PROJECT REPORT ON

ABSENTEEISM CAUSES, EFFECTS & CONTROL

AT KSB PUMPS Ltd.

BY POORNIMA POOJARI

UNDER THE GUIDANCE OF Dr. (Mrs.) VANDANA GOTE

IN PARTIAL FULFILLMENT OF MASTERS DEGREE IN BUSINESS MANAGEMENT,

UNIVERSITY OF PUNE, PUNE

YEAR 2004 - 2006

VISHWAKARMA INSTITUTE OF MANAGEMENT S. NO. ¾, KONDHWA (BK), PUNE-48

ACKNOWLEDGEMENTS

I gratefully acknowledge the help and co-operation of the entire Personnel

Department of KSB Pumps Ltd. At the outset, I would like to thank Mr.

S.N.Makhale, Manager- Personnel, for giving me an opportunity to learn at KSB

Pumps.

My guide Mr. A.R. Bhilare, Dy. Manager- Industrial Relations, whose

versatile guidance provided me with an insight into the field of Personnel

Management and Human Resource Development, particularly deserves my

thanks.

A similar vote of thanks goes to Mr. Ranjit Mohite, Mr. Vivek Kunte,

Mr.Jade, Mr.Erande, Ms.Nita and Ms.Swati whose expertise in the field proved to

be of great value to me during my training.

I would like to thank Prof. Vandana Gote for her valuable guidance

in making my project successful. I also wish to thank Dr. Sharad Joshi and the

VIM staff whose contribution cannot be overemphasized. With all their

encouragement and well wishes, my project proved to be fruitful.

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Ms. Poornima. K. Poojari is bonafide student of our

institute. She has successfully carried out her Summer Project titled Absenteeism

- Causes, Effects & Control at KSB Pumps Ltd, Pune.

This is the original study of Ms. Poornima. K. Poojari, and important

sources used by her have been acknowledged in her report. The report is

submitted in the partial fulfillment of two-year full time course Master in Business

Administration (2004-2006) as per the rules of the Pune University.

Dr. Sharad L. Joshi Dr. Mrs. Vandana Gote

(Director) (Project Guide)

4

CONTENTS

Chapter

No.

Chapter Name Page no.

1. Introduction of subject 1

2. History & Profile of company 6

3. Objectives of the Project 16

4. Research methodology 17

5.

Data Analysis and interpretation:

Assumptions in evaluation of absenteeism data

Graphical Representation

Inferences from the monthly data

Inferences from the yearly data

Control through Disciplinary Action

19

20

29

30

32

6. Observations & Findings 34

7. Conclusion 54

8. Suggestions to reduce absenteeism 55

9.

Annexure

Annexure 1

Annexure 2

57

62

10.

Bibliography 66

5

CHAPTER: 1

Introduction Of Subject

6

CHAPTER: 2

History & Profile Of Company

7

CHAPTER: 3

Objectives Of The Project

8

CHAPTER: 4

Research Methodology

9

CHAPTER: 5

Data Analysis & Interpretation

10

Graphical Representation

11

CHAPTER: 6

Observations & Findings

12

CHAPTER: 7

Conclusion

13

CHAPTER: 8

Suggestions To Reduce Absenteeism

14

15

INTRODUCTION OF THE SUBJECT

Absenteeism refers to unauthorized absence of the worker from his job.

Absenteeism can be defined as failure of employees to report for work when they

are scheduled to work. Employees who are away from work on recognized

holidays, vacations, approved leaves of absence, or leaves of absence allowed for

under the collective agreement provisions would not be included .

In India, the problem of absenteeism is greater than other countries. When

the employee takes time off, on a scheduled working day with permission, it is

authorized absence. When he remains absent without permission or informing, it

is wilful absence without leave.

In these days, when the needs of the country require greater emphasis

upon increase of productivity and the economic and rational utilization of time and

materials at our disposal, it is necessary to minimize absenteeism to the maximum

possible extent.

Recent surveys indicate the following trends in absenteeism:

1. The higher the rate of pay and the greater the length of service of the

employee, the fewer the absences.

2. As an organization grows, there is a tendency towards higher rates of

absenteeism.

3. Women are absent more frequently than men.

4. Single employees are absent more frequently than married employees.

5. Younger employees are absent more frequently than older employees but

the latter are absent for longer periods of time.

6. Unionized organizations have higher absenteeism rates than non-union

organizations.

16

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 = No. of Total Manshifts Lost X 100

No. of Total Manshifts scheduled to work

CAUSES:

Important factors leading to absenteeism can be summarized as follows:

1. Long hours of work.

2. Bad working conditions.

3. Boredom.

4. Lack of co-operation and understanding between management

and workers.

5. Sickness.

6. Accidents.

7. Occupational disease.

8. Problem of transport facilities.

9. Low wages.

10. Lack of proper medical aid and health programmes.

11. Lack of canteen services, rest rooms, etc.

12. Bad housing conditions.

13. Evil of drinking.

14. Lack of marketing facilities.

15. Social or religious festivals.

16. Harvest seasons.

17. Marriages.

18. Education of children.

19. Domestic problems and consequent worries, etc.

17

Among these causes, in the existing Indian conditions, wage level in

industries, has a direct bearing on absenteeism. Sickness on account of bad

housing conditions contributes highest to industrial absenteeism. Social and

religious causes can be accounted as the second important contributing factor for

absenteeism.

Absenteeism in industry varies from place to place, depending on the

festival, marriage, harvest season and other factors.

EFFECTS :

Absenteeism is one of the root causes of labour unrest. It affects the

worker s earnings as well as the company in the following manner:

1. Decrease in Productivity :

Employees may be carrying an extra workload or supporting new or

replacement staff.

Employees may be required to train and orient new or replacement

workers.

Staff morale and employee service may suffer.

2. Financial Costs :

Payment of overtime may result.

Cost of self-insured income protection plans must be borne plus the

wage costs of replacement employees.

Premium costs may rise for insured plans.

3. Administrative Costs :

Staff time is required to secure replacement employees or to re-

assign the remaining employees.

Staff time is required to maintain and control absenteeism.

The definition of absenteeism, its causes, its affects on productivity, and its

costs in terms of finances and administrative effectiveness are quite clear.

18

What is not as clear is how to take affirmative action to control

absenteeism in such a way as not to create mistrust, costly administration and

systems avoidance.

Traditional methods of absenteeism control based only on disciplinary

procedures have proven to be ineffective. It is almost impossible to create a fair

disciplinary procedure because even well run disciplinary systems, which treat

similar actions in consistently similar ways, are usually seen as unfair. The reason

for this is discipline alone usually does not identify or address the root causes 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 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 emotional needs of

employees must be addressed. Incentives can be introduced to discourage

absenteeism. Attendance bonus is awarded in certain establishments, merit

increases and promotions are linked to minimum attendance. Good leave record

of the employee is an important factor in considering him for more responsible

positions. These incentives, no doubt, will be effective inducements for regular

attendance and work which, in turn, will ensure efficient service.

Habitual absenteeism must be treated as a misconduct and it must be

stated that habitual absentees are liable for disciplinary action

19

KSB PUMPS LTD.

Established in: 1960

Location : Pimpri, Pune

20

COMPANY PROFILE

1. NAME OF THE COMPANY : KSB Pumps Limited.

2. DATE OF REGISTRATION : 11th April, 1960

3. CERTIFICATE NUMBER : 11635

4. LEGAL FORM : Public Limited Company

5. WORKS AND HEAD OFFICE : Irrigation and Process Division (IPD)

Mumbai-Pune Road, Pimpri,

Pune-411018

6. MANUFACTURING UNITS : Power Project Division (PPD)

Chinchwad, Pune.

Foundry Division,

Vambori, Ahmednagar.

Grade-O-Castings,

Ahmednagar.

Water Pumps And Valves

Division, Nashik.

Mil Controls Limited,

Trichur.

7. REGISTERED OFFICE : 126, Makers Chambers III,

Nariman Point, Mumbai 400021.

8. ZONAL OFFICES : East : Kolkata

West : Nariman Point

North : Noida

South : Chennai.

9. BUSINESS : Manufacturers of Pumps, Valves and

Iron and Steel Castings.

10. COLLABORATORS : M/s KSB Aktiengesellschaft,

Germany.

21

BRIEF HISTORY OF KSB

1871: The Frankenthaler Maschinen-and Armatur-Fabrik Klein, Schanzlin

and Becker (Machine and Valve Factory) was established.

1896: KSB sets up a British subsidiary, its first venture outside Germany.

1941: Argentina becomes home to the first of ten current KSB Companies in America.

. 1953: The foundation of a Pakistani subsidiary marks a move into the Asian-

Pacific market, where KSB today has 15 group companies.

1960: Manufacturing of first submersible pump in India, at Pimpri, Pune.

1974: The Foundry Division was set up at Vambori.

1978: A new plant at Chinchwad began manufacturing high performance pumps for power plants.

1984: KSB sets up a company in Australia.

1986: The leading French pump manufacture, Paris-based Pompes Guinard S.A., joins the KSB group.

1987: The Coimbatore unit came up to increase pump manufacturing capacity and add industrial valve to their product basket.

1988: KSB acquires a majority interest in U.S. slurry pump manufacturer GIW industries.

1989: Acquisition of Amri S.A., Paris, the world s second largest manufacturer of butterfly valves.

1991: KSB takes over Pumpenwerk Halle and converts it into an environmental engineering center.

1994: The company acquires a majority stake in KSB Shanghai Pumps Co.

1995: Nashik was added to the growing list of KSB manufacturing centers.

1996: KSB becomes 100% share holder in GIW (Georgia Iron Works), one of the world s largest manufacturers of slurry pumps.

1997: Acquisition of MIL Controls Ltd., India-producer of ANSI and control valves.

22

KSB QUALITY CONTROL

QUALITY OBJECTIVES:

KSB aim to maintain their position as leading Indian and International

suppliers of pumps and valves, related systems and services which are deeply

rooted in a tradition of successful engineering and high integrity in their business

dealings.

The needs of their customers set the standards for the work they do.

KSB s objective is to provide trend setting technology and high quality of their

products and services together with a demanding quality consciousness, which

ensure them of a position of market leadership. For its customers, KSB is liable

partner.

KSB s thinking and actions are profit and market oriented. Entrepreneurial

initiative at all levels ensures profitable growth, stability and independence, thus

securing the future of KSB and its employees.

The KSB work environment is multinational and is characterized by

mutual respect and humanity in their dealing with one another. Dedicated

employees work together with sense of responsibility and productivity, towards a

common goal s help to develop their high level of qualification through individual

support and training.

When doing their work, KSB is committed to the goals, needs and laws of

the society it lives in. KSB wants to be an open and fair partner to all. While

manufacturing and during operation of their products, they try their best to protect

their environment and use natural resources as sparingly as possible.

23

KSB QUALITY POLICY:

Maximum customer satisfaction governs KSB s actions:

KSB s customer sets the standards for the quality of their products and

services. KSB comprehensively and punctually fulfill his requirements.

Every employee bears the responsibility at his work place towards meeting the customers requirements:

The internal customer

supplier relationship is important, the very next

person in internal work sequence is the customer, he receives defect

free

work.

Promoting quality awareness is an important task of the management:

The high qualification of KSB employees is ensured through consistent

training and comprehensive information. Managerial staff sets an example

in realizing Quality concept.

Preventing defects supersedes removing defects:

Removing defects is not enough; more important is to find the causes of

defects and to take preventive action to permanently eradicate them.

Improving quality is a continuous obligation:

The initiative of each individual towards continuously improving processes

methods and work environment is an important contribution to personal

success and satisfaction. This ensures KSB s market leadership.

24

PLANNED PROGRESS OF KSB IS AS FOLLOWS:

1960: Submersible motor pump set.

1968: Process Pumps (CPK).

1970: Non-Clog pumps for sewage and solid handling.

1976: Vertical pumps for condensate extraction (WKT)

1978: High pressure Boiler feed pumps (HDB)

1980: Primary coolant pumps for nuclear power station.

1983: Pumps for mine dewatering (VM25).

1984: Submersible pumps for sewage and effluent handling (KRTU)

1985: Canned motor pumps for nuclear applied action (CMP)

1987: Submersible pumps sets

1988: Vertical high pressure modular pumps (MOVI) Vertical high pressure oil pumps (WKVM) Solar pump sets

1989: High pressure multistage pumps (HG)

1990: Barrel casing pumps (CHT) Pressure seal valves

1991: Barrel casing pumps for refinery applications (CHTR)

1992: Stock pumps (APP)

1993: Back pullout pumps (MEGA)

1994: New series of gate type industrial valves High capacity submersible pump sets (PNT) Low capacity submersible pump sets (AMA Drainer)

1995: High capacity moderate head pumps (OMEGA)

1996: Low capacity high pressure multistage pumps (MOVICHROM)

25

TYPES OF PUMPS:

In KSB PUMPS Ltd., many types of pumps are manufactured. Some of them

are listed below:

MEGA : Low Pressure Centrifugal Pump.

OMEGA : Horizontal Split Volute Casing Pump.

CPK : Chemical Process Pump.

RPK : Refinery Process (heavy duty) Pump.

APP : Stock Process Pump.

WK : High Pressure Centrifugal Pump.

WL : High Pressure Centrifugal Pump.

WKT : Vertical Barrel type High Pressure Centrifugal Pump.

KRTU : Submersible Motor Pump for Sewage and Effluent

Handling.

RPHb : Refinery Process (Heavy Duty) Pump.

26

DEPARTMENTS AT KSB:

There are 4 main Departments in the Company:

PRODUCTION DEPARTMENT: Machine Shop, Rotor Stator, Horizontal

Assembly, Winding, Testing, Deburring, Tool Room, IED, and Packing.

SALES GROUP: Business Group.

ADMINISTRATION GROUP: Security, Internal Audit, Personnel Department,

Accounts, and Planning & Control.

WAREHOUSE & STORES: E/DITS, Excise & Dispatch, Import, Purchase &

Stores.

EMPLOYEE STRENGTH AT PUNE:

Irrigation and Process Division (Pimpri)

: 537

Staff (Supervisors Directors) : 189

Company Trainees : 3

MRE s : 56

HRW s : 289

Power Project Division (Chinchwad)

: 814

Staff (supervisor Directors) : 373

Company Trainees : 6

MRE s : 66

HRW s : 369

27

HUMAN RESOURCE DEPARTMENT ACTIVITIES

The Functions of the Human Resource Department are:

1. EMPLOYMENT

Man Power Planning

Recruitment and Selection

Induction

Promotion and Transfer

Separation

2. WAGE AND SALARY ADMINISTRATION

Employee classification including job evaluation

Rate determination

Merit rating

Supplemental compensation

3. INDUSTRIAL RELATIONS

Communication

Collective bargaining

Employee discipline

4. ORGANISATION PLANNING AND CONTROL

Organization planning

Employee appraisal

Human Resource Development

Training

Counseling

5. EMPLOYEE SERVICES

Medical/Canteen services

Recreation

Safety, Security, Transport

28

Mr.

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29

OBJECTIVES OF THE PROJECT

The objectives of the project are:

To understand and analyze:

1. What are the main causes of absenteeism in KSB Pumps?

2. What are the effects of the unauthorized absenteeism by the employees in

the company?

3. What are the current disciplinary actions taken by the HR dept. for

reducing absenteeism?

4. What is the attitude of employees towards these disciplinary actions?

5. What factors are to be considered in order to reduce absenteeism?

6. What suggestions can be given to the management to improve the regular

attendance of the employees in the company?

Thus, the above objectives have been observed and analyzed in a detailed

manner in this project report. I have made an attempt to go into root causes of the

subject by using the various techniques of Research Methodology.

30

RESEARCH METHODOLOGY

A project is like a journey and it is always better to have atleast the faintest

of ideas of the probable direction of our destination. Initially we have to decide

upon the general area of interest or the aspect of the subject to inquire into. This

decision is rather broad and not very precise. It is crude indication of the purpose

of the study and is of little help for further planning and organization of the study.

Research Methodology is defined as a more systematic activity directed

towards discovery and the development of an organized body of knowledge. An

efficient research contributes to the evaluation of a proper decision, which

ultimately affects the path the organization will choose. The data collected is of

paramount importance and hence the research process has to be effective and an

efficient one.

Research Methodology involves adopting various techniques which are

best suited for the research and study of the problem, for investigation and

analysis of the problem. It starts with data collection from various sources i.e.,

primary and secondary sources, data analysis and interpretation and finally the

findings or conclusion from the analysis.

In this project, Primary data was collected by Questionnaire Survey. The

workmen selected for the interview purpose were from the hourly rated workmen

segment, which affect the production directly, in case they remain absent. A

random selection of samples from the workmen segment was done in the

company. There are 289 hourly rated workmen, from which 25 groups of 11

members each were formed. From these groups, one workman was selected

randomly as sample to avoid any bias. Thus, 25 workmen were selected for

survey through the questionnaires prepared. This helped to be fair to all by not

keeping in view the past record of absenteeism of individuals.

31

The secondary data was collected from:

Monthly absenteeism data.

Yearly absenteeism report.

Leave records of employees.

After the collection of data, the response of the 25 individuals were arranged in

a chronological pattern and then evaluated. Many inferences could be drawn from

both the primary as well as secondary data available which are put forth in the

analysis section.

It is often beneficial to undertake an intensive study of a few well selected

instances of the phenomenon of interest. The method demands for great

sensitivity and receptivity on our part. As new information pours in, the study is

reformulated and redirected.

Hence, to be on the safer side, it would always be wise to work keeping a

particular method in mind.

32

ASSUMPTIONS IN EVALUATION OF THE

ABSENTEEISM DATA

1. As per the objectives of the project, the analysis is to be done to find out

the causes of absenteeism and also to know the disciplinary action taken

against them. The following data was referred to draw the inferences:

a. Monthly Absenteeism data.

b. Yearly Absenteeism report.

c. Leave record of the employees.

2. From the monthly and yearly data, the monthly trends of absenteeism can

be observed by division of leaves in the following 2 categories:

a. Paid Leave: Privilege Leave (PL), Casual Leave (CL), Sick Leave (SL).

b. Unpaid leave: Authorized Leave (AL), Certified Sickness Leave (CS),

and Unauthorized Absence (UA).

3. The leave record is maintained from the month of January to December.

The monthly salary is calculated from 20th of the starting month to the 21st

of the next month with reference to the leave record.

4. The settlement agreement mentions the consumption of leave by an

individual worker per annum as:

a. Privilege Leave 20 p.a.

b. Casual Leave 8 p.a.

c. Sick Leave 10 p.a.

33

M

AN

POW

ER S

TREN

GTH

DU

RIN

G Y

EAR

199

4- 2

004

591

654

629

535

424

402

350

348

330

295

265

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

34

M

ANPO

WER

STR

ENG

TH O

F TH

E CO

MPA

NY D

URIN

G 1

994-

2004

629

535

265

295

330

348

350

402

424

654

591

0

100

200

300

400

500

600

700

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

YEAR

S

NO. OF EMPLOYEES

STRE

NGTH

35

P

L TR

EN

D D

UR

ING

199

4-20

04

3.97

3.00

4.48

4.84

4.86

4.97

4.82

4.60

4.96

4.82

4.48

0.00

1.00

2.00

3.00

4.00

5.00

6.00

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

YE

AR

S

% OF DAYS

PL

36

C

L T

RE

ND

DU

RIN

G 1

994-

2004

1.95

1.59

2.21

2.12

2.15

2.09

2.10

2.22

2.26

2.23

2.14

0.00

0.50

1.00

1.50

2.00

2.50

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

YE

AR

S

% OF DAYS

CL

37

S

L T

RE

ND

DU

RIN

G 1

994-

2004

3.08

3.06

3.03

2.90

2.90

2.44

1.66

1.81

3.22

2.29

2.49

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

YE

AR

S

% OF DAYS

SL

38

A

L TR

END

DU

RIN

G 1

994-

2004

0.47

0.18

0.13

0.02

0.03

0.02

0.01

0.02

0.03

0.22

0.23

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

0.50

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

YEA

RS

% OF DAYS

AL

39

C

S T

RE

ND

DU

RIN

G 1

994-

2004

2.29

1.54

1.11

0.74

0.81

0.78

0.62

0.53

1.98

2.13

1.59

0.00

0.50

1.00

1.50

2.00

2.50

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

YE

AR

S

% OF DAYS

CS

40

U

A T

RE

ND

DU

RIN

G 1

994-

2004

1.51

20.6

5

0.75

0.71

0.61

0.54

0.39

0.34

0.65

1.00

1.83

0.00

5.00

10.0

0

15.0

0

20.0

0

25.0

0

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

YE

AR

S

% OF DAYS

UA

41

TO

TAL

MD

A A

ND

MD

L D

UR

ING

199

4-20

04

178391

198606

169235

161805

125104

123078

101914

106350

98891

90266

81090

22607.0

58286.0

23744.5

19449.0

13146.5

13666.0

10745.5

11682.0

11427.0

10448.5

9441.5

0

5000

0

1000

00

1500

00

2000

00

2500

00

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

YEAR

S

NO. OF DAYS

MD

A

MD

L

42

INFERENCES FROM THE MONTHLY DATA

1. The PL consumption % is high during the months of April, May and June as

the schools in our country have vacations during these months and this

period being the marriage season in India, the leave consumption varies

from 3.9% to 4.84%.

2. The CL consumption is high during the months of July to October, when

most of the schools reopen and the individuals are busy settling those

activities. Most of the festivals like Ganesh festival, Durga Pooja, Diwali,

etc. are during this period. The leave consumption reduces after October

and varies from 1.95% to 2.21%.

3. The reasons for SL leave consumption are same as above. As the

proportion of CL is less, on occasional leave, the workmen prefer SL. The

period of leave consumption is from July to September and varies from

2.49% to 3.06%.

4. The rate of AL leave consumption is very low. i.e., 0.47% to 0.02%. This

leave is mostly consumed by the new comers or by the very rare cases of

the existing employees.

5. The Unauthorized Absence is the key factor in indicating the companies

rate of absenteeism. This leave is mostly consumed in January, April to

June and September to November. The rate of leave consumption varies

from 1.51% to 0.75%.

43

INFERENCES FROM THE YEARLY DATA

Calculation:

Average Leave = Average Strength x Leave p.a.

X 100

Available Mandays

Average PL = 9.8%

Average CL = 2.6%

Average SL = 3.2%

1. The PL availed per annum is 30 days. Therefore, on an average the

consumption should be approximately 10%. But the trend in the graph

shows a consistency of consumption of this particular leave from about 3%

to 4.5%. This leave comes under the category of paid leave and has a

benefit of encashment and so people have adopted a trend of saving this

leave.

2. The CL availed per annum is 8 days. The average CL leave consumption is

2.6% but from graph it is about 1% to 2.5%. This leave can be encashed, if

saved.

3. The SL leave trend shows a consistency as the leave is consumed

consciously and only for genuine sickness and genuine problems. Hence

the average and actual consumption is almost the same.

4. The authorized leave is granted only in case when employee has no

balance leave and faces some genuine problem or sickness. Thus, the

graph shows a declining trend as it was 046% in 1994 which has come

down to 0.02% in 2004. The company keenly keeps a watch on this

category of leave.

44

5. The graph of Certified Sickness shows a drastically downward trend. The

rate was 2.29% in 1994 which has dropped down to 0.74% in 2004. This

has been possible due to the efforts of the HR Department and the

Company Doctor.

6. Absenteeism is mainly observed through the rate of Unauthorized

Absence. This has been minimized by the company s disciplinary action

system, counseling efforts and provision of ready help to the employees.

This has also helped in increasing productivity, profits and efficiency.

7. Due to the above measures, the company has been successful in retaining

high Mandays.

8. The graph of manpower strength show declining trend as the company had

reduced or cut off manpower by implementing CRS and VRS scheme.

45

CONTROL THROUGH DISCIPLINARY ACTION

KSB Pumps Ltd. is a large company and hence the manpower

engaged here is in large number. The company is engrossed in continuous

production of pipes and valves. Company s main and important asset is the

manpower and thus, it s activities are to be keenly monitored as any reduction

or other incidents with the asset causes a great loss to the company.

The HR Department deals with various activities among which

monitoring absenteeism and taking the appropriate disciplinary action is one of

the important and sensible issues in the company. This matter has to be

handled very consciously so that correct steps are taken by the management

in reducing absenteeism.

The Industrial Relations department takes the disciplinary action in

KSB. They have certain rules specified in the Standing Orders, which act as a

guideline for the process of disciplinary action.

The attendance system in the Time Office maintains the record of

the In

time and Out

Time which helps to know his personal strata. This

system helps to calculate his monthly salary and keep record of his leave

system. It also helps to find out his balance leaves and his total absenteeism

during the month. The system helps in identifying the chronic cases, as

monthly report is prepared through the available data. Thus, necessary action

is taken by the department against the chronic cases among the employees.

KSB has dealt with many cases and have brought about a very

uniform discipline in the employees.

46

PROCEDURE OF DISCIPLINARY ACTION:

1. Chronic cases are identified from the daily data.

2. Warning is given to them for at the most 3 times.

3. After giving warning, even if the employee follows the same thing, then

show cause notice is issued to him.

4. If same case is further identified, then he is suspended.

5. In super chronic cases, inquiry is held and if findings say so, then he is to

be dismissed.

BENEFITS TO THE EMPLOYEES:

1. To do work in better way.

2. To regain their lost identity.

3. To get regular wages.

BENEFITS TO THE MANAGEMENT:

1. To gain higher mandays.

2. To get good profits.

3. To harmonize the industrial relations.

Thus, it can be observed that disciplinary action helps in controlling

absenteeism and gaining high production as well as profits.

47

EVALUATION OF THE QUESTIONNAIRE

1. My job in company is very interesting.

Not at all To some Extent Average To great Highly Extent Interesting

Options a b c d e Total

Response 0 5 7 9 4 25

% 0 20 28 36 16 100

a0% b

20%

c28%

d36%

e16%

a

b

c

d

e

Findings:

From the above chart, it can be seen that 86% of the workmen like their job

varying from average to a higher extent. Thus, their job interest levels are high.

48

2. Reason for taking employment:

To spend time.

Forced by family Members.

To take care of my family.

Liking of the work.

Options a b c d Total

Response 0 4 11 10 25

% 0 16 44 40 100

a0%

b16%

c44%

d40%

a

b

c

d

Findings:

From the above chart, it is clear that 44% of the workmen come to the

company to support their family while 40% of workmen have a liking towards their

work.

49

3. Are you aware of the leave rules of the company?

Not at all To some Extent To great Strongly

Extent Aware

a8%

b20%

c28%

d44%

a

b

c

d

Findings:

From the above chart, it is observed that 44% of the workmen are strongly

aware of the leave rules while 8% of the workmen are not at all aware of the leave

rules.

Options a b c d Total

Response 2 5 7 11 25

% 8 20 28 44 100

50

4. How many paid leaves are availed by you per annum?

1-2 days 3-5 days 6-10 days More than

10 days

a4%

b8%

c52%

d36% a

bcd

Findings:

It can be seen that 52% of workmen take around 6 -10 days of paid leaves

while 36% of the workmen avail more than 10 days paid leave per annum.

Options a b c d Total

Response 1 2 13 9 25

% 4 8 52 36 100

51

5. How many unpaid leaves are availed by you per annum?

1-2 days 3-5 days 6-10 days More than

10 days

a16%

b24%

c52%

d8%

abcd

Findings:

It can be observed that 52% of the workmen take 6-10 days of unpaid

leave while 24% of workmen avail 3-5 days leave per annum.

Options a b c d Total

Response 4 6 13 2 25

% 16 24 52 8 100

52

6. What is the percentage of your absenteeism in last one year?

0-20% 21-40% 41-60% 61-80% 81-100%

a32%

b44%

c16%

d4%

e4%

a

b

c

d

e

Findings:

From the above chart, it can be seen that 44% of the workmen quoted their

absenteeism in the percentage range of 21- 40% in the past one year while 32%

of workmen have reported 0 20% absenteeism last year.

Options a b c d e Total

Response 8 11 4 1 1 25

% 32 44 16 4 4 100

53

7. Main reason behind high leave consumption:

Personal

Family related

Work related

Social

Addiction

Indebtness

a8%

b40%

c16%

d8%

e20%

f8%

a

b

c

d

e

f

Findings:

It can be observed that the main reason behind high leave consumption is

that 40% of the workmen have family related problems, while 20% of the workmen

have addiction problem.

Options a b c d e f Total

Response 2 10 4 2 5 2 25

% 8 40 16 8 20 8 100

54

8. My colleagues are highly supportive.

Not at all To some Extent To great Always

Extent

a0% b

20%

c36%

d44%

a

b

c

d

Findings:

From the above chart, 44% of the workmen feel that their colleagues are

supportive to a great extent. Thus, the working environment in the company is

very friendly and comfortable.

Options a b c d Total

Response 0 5 9 11 25

% 0 20 36 44 100

55

9. Disciplinary actions taken by management on absenteeism has reduced

absenteeism in our company.

Not at all To some Extent To great Highly

Extent True

a0%

b16%

c48%

d36% a

b

c

d

Findings:

It can be observed from the above chart that 48% of workmen accept that

disciplinary actions taken by management have reduced absenteeism to a very

great extent. The company has very strict rules policy. However those who have

breached the rules are given warnings, show cause notices or suspension.

Options a b c d Total

Response 0 4 12 9 25

% 0 16 48 36 100

56

10. In our company, real, genuine sickness cases claiming sick leave are

either:

0-20% 21-40% 41-60% 61-80% 81-100%

a16%

b20%

c36%

d20%

e8%

a

b

c

d

e

Findings:

From the above chart, it can be seen that 36% of workmen have opted that

41- 60% of the cases are real, genuine ones who claim sick leave.

Options a b c d e Total

Response 4 5 9 5 2 25

% 16 20 36 20 8 100

57

11. I interact with the company s management staff without hesitating.

Not at all To some Extent To great Highly

Extent True

a12%

b28%

c44%

d16%

a

b

c

d

Findings:

It can be observed from the above chart that 44 % of the workmen are very

comfortable in interacting with the management staff. Thus, the management

subordinate relations are very clear and good without resistance.

Options a b c d Total

Response 3 7 11 4 25

% 12 28 44 16 100

58

12. How is your family condition and family atmosphere?

Satisfactory Average Unsatisfactory

a40%

b36%

c24%

a

b

c

Findings:

It can be observed that 40% of the workmen s family condition is

satisfactory while 24% of them are unsatisfied.

Options a b c Total

Response 10 9 6 25

% 40 36 24 100

59

13. Is your salary structure adequate?

Yes No

a52%

b48%

a

b

Findings:

52% of the workmen are satisfied with their salary structure while 48% of

them are not happy about the present salary structure as it is not adequate for

them.

Options a b Total

Response 13 12 25

% 52 48 100

60

14. If No, are you and your family members engaged in some business?

Yes No

a58%

b42% a

b

Findings:

From the 12 workmen, who are not satisfied with the salary structure, 58%

of workmen and their family are engaged in some business such as small shops

or providing mess facilities at home for the working people.

Options a b Total

Response 7 5 12

% 58 42 100

61

15. Is this involvement in business a cause of your absenteeism?

Sometimes Mostly Not at all

a42%

b25%

c33%

a

b

c

Findings:

From the above chart, it is clear that involvement in some business is not

related to the absenteeism in the company. 42% of the workmen feel that

sometimes this involvement affects.

Options a b c Total

Response 5 3 4 12

% 42 25 33 100

62

16. The cause of my absenteeism is taking alcohol.

Not at all To some Extent To great Highly

Extent True

a44%

b32%

c20%

d4%

a

b

c

d

Findings:

From the above chart, it can be seen that 32% of the workmen are addicted

to alcohol.

Options a b c d Total

Response 11 8 5 1 25

% 44 32 20 4 100

63

17. The cause of my absenteeism is taking smoking.

Not True Partially True Almost Highly

True True

a52%

b48%

c0%

d0%

a

b

c

d

Findings:

It is observed that 48% of workmen are addicted to smoking but it has no

relevance to their remaining absent at the company.

Options a b c d Total

Response 13 12 0 0 25

% 52 48 0 0 100

64

18. The cause of my absenteeism is taking chewing habits.

Not at all To some Extent To great Highly

Extent True

a56%b

24%

c20%

d0%

a

b

c

d

Findings:

It can be seen from the above chart that 20% of workmen are addicted to

chewing habits to a great extent, but it does not directly affect their attendance in

the company.

Options a b c d Total

Response 14 6 5 0 25

% 56 24 20 0 100

65

19. The cause of my absenteeism is taking drugs.

Not True Partially True Almost Highly

True True

a60%

b40%

c0%

d0%

abcd

Findings:

From the chart, it can be seen that 60% of the workmen are not involved in

any type of drug addiction, while 40% of workmen are taking drugs.

Options a b c d Total

Response 15 10 0 0 25

% 60 40 0 0 100

66

20. The cause of my absenteeism is regular health problems.

Not at all To some Extent To great Highly

Extent True

a8%

b44%

c36%

d12%

a

b

c

d

Findings:

It can be seen that to some extent, 44% of the workmen remain absent due

to their irregular health problems.

Options a b c d Total

Response 2 11 9 3 25

% 8 44 36 12 100

67

CONCLUSION

Thus, 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.

68

SUGGESTIONS TO REDUCE ABSENTEEISM

1. Provide Incentives: Giving workers incentives for reduced

absenteeism is not the same as rewarding or giving workers bonuses

for reduced absenteeism. An incentive provides an employee with a

boost to their motivation to avoid unnecessary absenteeism. The

general rule of thumb is to reward workers more frequently the younger

they are and the more difficult the work is to perform.

2. Non

Monetary Awards: A notice board could be put up at the shop

floor displaying the name of the workmen and his department who is

being conferred this award. This award could be like:

Worker of the month award based on Efficiency.

A quarterly attendance award.

Disciplinary awards can be given to workers against whom there

are no reports of misconduct.

3. Conduct Workshops: Identify the chronic absentees and conduct a

workshop focusing on their areas of interest in work and their job

satisfaction definitions. This response can be discussed with the

subordinates openly and they can be placed in their respective

departments of work so that their talents and capabilities can be

utilized efficiently.

4. Training to Supervisors: They must be given training on their

behavioral aspects with the workers and they must be given a human

oriented approach so that they prove to be good friends of the workers

and the working environment becomes pleasant.

5. Job Rotation: Workers must be given different jobs at different shifts

so that his job does not become monotonous, repetitive and boring.

Flexi-time can also be allowed within certain limitations.

69

6. Verification of Medical certificate: It is generally observed that

workers take unauthorized leave and then provide a medical certificate.

The leave then becomes authorized. Thus, the medical certificates

must be verified by the management for their authenticity.

7. Counseling: The Union representatives could visit the houses of the

absentee worker and counsel them about the ill effects of their being

absent. e.g., their financial losses, their importance in the production of

the company, their family conditions, etc.

8. Company as a second home: The management could display the

worker s names on the notice boards at the shop floor, wishing them on

their birthdays or encouraging them in company s activities like sports,

etc. this creates a sense of belonging among the workers towards the

company.

9. Wage Link: Wages could be directly linked to attendance and their

performance at work.

10. Disciplinary Action: If all the above measures fail to improve

attendance of a worker then strict disciplinary action is the only option

against him.

11. Attendance Management Programme: The purpose of this

programme is to develop a willingness on the part of all the workers to

attend work regularly and to assist them in motivating their co-workers

to attend work regularly. This can be done through:

Addressing the physical and emotional needs of the workers.

Communicating the attendance goals of the organization so employees

can understand and identify with them.

Dealing with cases of excessive absenteeism effectively and fairly so

deterrence can occur.

70

ANNEXURE-I

TABULAR REPRESENTATION OF MONTHLY & YEARLY

ABSENTEEISM OF HRW IPW

1994 - 2004

71

A

BSE

NTE

EISM

DU

RIN

G 1

994-

2004

3.97

3.00

4.48

4.82

4.48

4.96

4.60

4.82

4.97

4.86

4.84

1.95

2.14

2.23

2.26

2.22

2.10

2.09

2.15

2.12

2.21

3.22

1.81

1.66

2.44

2.90

2.90

3.03

3.06

3.08

0.47

0.23

0.22

0.18

0.13

0.03

0.02

0.01

0.02

0.03

2.29

1.59

2.13

1.98

1.54

1.11

0.53

0.62

0.78

0.81

1.51

20.65

1.83

1.00

0.65

0.34

0.54

0.61

1.592.29

2.49

0.020.74

0.39

0.71

0.75

0.00

5.00

10.0

0

15.0

0

20.0

0

25.0

0

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

YEAR

S

% OF DAYS

PL CL

SL AL CS

UA

72

TO

TAL

MD

A A

ND

MD

L D

UR

ING

199

4-20

04

178391

198606

169235

161805

125104

123078

101914

106350

98891

90266

81090

22607.0

58286.0

23744.5

19449.0

13146.5

13666.0

10745.5

11682.0

11427.0

10448.5

9441.5

0

5000

0

1000

00

1500

00

2000

00

2500

00

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

YEAR

S

NO. OF DAYS

MD

A

MD

L

73

U

A T

RE

ND

DU

RIN

G 1

994-

2004

1.51

20.6

5

0.75

0.71

0.61

0.54

0.39

0.34

0.65

1.00

1.83

0.00

5.00

10.0

0

15.0

0

20.0

0

25.0

0

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

YE

AR

S

% OF DAYS

UA

74

C

S T

RE

ND

DU

RIN

G 1

994-

2004

2.29

1.54

1.11

0.74

0.81

0.78

0.62

0.53

1.98

2.13

1.59

0.00

0.50

1.00

1.50

2.00

2.50

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

YE

AR

S

% OF DAYS

CS

75

A

L TR

END

DU

RIN

G 1

994-

2004

0.47

0.18

0.13

0.02

0.03

0.02

0.01

0.02

0.03

0.22

0.23

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

0.50

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

YEA

RS

% OF DAYS

AL

76

S

L TR

EN

D D

UR

ING

199

4-20

04

3.08

3.06

3.03

2.90

2.90

2.44

1.66

1.81

3.22

2.29

2.49

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

SL

77

C

L T

RE

ND

DU

RIN

G 1

994-

2004

1.95

1.59

2.21

2.12

2.15

2.09

2.10

2.22

2.26

2.23

2.14

0.00

0.50

1.00

1.50

2.00

2.50

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

YE

AR

S

% OF DAYS

CL

78

P

L TR

EN

D D

UR

ING

199

4-20

04

3.97

3.00

4.48

4.84

4.86

4.97

4.82

4.60

4.96

4.82

4.48

0.00

1.00

2.00

3.00

4.00

5.00

6.00

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

YE

AR

S

% OF DAYS

PL

79

M

ANPO

WER

STR

ENG

TH O

F TH

E CO

MPA

NY D

URIN

G 1

994-

2004

629

535

265

295

330

348

350

402

424

654

591

0

100

200

300

400

500

600

700

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

YEAR

S

NO. OF EMPLOYEES

STRE

NGTH

62

M

AN

POW

ER S

TREN

GTH

DU

RIN

G Y

EAR

199

4- 2

004

591

654

629

535

424

402

350

348

330

295

265

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

63

64

QUESTIONNAIRE ON STUDY OF ABSENTEEISM

Name: ________________ Department & Designation:_____________ Age: ________________ No. of years in service :_____________

I. Job Satisfaction and Income:

1. My job in company is very interesting.

Not at all To some Extent Average To great Highly Extent Interesting

2. Reason for taking employment:

To spend time.

Forced by family Members.

To take care of my family.

Liking of the work.

II. Work atmosphere and relationship:

6. Are you aware of the leave rules of the company?

Not at all To some Extent To great Strongly Extent Aware

7. How many paid leaves are availed by you per annum?

1-2 days 3-5 days 6-10 days More than 10 days

8. How many unpaid leaves are availed by you per annum?

1-2 days 3-5 days 6-10 days More than 10 days

6. What is the percentage of your absenteeism in last one year?

0-20% 21-40% 41-60% 61-80% 81-100%

65

21. Main reason behind high leave consumption:

Personal

Family related

Work related

Social

Addiction

Indebtness

22. My colleagues are highly supportive.

Not at all To some Extent To great Always Extent

23. Disciplinary actions taken by management on absenteeism has reduced absenteeism in our company.

Not at all To some Extent To great Highly Extent True

24. In our company, real, genuine sickness cases claiming sick leave are

either:

0-20% 21-40% 41-60% 61-80% 81-100%

25. I interact with the company s management staff without hesitating.

Not at all To some Extent To great Highly Extent True

III. Family, domestic and other problems:

26. How is your family condition and family atmosphere?

Satisfactory Average Unsatisfactory

27. Is your salary structure adequate?

Yes No

28. If No, are you and your family members engaged in some business?

Yes No

66

29. Is this involvement in business a cause of your absenteeism?

Sometimes Mostly Not at all

IV. Habits and Attitude:

30. The cause of my absenteeism is taking alcohol.

Not at all To some Extent To great Highly Extent True

31. The cause of my absenteeism is taking smoking.

Not True Partially True Almost Highly True True

32. The cause of my absenteeism is taking chewing habits.

Not at all To some Extent To great Highly Extent True

33. The cause of my absenteeism is taking drugs.

Not True Partially True Almost Highly True True

34. The cause of my absenteeism is regular health problems.

Not at all To some Extent To great Highly Extent True

67

ANNEXURE-II

QUESTIONNAIRE FOR RESEARCH

BIBLIOGRAPHY

Books

Industrial Relations and Personnel Management

- Prof. Dr. M.V. Pylee and A. Simon George, Pages 75 76

Human Capital

- Magazine March 2005 issue, Volume 8, Pages 32 - 36

Manual

Personnel Manual of KSB Pumps Ltd.

Websites

www.ksbindia.co.in

www.google.com

www.employer-employee.com

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