social insurance schemes that give
basic minimum protection to all those in need of
assistance. Rather than relying solely on the state,
provision of such social services can be opened to private
institutions and non-governmental organizations as well.
In the public sector, uniform norms of labor use for all
enterprises do not allow individual enterprises to seek
efficiency in their use of labor and other inputs. These
enterprises can operate in a market environment only if
their management has greater control over their own
commercial activities.
Labor market flexibility can be improved by educating
the labor force, encouraging vocational training, and
providing them with retraining facilities. These can also
improve worker productivity by adding to human capital.
The absence of safety nets may make total reform of
the labor market extremely difficult, as social costs
associated with restructuring (and the accompanying job
losses) may be substantial and therefore politically
unsustainable. However, such adverse consequences may
only be short-term in nature — as the economy goes
through a period of structural adjustment, and as labor
acquires new skills and moves from contracting to
expanding sectors (where India has a comparative
advantage), it is likely to be better off in the long run.
Much of the empirical research on turnover is based on
actual turnover, although some studies are based on
intentions to quit. Apart from the practical difficulty in
conducting turnover research among people who have left
an organisation, some researchers suggest that there is a
strong link between intentions to quit and actual
turnover.
Mobley et al (1979) noted that the relationship between
intentions and turnover is consistent and generally
stronger than the satisfaction-turnover relationship,
although it still accounted for less than a quarter of the
variability in turnover. Much of the research on
perceived opportunities has been found to be associated
with intentions to leave but not actual turnover
(Kirschenbaum & Mano-Negrin, 1999). One of the possible
reasons is that intentions do not account for impulsive
behaviour and also that turnover intentions are not
necessarily followed through to lead to actual turnover.
It is particularly important to understand that bundles of
policies are responsible for good
outcomes. Simply put, the following seem to be
particularly important in explaining why
some European countries have done well:
A high degree of wage flexibility, often in the context of
strong trade unions and
high coverage of collective bargaining, where the co-
ordination and centralisation of
negotiations ensure that wages respond to changes at the
macro level and sustain
non-infl ationary growth.
Open markets with a relatively low level of product
market regulation
“Moderately strict” employment protection legislation
that legitimises change but
does not act as an impediment to necessary
restructuring.
Signifi cant investment in Active Labour Market
programmes (ALMPs) to improve the
skills of the unemployed to help them back into work.
An “activation” approach to the benefi ts system so that
high benefi ts are married with
tight conditions, limited durations and job search
obligations.
A high level of “functional fl exibility” at enterprise level
where workers have a wide range of generic skills so that
they can be redeployed from one activity to another.
Low turnover indicates that none of the above is true:
employees are satisfied, healthy and safe, and their
performance is satisfactory to the employer. However,
the predictors of low turnover may sometimes differ
than those of high turnover. Aside from the fore-
mentioned career opportunities, salary, corporate
culture, management's recognition, and a comfortable
workplace seem to impact employees' decision to stay
with their employer

Labour mkt flexibility and Social Insurance Policy

in India
Program name and the time of launch Specific
objective and remarks
1. Rural Works Program (RWP)(1970.71) An
employment-oriented program to create permanent
civil works (soil conservation, road construction,
afforestation, and so on); to mitigate scarcity
conditions; and to promote integrated development
in drought-affected areas.
2. Crash Scheme for Rural Employment
(CSRE)(1971) To take up projects of durable nature
such as minor irrigation, soil conservation,
afforestation, land reclamation, anti-water-logging to
alleviate unemployment and underemployment in
rural areas.
3. Small Farmers Development Agency
(SFDA)(1971) and Marginal Farmers and
Agricultural Laborers Scheme (MFALS)(1971)
To make credit available to farmers of various
capacity and agricultural laborers to enable them to
use the latest technology, practice intensive
agriculture, multiple cropping, and to take up
subsidiary activities such as dairying, poultry, fishing,
and horticulture. MFALS emphasized employment
generation and improvement of examining capacity
of landless agricultural laborers. In 1974 the two
were merged into an expanded SFDA, which in turn
was merged with IRDP in 1980.
4. Maharashtra Employment Guarantee Scheme
(MEGS)(1972.73)
To provide gainful, productive, unskilled, manual,
adult employment at a minimum living wage in rural
areas through labor-intensive and durable-assets
producing activities. A unique state-level scheme
that tried to offer work to everyone and give practical
expression to the .right to work..
5. Agro-Service Centres (ASS)(early 1970s) To
provide assistance for self-employment to the
unemployed graduates and diploma holders by
enabling them to set up workshops, and repairing
and hiring facilities.
6. Drought-Prone Area Program (DPAP)(1973)
7. Command Area Development Program(CADP)
(1974.75)
8. Hill Areas Development Program (HADP)(1974).
9. Desert Development Program (DDP)(1977.78)
All of these are Area Development Programs (ADPs);
DPAP was a redesigned RWP. Their aims: to deploy
adequate infrastructure, to bring about integrated
area development, to increase productivity and
employment opportunities, to control the process of
desertification, to mitigate the effects of drought, to
restore ecological balance to raise productivity of
land, water, livestock, and human resources in
respective types of areas, to diversify agriculture,
and to promote afforestation and pasture
development.
10. Food for Work Program (FFWP)(1977) To
generate additional gainful employment in rural
areas to create durable community assets, to
strengthen social and rural infrastructure, and to
raise living standards. The wages were paid not in
cash but
in the form of foodgrains. from Government surplus
stocks.
11. Training for Rural Youth in Self-Employment
(TRYSEM)(1979)
To provide technical skills and to upgrade traditional
skills of rural youth (18 to 35 years old and from
families living below the poverty line), and to enable
them to take up self-employment in agriculture,
industry, and services in rural areas.
12. National Rural Employment Program
(NREP)(1980)
This is a restructured and renamed RWP. To provide
gainful wage employment during periods of seasonal
and sporadic unemployment, to assist liberated
bonded labor, to secure minimum wages to
agricultural workers, to play a supportive role in
IRDP and ADPs, to create community assets, and to
strengthen rural infrastructure.
(Table continues on the following page.)
Labor Market and Social Insurance Policy in India 14
13. Integrated Rural Development Program
(IRDP)(1976.80)
To promote self-employment and to raise the level of
living of the poorest families in rural areas above the
poverty line on a lasting basis by giving them
incomegeneration
assets and access to credit as well as other
inputs. Toward this end, the program aimed at
achieving integration of sectoral programs, spatial
dimensions, social and economic process and
policies.
14. Development of Women and Children in Rural
Areas (DWCRA)(1982.83)
A supportive program for IRDP. To increase the
income of rural women and to provide them with
child care facilities and other support services and
financial assistance so that they could take up
selfemployment
in viable economic activities,
individually or in homogeneously organized groups.
15. Rural Landless Employment Guarantee Program
(RLEGP)(1983)
A program to supplement NREP. It aimed at
guaranteeing employment to at least one member of
landless households up to 100 days in a year, with a
focus on women. Wage employment program in
which a part of the wages was paid in the form of
subsidized foodgrains.
16. Self-Employment Scheme for Educated
Unemployed Youth (SEEUY)(1983.84)
To provide self-employment to the educated
unemployed youth in the age group of 18.35 years
with a minimum qualification up to matriculation in
industry, services and business.
17. Self-Employment Program for Urban
Poor(SEPUP) (1986.87)
To encourage families living below the poverty line in
metropolitan, urban, semiurban areas to undertake
selfemployment
by providing subsidy and credit. The
share of Scheduled Castes/Scheduled Tribes (SC/ST)
beneficiaries was to be 30 percent in terms of
number
and amount.
18. Jawahar Rozgar Yojna (JRY)(1989) A program
launched by merging NREP and RLEGP;
it has very similar objectives. It aimed at covering all
villages, panchayats, and to create nearly 1 billion
work days of employment per year, 30 percent of
which is reserved for women.
19. Nehru Rozgar Yojana (NRY)(1989) with three
components, namely: the Scheme for Urban Micro
Enterprises (SUME); the Scheme of Urban Wage
Employment (SUWE); and the Scheme for Housing
and Shelter Upgradation (SHASU)
While JRY is for rural areas, NRY is for training and
upgrading the technical and commercial skills of
urban underemployed and unemployed youth,
providing infrastructure support, and promoting
selfemployment,
with a focus or reservation for women
and SC/ST youth. SUWE aims at providing wage
employment to the urban poor through the creation
of
productive assets in the low-income neighborhoods
in
towns with a population below one lakh, at minimum
wages for unskilled workers and at market wages for
the skilled workers. SHASU aims at skills such as the
upgrading of masons, carpenters, plumbers, sanitary
workers, and so on; and at providing common
infrastructure facilities to beneficiaries and
machinery
and equipment to training institutions, in towns with
populations of 1 to 20 lakhs.

Special Employment Programs

For promoting employment and alleviating poverty in
rural areas, the Indian government has initiated
various
special programs. These are employment generation
programs, an employment assurance scheme,
selfemployment
programs, programs to help the poor to acquire
productive assets, and programs to give training to
the unemployed. Table 8 gives a list of these
programs and their specific objectives.
The most important step in the field of health
security for workers was taken in 1948 when the
Employees. State Insurance (ESI) Act was passed.
The ESI Act provides for health care and cash
payment
in cases of sickness, maternity, and employment
injury. The Act was based on a scheme prepared by
Adarkar in 1944, applicable to all factories employing
20 or more wage-earning individuals. Workers
whose wages are below a particular ceiling (Rupees
3,000/- only) are eligible to participate in the
scheme.
The ESI Scheme (ESIS) is administered by a statutory
body called the Employees State Insurance
Corporation (ESIC), which has members representing
employers, employees, the central government,
state governments, the medical profession, and
Parliament. The Union Minister for Labour is
Chairman of
the ESIC. A Standing Committee constituted from
among the members of the Corporation acts as the
executive body for administration of the scheme and
is chaired by the Secretary to the Government of
India in the Ministry of Labour. There is a provision
for setting up regional boards and local committees
at the grass roots level.
The ESI scheme is mainly financed by contributions
from employees and employers. The employers.
contribution is equal to 4 percent of the wage
payable to the employee. The employees.
contribution is 1.5
percent of wages. The state governments. share of
the expenditure on medical care is up to 12.5
percent of
other contributions. The corporation has prescribed a
ceiling on the sharable expenditure on medical care.
In
order to improve medical care under ESIS,
expenditure on medical care has been enhanced
from Rs. 345 to
410 per insured person with effect from April 1,
1994. All capital expenditure on construction of the
ESI
buildings, including maintenance, is borne by the
corporation. The surpluses of the corporation, which
amounted to Rs. 2,683 crores in March 1996, are
invested in the special deposit account of the
Government of
India and are credited with an interest rate of 12
percent.
Despite extensive provision for health security, the
ESIS has failed to reach its goals. Among the
shortcomings of the ESIS are the following:
(a) The scheme is applicable only to employees
whose income (including dearness allowance) is
lower
than a prescribed ceiling.which is currently Rs. 3,000.
With the high rate of inflation, many workers
lose coverage under this scheme.
(b) The ESIS leaves out, even within the organized
sector, all establishments falling outside the factory.
Consequently it does not provide health security to
the large number of workers engaged in the
informal sector.
(c) The quality of services offered by the ESIS is
abysmally poor. This is evident from the low
occupancy
rates of its hospital. Negligence on the part of the
doctors, lack of safety in hospital buildings, and lack
of essential equipment are the most common
complaints .
(d) There is a dichotomy of responsibility between
the state government and the ESIC, which has
caused
the quality of services to decline, leading to
dissatisfaction on the part of the insured person. The
ESIS, despite being a scheme that is geared
exclusively to the industrial workers and their
families,
totally ignores occupational health.
(e) Sickness benefit provided under the scheme has
been the subject of considerable fraud. The
compensation claim on the basis of fake medical
certificates are rampant.
(f) The ESIC review committee observed in 1982 that
while most of the claims for temporary
disablement were settled promptly, those relating to
the more crucial permanent disablement and
dependence funds were kept open for a long time.
Outside the organized sector, the provision of health
services by the government is largely through the
public health system financed from public revenues.
In principle, public hospitals provide free or low-cost
medical care to all. But in practice most hospitals are
concentrated in urban areas and the quality of
service
provided is extremely poor.
On the whole, India spends 6 percent of its gross
domestic product (GDP) on health services, which is
high by international standards. But key health
indicators remain low when compared to some other
Asian
countries such as Sri Lanka and China. A comparison
of India and China would perhaps reveal dramatically
the poor performance of India. Life expectancy in
India is 59 years compared with the Chinese figure of
69 years. Infant modality rate in India is 79 per 1,000
live births in comparison with China.s 31. Sanitation
and
drinking water facilities are much poorer in India as
compared with not only China but also many ot many
developing countries.
The bottom line of the Indian experience with regard
to labor market policies and social insurance is that
despite a plethora of legislation, the economy has
been able to achieve neither efficiency nor equity.
Indian industries. lack of competitiveness has been
evident for some time. Even after the reforms of
1991,
their export performance remains poor. There was a
period of rapid export growth during 1993.95, but
recent trends suggest that performance in this
regard has deteriorated drastically. It is revealing
that total
Indian exports (in fact, that of all of South Asia) are
lower than that of Thailand alone.
The competitiveness of an economy depends, apart
from labor costs, on a large number of factors
such as quality control, financial infrastructure, legal
infrastructure, trade and communication facilities,
and so on. However, labor costs are a crucial
element in competitiveness and the weakness of the
Indian economy in this respect is clearly indicated by
table 10. As shown in the table, compared with
Southeast
Asian countries such as Indonesia, India has higher
wages and lower productivity of labor in
manufacturing