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By
SHATHEESH L
Reg. No: 2941516
SATHYABAMA UNIVERSITY
(Established Under section 3 of the UGC Act, 1956)
Accredited with B++ Grade by NAAC
JEPPIAAR NAGAR, CHENNAI - 600 119
BONAFIDE CERTIFICATE
DECLARATION
3
DATE:
ACKNOWLEDGEMENT
SHATHEESH L
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CHAPTER 1
INTRODUCTION
When the workers are absent from the work, it leads to loss in the man-
hours, which has direct influence on the production and productivity. This
underlines the importance of the need for workers to be present.
Absenteeism affects
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HIGHLIGHTS
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➢ While the tyre industry is mainly dominated by the organized sector, the
unorganized sector holds sway in bicycle tyres.
➢ In the last five years (1994 – 95 to 1998 – 99), the industry managed to
achieve a compound annual growth of only 4.40 percent. However in the
last fiscal the industry registered a growth of 7 percent.
➢ Natural rubber constitutes 25 percent of the total raw materials cost of the
years.
SECTOR COMMENTS
Ever since the first Indian tyre company, Dunlop Rubber Company (India)
was incorporated in 1926, the tyre industry has grown rapidly and today it’s a
Rs.9000 crore industry. India has 2.61 lakh villages, connected by 6.23 lakh kms of
metalled roads and 9.81 lakh kms of unmetalled roads. These villages are linked to
small towns and cities. There is a daily traffic of over 4.12 lakh trucks, 1.27 lakh
buses, 7.23 lakh cars, and thousands of taxis, two – wheelers, three – wheelers,
tractors and animal drawn vehicles on Indian roads. There exists a vast potential
for the tyre industry in India.
MARKET PROFILE
While the tyre industry is mainly dominated by the organized sector, the
unorganized sector holds sway in bicycle tyres. The major players in the organized
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tyre segment consist of MRF, Appollo tyres, Ceat and JK Industries, which account
for 63% of the organizes tyre market. The other key players include Modi Rubber,
Kesoram Industries and Good year India, with 11%, 7%, and 6% share
respectively. Dunlop, Falcon, Tyre corporation of India Limited (TCIL), TVS –
Srichakra, Metro Tyres and Balkrishna Tyres are some of the other players in the
industry. MRF, the largest tyre manufacturer in the country, has strong brand
equity. While it rules supreme in the industry, other players have created niche
markets of their own.
SECTOR SPECIFIES
Most of the RSS-4 grade natural rubber required by the Indian tyre industry
is domestically sourced, with only a marginal amount being imported. This is an
advantage for the industry, since natural rubber constitutes 25% of the total raw
material cost of the tyres.
The two types of synthetic rubber used in tyres are Poly Butadiene Rubber
(PBR) and Styrene Butadiene Rubber (SBR). The former is used in most of the
tyres, while the latter is mainly used in the radials for passenger cars. Synthetic
rubber accounts for 14% of the raw material cost. Unlike in the case of natural
rubber, India imports 60% of its synthetic rubber requirements.
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Apart from rubber major raw materials are nylon tyre cord and carbon black.
The former is used to make the tyre strong and impart tenacity to it. The latter is
responsible for the colour of the tyre and also enhances the life span of the tyre.
Nylon tyre cord comprises 34%, while carbon black accounts for another 13% of
the raw material cost. In India, the carbon black is of the N660, N220 and N330
variety.
SECTOR TRENDS
Crossply tyres have been used in India for several decades. In these tyres,
the ply cords run across each other or diagonally to the outer surface of the tyre.
Rayon and Nylon tyre cords are used as the reinforcing medium. These tyres can
be retreaded twice during their lifetime and are hence preferred by Indian transport
operators who normally overload their trucks. A vehicle with the normal carrying
capacity of around 12 tonnes is usually loaded with double the capacity. Moreover,
one also has to contend with the bad suspensions and bad road conditions. No
wonder, 95% of the tyres used in India are cross plies.
Radial tyres have their cords running radially from bead at 90-degree angle
to the rim or along the outer surface of the tyre. The reinforcing mediums used in
these tyres are polyester, nylon, fiberglass and steel. Hence, these tyres are 20%
more expensive than the cross plies. But they have a longer life and provide lower
fuel consumption. The unhealthy condition of the Indian roads has resulted in radial
tyres accounting for only 5% of the tyre industry as against a global trend of 60%
with two – thirds of the capacity of all major tyre manufacturers being reserved for
radials; this is a real cause for concern.
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CONCLUSION
Two years ago, the industry estimated the growth in the passenger car
radial demand at 20% per annum. However, the auto recession has hit them badly.
But South Korea made a killing by dumping cheap car radial tyres and walked
away with 11% of the tyre market.
Another threat to the industry is the price of its raw materials, most of which
is petroleum by – products. Carbon, synthetic rubber and nylon tyre cord are
offshoots of petrochemicals. Thus, the future of the industry will swing with the
supply of crude oil. The biggest threat, however, is yet to fully materialize. It will be
from global major like Bridgestone and Michelin, which controls 36% of the global
tyre market. These players have set up their bases in Southeast Asia and the
slump of the market, is becoming then towards India. Bridgestone has tied up with
ACC for a 100% radial tyre unit and Michelin is also marketing its products through
retail outlets.
MRF Ltd., India’s largest Tyre Company, is the 13th largest tyre company
in the world and one of India’s world-class companies. MRF operates in six
manufacturing plants in India and has been awarded ISO 9002 quality
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certification for all its manufacturing plants. The company caters to almost every
segment in the tyre market heavy – duty truck/bus tyres, light commercial
vehicle tyres, passenger car tyres, two wheeler tyres and ferm service tyres.
The company has continued in the same vein and has been posting
excellent results, not withstanding the winds of recession blowing across the
economy. Performance of the company has been commendable in light of the
fact that the user industry is facing a slowdown. The company has benefited
from better productivity and operational efficiency.
Once the first tyre factory was set up in the early sixties, there was no
looking back for the company. From Rs.100 crore turnover in 1979, it touched
Rs. 1,000-crore in 1993 to double at Rs. 2,000 crore in 1996, the golden jubilee
year.
MRF has emerged as the largest tyre manufacturer in India and 13th
largest in the world with a built capacity of six million tyres from 6 factories. It
boasts of 68 sales centers, 2,500 distributors and exports to 65 countries.
MRF has also made its mark as the number one toy manufacturer in India
with 24 percent market share in the organized sector. The entire range of over
200 Funskool toys produced in collaboration with the US major, Hasbro Inc. has
also been arrayed in one section of the expo.
➢ General motors
➢ Fiat
➢ Ford
➢ Opel
➢ Daewoo
➢ Hyundai
➢ Maruti
➢ Ashok Leyland
MRF Company has it today the country’s largest tyre manufacturer and
market leader. One of the largest rubber company both worldwide and in the
Indian sector. It is the only tyre company to straddle the subcontinent with giant
manufacturing facilities at Chennai, Arokkonam, Kottayam, Goa, Medak and
Pondicherry. MRF are the market leader in almost every segment:
The company is also renowned for its exports, which have also been
witnessing positive growth. The company has recently entered the radial tyre
segment and has met with positive response. The performance of the company
could further improve with the revival of the auto industry. Thus MRF can be
expected to retain its position in this segment too.
Continue to be the 1st in “JD Power Rating” for the past 3 years.
Another project titled “Ill Health and Work Place Absenteeism” focused on
the health related issues of absenteeism. In the main phase of the research,
detailed studies were made of different approaches to reducing absence
associated with ill health.
employer has no reason to expect, well in advance, that the employee will not
be available for work at the specified time.
The worker is on leave without pay even though the worker receives
social security benefits for sickness, maternity benefits etc.,
no reason to expect, well in advance, that the employee will not be available for
work at the specified time.
Regularly scheduled holidays, ordered lay – offs, strikes and bandhs are
excluded while estimating absenteeism.
Rate of Absenteeism
CAUSES OF ABSENTEEISM
The rate of absenteeism is the highest on the last and the first working
days in the week and after the paydays. The enterprises with paid sick leave
have greater absences than their counterpart, manufacturing units have higher
rate of absence than the non – manufacturing ones, the shop have greater rate
of absences than the office rates, the night shift involves more absence than the
day – shifts, and the job satisfaction is also negatively related to absenteeism.
➢ In-plant causes
➢ Personal causes
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➢ Community causes
In – plant Causes
Excessive fatigue
Over – staffing
Under – staffing
Poor supervision
Low morale
Personal Causes
Household responsibilities
Child care
Recreation
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Use of alcohol
Inadequate housing
Poor transportation
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 affects his
attitude to his work, and either persuades him to attend regularly or keeps him
away.
CHAPTER 2
RESEARCH INFORMATION
2.1 OBJECTIVE
Primary Objective
Secondary Objective
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The study conducted in MRF, Tiruvottiyur is to find the reasons for the
absenteeism, the factors leading to absenteeism, to find whether the workers
are motivated after the introduction of the various schemes to reduce
absenteeism etc. The study is also conducted to analyze the relationship of
various factors with absenteeism.
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Chronic absentees are persons who habitually stay away from their work.
Unauthorized absence will increase the workload of other workers. Moreover the
production will decrease and the company will be in a position to close the
business. This is not only the problem of the company alone; it will affect the
employer, the employee and the community as a whole.
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2.4 LIMITATIONS
2.5.3 Population
MRF Tiruvottiyur has a total population of 1014. The workers who have
been absent for more than 20 days in the year 2003 and 2004 are selected for the
study. So the population for this particular research is 300. 50% of the population
(150) is selected for the study as the sample size.
Both primary and secondary data collection have been taken for this
research study.
Primary Data:
The primary data are those, which are collected afresh and for the first time,
and thus happen to be original in character. The primary data is collected using a
well – designed questionnaire both in English and Tamil language. The primary
data is collected by direct interview with the workers. The questions included were:
Dichotomous questions
Open ended questions
Closed ended questions
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Secondary Data:
Secondary data means data that are already available. The secondary data
is collected with the help of company records, company manual, internet etc.,
The statistical methods, which are used, for the research are:
Percentage analysis
Chi – square analysis
CHAPTER 3
Analysis and interpretation is the main part of a project study. The statistical
methods used for this particular study of absenteeism are:
Statistical Analysis
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Table No.3.1.1
MARITAL
AGE
STATUS
DEPARTMENT Grand
Single Total Married Total
Total
20 - 30 31 - 40 20 - 30 31 - 40 41 - 50 >50
Tyre Curing 1 - 1 - 7 5 12 24 25
Tyre Building 3 1 4 2 8 6 4 20 24
Tyre Finishing - - - - 2 1 7 10 10
General Leave
1 - 1 4 6 1 3 14 15
Reserve
11D Banbury - - 1 11 - 2 14 14
Others 4 - 4 2 21 10 25 58 62
INTERPRETATION
Table No.3.1.2
EXPERIENCE AGE
INCOME Grand Total
20 - 30 31 - 40 41 – 50 >50
Yes 1 - - - 1
<5 years
No 7 1 - - 8
Yes 2 8 - - 10
6 – 10 years
No 8 26 - - 34
Yes - 5 4 - 9
11 – 15 years
No - 12 3 - 15
Yes - - 4 - 4
16 – 20 years
No - 3 6 2 11
Yes - - 3 24 27
>20 years
No - 1 3 27 31
Grand Total 18 56 23 53 150
INTERPRETATION
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Among the absentees who are having more than 20 years experience 24
persons have some other source of income. 4 of the absentees who belong to 16 –
20 years experience have some other source of income. Among the absentees
who are having 11 – 15 years experience, 5 persons have some other source of
income. 8 absentees who are having 6 – 10 years experience have some other
source of income. Only 1 person who is having less than 5 years experience have
some other source of income. From the table it is clear that there is a direct
relationship between age and the number of persons who is having other source of
income. As the age increases, the number of persons who is having other source
of income also increases.
INTERFERENCE
INTERFERENCE
The workers who are having experience more than 20 years is absenting
more. This shows their dissatisfaction in the job, or may be due to their health
problems. 29.3% of absentees belong to 6 – 10 years experience. 16% absentees
belong to 11 – 15 years’ experience. 10% belongs to 16 – 20 years’ experience
and only 6% belong to <5-year experience.
INTERFERENCE
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INTERFERENCE
26% of the absentees believe that re – arranging the shift schedule is the
most effective measure to reduce absenteeism. 25% of the absentees feel that
revising the leave rules is the effective measure. 21% thinks that changing the
wage policy is the best. 15% wants to improve the superior – worker relationship
and 13% wants to improve the working condition, health, safety and welfare
measures.
INTERFERENCE
From the chart it is clear that health is leading to more absenteeism than the
other factors. The percentage of absenteeism due to health is 33%. 28% of the
absenteeism is due to family problems. 19% of the absenteeism is due to festivals
and other domestic functions. 13% of workers is absenting because of alcoholism.
The rest 7% is absenting because of indebtedness.
INTERFERENCE
It is evident from the chart that 35.3% are not satisfied with the motivation
given by the company. 15.3% strongly agree that the schemes introduced by the
company are not enough to reduce absenteeism. 28.60% believes that the rate of
motivation is enough. 8% firmly believe in that.
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INTERFERENCE
About 30% of the workers are adjustable with the job, 27.3% is absenting
because of the risk involved in the job, and 18% of the workers are getting
frustrated with the job. 14.6% is workers are getting bored with the job. Only 10%
are interested in the work.
INTERFERENCE
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About 35.3% of the absentees have some difference of opinion with the
superiors. 33.3% if friendly with superiors, 24% feel that their superior is
humanitarian, 4.7% said that they never talked with superior and the rest 2.7% is
afraid of their superior.
RATE OF SATISFACTION OF RELATIONSHIP WITH
CO – WORKERS
Table No. 3.2.9
RELATIONSHIP NO. OF PERCENTAGE
RESPONDENTS
Highly Satisfied 26 17.30
Satisfied 95 63.30
No Opinion 15 10.00
Dissatisfied 10 6.70
Highly dissatisfied 4 2.70
Total 150 100.00
Figure No. 3.2.9
INTERFERENCE
About 63.3% of the absentees are satisfied with the relationship with their co
– workers. 17.3% are highly satisfied. So the relationship with co – workers cannot
be said as a reason for absenteeism. 10% have no opinion about their relationship.
Only 6.7% is dissatisfied and 2.7% is highly dissatisfied with their relationship with
their co – workers.
INTERFERENCE
From the chart it is clear that about 60.7% of the absentees are aware about
the schemes introduced by the company to reduce absenteeism. Only 39.9% is
aware about the schemes. So this is a reason for absenteeism.
3.3 FINDINGS
The main reasons behind absenteeism are the dissatisfaction with job and
the workload of the workers. Apart from that health problems of the aged
workers also lead to high rate of absenteeism.
The main factors, which lead to absenteeism of the workers, include the low
rate of satisfaction towards motivation, and low rate of satisfaction towards
wages.
Even though the absentees are not fully motivated, a small part of the work
force is motivated for a better work after the introduction of the schemes.
In Detail
➢ Absenteeism is more in the departments like tyre curing, band building, tyre
building etc., which involves difficult task. Workload and working condition
may be the reason for absenteeism in these departments.
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➢ It is clear that a major part of the absentees are married. This is due to
various personal problems, family problems, child care, other household
responsibilities etc.,
➢ A large part of the absentees are coming from the near by localities, that is
from less than 3 kms. So the absenteeism is not due to distance. This shows
their low morale towards the company.
➢ The most shocking fact is that the major groups of absentees are
experienced persons. This is because of the high rate of job security in the
company and may be because of health problems.
➢ Awareness about leave rules and leave facilities is not the reason for
absenteeism. Most of the absentees are very much aware about the leave
rules and leave facilities.
➢ The age group below 40 years is absenting because of workload and the age
group above 40 years are absenting because of their high dissatisfaction in
the job.
➢ More than half percentage of the absentees is very much dissatisfied with
their wages.
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➢ Most of the workers feel that the company is not giving enough rewards for
their good performance. This will generate a psychologically negative attitude
from the workers towards the company.
➢ The workers are not satisfied with the motivation given by the company. The
company can introduce more useful schemes for reducing absenteeism.
➢ Another main factor is the lack of good relationship with the superiors.
Majority of the workers have some difference of opinion with the superiors.
3.4 SUGGESTIONS
➢ The rest interval or the lunch break is only a pause to the workers for a highly
motivated work for the next session. So after the lunch the worker should feel
fresh. Some entertainment like Television, music etc can relieve the strain of
the workers. Moreover at least some workers will try to keep up the timings
indirectly for the lunch break and to come back for work.
➢ Incentives to the workers can be given by the middle of every month. This will
help to reduce the difficulty of the worker to face his colleagues without money
since because friend circle is very important for each and every person.
Moreover the other workers will be motivated to do more work and earn more
money.
➢ Since the supervisor is the immediate leader to the workers keen interest should
be taken in appointing superiors. Superiors should deal with the workers in a
psychological manner to influence the workers.
➢ Apart from all these improving the working condition, health, safety and welfare
measures are also important. Improving the superior - worker relationship is
another important factor.
➢ Some group games and other entertaining programmes can be conducted for
the workers to make the job interesting.
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➢ Counseling can be given to the workers, who have some personal problems.
Management should help the workers when they are in need.
3.5 CONCLUSION
The management should convince the workers about their importance in the
organization and the workers should feel that they belong to the MRF Family. The
study helped to identify the reasons for absenteeism and the satisfaction level of
the workers towards the various factors leading to absenteeism.
REFERENCES
Website : www.mrftyres.com
www.google.com
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APPENDIX
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QUESTIONNAIRE
I. PERSONAL DETAILS :
1. Name (optional) :
2. Employee No :
3. Department :
Tyre Curing
Tyre Building
Tyre Finishing
General Leave Reserve
Others
1. Age
20 – 30 years
31 – 40 years
41 – 50 years
Above 50 years
1. Marital Status :
Single
Married
16 - 20 years
More than 20 years
1. Are you aware of the leave facilities and leave rules pertaining to
you?
Yes
No
Shift work
Working condition
Work load
Job – dissatisfaction
All the above
Interesting
Adjustable
Risky
Boring
Frustrating
I. PERSONAL PROBLEMS
Health
Festivals and other functions
Indebtedness
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Alcoholism
Family problems
I. WAGES
1. Are you satisfied with the present wages you are getting now?
Highly satisfied
Satisfied
No opinion
Dissatisfied
Highly dissatisfied
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
I. MOTIVATION
Yes
No
1. If yes mention any two:
Strongly agree
Agree
Neither agree nor disagree
Disagree
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Strongly disagree
I. RELATIONSHIP
Highly satisfied
Satisfied
No opinion
Dissatisfied
Highly dissatisfied
1. Are you satisfied with the rest intervals provided?
Yes
No
1. Among these which one you feel the most prompt to reduce your
absenteeism.