A PROJECT REPORT ON ABSENTEEISM AMONG EMPLOYEES AT WESTERN INDIAPLYWOOD LTD, KANNUR

Submitted to MAHATMA GANDHI UNIVERSITY In partial fulfillment of the requirements for the award for the degree of MASTER OF BUSINESS ADMINISTRATION (MBA) BY Miss.NIMISHA THOMAS Under the guidance of Mr. SONY JOSEPH (Faculty Member, BIMS)

DECLARATION
I NIMISHA THOMAS do here by declare that the report titled "A project Report on absenteeism among employees at WESTERN INDIA PLYWOODS LTD submitted by me is the original work carried out by me under the guidance and supervision of MR.SONY JOSWEPH faculty of BERCHMANS INSTITUTE OF MANAGEMENT STUDIES and the members of WETERN INDIA PLYWOODS Ltd.

This report is prepared based on the data collected by me and has not been submitted by me for the award of any degree, diploma, title or recognition else where.

Place: changanachery Date: NIMISHATHOMAS

ACKNOWLEDGEMENT

First of all I would like to thank God Almighty for His love, mercy and abundant grace that he has showered upon me during my project period and preparing the report. I would like to express my sincere thanks to Fr DrTomy P adinjareveetil, Principal St. Berchmans College for giving me an opportunity to do the Organizational Study. I would also like to thank Mr. Mathew Joseph, Head of the Department, Berchmans Institute of Management Studies for all the help in completing this Organization Study. I have great pleasure in expressing my gratitude to Mr.MAJEED, production supervisor Western India Plywoods ltd for his support and valuable time in making essential arrangement for the successful completion of the project. I am indebted to Mr. Sony Joseph , Faculty Guide, Berchmans Institute of

Management Studies who guided me with valuable suggestions and encouragement to complete this study. I also extend my gratitude to all the Employees of Western India Plywoods ltd who have readily co-operated with much patience in giving necessary and true information needed for the study in spite of their busy schedule. Finally I would like to express my sincere thanks and gratitude to my friends, parents and all my well wishers who have provided all necessary support to make this Organization Study a success.

NIMISHA THOMAS

CONTENTS
CHAPTER NO I. CHAPTER TITLE PAGE NO

PROBLEM DEFINITION

II. III. IV. V. VI. VII. VIII.

OBJECTIVES OF THE STUDY SCOPE RESEARCH METHODOLOGY LIMITATIONS ANALYSIS AND INTERPRETATIONS OF DATA FINDINGS AND SUGGESTIONS CONCLUSION

INTRODUCTION Employees presence at workplace during scheduled time is highly essential for the smooth running of the procedure process in particular and the organization in general. Despite the significances of employees presence, employees sometimes fail to report at work place, during scheduled time, which is known as absenteeism.

ABSENTEEISM IN INDIAN INDUSTRY

In India the problem of absenteeism is greater than any other country. It cannot be neglected. A statistical study of absenteeism of Indian Laborer reaches to the conclusion that the basic cause of absenteeism in India is that, industrial workers is still part time present and until he cut his connection with soil, his attendance will be irregular and his adjustment to modern industrialism is secure. It has been observed that the absenteeism is seasonal in character and is highest in the period of March to June.

CAUSES OF ABSENTEEISM:

Social and religious ceremonies Social and religious functions divert workers from work to social activities. Maladjustment with the working condition If the working conditions of the company are poor, the workers cannot adjust with the companys working condition. Then they preferred to stay away from the company.

 Unsatisfactory working condition at the work place

Industrial fatigue The industrial fatigue compels the workers to remain outside the workplace. Unhealthy working condition The poor and intolerable working conditions in the factory irritate the workers. Excess heat, noise, either too much or too low ventilation, dust, smoke, etc. cause poor health of the workers. These factors cause the workers to be absent.

Poor welfare facilities Though members of legislature concerning welfare facilities are enacted, many organizations fail to provide welfare facilities. This is either due to the poor financial positions of the companies or due to the exploitative attitude of the employer. The poor welfare facilities include sanitation, washing, bathing, first aid appliances, rest rooms, drinking water, canteen, shelter, crches, etc The dissatisfied workers with these facilities to be away from the work place. Alcoholism

Workers mostly prefer to spend money on the consumption of liquor and enjoyment after getting the wage. Therefore the rate of absenteeism is more during the first week of every month. Indebtness The low level of wages and unplanned expenditure of workers forces them to borrow heavily. The research studies indicate that workers borrow more than 10 times of their net pay. Consequently, workers fail to repay the money. Then they try to escape from the work place in order to avoid the money lenders. This leads to absenteeism. Inadequate leave facilities The inadequate leave facilities provided by the employer forces him to depend ESI leave which allows those workers to be away from the work for 56 days that year on half pay.

Low level of wages Wages in some organization are very poor and they are quite inadequate to meet the basic needs of the employees. Therefore employees go for other employment during their busy seasons and earn more money.

MEASURES TO MINIMIZE ABSENTEEISM

Absenteeism affects the organization from the multiple angles. It affects severely the production process. The business proves the effects of unauthorized absenteeism are more than other types of absenteeism. However, it would be difficult to completely avoid absenteeism. The management can try to minimize the absenteeism. The following measures are useful in controlling absenteeism.

1) Selecting the employees by testing them thoroughly regarding their aspirations, value system, responsibility and sensitiveness. 2) Adopting humanistic approach in dealing with the personal problems of employees. 3) Following proactive approach in identifying and redressing employee grievances. 4) Providing hygienic working condition. 5) Proving welfare measures and fringe benefits balancing the need for the employees and the ability of the organization. 6) Providing high wages and allowances based on organizational financial position. 7) Improving the communication network particularly, upward

communication.

8) Providing leave facility based on the needs of the employees and organizational requirement. 9) Providing health and safety measures. 10) Providing cordial human relation and industrial relation. 11) Educating the workers. 12) Counseling the workers about their career. Income and expenditure habits and culture. 13) Flow of information, exchanging of ideas, problems, etc between subordinates and superiors. 14) Granting leave and financial assistance liberally in case of sickness of employees and his family members. 15) Offering attendance bonus and inducements.

OBJECTIVES OF THE STUDY

To find the reason of absenteeism in the organization. To find out the consequences and impact of absenteeism in the organization. To evaluate the rate of absenteeism in the organization. To find out the reason for continuous absence of workers.

SCOPE OF THE STUDY

The problem of absenteeism is one of the major issues in Indian industries. Absenteeism in an organization is considered to be a big draw back in a firm. Absenteeism reduces the productivity of the firm to a large extent when the workers becomes absent, the machine may be kept idle and productivity decreases. The study on reasons and consequences of workers absenteeism with special reference to WIP ltd has got a wide scope because it helps to know what are the factors which lead to absenteeism and it had created awareness among workers and management and can take necessary action based on the study.

NATURE OF DATA USED

Primary data is used. It was collected through direct interview.

SAMPLING PROCEDURE

The sampling size used for the survey is 50.Sampling area includes hardboard dept., plywood dept., and furniture dept.

LIMITATIONS OF THE STUDY

The survey is based on the sample size of 50 employees only. This sample size is a limiting factor for survey. Absenteeism is a psychological concept, since it has a strong concept of psychology which link with human satisfaction. The answer may depend upon time, mood and mentality of workers. All the workers individually and personally differ from others.

ANALYSIS AND INTERPRETATIONS

AGE WISE CLASSIFICATION OF WORKERS TABLE I

Age Below 25 25-40

No. of respondents 0 20

% of total 0% 40%

Above 40 Total

30 50

60% 100%

20 workers are 40% of the respondents including the age group of 25-40. 30 workers are 60% of the respondents belonging to the age group of above 40.

DIAGRAM

70% 60% 50% 40% 30% 20% 10% 0% below 25 25-40 above 40

% OF RESPONDENTS

SEX WISE CLASSIFICATION OF WORKERS TABLE II

SEX

No. of respondents

% of total

Male Female total

47 3 50

94% 6% 100%

94% of the respondents are male and 6% of them are female.

DIAGRAM

NO. OF RESPONDENTS
MALE FEMALE

6%

94%

MARITAL STATUS OF WORKERS TABLE III

Marital status Single Married No. of respondents 4 46 % of total 8% 92%

total

50

100%

8% of the respondents are single and 92% of respondents are married.

DIAGRAM

NO. OF RESPONDENTS
SINGLE MARRIED

8%

92%

WAGE STATUS TABLE IV

wage 1500-3000 3000-4500 No. of respondents 9 32 % of total 18% 64%

4500-6000 total

9 50

18% 100%

INTERPRETATION
18% of the workers are in the group of 1500-3000. 64% of the workers are in the wage group of 3000-4500, and 18% of the respondents are under the wage group of 4500-6000.

DIAGRAM

35 30 25 20 15 10 5 0 1500-3000 3000-4500 4500-6000 #REF! NO. OF RESPONDENCE

WAGE SATISFACTORY LEVEL OF WORKERS TABLE

Level of very high satisfaction No. of respondents % of total

Very high High Medium Low Very low

2 5 8 14 21

4% 10% 16% 28% 42%

Total

50

100%

INTERPRETATION: Only 4% of the respondents are very highly satisfied with the present wage scale. 10% of the respondents are highly satisfied with the wage scale. 16% of the respondents satisfaction level with the wages is medium. 28% of the respondents satisfaction level is low and 42% of the workers are with very low level of satisfaction level with the present wage.DIAGRAM
45%

NO. OF RESPONDENTS (%)

40% 35% 30% 25% 20% 15% 10% 5% 0% very high high medium low very low LEVEL OF SATISFACTION

WORKERS RELATIONSHIP WITH CO WORKERS TABLE VI

Level of relationship Very high High Medium Low Very low Total

No. of respondents 41 3 4 2 0 50

% of total 82% 6% 8% 4% 0% 100%

INTERPRETATION:
82% of the respondents said that their relationship with co workers are very high. 6% of the respondents relationship with co workers are high. 8% of the workers relationship are medium and 4% of the respondents relationship with co workers are low.

DIAGRAM

90% 80% no. of respondents (%) 70% 60% 50% 40% 30% 20% 10% 0% VERY HIGH HIGH MEDIUM LOW VERY LOW % of respondents

level of satisfaction

WORKERS RELATIONSHIP WITH IMMEDIATE SUPERVISOR TABLE VII

LEVEL OF RELATIONSHIP VER HIGH HIGH MEDIUM LOW VERY LOW TOTAL

NO. OF RESPONDENTS % OF TOTAL 32 11 5 1 1 50 64% 22% 10% 2% 2% 100%

INTERPRETATIONS
64% of the respondents relationship with supervisor is very high. 22% of the respondents relationship with supervisor is high. 10% of their relationship with supervisor is medium. 2% is low and the remaining 2% is very low.

DIAGRAM
70% no. of respondents (%) 60% 50% 40% 30% 20% 10% 0% very high high medium low very low % of respondents

level of satisfaction

WORKERS RELATIONSHIP WITH THE MANAGEMENT TABLE VIII LEVEL OF NO. OF % OF TOTAL

RELATIONSHIP VERY GOOD GOOD MEDIUM LOW VERY LOW TOTAL

RESPONDENTS

50

100%

SATISFACTORY LEVEL OF WORKERS WITH LEAVES ALLOTTED BY THE COMPANY TABLE IX Level of satisfaction No. of respondents % of total

Very high High Medium Low Very low Total Interpretations:

13 9 8 12 8 50

26% 18% 16% 24% 16% 100%

26% of the workers are very highly satisfied with the leaves allotted by the company. 18% are highly satisfied with the leaves allotted by the company. 16% of the respondents satisfaction level is medium. 24% of the respondents satisfaction level of leaves allotted by the company are low. 16% of the respondent satisfaction level of leaves allotted by the company is very low. DIAGRAM

NO.OF RESPONDENTS (%)

30% 25% 20% 15% 10% 5% 0% % OF RESPONDENTS

LEVEL OF SATISFACTION

DANGEROUS AND HAZARDOUS OF WORK TABLE X LEVEL OF NO. OF % OF TOTAL

DANGGER Very high High Medium Low Very low total Interpretation

RESPONDENTS 24 8 7 4 7 50

48% 16% 14% 8% 14% 100%

48% of the workers felt that they are doing very high dangerous and hazardous work. 16% felt that there is high danger in their work. 14% of them feel that the danger level is medium. 8% feel that danger is low in their work and 14% felt that danger is very low in their work. DIAGRAM

% OF RESPONDENTS
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% VERY HIGH HIGH MEDIUM LOW VERY LOW

% OF RESPONDENTS

SATISFACTORY LEVEL OF WORKERS WITH WORKING HOURS TABLE XI LEVEL OF NO. OF % OF TOTAL

SATISFACTION Very high High Medium Low Very low total

INTERPRETATION

RESPONDENTS 29 10 6 3 2 50

58% 20% 12% 6% 4% 100%

58% of the respondents are very highly satisfied with the working hours. 20% of the respondents are highly satisfied with the working hours. 12% of the respondents are medium satisfied with the working hours. 6% are low satisfied and 4% are very low satisfied with their working hours.

DIAGRAM
60% 50% 40% 30% 20% 10% 0% VERY HIGH HIGH MEDIUM LOW VERY LOW % OF RESPONDENTS

TRANSPORTATION FACILITIES FROM THE ORGANIZATION

TABLE XII
Response Yes No total INTERPRETATIONS No. of respondents 24 26 50

% OF TOTAL 48% 52% 100%

48% of the respondents said that there are transportation facilities from the organization. But 52% of them said that there are no transportation facilities from the organization.

DIAGRAM

% of respondents

48% 52% yes no

ALCOHOLIC AND PLAYING CARDS TABLE XIII

RESPONSE YES NO TOTAL INTERPRETATIONS

NO OF RESPONDENTS 13 37 50

% OF TOTAL 26% 74% 100%

26% of the respondents are alcoholic and has a habit of playing cards. 74% of the respondents are not alcoholic and have no habit of playing cards. DIAGRAM

% of respondents

26% yes 74% no

WORKERS HAVE ANY OTHER SOURCES OF INCOME TABLE XIV

Response Yes No Total INTERPRETATIONS

No. of respondents 10 40 50

% of total 20% 80% 100%

20% of the respondents have other source income. 80% of the respondents have no other source of income.

DIAGRAM

% of respondents
20%

yes no 80%

COMMUNICATION SYSTEM IN THE ORGANIZATION TABLE XV

Response Yes No Total Interpretations:

No. of respondents 40 10 50

% of total 80% 20% 100%

80% of the respondents said that there is proper communication system in the organization. But 20% of the respondents said that there is no proper communication system in the organization. DIAGRAM

% of respndents
20%

yes no 80%

TRANSPORTATION STRIKES TABLE XVI

Response Yes No Total Interpretations

No. of respondents 19 31 50

% of total 38% 62% 100%

Transportation strikes are affected only to 38% of respondents. 62% of respondents are not affected by the transportation strikes.

DIAGRAM

% of respondents

38%

62%

yes no

WORKERS TAKE LEAVE IN ONE MONTH TABLE XVII

NO. OF DAYS Less than 2 2 to 4 More than 4 Total Interpretation

NO. OF RESPONDENTS 8 20 22 50

% OF TOTAL 16% 40% 44% 100%

16% of the respondents is 8, who take leave in one month less than 2 days. 40% of respondents is 20, who take 2-4 days leave in a month. 44% of the respondents is 22, who take leave for more than 4 days in a month. DIAGRAM

% of respondents
16% 44% less than 2 2to 4 40% more than 4

WORKERS TAKE LEAVE DUE TO TABLE XVIII

Reason Family problems Occupational reasons

Yes 40 14

% 80% 28% 82% 14% 30%

No 10 36 9 43 35

% 20% 72% 18% 86% 70%

Total 50 50 50 50 50

Functions in the family 41 Laziness Health problems 7 15

INTERPRETATIONS In the above table, we can see that 80% of the workers take leave due to family problems, 28% of the respondents take leave due to occupational diseases, 82% of the workers take leave because of family functions. Only 14% of the workers take leave due to laziness and 30% of the workers take leave because of health problems.

DIAGRAM

reasons for taking leave

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% family problems occupational functions in the reasons family laziness health problems yes % no %

RESPONSIBILITY OF THE WORKERS FOR THE PRODUCTION IN THE ORGANIZATION

TABLE XIX Response Yes No Total Interpretation: 96% of the respondents think that they too are responsible for the production in the organization. 4% think that they are not responsible for the production process of the organization. No. of respondents 48 2 50 % of total 96% 4% 100%

DIAGRAM

% of respondents
4%

yes no 96%

FINDINGS

1) Findings show that the 60% of the respondents with the age group above 40 are not satisfied with the present wage scale.

2) Most of the married persons that is 94% of the respondents are dissatisfied with the present wage scale. 3) Findings show that most of the workers take leave because of family problems and function in family. 4) 14% of the respondents feel lazy to attend the work. 5) Most of the workers have no other source of income. 6) Most of them said that there is no proper communication system in the organization. 7) Most of the workers are satisfied with their work. 8) 96% of the respondents think that they too are responsible for the production in the organization.

SUGGESTIONS

1) To reduce absenteeism in the organization the first step is to make aware of the workers about the various demerits of absenteeism and how it will affect the whole organization. 2) To introduce effective training programs in the organization. 3) Management should maintain good relationship with workers in the organization. 4) To give award to the best worker, which will motivate the employees. 5) To give transportation facilities to the workers from and to the organization. 6) Increase pay scale, because most of the workers are dissatisfied with the present pay scale. 7) Improve the welfare measures in the organization. 8) Improve the working conditions in the organization. 9) To formulate recreation club or any other recreation activities within the organization. That will reduce the laziness of workers. 10) Provide housing facilities to the workers.

CONCLUSION

The labour absenteeism is found to be a serious problem for management because it involves heavy additional expenses. From the study undertaken, it is found that many things were the reasons for labour absenteeism in the organization. It was also found that most of the employees are satisfied with their job and also have a good relationship with the workers. From the study, it is clearly evident that there is a high positive relationship between workers experience in the organization and absenteeism. It is also found that there is a low positive relationship between age group of labors and absenteeism.

BIBLIOGRAPHY

Web sites: www.wip ltd.com www.google.com

QUESTIONNAIRE

1) Age group Below 25 2) Sex male 3) Marital status Single

25-40

above 40

female

married

4) To which wage group do you belong? 1500-3000 3000-4500 4500-6000 5) How far are you satisfied with your wages? Very high High Medium

Low

Very low

6) How is your relationship with co-workers? Very good good medium Low very low

7) How is your relationship with your supervisor? VERY GOOD GOOD MEDIUM LOW VERY LOW

8) How is your relationship with the management? VERY GOOD GOOD MEDIUM LOW VERY LOW 9) How far are you satisfied with the number of leaves allotted to you by the company? VERY HIGH HIGH MEDIUM

LOW

VERY LOW

10) How dangerous and hazardous do you feel in your work? VERY HIGH HIGH MEDIUM LOW VERY LOW

11) How far are you satisfied with your working hours? VERY HIGH HIGH MEDIUM LOW VERY LOW

12) Does the distance from the work place affect your attendance? Do you have proper transportation facilities? YES NO 13) Do you have the habit of playing cards and drinking alcohols? YES NO 14) Do you have any other source of income? YES NO

15) Do you have proper communication system in the organization? YES NO 16) Does the transportation strike affect your attendance? YES NO Around how many days per month do you take leave/ become absent?

17)

18) Do you take leave due to Family problems

YES

NO

Occupational diseases Functions in the family Laziness Health problems

YES YES YES YES

NO NO NO NO

19) Do you think that you too are responsible for the production in the organization? YES NO