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RATIONALE BEHIND THE STUDY

Industrial progress is an outcome of mainly of the human and physical resources of the production. Sufficient progress has been made in the sphere of physical input such as capital and technology. Despite rapid development in technology the desired level of economic development and social welfare are yet to be achieved! One of the main causes of failure has been underutilization of human resources in the country. Unfortunately the rate of progress in our country has not been commensurate with our potential on account of lack of appropriate work culture. Employer and employed are still looked upon as adversaries rather than as partners. In the joined endeavors frequent strikes, lockouts and other forms of industrial unrest are symptoms of prevailing environment in industry. In this project the main purpose of the study was to have a thorough understanding of the theoretical concept and their practical application by being placed in the actual work environment To understand their relevance and find the extent to which they are actually being applied in the work situation; To have an in-depth knowledge of the function of the organization through actual work experience.

OBJECTIVES

OF THE STUDY

The project apart from a brief overall review of the organization studies the level of absenteeism rate in the organization, referring the general staff of both the managerial and non-managerial level of employees. The main issue of concern was related with the employees presence rate and how often they find themselves failing in reporting to work, at the same time analyzing different causes and other incentives regarding salaries and welfare packages offered to them as well as judging the satisfaction level with their compensation package, which surely creates a reason for determining their dedication towards the work. This project has also been undertaken to gather the details of employees turn over as well as examining the general trend within an organization enabling to find an exact reason behind the increasing absenteeism rate in the organization.

Hence, the major objectives of this study were: To identify the prevalence level of the absentees in Varun Beverages Ltd. To identify the major causes of the absenteeism at Varun Beverages Ltd.

To Asses the after effects of absenteeism in Varun Beverages Ltd.

The project is based on my experience and frequent interaction with the employees in VBL.

HYPOTHESIS
A hypothesis is a proposition, condition or principle which is assumed, perhaps without belief, in order to draw logical consequences by this method to test its accord with facts which are known or may be determined. When a researcher observes knows facts and takes up a problem for analysis, he first has to start somewhere and this point of start is the hypothesis. In other words, one has to proceed to formulate tentative solution as soon as the problem to be tackled is finalized. These proposed solutions or explanations constitute the hypothesis which the researcher proceeds to test on the basis of fact already known or that can be made known. Such a point of view or proposition is the hypothesis. The tentative explanations or solutions are suggested to researcher by something in the subject matter and by our previous experience. Hypothesis testing means to know whether the hypothesis based on the data collected is valid or not. The main object of hypothesis testing is whether to accept the null hypothesis. Procedure for hypothesis testing deals with steps on the basis of which a hypothesis is either rejected or accepted. Thus, this study has been primarily carried out to analyse and judge the effects and implications of absenteeism among the employees of a bottling plant, both on the managerial and the non-managerial section of employees. The hypotheses of the study are: Absenteeism affects and reduces organizational productivity. Logical outlook towards various problems was more prominent among regular attendees than absentees. Older employees have greater commitment towards their work.

The hypothesis of this study has been deduced and identified on the basis of the belief that employees normally absents themselves from work due to certain unconditional and conditional reasons which affects organizational productivity. 3

SCOPE OF THE STUDY


Every employee who takes off in defiance of organization regulation has reasons, right or wrong which justify themselves the legitimacy of their actions. Unless a management attendance program identifies and addresses the causes of employee absenteeism it will be ineffective and unfair. Traditional disciplinary programs alone can, at best, give the illusion of control. It is no secret that there are ways to beat even the best systems. The fear of discipline often only increases the desire to avoid management systems. If absenteeism is to be controlled the physical and the emotional needs of employees must be addressed. In a 1985 study on Rates of absence among Nurses it was found that 50% of absenteeism could be controlled through attending employees physical and emotional needs.

CONSTRAINTS OF THE STUDY


My project is entitled as: A study of the level of absenteeism and its causes, at Varun Beverages Ltd.

(A study conducted at Pepsi Bottling Plant Greater Noida, UP, with special reference to managerial and non-managerial categories of employees)
Now, while undergoing the interview process I found certain constraints existing thereby in VBL: Hiding of some true facts by the respondents due to fear of the management. Some of the responses given by the respondents vague i.e. not legible and clear. Few of them showed disinterest as they all have a notion that such an investigation is futile and that they will gain no benefit from it. Few of them remained quiet when asked about what suggestions they would like to give for future developments and success of VBL.

Besides all these constraints I have been impressed by the ingenuity, cooperation, confidence and efficiency which were reflected through their knowledge and experience and still find my journey of interviewing, interesting and people at VBL amiable and thus at least I successfully interacted to 70 employees in Varun Beverages Ltd.

ORIGIN OF VARUN BEVERAGES LTD. UNDER RKJ GROUP


It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself. Its services touch different aspects of commercial and civilian domains like those of Bottling, Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on today can laid claim to expertise and leadership in the fields of education, food and beverages. The business of the company was started in 1991 with a tie-up with Pepsi Foods Limited to manufacture and market Pepsi brand of beverages in geographically pre-defined territories in which brand and technical support was provided by the Principals viz., Pepsi Foods Limited. The manufacturing facilities were restricted at Agra Plant only.

Varun Beverages Ltd. is the flagship company of the group.


The group also became the first franchisee for Yum Restaurants International [formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise rights for Northern & Eastern India. The group added another feather to its cap when the prestigious PepsiCo International Bottler of the Year award was presented to Mr. R. K. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCos centennial year celebrations at Hawaii, USA. The award was presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of Pepsi Cola Company. 6

Vision

Being the best in everything we touch and handle.

Mission

Continuously excel to achieve and maintain leadership position in the chosen businesses; and delight all stakeholders by making economic values in all corporate functions.

Their Success
Production of innovative, high quality retail branded beverages combined with world-class packaging. Driven by a management team with a relentless focus on achieving superior customer service, driving earnings improvement and increasing shareholder value.

Their People
At RKJ Group they are creating an environment where our employees enjoy a greater degree of empowerment both individually and in their work teams. Their employees are equipped with the necessary tools, training and management backup for strong performance and accountability . 7

RKJ GROUP OWNED BUSINEES IN INDIA AND WORLDWIDE

COMPANY PROFILE WORLDWIDE


COMPANY VISION
To become truly global company, by continuing to build a competitive and profitable worldwide refreshment beverage business. PEPSI COLA INTERNATIONALS STRATEGY
Target core Brand Focus on business growth. Satisfy market priorities Focus on franchising with building core of company owner.

A North Carolina Pharmacist established Pepsi Cola in 1980 as a cure for Dyspepsia (indigestion). Under the supervision of Mr. Bradhman Pepsis first bottling plant was build 1905. In 1977, when Coca-cola left the country then Pepsi Co. began to lay plans to enter this huge Indian soft drink market. Pepsi working with Indian business groups to seek government approval for its entry in the India soft drink market. Pepsi offered Indian Government to help in the exports of some of its agricultural products in a volume that would cover the cost of importing soft drink concentrate. Pepsi Company is established in Indian in 1989. At that particular time it was know as a non-Cobo (Company owned bottling operations) company. In January 1995 Pepsi took over and it is now known as a Cobo (Company owned bottling operations) company. It joined hands with Voltas Ltd with 60%equity. But now it has become a fully owned subsidiary. Pepsi Company is broad based food and Beverages Company, serving more than 60% of its sales and operation profits from its snack- foods and restaurants business. Established with a turnover of $ 28 billion in 1989, the companys beverage business has grown 50% streets ahead of the market; which has expanded by 20%. It poured in vast sums to whip up its visibility at the retail level, so that consumes were greeted virtually at very street 9

corner by Pepsis blue-red and white colors. Behind the hype, in effort invisible to consumers, Pepsi pumped in Rs.300 Crore to add muscle to its infrastructure in bottling and distribution. This is apart from the money that up grading the plants.

April 1993, Voltas and Punjab Agros equity stakes were bought over converting Pepsi Foods from a joint venture to fully own subsidiary. Weak bottlers who did nit have the finance were given massing support in from of interest- free loans to upgrade their operations. But the big strategy, which has proved to be winner was the position Pepsi, decided taken company owned Bottling operations (COBO). For this another subsidiary Pepsi co. India Holding was set up as investment vehicle capitalized at $9.5 million. 1991 saw a major launch of 7-up in India, which was warmly received by India customers and consumers. 1994 Pepsi achieved the number 1 position in cola brand India. 1995 2new COBOs were opened in UP & Gujarat. 1996 Mirinda attend No 1 Position in orange beverage category. May 1998 was major launch of Mirinda Lemon in India.

Pepsi is trying very hard to maintain the lead it made over its competitors in the India sift drink market. It is expanding its business in the other fields also. It is in the business of export of beverages concentrates. This year Pepsi has achieved a 100% growth in the export turnover in the first quart of 1998 over the corresponding period for the previous year. Pepsi has taken a lead in the beverage concentrate exports from potential in the near future. Pepsi has also developed agricultural linkages to boot its export thrust and as a move in the direction, its plant at Sonepat has become the first rice-processing facility in India. Pepsi mean while added a new range of products to its agro-export Portfolio. These include Baron, a bread of peanut butter marketed in U.S., Branded red and green chili, Puree, ginger and garlic paste &cooking paste under the seasons Harvest home, which is also the name of its branded basmati rice. 10

At present Pepsi is trying very hard to maintain its position in the market. It is operating in a very well managed manner. Some of its strategies it followed to be competitive in the market area follows

EMPOWERMENT
One of the strongest weapons in the Pepsis armory is the flexibility it has empowered with its people. Every manger and sales person has the authorities to take whatever steps he feels will make consumer aware of the brand and increase its consumption.

CHANNEL MANAGEMENT
Pepsi has a very well managed distributive system. It is said the Pepsi dont have bottlers, it has partners. Pepsi has a well-aligned bottling network. It operates through COBO (Company owned bottling operations) and FOBO (Franchise owned Bottling Operations)

It is this way a Pepsi Co., India Strengthens its marketing that gives it an edge. Every number of its sales team is meticulously taught the merchandising and display skills that can leverage the reach of the companys bottling network to achieve high visibility for the product.

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COMPANY PROFILE IN INDIAN SCENARIO


Since the entry of Pepsi co. to India in 1987, the soft drink Industry has undergone a radical change. When Pepsi entered parley was the leader with Thumps UP being its flagship brand. Other product offerings by parley included Limca & Gold Spot. Another upcoming player in the market was the erstwhile bottle of Coca-Cola, Pure Drinks. Its offerings included Campa Cola, Camps Lemon and Campa Orange. With the re-entry of Coca-Cola in the Indian market, Pepsi had to go in for more aggressive marketing to sustain its market share. The chronology the initial phase of the Coal Wars in India was:

July 1986
An application for soft drinks-cum-snack food joint venture by Pepsi, Voltas and Punjab Agro is submitted to the government after an earlier proposed alliance- 1985, between Pepsi and Duncans of the Goenkas fails to take off.

Sept.1988
Final approval for the Pepsi Foods Limited (P.F.L) project granted by the Cabinet Committee on Economic Affairs of the Rajeev Gandhi Government.

March 1990
Pepsi Cola and Seven up Launched in limited market in North India.

May 1990
The government clears the Pepsi project again but with a change in brand name to Lehar Pepsi. Simultaneously it rejects the Coca-Cola application.

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Dec 1991
Pepsi extends its soft drinks reach on national scale. Products launched Delhi and Bombay.

Jan 1992
Brito Foods application cleared by the FTPB. Pepsi and Parle start initial negotiations for strategic alliance but talks break off after a while.

1993
Pepsi launches Teem and Slice. Captures about 25.30% of the soft drinks market in about two years.

July 1993
Voltas pulls out of PFL joint venture. Pepsi decides to raise equity to 92%.

1994
Pepsi brought Dukes& Sons

1995
Pepsi launched Cans having capacity of 330 ml in various flavors.

1997
Pepsi brought Mirinda Orange opposite to Fanta.

1998
Pepsi launched Lemon Mirinda to give taught competition to Limca.

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1999
Pepsi has launched its Diet Pepsi Can and 1.5 Liters pet battles for health conscious people.

2000
Refusing to dilute its equity state Coca-Coal winds up operations in the country. Parle launches Thumps Up and Drinks launches Campa Cola.

2001
Pepsi launched Aquafina.

2003
Pepsi launched Mountain Dew

2005
Mirinda lemon zinger, 7UP.Ice was launched by Pepsi.

2006
Bubbly Pepsi was launched.

2007
Pepsi Gold was launched.

2008
Pepsi My Can was launched.

2010
Pepsi MAX was launched.

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ABOUT ORGANIZATION AND ITS OBJECTIVES


It means a structural framework of duties and responsibilities required of a personnel in achieving the predetermined goals. An organization of VBL is a simple yet complex in terms of the different designations provided to its employees. Companys overall view of organization can be successfully dealt as follows: The people at PBG reflect the Companys emphasis on superior sales capability and service. The Vice President/General Managers of PBGs market units lead marketing and sales efforts in contiguous geographic areas with common major customers. The entire PBG sales force competes on a local level to serve existing customers and to win new accounts. Their aims are:

We compete locally. Small in big/small company Visible community leadership Mindset of an entrepreneur Know/Service every customer

Sense of urgency There is no tomorrow. Fix it today. Our success is built upon passion.

Every front-line job has targets. Reinforce goals, plan performance Prioritize, focus, simplify Clear accountability for results No excuses.

Treat everyone fairly, and with dignity. Operate with integrity and justice. Every individual is important.

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OBJECTIVES OF VARUN BEVERAGES


The objectives of VBL are:
To observe the implementation and working of sales club programme at different sections in Noida. To monitor whether it is successfully implemented in the market. To monitor the customer awareness about the sales club programme whether they are fully aware about the programme or not. To check out that all the required materials for sales club programmed are given to customer/ retailer or not. To find out the effect on increasing the sales b/z of sales club programmed at partial shop. To monitor the purity of vis-cooler at sales club account. To monitor the purity of sack at sales club account. To monitor whether updates in the programmed book is clan in time or not. To make the books available to the customers.

OTHER INFORMATIONS ABOUT VBL


EARNINGS RELASES
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Pepsi Cos 2004 quarterly earnings releases are expected to be issued the week of April 12 July 12, September 27, 2005 and January 30, 2005.

COMPANY DOCUMENTS
Investor relations: - Security analysts and other members the professional financial community who have question Pepsi Cos investor relations department at (914) 253-3035 or (914) 253-2155.

SHAREHOLDERS
Pepsi Cos (symbol: PED) shares are traded principally on the New York Stock Exchange in US. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. Pepsi Cos has consistently paid cash dividends since the corporation was founded.

MISSION STATEMENT
Our mission is to be the worlds premier consumer products company focused on convenient foods and beverages. We seek to produce healthy financial rewards to invest as we provide opportunities for growth and enrichment. Our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity! as exclaimed by Pepsi Cos.

CORPORATE CITIZENSHIP
Pepsi Cos believe that they are corporate citizen; it has a responsibility to contribute to the quality of life in our commodities. This philosophy is put into action through support of social agencies, projects and programs. The scope of this support is extensive-ranging from sponsorship of local programs and support of employees voluntary activities to contribute 17

to time, talent and funds to programs of national impact. Each division is responsible for its own giving program. Corporate giving is focused on giving where Pepsi Cos employees volunteer.

PEPSI HEADQUARTERS
Pepsi Cos world headquarters is located in purchase, New York, approximately 45 minutes from New York City. Edward Darell Stone, one of Americas foremost architects, designed the seven building headquarters complex. The building occupies 10 acres complex that includes the Donald Mkendall sculpture gardens, a world acclaimed sculpture collection in garden setting. The collection of work is focused on major twentieth century art, and features work by such as Augusta Rodin, Henri Laurens, Henery Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens were originally designed by the world famous garden planner, Russel Page, and have been a visitors booth in operation during the summer and spring.

TRAINING AND DEVELOPMENT


It provide following to employee: On Job Training Program In House Training Program Out door Training Program

PRODUCTION SETUP AT GR.NOIDA BRANCH OF PEPSI


Gr.Noida plant in Varun Beverages plant is a dedicated plant for five major products. These are as follows: 18

PRODUCT FILLING
PEPSI MIRINDA ORANGE MIRINDA LEMON SLICE 7-UP EVERVESS SODA MOUNTAIN DEW Plant is producing 10 million cases every year.

BOTTLE
300ml, 200ml 300ml, 200ml 300ml, 200ml 250ml 300ml, 200ml 300ml 300ml, 200ml

Plant has employed about 200 employees with separate company uniform on permanent and causal basis. There are 40 managers/ officers/ supervisors and rest of workmen. Plant is dispatching near about 125-150 tracks in peak seasons per day to various location. This Plant spreads over 75 acres.

QUALITY POLICY
The best delivery. The best product in the market place The highest quality The best testing.

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AN OVERVIEW OF ALL PEPSI-COLA BRANDS

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AN OVERVIEW OF PEPSI-COLA BRANDS PRODUCED BY VBL


PEPSI
CONTENTS: CALORIES TOTAL FAT SODIUM POTASSIUM TOTAL CARBOHYDRATE SUGAR PROTEIN CAFFEINE 100 0gm 25mg 10mg 27g 27g 0g 25mg

Pepsi contains carbonated water, high fructose com syrup and/or sugar, Carmel color, phosphoric acid, caffeine, citric acid and natural flavors.

SLICE
CONTENTS: CALORIES TOTAL FAT SODIUM POTASSIUM TOTAL CARBOHYDRATE SUGAR PROTEIN CAFFEINE 21 130 0g 35mg 70mg 34g 33g 0g 0g

CELEBRITIES FOR PEPSI


Following are some celebrities of Pepsi: -

AMITABH BACCHAN SHARUKH KHAN SAIFALI KHAN FARDEEN KHAN JOHN ABRAHAM KAREENA KAPOOR PRIETY ZINTA PRIYANKA CHOPRA SACHIN TENDULKAR SAURABH GANGULY YUVRAJ SINGH HARBHAJAN SINGH RAHUL DRAVID ZAHEER KHAN MOHAMMED KAIF AJEET AGARKAR MAHENDER SINGH DHONI

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FAMOUS CATCH LINES OF PEPSI


Some famous catch lines of Pepsi are: YEHI HAI RIGHT CHOICE BABYAAHA!!!!

NOTHING OFFICIAL ABOUT IT CHOICE OF NEXT GENERATION MORE CRICKET MORE PEPSI YEH AAZADI HAI DIL KI YEH DIL MANGE MORE ZOR KA JHATKA DHHERE SE LAGE PEPSI KE LIYE HUM BESHRAM HAIN YEH PYAAS HAI BADI DO THE DEW OYEBUBBLY! PEPSI UTHAO, GHAR LEY JAO JOIN THE BLUE BILLION MOUTH HAPPY POCKET HAPPY PEPSI. MY CAN

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OVERVIEW OF PRODUCTION FROM 19952005

VBL LTD Production from 1995 to 2005

90 80 70 60 50 40 30 20 10 0 95 96 97 98 99 20002001 20032004 2005

E ast W e st N o r th

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DEFINING ABSENTEEISM
Absenteeism in short can be defined as a failure to report to work.
It is likely a symptom of low moral and declining productivity or little involvement at work as demonstrated by the employees staying away from work. It refers to the failure on the part of employees to report to work through which they are scheduled to work. In other words an unauthorized absence constitutes absenteeism. It is referred to here in as failure of employees to report to work when they are scheduled to work.

UNDERSTANDING ABSENTEEISM OR INTRODUCTION TO ATTENDANCE MANAGEMENT


The management of attendance is an important aspect of supervision. The cost of absenteeism is greater than the direct payment of wages and benefits made during the absence. Organization must also consider he indirect cost of staffing, scheduling, reframing, lost productivity, diminished moral, turn over, opportunity cost. The indirect cost often exceeds the direct cost of absenteeism. Effective supervisory efforts in attendance management will affect a relatively small percentage of employees but will generate substantial savings, increased productivity and moral.

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TYPES OF ABSENTEEISM
There are two types of absenteeism, each of which requires a different type of approacha) INNOCENT ABSENTEEISM: - innocent absenteeism refers to employees who are absent for reasons beyond their control sickness and injury. Innocent absenteeism is not culpable i.e. blameless. In a labor relations context this means that it cannot be remedied of or treated by disciplinary measures.

b) CULPABLE ABSENTEEISM: - it refers to employees who are absent without authorization for reasons, which are within their control. For instance, an employee who is on sick leave even without being so and it can prove so; he/she is guilty of culpable absenteeism. To be culpable is to be blameworthy. In labor relation context this means that progressive action can be taken. For the large majority of employees, absenteeism is legitimate, innocent absenteeism, which occurs infrequently. Procedures for disciplinary action apply only to culpable absenteeism. Many organizations rake the view that through the process of individual absentee counseling and treatment, the majority of employees will overcome their problems and return to an acceptable level of regular attendance.

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CALCULATION OF ABSENTEEISM
The rate of absenteeism is expressed as the percentage of man-days lost through absence to the total number of man days scheduled in a given period.

No. Of Employees Absent Absenteeism% = No. Of Employees Present

* 100 ------------------------------------

No. Of Employees Present = (Avg. No. of workers) *(No. of working days)


As we know, employees are the 21st century organizations greatest assets. Accountants are even adding human capital to the balance sheet. Absenteeism is a universal problem in an industry. It becomes a problem when it exceeds 10% as it disturbs the production schedules and creates many problems. Personnel Research studies have further revealed that: The days before and after a holiday are liable to higher rate of absenteeism. Employees who belong to local area are absent more often than outsiders. Bad weather increases rate of absenteeism, especially among employees who live at distant places. Employees under the age of 25 years and above the age of 55 years are absent more often than those in the age group of 26 to 55 years. Operative employees are absent more frequently than the supervisors and managers.

The higher the rate of pay and greater the length of services of the employees, the fewer the absences.

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FACTORS CAUSING ABSENTEEISM


The causes of absenteeism are many and include: Major accidents and illness Low morale Poor working conditions Boredom on the job Lack of job satisfaction Inadequate leadership and poor supervision Personal problems Poor physical fitness Inadequate nutrition Transportation problems The existence of income protection plans Stress Work load Employee discontent with a collective bargaining process and its results.

Although both pschyiological and non- pschyiological factors contribute to it, the findings of Indian studies appear to have somewhat greater emphasis on non-pschyiological ones. The workers in Indian industries found that chronic absenteeism was related to: 1. The extent of workers identification with the company. 2. Integration with work group. 3. Satisfaction with supervisors. 4. Belief in the future of the company.

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Lets have a tabular evaluation of the: STAGE I STAGE (Early) ABSENTEEISM Tardiness, quits early (Absenteeism from situations) I drink to relieve tension GENERAL BEHAVIOUR Complaints from fellow employees for not doing his/her share. Overreaction complains of not feeling well, makes untrue statement JOB PREFERENCE Misses deadlines, commits error (Frequently low job profile)

II STAGE (Middle)

Frequent days off for vague or implausible reasons. I feel guilty about sneaking drinks I have tremors.

Marked changes, undependable statements, avoid money from fellow and accompanies frequent hospitalization.

Criticism from boss, general deterioration cant concentrate, memory, minor injuries on the job (repeatedly), warning from the boss.

employees, exaggerate work, occasional loss of

III STAGE Frequent days off, several (Late middle) days at a time, does not return from lunch. I dont feel like eating Dont want to talk about it I like to drink alone Prolonged unpredictable absence My job interferes with my drinking

Aggressive and belligerent behavior domestic problems interfere with work, financial difficulties (garnishments and so on), and more frequent hospitalization, Resignation! Does not want to discuss problems. Problems with the law community.

Far below expectations Punishable disciplinary actions.

IV STAGE (Approachin g terminal stage)

Drinking on the job (probably) completely undependable, repeated hospitalization, serious financial problems, serious family problems, divorce etc.

Generally incompetent faces termination or hospitalization.

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HOW ABSENTEEISM CAN BE CONTROLLED


The definition of absenteeism, factors affecting and its causes are quite clear. What is not so clear is how to take affirmative actions to control it. Traditional methods of absenteeism control based only on disciplinary procedures have proven to be ineffective. It is almost impossible to create a fair disciplinary action because even well run disciplinary systems, which treat which treat similar actions in consistently similar ways are seen as unfair. The reason for this is discipline alone usually identifies the root cause of absenteeism. Every employee who takes time off in defiance of company regulations has reasons, right or wrong which justify to themselves the legitimacy of their actions. Unless the management attendance programme identifies and addresses the cause of employees absenteeism it will be ineffective and unfair. Now, if absenteeism is to be controlled the physical and physical and emotional needs of employees must be addressed. The purpose of attendance management is to develop a willingness on the part of all our employees to attend work regularly and to assist them in motivating their coworkers to attend work regularly. Now, this can be done by1. Addressing the physical and emotional needs of our employees. 2. Communicating the attendance goals of the organization so employees can understand and identify with them. 3. Dealing with cases of excessive absenteeism effectively and fairly so deterrence can occur.

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Successful administration of an attendance management program requires managers and supervisors to be aware of and create work environment in which the following can be actualized 1. The greater the extent to which individuals identify their goals with the goals of the organization the greater their motivation to be regular in attendance. 2. The more people find their jobs meaningful to them, the greater their motivation to be regular in attendance. 3. As employees workload increases due to the absence of a co-worker, peer pressure is exerted on the absent co=worker to attend work regularly. 4. The more people like working for the organization the higher their motivation to attend regularly. Recognition of good employee attendance helps improve attendance. 5. Employees will have a lower absence ratio if they fail they fail face to discuss their on the job problems with their supervisors. 6. Employees with a low absence ratio have attitudes of complaisance and team spirit. 7. Low absence ratio employee is more satisfied. Like employees turnover, there is avoidable and unavoidable absenteeism. Absenteeism is unavoidable when the employee himself falls sick, his dependants at home suddenly become unwell or there is an accident inside the plant. Unavoidable absenteeism is accepted by managers and is even sanctioned by labor laws. For insistence, one day of leave with wages for every 20 days of service is allowed by the factories act, 1948. Avoidable absenteeism arises because of night shift, opportunities for moonlighting and earning extra income ineptness, lack of job security, job satisfaction and unfriendly supervision. This absenteeism needs intervening by the management. Managers should take steps to remove causes of absenteeism. 31

EXAMPLES SHOWING ABSENTEEISM RATE IN CONTEXT OF VARIOUS INDUSTRIES


Absenteeism is computed and is expressed in terms of percentages. Table below shows absenteeism rate in selected industries: -

TABLE: - ABSENTEEISM IN SELECTED INDUSTRIES INDUSTRIES 1971 1976 1981 1983 1986 1987 COTTON TEXTILES IRON & STEEL CEMENT 13.1 MATCH MAKING TELEGRAPH WORKSHOP 14.7 16.2 14.1 14.7 16.6 15.8 19.3 17.9 19.0 20.2 23.1 17.7 13.1 10.8 12.2 12.4 12.2 19.3 11.0 20.1 14.9 21.8 15.9 22.9 16.8 18.3 13.9 19.2 15.6

Absenteeism costs money to the organization besides reflecting employee dissatisfaction with the company.

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EFFECT OF ABSENTEEISM ON AN ORGANIZATION


Levels of absenteeism beyond the normal range in any organization have a direct impact on that organization effectiveness and efficiency.
It is obviously difficult for an organization to operate smoothly and to achieve its goals if its employees fail to report to their jobs. The work plans is disrupted and oftenimportant decisions are delayed. In organization that relies heavily on assembly- line production, absenteeism can result in the drastic decline in the output and in some cases it can bring about a complete shutdown of the production. The cost of absenteeism! Many organizations set aside approximately 3% of budget for absenteeism. This makes an average of about 8 days a year per employee. If absenteeism is above your budgeted figure or certain employee exceed the average in your organization then this indicates that you have an absenteeism problem. The cost of absenteeism leads to: -

Decrease in productivity1. Employees may be carrying an extra workload or supporting new staff. 2. Employees may be requires to attain and orientate new or replacement workers. 3. Staff morals and employee service may suffer.

Financial cost1. Payment of overtime may result. 2. Cost of self-insured income protection plans must be borne plus the ways cost replacement employees. 3. Premium cost may rise for insured plans.

Administrative cost1. Staff time is required to secure replacement employees. 2. Staff time is required to maintain and control absenteeism. 33

is ABSENTEEISM REALLY BAD?


Although most absenteeism has a negative impact on the organization, we can conceive of situations in which the organization may benefit by an employees voluntarily choosing not to come to work. For instance, illness, fatigue or excess stress can significantly decrease an employees productivity. In jobs in which an employee needs to be alert it may well be better for the organization if the employees does not report to work rather than show up and perform poorly. The cost of an accident in such jobs could be prohibitive. Even in the management jobs, where mistakes are less spectacular, performance may be improved. When managers are absent themselves from jobs rather than make a poor decision under stress. But these examples are clearly a typical for the most past, we can assume that organization benefits when employee absenteeism is low!!

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CONCLUSION
Recent surveys have shown: The higher the rate of pays the greater the length of service of the employee, the fewer the absence. As an organization grows, there is a tendency towards higher rate of absenteeism. Women are absent more frequent than men. Single employees are absent more frequently than married employees. Younger employees are absent more frequently than older employees but the latter are absent for longer period of time. Unionized organization has higher absenteeism rates than non-union organizations. Logical outlook towards various problems was more prominent among regular attendees than absentees. Emotionally surcharged statements were more frequent among absentees. Absentee group was found to have indifferent attitude, whereas regular worker showed more critical thinking towards their work.

Attendance improvement programs can work! What the employees want is commitment and support from all levels of management, an effective attendance record-keeping system, consultation and open communication on the reasons for the attendance programs.

Implementing and maintaining a work environment where open communication and team spirit can thrive will at first sometimes seem a mammoth and unrealistic task. If you need

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encouragement just consider some of the benefits; reduced absenteeism, open communication, team spirit, advanced grievances and greater employee satisfaction.

Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. It is the pursuit of truth with the help of studies, observation, comparison and experiment. In short the search for knowledge through objective and systematic method of finding solution to a problem is research. According to Clifford Woody, Research comprises defining and

redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions and reaching conclusions to determine whether they fit the formulating hypothesis.

RESEARCH DESIGN
A research design is an arrangement of conditions for connections and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research design is a plan that specifies the sources and types of information relevant to the research problem. It is a strategy specifying which approach will be used for gathering and analyzing the data. In fact, it is the conceptual structure with which research is conducted; it constitutes the blue print for the collection, measurement and analysis of data. The plan is an outline to research scheme on which the researcher id to work. The structure of the research is a more specific outline or the scheme. The strategy shows how the research will be carried out, specifying the method to be used in collecting data. 36

TYPES OF RESEARCH DESIGN


Research design is mainly of three types: 1. Exploratory research 2. Descriptive research 3. Experimental research

EXPLORATORY RESEARCH: - It is often the initial step in the series of


studies designed to supply information for decision-making. The main purpose of this research is for formulating the problem for more precise investigation or of developing a working hypothesis from an operational point of view. The major emphasis in such studies is on the discovery of ideas and insights.

DESCRIPTIVE RESEARCH: - It includes surveys and fact-finding enquiries.


The descriptive research is typically concerned with determining the frequencies with which something occurs or determining the degree to which variables is associated. It is guided by an initial hypothesis.

EXPERIMENTAL RESEARCH: - In this some variables are manipulated to


observe their effect on other variables. Experimentation is defined as a process where events occur in a setting at the discretion of the experiment and controls are used to identify the source of variants in the subject. Thus they are those where the researcher tests the hypothesis of the causal relationship between variables. The research methodology adopted for the project can be stated as follows An extensive study of the topic through various sources like internet, books and work done on some topics

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All the responses were studied and certain findings and recommendation were given.

A detail and systematic report was prepared.

SAMPLING DESIGN
Sampling is used to collect primary data when the source of data is far too many to be exhausting handled. Sampling is the integral part of data collection process. The way of selecting a sample is known as sample design. It is the definite plan for obtaining a sample from a given population. It may as well lay down the number of items to be included in the sample i.e. the size of the sample. Sample design is determined before data are collected.

METHODS OF DATA COLLECTION


The key for useful systems is the selection of the method for collecting data and linking it to analysis and decision issue of the action to be taken. The accuracy of the collected data is of great importance for drawing correct and valid conclusion from detailed investigations. There are two types of data viz. primary and secondary.

PRIMARY DATA
The primary data are those, which are collected afresh and for the first time, and thus happen to be original in character. There are several methods of collecting primary data, particularly in survey and descriptive research. Some important ones are observation method, interview method, through questionnaire, through schedules etc.

SECONDARY DATA
Secondary data means, data that are already available that is they refer to the data which have already been collected and analyzed by someone else and which have already been passed through the statistical process. Secondary data may either be published data or 38

unpublished data and can be gathered through Internet, books, magazines, manuals, journals etc.

There was found to be a timely well-structured and well-administered organizational culture in VBL.

The wages and salaries structure of the company was found to be strictly in accordance with the law.

A duly and timely filing of all returns in relation to wages and salary administration was carried out.

The awareness level among the employees regarding the various leaves and facilities being provided by the company were found to good.

There was a general satisfaction amongst the people with regards to their salaries in relation to their merits.

It was found that company did not provide any educational facilities to the employees.

There was a general satisfaction amongst people with regards to canteen and other facilities.

There was found to be very low job security amongst employees. The salary of most of the people could satisfy either their basic needs only, or their needs as well as reserve requirements.

Most of the people employed at Pepsi felt that their colleges possessing approximately equal qualifications and experiences working in other firms were drawing more salary than them.

Frequent biases can be witnessed in the plant. 39

There is a lack of technical knowledge among the workers of the company. A majority of the employees working at Pepsi are satisfied with the leaves they are provided

With all the theoretical knowledge and practical experience I posses, I would like to suggest the following-:
To increase the awareness level of employees working at Pepsi with regards to various things like number of earned leaves. To improve upon their Grievance redresser programme should be conducted. To bring a sense of job security among the employees. They should be provided with welfare activities in absolute terms. Trainings and development program should be conducted more seriously. Rules and regulations of the enterprise or that of the plant should be made clearer to every employee working in VBL and it should be insured that they abide to the same.

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While undergoing the project for collecting various informations and details I have referred the following: -

BOOKS
Organizational Behavior Human Resource Management

AUTHORS
STEPHEN ROBBINS GARRY DESSLER

SITES
www.pepsico.com www.googlesearch.com www.answers.com www.rkjgorup.com www.pepsi.com

RECORDS
Attendance register of VBL. Oxford dictionary.

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MISCELLANEOUS
Advertisement and banners of Pepsi. Television advertisements.

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