Beruflich Dokumente
Kultur Dokumente
On
A COMPREHENSIVE STUDY ON WORKER’S ABSENTEEISM
In the partial fulfillment of the course of study of
Submitted To:
Department Of Management Studies
Institute Of Engineering And Emerging Technologies,
Vill. Makhnumajra, Baddi, Distt- Solan(H.P.)
Submitted By:
Anurag Sharma
Roll No 08/09
MBA 3rd Sem.
ACKNOWLEDGEMENT
A thanks giving seems to be a pleasant job. But it becomes none the less difficult when
one actually tries to put them in words. Just a few words of thanks are not enough to convey the
acknowledgement from the core of heart to the people as a whole. In course of duration of whole
project a lots of valuable assistance, guidance & co-operation has been rendered by senior
working people.
I express my sincere respect to General Manager Mr. Mukesh Saxena (Operation), Chief
Manager Mr. Ashwani Goel (Production), P&IR Manager Mr. Anil Kumar Singh for giving me
opportunity for the summer training at Vardhman Spinning Mills ,Baddi(H.P.)
I am also thankful to Mr. Rajbir, Mr. Satish Kaushik, Mr. Ramkaran, Mr. Ramesh
Sharma, Mrs. Rekha Shukla & all staff members of VSM & respondents of my survey and above
all the grace of almighty God that helped me in the accomplishment of this project.
Anurag Sharma
PREFACE
Project is an agglomeration of theoretical concepts which enhances our skills in the field
of technology. Project at Vardhman Spinning Mills. was surely a learning experience.
The Project Report has been developed as part of MBA Curriculum. The purpose of my
project undertaken is to familiarize the factors which lead to workers’ absenteeism in industry
(Vardhman Spinning Mills)
The Project was done at Vardhman Spining Mills. It is private unit situated at Baddi
(Solan) H.P. Vardhman Spinning Mills is a perfect blend of innovation and performances.
The study describes the factors that influence worker’s absenteeism in the organization.
CONTENTS
The project study is conducted in Vardhman spinning mills. The sample chosen for the
study includes the regular workers of the organization.
“Workers aren’t just the faces in the crowd, they are the real performers”. Workers’
absenteeism is one of the primary factor that influence the working of the organization. Infact the
rate of absentteism is an indicator of organizations state of health and also its supervisory and
managerial effectiveness
PART-I
COMPANY PROFILE
ABOUT THE COMPANY
Vardhman is a major integrated textile producer in India. The Group was setup in 1965 at
Ludhiana, Northern India. Since then, the Group has expanded manifold and is today, perhaps,
the largest textile conglomerate in India. The Group recorded a turnover of Rs.2210 crores (about
US$ 500 million) in FY 2005-06. The Group portfolio includes manufacturing and marketing of
Yarns, Fabrics, Sewing Threads, Fibre and Alloy Steel.
VISION STATEMENT:
Rooted in values, Creating World Class Textiles
MISSION STATEMENT:
CUSTMERS:
To remain one of the leading producers of yarns in India.
To work with customers (Knitters & Weavers) for developing new products to meet
changing requirements of international and domestic market.
To maintain consistent quality standards in each product category.
To earn customers confidence as a reliable, innovative and preferred supplier to our target
customers in India & overseas.
To adopt a Technology Policy which enables us to fulfill our commitment to retain
leadership position.
EMPLOYEES:
STAKEHOLDERS:
To strive for improved operational & financial performance year after year.
HISTORY
The industrial city Ludhiana, locate the fertile Malwa region of central Punjab is otherwise
known as the Manchester of India. Within the precincts of this city located the corporate
headquarters of the Vardhman Group, born in 1965, under the entrepreneurship of Late Lala
Rattan Chand Oswal has today blossomed into one of the largest Textile Business house in India.
As its inception, Vardhman had an installed capacity of 14,000 spindles; today capacity has
increased multifold to over 5.5 lacks spindles. In 1982 the group entered the sewing thread
market in the country, which was a forward integration of the business. Today Vardhman threads
are the second largest producer of sewing threads in India. In 1990, it undertook yet another
diversification, this time into weaving business. The grey fabric weaving unit at Baddi (H.P.),
commissioned in1990 with a capacity of 20,000 meters per day, has already made its mark as a
quality producer of grey poplin/sheeting/shirting in the domestic as well as foreign market. This
was followed by entry into fabric processing by setting up AURO Textiles at Baddi, which
currently has a process capacity of 1lacs meters/day.
In the year 1999 the group has added yet another feather to its cap with the setting up of
Vardhman Acrylics Ltd. Bharuch (Gujarat) which is joint venture Acrylic Fiber production
undertaken with Marubeni and Exlan of Japan. The company also has strong presence in the
market of Japan, Hong Kong, Korea, UK and EU in addition to the domestic market. Adherence
to systems and dedication to quality has resulted in obtaining the coveted ISO 9002/ ISO 14000
quality award, which is the first in Textile industry in India.
The group has 18 operation plant spread over Punjab. Himachal Madhya Pradesh and Gujrat
having a growth rate of about 15% per year of turn over a few years.
The group identified export as a thrust area and set foot in international market in mid
1980s...Since then group has attained a standard in quality in terms of product and services.
Vardhman has become now a global citizen with the presence practically in all continents.
Currently export to more than 100 customers spread in more than 25 countries, with a share of
more than 6% of the total export of the country.
For the effort to remain ahead of other in quality it has awarded countries first ISO 9002
accreditation for any textile manufacturing unit in 1993. It has also won the “outstanding export
award” for the year 96-97 from the president of India and state export award for five successive
years.
The strength comes from the total efforts being built around the customer by the workforce
around 25000 committed personnel’s. The group philosophy is centered in the faith that the
people are our basic strength and resource and total commitment toward training and
development of all employee’s is a steeping stone in this direction.
PHILOSPHY
• Total customer focus in all operational areas.
• Products to be of best available quality for premium market segments through TQM and
zero defect implementation in all functional areas.
• Global orientation targeting - at least 20% production for exports
• World class manufacturing facilities with most modern R&D and process technology.
PORTFOLIO
The group portfolio includes Yarn, Fabrics, Sewing Thread, Fibre and Alloy Steel
Yarns
Yarn Manufacturing is the major activity of the group accounting for 65 percent of the group
turnover. Vardhman is virtually a supermarket of yarns, producing the widest range of cotton,
synthetics and blended, Grey and Dyed yarns and Hand Knitting Yarns, in which Vardhman is
the market leader in India. The group has nine production plants with a total capacity of over 5.5
lacs spindles, spread all over the country. In many of the yarn market segments, Vardhman holds
the largest market share. Vardhman is also the largest exporters of yarn from India, exporting
yarns worth more than USD 90 million.
Sewing Thread
Vardhman is the second largest producer of sewing thread in the country. The sewing thread
manufacturing capacity is being expanded from present 17 tons per day to 22 tons per day in its
sewing thread plants located at Hoshiarpur, Baddi and Ludhiana. Sewing threads contributes 12
percent of the group turnover.
Fabrics
The group has created state-of-the-art fabric weaving and processing facilities in its plant at
Baddi, Northern India. The group has installed 208 shuttles less looms and a fabric processing
capacity of 30 million meters per annum in collaboration of Tokai Senko of Japan. Fabrics
business contributes 8 percent to the group turnover.
Fibre
The group has recently set up an Acrylic Staple Fibre plant at Bharuch in Gujarat in
collaboration with Marubeni and Japan Exlan of Japan. The plant has annual capacity of 18000
tons per annum. Fibre contributes 8 percent to the total turnover of the group.
Steel
The Group is also present in upper-end of the steel industry. The group has manufacturing
capacity of 100000 tons of special and alloy steel. The group supplies its steel products to some
of the most stringent quality steel buyers like Maruti and Telco. It contributes 6 percent to the
total turnover of the group
HOLDINGS
Fabric Business
Vardhman Group
MARKET
• Largest Spinning capacity in India - over half a million spindles.
• Largest producer of Cotton, Synthetics and Blended yarns in the country
• Largest Dyeing Capacity of Fibre and Yarn
• Largest Exporter of Cotton Yarn
• Market Leader in Hand Knitting Yarns in India
• Largest range of Textile products
• Second largest producer of Sewing Thread in the country
• Collaborations with specialist worldwide
Vardhman spinning mills was introduced in the year 1997.it was introduced as E.O.U. the daily
production of VSM is 14 tons.total running spindles in Vardhman are 36288. It has very little
market in INDIA while most of the yarn is exported to foreign. Its yarn market is JAPAN,
CHINA, AUSTRALIA, SWITZERLAND etc. Yarn count range produced in VSM is from 20 Ne
to 80 Ne.
PART-II
ABSENTEEISM:
AN INTRODUCTION
CONCEPT OF ABSENTEEISM:-
Employee’s Presence at work place during the schedule time is highly essential for the smooth
running of the production process in particular and the Organisation in general. Despite the
significance of their presence, employees sometime fail to report at the work place during the
schedule time, which is known as ‘absenteeism’.
Labour Bureau, Simla, define the term ‘absenteeism’ as “the failure of a worker to report for
work when he scheduled to work.” Labour Bureau also state 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 Webster’s Dictionary, Absenteeism is the practice or habit of being an ‘absence’
and an absentee is one who habitually stay away”.
It signifies unscheduled absents of an employee from work which is unauthorized
unexplained, avoidable & willful absence from work the rate of absenteeism can be calculated
when number of person schedules to work & number actually present are calculated. Absence
may be caused by uncontrollable circumstance like sickness and accident etc. it may be willful,
unauthorized or authorized. The absence may be authorized or unauthorized willful or caused by
circumstances beyond are’s control. It has been observed that the phenomenon of absenteeism
does not exist only in Indian industry; it is a universal fact. The difference is only in terms of
magnitude. The rate of absenteeism varies from 7%to nearly 30%. In same occupations, it has
risen to the abnormal level of 40% in same region; the extent of absenteeism may differ from
industry, place to place and occupation to occupation, it may also differ according to the make up
of the workforce. Absenteeism may be extensive in a particular department of an industry or a
concern.
TYPES OF ABSENTEEISM:
There are two types of absenteeism namely physical absenteeism and
functional absenteeism.
PHYSICAL ABSENTEEISM:
Physical absenteeism is when employees are not present at work it is divided into
innocent absenteeism and culpable absenteeism. Innocent absenteeism refers to absenteeism
caused by factors beyond the employee’s control. Culpable absenteeism is , on the other hand
deliberate and can be presented.
FUNCTIONAL ABSENTEEISM:
Functional absenteeism is when employees are present to work, but are not productive
frequent and lengthy tea or smoke and toilet breaks examples of types of absenteeism. Absent
also means arriving late, leaving early, attending and spending undue length of time in fetching
or carrying tools or looking for information.
CAUSES OF ABSENTEEISM
human relations systems (part of HRM). Often these can be linked to Herzberg’s hygiene Aside
from genuine illness, the main causes of absenteeism are failures of the firm’s factors, such as:
• Poor working conditions, making workers uncomfortable or even causing injury.
• A failure to respect individuals and to be concerned with their needs.
• A failure to respect individuals and be concerned with their needs.
• A failure of teamwork, leading to feelings of alienation or even bullying.
• Over supervision, leading to stress or the feeling of not being trusted.
• Inappropriate tasks, leading to stress as workers are unable to complete their tasks
satisfactorily.
• Pay rates that the employees feel are too low for their skills.
1. WHY?
Absenteeism costs organisation in a number of ways:
• Direct costs - The cost of temporary labour to cover absent staff is estimated at £13.2 billion for
the whole economy (2008). This equates to 3.1% of payroll for a typical employer
• Indirect costs - These include issues such as the effect on the quality of your customer services
and are estimated at £20 billion for the whole economy.
2. WHEN?
These are just some of the occasions when absenteeism can affect your business:
• Persistent lateness/regular intermittent absences
• Long-term absence that has a disproportionate effect both on payroll costs and management
time
• Non-genuine absences. A survey (by CBI/AXA) indicates that this accounts for 12% of
absence on average, equating to 21 million working days per year
3. WHAT?
What areas can we help with?
• Identify the causes of absence
• Conduct Absentee Management Audits;
• Review current absence management strategies and their effectiveness
• Review current corporate culture on absence and employee communications
• Identify the impact of long-term and short-term absences
• Identify stress related problems
• Assess your occupational health processes
• Manage absences resulting from industrial injuries and disabilities
4. HOW?
Our approach to dealing with absenteeism will analyse your organisation and not follow generic
methods.
This allows us to:
• Identify the issues that affect your organisation
• Analyse and provide constructive feedback on the issues identified
• Provide bespoke reports on the issues
• Advise on how best to tackle the problems using tact and diplomacy
• Assist with any required implementation
CALCULATION OF ABSENTEEISM RATE:-
Using the Standard U.S. Department of Labour formula, the rate of absenteeism is calculated by
dividing the number of working days lost through absence in any given period by the total
number of available working days in that same period.
Example;
No. of employees = 100
No. of available workdays = 20
Total no. of lost days = 93
Absenteeism rate = 93/(100 x 20) X100 = 4.65%
When a firm is faced with high levels of absenteeism it will look to the HRM department for
remedies, such as:
• Flextime – allows workers some degree of control over the hours they are at work. It can help
to relieve pressures caused by such things as child care and transport problems, which would
otherwise lead to workers taking time off as though they were sick.
• Job enrichment – a satisfying, challenging job will ensure that workers will want to go to work.
• Improved HRM – making workers feel more valued will allow people to feel more committed
to the workforce. Employees who feel part of a team will not want to let others down.
• Attendance bonuses – these are paid to workers who attend regularly. This is a controversial
idea, recent studies have shown that they may not actually increase attendance.
RESEARCH DESIGN :
“A research design is the arrangement of conditions for collection and analysis data in a
manner to combine relevance to the researcher purpose with economy in procedure”
It constitutes the blueprint for the collection, measurement and analysis of data. As such
design includes an outline of what the researcher will do form writing the hypothesis and its
operational implications to the final analysis of data.
As such the design includes an outline of what the researcher will do from
writing the hypothesis and its operational implications to the final analysis of data.
More explicit, the decisions happen to be in respect of:
What is the study about?
Why is the study being made?
Where will the study be carried out?
What type of data is required?
Where can the data found?
What periods of time will the study include?
What will be the sample design?
How will the data be analyzed?
In what style will the report be prepared?
What techniques of data collection will be used?
The Research Design undertaken for the study is Descriptive one. A study, which wants
to portray the characteristics of a group or individuals or situation, is known as Descriptive
study. It is mostly qualitative in nature. The main objective of Descriptive study is to acquire
knowledge.
Tools of Data Collection
1. Interview with the employees.
2. Discussion with the managers.
3. Time Office records and leave registers.
4. Handbook of Company
5. Questionnaire
Inference :
In the above pie chart out of 100 respondents 40% respondents are below 25 years, 44%
respondents between 25-35 years and remaining 16% respondents are of above 35 years.
From the above chart it is clear that majority of respondents are between the age group of 25-35
years.
2.Sex of Respondents:
Table: Sex of Respondents
S.No Option Response
1 Male 48
2 Female 52
Total 100
Inference :
In the above pie chart out of 100 respondents 52% respondents are female and 48% respondents
are male.
From the above chart it is identified that majority of respondents are female.
3.Marital Status:
Table: Marital Status
S.No. Option Response
1 Married 57
2 Unmarried 43
Total 100
Inference:
In the above chart out of 100 respondents, 57% respondents are married and remaining 43%
respondents are unmarried
From the above pie chart it seems to be clear that majority of respondents are married in the
company.
4.Years of Service:
Table:Years of Service
S.No. Option Response
1 <1 16
2 1 to 2 28
3 2 to 3 8
4 4 to 5 20
5 >5 28
total 100
Inference :
In the above chart out of 100 respondents, 16% respondents are below one year of service ,28%
respondents are between 1 to 2 years of service ,8% respondents have 2-3 years of service,20%
respondents are between 4-5 years of service and remaining 28% have above 5 years of service.
From above chart it is clear that majority of respondents have 1-2 and >5 years of service in the
company.
5.Academic Qualification:
Table: Academic Qualification Of Respodents
S.No.
Option Response
1 <5th 20
2 5th 25
3 8th 29
4 10th 16
5 12th 10
total 100
Inference :
According to the survey out of 100 respondents 20% respondents are <5th , 25% respondents are
5th passed, 29% respondents are 8th passed, 16% respondents are 10th passed and only 10%
respondents are 12th passed.
From the above chart it is clear that majority of respondents are 8th passed and only 10%
respondents are 12th passed .
Main questions:
6.Do you find your job interesting?
Table: Job Interest
S.No Option Response
1 Yes 95
2 No 5
total 100
Inference :
According to the survey out of 100 respondents 95% respondents find their job interesting
and only5% respondents do not find their job interesting.
In the company most of respondents find their job interesting i.e 95% .
According to the survey, 100% respondents says that their co-worker help them in their work at
shop floor in the company.
According to the survey out of 100 respondents says that their satisfaction level with co-worker
help – 5% respondents are highly satisfied, 70% respondents are satisfied, 25% respondents
have moderate level of satisfaction with co-workers help.
From chart it ts clear that majority of respondents i.e70% are satisfied with their co-worker’s
help in work related problems at shopfloor.
14.Are you satisfied with the oppurtunities provided by the company for your
career advancement?
Table: Satisfaction with oppurtunity provided by the company:
S.No Option Response
1 Highly satisfied 5
2 Satisfied 65
3 Moderate 25
4 Dissatisfied 5
total 100
Inference :
In the survey out of 100 respondents 5% respondents are highly satisfied with the opportunities,
65% rspondents says that they are satisfied with opportunities provided by the company, 25%
respondents says that it is moderate and only 5% respondents are dissatisfied.
From the above chart it is clear that majority of workers i.e. 65% are satisfied with the
opportunities provided by company.
16.Nature of work:
Table: Nature of work
S.No Option Response
1 Hard 10
2 Moderate 65
3 Better 25
Total 100
Inference :
In the above chart, out of 100 respondent 10% respondents says that nature of work is hard. 65%
says that nature of work is moderate, 25% says that nature of work is better .
From above chart it is find that 65% respondent says that nature of work is moderate in the
company
2 Mid week 12
From the above chart it is clear that majority of respondent prefer more absent after rest day
CONCLUSION
Finding and analysis reveals the following conclusion:
o As sampling is taken as an element of the study there might always be sampling errors.
o The sample under consideration may not reflect the whole population.
o Survey and study has been carried out in a span of only 6 weeks due to time constraint.
o Since absenteeism is a vast topic to be discussed, the study may not reflect each and every
aspect.
BIBLIOGRAPHY
BOOKS:
“RESEARCH METHODOLOGY”
By C.R. KOTHARI
Published by NEW AGE INTERNATIONAL PUBLICATION
“PRESONNEL MANAGEMENT”
By C.B. MAMORIA & GANKAR
WEBSITES:
WWW.VARDHMAN.COM
WWW.GOOGLE.COM
WWW.SCRIBD.COM
SUGGESTION & COOPERATION:
QUESTIONNAIRE
PERSONAL DETAILS :
1. Name………………………….
2. Age
3. Sex
a) Male b) female
4. Marital Status
a) Married b) Unmarried
You are requested to select any one of the alternative which you feel correct in
your opinion, against each statement.
o Yes o No
o Always o Sometimes
o Often o Never
o Morning o Night
o Always o Sometimes
o Often o Never
o Yes o No
o Always o Sometimes
o Often o Never
o Yes o No
o Satisfied o Dissatisfied
9. Are you satisfied with the opportunities provided by the company for your advancement?
o Satisfied o Dissatisfied
o Yes o No
o Always o Sometimes
o Often o Never
14. What is your opinion about the working conditions offered by the organization?
o Good o Poor
15. Following types of sickness generally results in absence, choose that one so you prefer absent
from the work;
o Health problems
o Family Reasons
o Festivals
o Agriculture
o Marriage
o Marriage
o Agriculture
o Death
o Festivals
o 10 o 20
o 15 o 1 month
o 10 o 20
o 15 o 1 month
o Yes o No
o Marriage
o Festivals
o Agriculture
o Tiredness
21. Having considered everything would you say your organization is better than other
organization?
o Yes
o No
THANKS……