Employees Absenteeism

1.1 INTRODUCATION

Employees presence at work place during the schedule time is highly essentially for the smooth running of the production process in particular and organization in general. Despite the significance of their presence, employees sometime fail to report at the work place during the scheduled time. Absenteeism refers to the failure on the part of employees to report to work though they are scheduled to work. In other words, unauthorized absence constitutes absenteeism. Absenteeism costs money to the organization, besides reflecting employee dissatisfaction with the company. Like employee turnover, there is avoidable and unavoidable absenteeism. Absenteeism is unavoidable when the employee himself or herself feels sick, his or her dependence at home suddenly become unwell or there is an accident inside the plant. Unavoidable absenteeism is accepted by managers and is even sanctioned by labour laws. For instance, one days leave with wages for every 20 days of service is allowed by the factories act 1948. Avoidable absenteeism arise because of night shifts, opportunities for moonlighting and earning extra income, indebtedness, lack of job security, job dissatisfaction and unfriendly supervision. This needs intervention by the management. Labour bureau, Simla, defined as the Absenteeism as The failure of a worker to report for work when he is scheduled to work Labour bureau also states that Absenteeism is the total man-shifts lost because of absence as a percentage of the total number of man-shifts scheduled to work. According to Websters Dictionary, Absenteeism is the practice or habit of being an absence and an absentee is one who habitually stays away.

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1.2 PROBLEM OF STATEMENT

The ultimate aim of any organization is profit making. Absenteeism impact of companys profit. There is inverse relationship between volume of profit & absenteeism. There are various reason of absenteeism lick job dissatisfaction, improper compensation, inadequate warning facilities etc. Absenteeism creates a problem of productivity, performance & profit. Important characteristic of Indian workers are that, they are in habit of abstaining from work compared to workers of other countries. The rate of absenteeism ranges from 4.3% to 44.8%. It also varies with the seasons in the year, the highest being during May, June of every year. The main reasons for absenteeism are sickness, accidents or maternity. These factors accounted for about 1.1 to 6.6%. Social and religious causes as high as 1.7 to 14.4%. Other causes like visiting villages for attending litigation rest and recreation account for 0.1% to 17% of total absenteeism. Absenteeism directly effects the on the progress of the company and as such the companies are facing a downward trend due to recession and all that the involved in the process are to be looked into. So I have selected this work at SPARKON TEXTILE, Sangola to identify the level of absenteeism and to facilities the company to move in this direction and find some progressive result. Naturally organization has to look in to these aspects and need to find suitable remedial measures so that qualitative and quantitative progress can be achieved. So this present study Employees Absenteeism is analyzed in depth.

1.3 OBJECTIVE OF THE STUDY:-

1. 2. 3. 4. 5.

To identify the reason of Absenteeism To measure the Employees Absenteeism level. To identify steps required to decrease the absenteeism. To study employees working conditions. To identify factors that motivates the employees, which minimize the absenteeism.
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1.4 SIGNIFANCE OF THE STUDY:-

The development of any organization depends on the regularity of employees. The study is conducted to know the various level and reasons for absence of employee in an organization by looking it. One can adopt corrective measure to decrease irregularities in the organization. Lead to organizational growth.

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1.5 RESEARCH METHODOLOGY:There are 3 types they are: 1. Explorative 2. Descriptive 3. Experimental Descriptive methodology is used in the present study

1.5.1 Data Sources:

a) Primary Data: The primary data was collected from the respondent by administrating a structured questionnaire and also through observation, interview & discussion with management team.

b) Secondary data Apart from primary data the secondary data is being collected through text book, records of Sparkon textile. Journals from Library, Academic Reports and Internet, used for this study.

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1.5.2 Sampling:

a) Sample population

There are total 1115 employees working in the organization.

b) Sample size:

Out of total population, the sample taken among respondents from the production department is 95

c) Sampling Area:

The research was conducted at production department of SPARKON REDIMADE GARMENT COMPANY, Sangola

d) Sample Method:

The research was made by the survey in accordance to the convenience of the employees. So the sample type is convenience sampling

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TOOLS USED FOR ANALYSIS:-

Instrument: A structured questionnaire is used and the type of questionnaire is target questions

Methods:The research was conducted by using contact through questionnaire, and observation. The information was collected from the employees of production department only.

DATA ANALYSIS TECHNIQUES:-

The data is analyzed with Simple analysis technique the data too is percentage method. Percentage method is used in making comparison between two or more criteria. This method is used to describe relationship. Percentage of Respondents= No. of Respondents/ Total number of Respondents *100

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1.6 SCOPE AND LIMITATION:The scope of study is limited to production department. These projects find out employee absenteeism reason. This project will be helpful to organization to reduce the employee absenteeism and increase the productivity. Project report is made in a way that it will give them easy access to the organization. This study is based on employee absenteeism and this project report is given good suggestion for reduce absenteeism. Also it is useful information to organization to know about employee satisfied with the leave facility. It is useful for the management to know the satisfaction of the employees. From the survey analysis and its findings, this project work will be helpful to company to improve their productivity.

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CHAPTER II
ORGANIZATIONAL PROFILE

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2.1 INDUSTERY PROFIAL

Indian textile industry can be compared to a pyramid of ice floating in water. Only one tenth of the pyramid is visible, in the form of large textile mills in the organized sector. The body of textile pyramid consists of the decentralized power loom and handloom sectors, which account for the bulk of Indies production. The base of pyramid is the downstream apparel and household textile sector. The entire pyramid employees about fifteen million (as in 2007, it was estimated 20 million) workers most of whom work in small firm in the decentralized sector. Indeed the structure of the Indian textile industry is as valid and deep rooted as its reform, , challenging and during Indian textile and clothing industry is the largest foreign exchange earner for the country, and over 20 million people ,second only to agriculture. India can afford to let this industry grow sick. That would be nothing short of human tragedy. Until the era of globalization liberalization was launched at the opening of the current decade, the domestic market was a protected turf and a sellers market However with the forces of globalization having been unleashed and accentuated by the coming into force of the WTO in 1995, there is no looking back. The world has changed and is changing. In the borderless world, only the fittest would survive. Indian textile and clothing industry is beset with several shortcoming, in no small measure due to the loop-sided govt. policy is the post 1947 India But now it must change. It must change if it is not be blows away by the global market forces both in the international market as well as by imports in the domestic territory. And country to the common refrain of the industrialists in textile industry, the onus of infusing a refreshing change lies more on the industry (firm) than on the government. This is not to be little the significant role of the facilitator that govt alone can provide. But competitive strategy originates at the level of the firm. No amount of macroeconomic change can make the firms in the industry competitive. The govt must evolve a national policy, which can act as a general guideline for the firms to define their unique positioning strategy. Given the national environment the firm must control their own destiny, or someone else will.
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2.2 COMPANY PROFILE

The Company Debut Mg. Director Type Facilities

Sparkon Textiles Pvt .Ltd 2007 Mr. R.A. Rupnar Manufacturing & Exporting Readymade Garments Sister Concern Fabric Processing Unit, Design Studio, World Class manufacturing facility spread across 1.20 lakh sq. ft equipped with natural cooling system (PDEC).

Forte

All types and range of Bedding Sets mainly from Cotton, Satin.

Strengths

Equipped with top of the line new age high-tech sewing machines for timely delivery and customer satisfaction. Large production area to cater to all types of client needs in terms of quantity and quality.

Ethics

We believe in and practice anti child-labour and fair wages policies.

Capacity People

Half a Million bedding sets per month A team of 250 + experienced and dedicated players

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Clients: Europe: Tchibo, ALDI, LiDL, Bierbaum, Otto, Jefferson, Nadja, Conforma, Casatex, Fellner, Li Fung, Kaeppel, Kastardt USA: Australia: Mervyns, King Linen, APM Barzak,

UNIT HIGHLIGHTS

The unit comprising of about 110 machines is housed in a 120,000 sq.ft. Well lit and ventilated building. All the three floors comprise vast and widely open production facility. Equipped with modern imported JUKI machines. With a built in online Q A system, the unit is capable of churning out 20000-25000 units of high quality Bedding Sets per day.

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CONTACT R.A. Rupnar (09881091783) Sparkon Textiles Gat No.624/625/626,Ekhatpur,Tal. Sangola, Dist. Solapur 413 307, Maharashtra ,India. Phone: +91-(02187) -222776 Fax: +91-(02187)-222795 E-mail: sparkontex_sparkongroup@rediffmail.com

2.3 VISION & MISSION:

VISION: A vision, to uplift the rural, downtrodden needy people from the drought prone area of Sangola, comes true in the form of SPARKON TEXTILES in the year 2007. Building blocks and the basic infrastructure of the company, definitely and determined visionary Mr. R A Rupnar who believes in bringing revolutionary changes in rural area through various modern skills and technological developments. He aspire in creating employment for at least 2000 people in near feature, feels that people get inspired by his work get attracted towards the rural sectors and follow his footsteps

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MISSION: To truly partner with our customer to deliver business solution which rest on product differentiation?

2.4 QUALITY POLICY

SPARKON TEXTILE COMMITTED TO:

1. Supplying products of consist quality to satisfy the customers requirements. 2. Delivering the goods at the right place at the right time at the right price. 3. Responding quickly and effectively in all communication with customers. 4. Training of all employees in achieving the products of high quality. 5. Ensuring good quality raw material supply from suppliers. 6. Having effective communication with suppliers. This will be achieved through the implementation and maintenance of well documented system to meet the requirement of buyers standard.

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2.5 ORGANISATION CHART

Managing Director

Executive director

Manager- Merchandising

D.G.M- HR & Admin

G.M. Production

Merchandiser-1

Executive- HR & Admin

Merchandiser-2

Finance & Accounts

Purchase Incharge

Clerk 1

Clerk 2

Clerk 3

Clerk 4

Security

Q.A Incharge

Floor Incharge

Sampling Incharge

Store Incharge

Sample Tailor

Store Keeper

Group No 1 Q A Auditor1 Q A Auditor2

Group No 3

Q A Auditor3

Group No 3 Q A Auditor4

Group No 4

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2.6 PRODUCATION PROCESS FLOW CHART

Receipt of Fabrics

Random Fabric Checking

Cutting

Stitching Inline Checking & Thread Cutting

Kaj Button Inline Checking Final Quality Control

Q.A

Folding & Packing of Carton Final Random Inspection By Marketing Dept. mmMMMMMQ.Cnkjhkhbkjhkjgkgkjgsdsdsdsdsd sdsdsdsdsddfsdfdsfdfffffddf121reredfdfdfdfsdfs Dispatch dfsdfdfdsfsdflsdflsdffsdfsfsdfsfsfsdfsfsffggfrerfd skfjlkdsjfl;sdjf;lkasdjf;lsdajkf;sdljf;lsdkjf;sdjf;sadlj Sinhgad Institute Of Business Management, Kamlapur fsdlfjsd;fsdfsftytytytytytytytytytyttytyeetetetete tetetetttttytrfdgdgsgfgfsdgererrerererererererer erererererfedrererderfwertwerqwewewewebnb

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1405,Prathmensh Towers, Opp. Don Bosco School, Gorai Rd., Borivali(W), Mumbai 400 091. (T): 022-2869 8601 / 2899 7356. (M0 : 98201 43204, E-mail: anand_consultants@hotmail.Com

Ref No: ST/02/2009-10

Date: 07/04/2009

This is to certify that following personnel of Sparkon Textiles, Sangola (Solapur) successfully completed SA 8000:2001 Internal audit training programme conducted on dated 06/04/2009

1. Mr. Rajesh Singh 2. Mr. Satish Jadhav 3. Mr. Sandeep Shriram 4. Mr. Siddharth Rupnar 5. Mr. Umesh Ligade 6. Mr. Hanmant Karande 7. Mr. Smita Patil 8. Mr. Namdeo Shinde -

GM Production

- Executive HR & S M R Assistant HR Store Incharge Maintenance Incharge Finishing Incharge Accountant Security Incharge

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The following topics were covered during the programme

Basic of SA 8000 Principle of auditing Types of audit and their advantages Roll and duties of internal auditor Planning, executing, reporting and follow up activities covered during IA Practical experience

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2.7 SOCIAL POLICY

S. A. 8000:2001 We at Sparkon Textiles in our activity of manufacturing and exports of readymade garments are committed to:

1. Confirm to all requirements of SA 8000 standards. 2. Comply with national and other applicable laws. 3. Requirements to which the Company subscribes from time to time. 4. Respect the International instruments such as ILO Conventions, Universal declaration of Human Rights, The United Nations Convention on the rights of a child, The United Nations Convention to eliminate all forms of discrimination against women and their interpretation.

5. Communicate this policy to all Personnel including Directors, Executives, Management, Supervisors, Staff and employees, whether directly employed, contracted or otherwise representing the Company and also accessible in a comprehensive form .

6. This is being achieved by implementing, maintaining & continually improving our Social Accountability Management System based on SA 8000 requirements.

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SOCIAL ACCOUNTABILITY OBJECTIVES:

The social objectives of Sparkon Textiles are as under:

To minimize the no of injuries by 50% within one calendar year, by continuously taking preventive measures. To improve the suppliers grading to A from B, within one calendar year. To continuously monitor the legal monitoring sheet for individual licenses expiry date and to acquire new license before expiry of any license. To reduce absenteeism by 5% in next 6 months.

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Abbreviation:-

Abbreviation MD GM SMR S M R (H & S) Executive HR NMR QA SAQ SA SAI ST

Full Form Managing Director General Manager Senior Management Representative Senior Management Representative (Health & Safety) Exe.HR Non Management Representative Quality Assurance Supplier Assessment Questionnaire Social Accountability Social Accountability International Sparkon Textiles

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CHAPTER III
THEORETICAL BACKGROUND

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3.1 INTRODUCATION OF HUMAN RESOURCE MANAGEMENT:

Human Resource Management concerned with hiring, motivating and maintaining people in the organization. It focuses on people in organization. Human resource view people as an important source or asset to be used for the benefit of organizations, employee and the society. It is emerging as a distinct philosophy of management aiming at policies that promote mutuality- mutual goals, mutual respects mutual rewards and mutual responsibilities. The beliefs is that policies of mutuality will elicit commitment which will turn will yield both better economic performance and greater human resource development. Modern organizational setting is characterized by constant changes relating to environment factors and human resources. As regard environmental factor, we find changes in the operating organizational structure, the networking procedures customs or norms and the economic, political and social patterns in which organizations exist. Moreover there is constant change in human resource. New individuals are being employed with their new ideas and expectations while the existing workforce is constantly changing vis-a-vis ideas values and attitudes. Although the changes may provide solution to some problems, it may create several new ones. There is an urgent need to understand these problems, anticipate them and to find solution to them. The responsibility to find out solution to these problems lies with every manager who has to be prepared to deal with different changes effectively through educational and developmental programs. Obviously every manager is responsible for management of human resources of course with the advice and help of personnel department. Management of human resource is the essence of being a manager who has to get thing done through other. Specifically his task related to leading, mobilizing, and directing the efforts of people without which he can be technician but not a manager. Thus every manager has to develop and maintain his competence in managing human resources which have assumed utmost significance in modern organizations. The term job satisfaction is of almost significance from the standpoint of employee morale. It refers to employees general attitude towards his general work. The job satisfaction factors which can have influence on attitudes, this can be considered as motives. The relationship between the man and work has always attracted the philosopher,
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scientists and novelists. A major part of mans life is spent work .work is a social reality and social expectation to which man seem to confirm. It is not only provides status to the individuals but also binds him, to the society. Job satisfaction is the persons attitude towards the job. Positive attitude towards the job are equivalent to job satisfaction where as negative attitude towards the job is equivalent to the job dissatisfaction. Job satisfaction has been defined variously from time to time Definition:Human resource management is a management function that helps managers recruit, select train and develop members for an organization. It focuses on the people in the organizations. ` HRM can be defined as managing (planning, organizing, directing and controlling ) the functions of employing , developing and compensating human resource resulting in the creation and development of human relations with a view to contribute proportionately due to them) to the organizational, individual and social goals.

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3.2 IMPORTANCE OF HUMAN RESOURCE MANAGEMENT:

The importance of HRM can be discussed under three standard points: 1. Social significance: Management of personnel enhances their dignity by satisfying their social needs. This is done by: i. ii. Providing suitable and most productive employment, which brings them psychological satisfaction Making maximum utilization of the resource in an effective manner and paying the employees a reasonable compensation in proportion to the contribution made by him.

2. Professional significance: By providing healthy working environment it promotes teamwork in the employees. This is done by: i. Providing maximum opportunities for personal dept.

3. Significance for individual enterprise: It can help the organization in accomplishing its goal by: i. ii. Creating right attitude among employees through effective motivation. Securing willing communication operation for achieving goals fulfilling their own social and other psychological need like love, affection, esteem etc.

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3.3 SCOPE OF HRM:The scope of HRM is indeed vast. All major activities in the working life of worker from time of his or her entry in to an organization until he/she leaves- come under the purview of HRM. Specifically, the activities included are HR planning, job analysis, job design, recruitment and selection, and job evaluation, employee remuneration, motivation communication, welfare, safety and health, industrial relations. For the sake of convenience all these functions into seven sections as shown in the figure

Nature of HRM

Prospects of HRM

Employee Hiring

Human resource management Industerial Relations Employee remuneration

Employee Maintenance

Employee Motivation

Figure Scope of HRM

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3.4 FUNCTION OF HRM:HRM is the process of acquiring, training, appraising, and compensating employees, and attending to their relations, health and safety, and fairness concerns. Human resource management must perform certain functions. These functions have been stated while outlining the scope of HRM. Conducting job analysis Planning labour needs and recruiting job candidates Selecting job candidates Orienting and training new employees Managing wages and salaries(Compensating) Providing incentives and benefits Appraising employees Communicating(Interviewing, counseling,& Disciplining) Training and developing Building employee commitment Union management Assessment

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3.5 ABSENTEEISM: Employees presence at work place during the schedule time is highly essentially for the smooth running of the production process in particular and organization in general. Despite the significance of their presence, employees sometime fail to report at the work place during the scheduled time. Absenteeism refers to the failure on the part of employees to report to work though they are scheduled to work. In other words, unauthorized absence constitutes absenteeism. Absenteeism costs money to the organization, besides reflecting employee dissatisfaction with the company. Like employee turnover, there is avoidable an unavoidable absenteeism. Absenteeism is unavoidable when the employees himself or herself feel sick, his or her dependence at home suddenly become unwell or there is an accident inside the plant. Unavoidable absenteeism is accepted by managers and is even sanctioned by labour laws. For instance, one days leave with wages for every 20 days of service is allowed by the factories act 1948. Avoidable absenteeism arise because of night shifts, opportunities for moonlighting and earning extra income, indebtedness, lack of job security, job dissatisfaction and unfriendly supervision. This needs intervention by the management. Labour bureau, simla, defined as the Absenteeism as The failure of a worker to report for work when he is scheduled to work Labour bureau also states that Absenteeism is the total man-shifts lost because of absence as a percentage of the total number of man-shifts scheduled to work. According to Websters Dictionary, Absenteeism is the practice or habit of being an absence and an absentee is one who habitually stays away.

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3.6 TYPES OF ABSENTEEISM:Absenteeism is of 4 types: 1) Authorized Absenteeism: If an employee absent himself from work by taking permission from his superior and applying for leave, such absenteeism is called as Authorized Absenteeism 2) Unauthorized absenteeism: If an employee absents himself from work without informing or taking permission and without applying for leave, such absenteeism is called as unauthorized absenteeism 3) Willful absenteeism: If employee absents himself from duty willfully such absenteeism is called wilful Absenteeism. 4) Absenteeism caused by circumstances beyond once control: If an employee absents himself him from duty owing to circumstances beyond his/her control like involvement in accidents or sudden sickness, such absenteeism is called absenteeism caused by circumstances beyond once control.

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3.7 CAUSES OF ABSENTEEISM: The following are the general causes of Absenteeism Maladjustment with the working conditions. Social and religious ceremonies Unsatisfactory housing conditions at the work place. Industrial fatigue the industrial fatigue compels to remain outside the work. Unhealthy working conditions Poor welfare facilities Alcoholism Indebt ness Maladjustment with the job demands Unsound personal policies Inadequate leave facilities Low level of wages

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3.8 CALCULATION OF ABSENTEEISM RATE: Absenteeism is computed and is expressed in terms of percentages. Absenteeism can be calculated with the help of following formula. Absenteeism Rate = Number of Man days lost x100

Number of Man days scheduled to work Absenteeism rate can be calculated for different employees and different time periods like month and year. The frequency rate reflects the incidences of absences and is usually expressed as the number of separate absence in given period , irrespective of length of absences. The frequency rate represents the average number of absences per worker in a given period. Frequency rate = Total no. of times in which the leave was availed /Total no. of Man days scheduled to work *100 Severity Rate: severity is the average length of time lost per absence and is calculated by using the formula Severity rate= Total no. of absent during a period/Total no. of times absent during that period *100 A high severity rate indicates that the employee is absent for longer durations each time. High frequency and for longer durations each time resulting in high absenteeism even in absolute terms.

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3.9 MEASURE TO MINIMIZE ABSENTEEISM:Absenteeism affects the organization from multiple angles. It severely affects the production process and the business process. The effect of unauthorized Absenteeism is more compared to other type of absenteeism. However it would be difficult to completely avoid Absenteeism. Managers stood take steps to remove causes of absenteeism. On the positive side manager must create work environment which will make the employees realize that it make sense to the work in the factory rather than staying at home and waste their time. The following measures are useful in controlling or minimizing absenteeism Selecting the employee by testing thoroughly regarding their aspirations ,value system, responsibility and sensitiveness Adopting a humanistic approach in dealing with the personal problem of employees Following a proactive approach in identifying and redressing employee grievances. Providing hygienic working condition. Providing welfare measures and fringe benefits, balancing the need of the employees and ability of the organization. Providing high wages and allowances based on the organizational financial position. Improving the communication network. Providing leave facility based on the need of the employees according to organizational standards
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Providing safety and health measure Providing cordial human relation and industrial relations Regularity to be encouraged through incentives. Providing extensive training .encouragement through special allowances in cash for technological advancement.

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