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Project Report on
“Causes, Effects and control of Absenteeism of workers in April-
June”
WITH REFERENCE TO
“Plastiblends India Limited”
“Kadaiya, Daman Manufacturing Division”
SUBMITTED TO
Department of Management Studies, Bhimtal
Submitted by
Joshi Mohit Nandkishor
Roll No- 1664610009
This Research work has not been submitted for the award of any other
Degree, Diploma, Fellowship or other similar title at Kumaun University or
any other University.
Date: -
This Endeavour would not have been possible without help of the
following individuals. Every person we mention plays a piece of the puzzle to
make picture complete, some pieces are bigger than others, but without any
one piece, the picture would not be complete.
The Researcher has carried out the project for a period of 6 weeks in a
well reputed company “Plastiblends India Ltd.” On the topic “Causes, Effects
and control of Absenteeism of workers in April-June”, which is the subject
covered under the main project.
The objective of the project undertaken was to examine the real cause
that give rise to absenteeism, thereafter to evaluate and control the negative
impact of absenteeism on the organization. The Researcher has found various
experiments which will be useful to minimize absenteeism in peak months.
Chapter 1
Research Design
And
Methodology
Kumaun University, Nainital
1.1 Introduction:-
The Researcher Mr. Joshi Mohit Nandkishor is pursuing MBA in Human Resource
Management from Department of Management Studies- Bhimtal, Uttarakhand. As a part of
the curriculum, researcher has undergone his summer internship at Plastiblends India Limited
Manufacturing Division Located at Kadaiya Village, Daman (Daman & Diu). Project titled as
“Causes, Effects and control of Absenteeism of workers in April-June at Plastiblends India
Limited – Kadaiya, Daman Manufacturing Division”.
The researcher has completed B.C.A in Computer Applications from SSR college of Arts,
Commerce and Science (Affiliated to University of Pune) Silvassa.
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Kumaun University, Nainital
year. This issue is continuously showing its drastic effect on overall operational activity in an
organization.
Thus, the topic for research was “Causes, Effects and control of Absenteeism of
workers in April-June at Plastiblends India Limited – Kadaiya, Daman Manufacturing
Division”.
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Kumaun University, Nainital
how the instruments will be administered, and how the information will be organized and
analysed.
Sampling Design:-
A sample design is a definite plan determined before any data are actually collected
for obtaining a sample from a given population.
The total workers in the organization are 451.
Sampling: -
Sampling is the art and science of controlling and measuring the reliability of useful
statistical information through the theory of probability.
Sample Size:-
Researcher has decided to take sample size 131, out of which 120 respondents from
workers and 11 respondents from officers and senior executives of Management.
Sampling Method:-
Convenience Sampling is being used to carry out the survey.
Data Collection:-
There are various ways to collect the data. The data can be collected through
observation, questionnaire, Interview etc. In this research, Researcher has used multiple ways
to collect primary data which includes mix of Questionnaire and structured interviewing
technique for workers and unstructured interview technique for Officers and senior executive.
Researcher collects the data through questionnaire and interview which consists of 18
questions. Researcher questionnaire consists of different question:-
Multiple - Choice Question.
Open and Close ended Questions
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Kumaun University, Nainital
Secondary Data:-
The secondary data are those which have already been collected by someone else and
which have already been passed through the statistical process.
The methodology applied for collection of data was both primary and secondary data.
Primary Data:-
The Primary data are those which are collected afresh and for the first time, and thus
happen to be original in character.
1.6 Limitations:-
The research was conducted in one of the plant of Plastiblends India Ltd.
The researcher was unable to collect all the necessary data because of data privacy
policy of the firm.
The data may not be 100 % accurate because data was collected during duty hours,
therefore there may be chance of unconscientious responses.
Due to hectic schedule, the researcher could only gather data from 120 workers and
11 Managerial Executives respondents.
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Kumaun University, Nainital
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Chapter 2
Company
Profile
Kumaun University, Nainital
Plastiblends India Ltd. is a part of the well-known kolsite group of companies. It is India’s
largest manufacturer and exporter of Masterbatches, Additives and compounds for the plastic
processing industry.
The brand Plastiblends represents a mark of quality, loyalty, and strength. Our success is
based on four pillars of Strength- Manufacturing, Distribution, Innovative Products and
Human Capital. These four pillars have made the company stand apart and succeed in today’s
highly competitive market.
World class quality has been cornerstone in our business strategy. The company has invested
extensively in product development and manufacturing facilities to maintain the international
quality standards. Our ability and focused approach towards the customer’s requirements has
given us clear edge in market place and stringent quality measures and competent
management system ensures that the finest products reach the customer consistently.
Plastiblends offer value, reliability and innovative products to all customers. As the largest
manufacturer and exporter in the Masterbatches in India we always believed in investing in
newer and more efficient technologies that focus on high quality and cost competitive
manufacturing.
Backed by years of experience we are able to offer optimum solutions to all our customers by
constantly monitoring market demands and customer changing needs. Whether developing a
new grade or conducting trials at the customers end our expert team is always available to
extend their expertise and knowledge to facilitate the customers’ business. Working closely
with our customers and dealers we aim to be a world class company with a sincere in the
success of our customers and flourishing their business.
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Kumaun University, Nainital
Vision
• Attain and Maintain leadership status in our chosen field of business
• Focusing all our actions towards Total Customer Satisfaction.
• Continuously striving to innovate our processes, products and services to generate
value for money in all our efforts – both internal and external.
• Making total employee involvement, sincerity of purpose and commitment to
objectives as the foundations of this vision.
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Kumaun University, Nainital
Mission
“Our mission is a statement of what we stand for. It touches our interactions, activities and
relationships with all our stakeholders. The way we do our business, our work culture, our
quality perspectives, our obsession with innovative technologies and our commitment to our
human resources are all singularly focused on enhancing and adding value.”
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Kumaun University, Nainital
Our human resources talent pool is well trained, skilled and performance driven. It includes
highly qualified Polymer Engineers with the latest technical know-how and innovative
abilities. These are the vital assets that have helped us to reach and maintain our leadership
status.
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Kumaun University, Nainital
Our shares are listed in the Bombay Stock Exchange and National Stock Exchange -
the two premier bourses of India.
Awarded the highest recognition for exports, the prestigious Certificate as Largest
Exporter of Masterbatches from India for three consecutive years : 2003-04, 2004-05,
2005-06, by The Plastics Export Promotion Council, India.
Blending
Science with Commerce
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Chapter 3
Theoretical
Background
Kumaun University, Nainital
The main purpose of Human Resource Management and its importance and to
describe how HRM functions helps companies to meet the challenges of global competition
in today’s world. Human Resource is a crucial sub-system in the process of management. The
term human resource is quite popular in India with the institution of ‘Ministry of Human
Resource Development’ being the Union Cabinet.
Human Resource Management central concern is the efficient utilisation of HRs.
Human Resource Management is the process of managing the people of an
organisation with a human approach. HR approach to man power enables the manager
to view his people as an important resource.
Human Resource Management is the staff activity requiring special knowledge and
skill in understanding and predicting individual behaviour, interpersonal behaviour,
group behaviour and organisation behaviour.
Definition of HRM:-
Human Resource Management is a responsibility of all those who manage people as
well as being a description of the work of personnel who are employed as specialists. It is that
part of management which is concerned with people at work and their relationships within an
enterprise. It applies not only to industrial and commerce but to all the fields of employment.
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Kumaun University, Nainital
3.2 Absenteeism:-
Abstract:
Absenteeism in Indian industries is not a new phenomenon. It is the manifestation of a
decision by employees not to present themselves at their place of work, at a time when it is
planned by the management that they should be in attendance. Many research reports reveal
that there has been a phenomenal increase in absenteeism in some industrial sectors. The
absenteeism becomes a problem to organizational management particularly when employees
absent from their work environment without giving sufficient notice and by justifying their
stand by furnishing fake reasons. The reasons for absenteeism are many. The factors
contributing to absenteeism from work includes individual and environmental factors. These
consists of sickness, accidents, occupational diseases, poor production planning (flow of
work), bad working conditions and inadequate welfare conditions, lack of trained laborers,
insecurity in employment, collective bargaining process, rigid control system, lack of
supervisory support, lack of interest, lack of cohesive and cordial culture and so on. The
individual reasons may vary from organization to organization depending upon the
organizational climate, employee's attitude and influence of external organizational factors
(market forces, social activities that influence the industrial culture prevailing in geographical
zone etc.). High rate of absenteeism is neither desirable to employers nor good for the
employees. The levels of absenteeism and reasons for its occurrence are dependent on many
variables in an organizational environment. This research highlights the ways to reduce the
absenteeism of the employees in the Indian Industry.
3.3 Meaning
Absenteeism is the term generally used to refer to unscheduled employee absences from the
workplace. Many causes of absenteeism are legitimate, for example personal illness or family
issues, but absenteeism also can often be traced to other factors such as a poor work
environment or workers who are not committed to their jobs. If such absences become
excessive, they can have a seriously adverse impact on a business's operations and,
ultimately, its profitability. The Labour Department in India defined the absenteeism rate as
the total man-shifts lost because of absences as a percentage of the total number of man-shifts
scheduled. So for calculation of the rate of the absenteeism we require the number of persons
scheduled to work and the number actually present.
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Kumaun University, Nainital
The rate of absenteeism can be calculated by considering the number of persons scheduled to
work and the number actually present. Thus, the rate of absenteeism can be estimated in the
following way: Rate of Absenteeism =
a) Average number of Employees
b) No. of available work days
c) Total number of available working days = a*b
d) Total number of lost days due to absenteeism = a/c
The Bradford Factor or Bradford Formula is used in human resource management as a means
of measuring worker absenteeism. The theory is that short, frequent, and unplanned absences
are more disruptive than longer absences. According to the Chartered Institute of Personnel
and Development the term was first coined due to its supposed connection with research
undertaken by the Bradford University School of Management in the 1980s. It was developed
as a way of highlighting the disproportionate level of disruption of an organisation's
performance that can be caused by short-term absences compared to single instances of
prolonged absence.
It was originally designed for use as part of the overall investigation and management of
absenteeism. In contrast, if used as part of a very limited approach to address absence or by
setting unrealistically low trigger scores it was considered short-sighted, unlikely to be
successful and could lead to staff disaffection and grievances. The use of the Bradford Factor
often provokes heated debate.
Where:
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Kumaun University, Nainital
• 3 instances of absence; one of one, one of three and one of six days (3 × 3 × 10) = 90
points
• 5 instances of absence; each of two days (5 × 5 × 10) = 250 points
• 10 instances of absence; each of one day (10 × 10 × 10) = 1000 points
Note: Bradford Factor should be used when annual leave given is 28 days. Any other factors
such as Bank Holidays should not be used as annual leave.
The rate of the absenteeism in Indian industries is very high and cannot be dismissed. A
Statistical study of absenteeism of Indian Labour observed that, the basic cause of
absenteeism in India is that industrial worker is still part-time peasant. Thus the workers go to
find jobs at cities after the harvesting their crops. It means that when the transplanting season.
These workers consider to the modern industrialism is insecure. Thus, cause to high rate of
the absenteeism in the industrial sector. According to the Labour Investigation Committee
(1946), there were many reasons that caused the absenteeism of the industrial workers.
Sadri and Lewis (1995) classified workplace absenteeism into two types Type A and Type B.
Type A absenteeism can be defined as an absence from the workplace that is completely
unavoidable on the employees part. Type A absenteeism is viewed by the employer as a
genuine and legitimate absence. Common Type A absences include bereavement, jury duty
and illness Type B absenteeism is at the opposite end of the spectrum to Type A. Believed
that Type B absences are avoidable and they comprise of an individual choice of the
employee. It is believed that the key component of Type B absence is the lack of motivation
in an employee. Over the years the rates of absenteeism have varied in organisations
according to an absence management report published by CIPD in association with Simply
Health (2012), it was reported that following on from the recession the average level of
absenteeism has fallen to a record low since 2002 across the majority of sectors in Ireland and
the UK. It can be argued that the recession has led to a fall in absenteeism due to the
employees being concerned about job security
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Kumaun University, Nainital
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Chapter 4
Data
Presentations
And
Analysis
Kumaun University, Nainital
Q-1 Have you faced high absenteeism rate in the period of April-June in your department?
If yes please specify in figures
12
11
10
0
0
Yes No
INTERPRETATION:
The survey states that according to the officers and Senior Executives of
Management; absenteeism rate in Production and Stores department in April-June
month is around 40-45%
These figures are rising question about how they manage these figures.
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Kumaun University, Nainital
Q-2 From last how many years you are facing this issue?
5
5
2
2
1
1
0
0
1-3 Years 3-5 Years 5-7 Years <7Years
INTERPRETATION:
As few of the respondents were new in organization, hence there response was not
recorded for this particular question.
While 6 respondents further added that, figures of unauthorised absenteeism in April-
June month is continuously increasing year on year.
Top executives in Production and Stores department are facing this issue from last
seven years.
As these figures are increasing year on year management every step to cater or stop
this problem is clearly seems to be ineffective.
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Kumaun University, Nainital
Q-3 Will you consider absenteeism under diseconomies of production? If yes upto what
extent?
Opinion
9
Yes, 8
8
7
6
5
4
No, 3
3
2
1
0
Yes No
Opinion
INTERPRETATION:
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Kumaun University, Nainital
12
11
10
4
4
0 0
0
Sickness Religious or social Family Problems Mal-adjustment with
ceremony working conditions or job
demands
INTERPRETATION:
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Kumaun University, Nainital
For Workers
70
59
60
50
40
40
30
20
12
10 8
0
Strongly Disagree Disagree Strongly Agree Agree
INTERPRETATION:
In the above question neutral option was not provided to find realistic responses.
In this study it can be easily interpreted that workers are not aware about individual
importance in organization.
Only 10% workers in the sample accepted that their absenteeism creates negative
impact on Operations or Production.
49.17 % workers are strongly disagree with this statement by responding:-
” मेरे रहने न रहने से कंपनी पर या फक पड़ता है.” “मेरे छु ी लेने से या काम के गा?”
33.33% workers somehow know about sole importance but not in operational field.
While 6.67% workers thinks that there might be production loss because of their
absenteeism.
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Kumaun University, Nainital
Q-6 In which time period you opt for long leave and how many days?
90
80
80
70
60
50
40
30 25
20 15
10
0
April-June Other Months Uncertain
INTERPRETATION:
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Kumaun University, Nainital
Q-7 It is observed that maximum number permanent leaves are in April-June, if yes can you
postpone your PL to other months?
100
89
90
80
70
60
50
40
30
19
20
11
10
0
Yes No N/A
INTERPERTATION:
Only 9.17% of workers are ready to postpone their leaves to other months.
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Chapter 5
Findings
And
Suggestions
Kumaun University, Nainital
It has been found in this study that the workers are not aware about when to take leave
or when to stay in an organization.
They take leave on dual advantage basis when the season of marriage arrives, they
think that 2 works will be completed simultaneously with a companion.
There should be flexible arrangement for voluntarily leave, which can be rotated
internally.
________________________________________________________________________
Some worker’s also accepted this solution, to minimize company’s as well as their
credibility loss. This will surely decrease late comers to an extent.
__________________________________________________________________________
Maximum workers accepted that, if in a specific period if leave is not sanctioned, they
move without sanctioning the leave, the reason behind this was, Maximum workers
does not get any assurance from superior for future leave. Therefore they feel
uncertainty of leave in future also.
This can be improved with a small interaction with workers while sanctioning or
rejecting application.
It has been found in this study that the workers who have dependent work profile are
aware about operational loss of Organization due to their absenteeism, hence they
depend on other worker for leave approval.
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Kumaun University, Nainital
Some workers also accepted that dependency to be fixed in order to decrease negative
impact of absenteeism.
_______________________________________________________________________
It has been found in this study that the competent worker effects operations a lot as
compared to non-competent worker.
Few officers also accepted that 15% contract labor reduces only 5% operational loss,
because of unavailability of competent worker at a time.
Workers to be segregated on the basis of competency and skills and the leave
allotment of these worker to be adjusted internally by mutual consent.
_______________________________________________________________________
_______________________________________________________________________
It has been found in this study that on an average 80-90% workers does not comply
with leave allotted period.
Conservative Step Leave allotment should be done in front of co-workers with mutual
consent.(Focus on Leave Management)
Aggressive Step Strict action to be taken for late comers which will be useful as an
example for other workers.
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Kumaun University, Nainital
Few Suggestions
Working environment (especially in the month of April to June) should be made
worker friendly, through various ventilation process in plant.
In past few years worker-superior meeting is conducted on half yearly basis for work
related training, but to make feel that they are important part of Organization,
MOTIVATIONAL training will help a lot.
There should be taken a strong step for workers health, considering workers as
intangible assets for long term.
For Unit-1, weekly off should be transferred to some other day except Sunday.
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Kumaun University, Nainital
Conclusion:-
It can be observed that absenteeism can be controlled and reduced to a great extent if the
workers are committed and are supported by all levels of management. An effective
attendance record-keeping system, consultation and open communication by the management
can create a healthy productive work environment in the company. This would reduce
grievances and give greater employee satisfaction. Only when the positive approach is
unsuccessful does the company need to use the remedial approach to deal with habitual
abusers or with excessive absentee cases. In all cases the company's actions must be fair and
reasonable and consistently applied. While tackling workplace absenteeism by direct action
may alleviate the problem in the short- term, addressing the cause of the problem will provide
long- term benefits.
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BIBLIOGRAPHY
Bibliography:
Books:-
Research Methodology Methods and Techniques by C. R. Kothari
New Age International Publisher (P) Ltd., New Delhi.
(Second Revised Edition: 2004)
Webliograph:
http://www.plastiblendsindia.com
www.ijsr.net
https://en.wikipedia.org/wiki/Bradford_Factor
https://www.researchgate.net/publication/222952893_Employee_Absenteeism
_A_Review_of_the_Literature
https://www.slideshare.net/supabuoy/absenteeism-32671378?qid=18a4d445-
d25b-4a8d-9ed1-e14fe3fe6a91&v=&b=&from_search=1
ANNEXURE
Questionnaire cum Interview on Absenteeism
1) Please specify your name_________________
a) Yes
b) No
3) From last how many years you are facing this issue?
a) 1-3 Years
b) 3-5 Years
c) 5-7 Years
d) <7 Years
a) Yes
b) No
5) What are the contingency plans for this issue? How you address this issue?
__________________________________________________________________
__________________________________________________________________
a) Sick
c) Family Problems
__________________________________________________________________
__________________________________________________________________
Personal Discussion
12/08/2017
I would like to take the opportunity to thank you for your guidance,
supervision and insightful experience during my summer internship. My
experience was very rewarding and I have gained valuable insight into the
Human Resource Department. It has been a wonderful experience for me
and I hope I was able to provide some value to you as well. I greatly value
your kindness and the time you took out of your busy schedule dedicated to
mentor me.
I want to thank you for the time you spent advising me on skills I should
develop in the future and giving me constructive criticism on my first
attempt on my HR Project.
Warm regards,
Joshi Mohit N.