1

Project On

‘Earn & Learn’ Trainee Scheme

At

TATA YAZAKI AUTOCOMP LTD.

(Comprehensive case study)

Master in Business Administration (Human Resources Management)

Submitted in partial fulfilment of the requirements for award of Master in Business Administration of Tilak Maharashtra Vidyapeeth, Pune.

Submitted by - AMAN BHATTACHARYA

PRN: 07209010496

Of

Aureole Institute of Business Management, Pune

Tilak Maharashtra Vidyapeeth

Gultekdi, Pune 411 037

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Declaration

I Aman Bhattacharya hereby declare that the project report entitled ‘Earn & Learn’

Trainee Scheme submitted in partial fulfillment of the requirements for the degree of

Masters of Business Administration to Aureole Institute of Business

Management, Pune; it is my original work and not submitted for the award of any

other degree, diploma, fellowship, or any other similar title or prizes.

Name: Aman Bhattacharya Place: Pune

Signature:

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Acknowledgement

Industrial project training is an essential part of any Master of Business

Administration program and for that purposes I had joined a manufacturing company

name TATA YAZAKI AUTOCOMP LIMITED, Pune.

I take the opportunity to express my gratefulness to all of them, those who helped

me to achieve this challenging project in TATA YAZAKI AUTOCOMP LIMITED,

Pune.

I am very thankful and pay my thanks to Mr. Sameer Vaidya (Academic Head) of

Aureole Institute of Business Management, for their valuable teaching and guidance

and support on completion of this project.

I am really grateful to Ms. Gayatri Phoujdar (Dy.HRM) of TATA YAZAKI

AUTOCOMP LIMITED, who accommodated me for training in this honored

organization.

I am also very thankful to all other HR team members for their support and guidance

during their busy schedule on the ground of which I have developed a field of

corporate knowledge.

A special ―Thank you‖ in given to all the permanent staffs, Student Trainees and the

contract people of ‗TATA YAZAKI AUTOCOMP LIMITED, Pune.’ for their positive

support.

I also like to acknowledge with gratitude of respect, towards my parents and friends,

who has always support and moralize me.

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Contents Topic Page No.

Executive Summary-------------------------------------------------------------------06

Objective & Purpose------------------------------------------------------------------07

Introduction------------------------------------------------------------------------------08-11

TATA AUTOCOMP SYSTEMS LTD

YAZAKI CORPORATION

TATA YAZAKI AUTOCOMP LTD.

Product ----------------------------------------------------------------------------------15-19

Market Competition

Manufacturing Facilities

Operational Process

Company’s 5s---------------------------------------------------------------------------20

Organizational Hierarchy------------------------------------------------------------21

Human Resource Hierarchy--------------------------------------------------------22

TYA manpower ------------------------------ ------------------------------------------23

Earn & Learn Scheme-----------------------------------------------------------------24-25

Scheme & Process

Benefit to the organization

Agencies Wise Details ---------------------------------------------------------------26-29

Triumala Industrial Academy

BSA Training Academy Pvt.Ltd.

Yashaswi Institute of Technology

Deccan management consultant Finishing School

M.P.Training Academy Ltd (MTE)

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Agency wise Volume-------------------------------------------------------------------30

Introduction to Industrial Relationship------------------------------------------31-32

Absenteeism-----------------------------------------------------------------------------33-42

Attrition------------------------------------------------------------------------------------43-44

Research Methodology-----------------------------------------------------------------45

Data Analysis & Interpretation-----------------------------------------------------46-69

Questionnaire 1st Analysis

Questionnaire 2nd Analysis

Finding & Observation----------------------------------------------------------------70-71

Limitations of the Study----------------------------------------------------------------72

Effects of Absenteeism in TYA-------------------------------------------------------73

Measurement of Absenteeism--------------------------------------------------------73

Measurement of Attrition---------------------------------------------------------------74

The Bradford Factor & Absenteeism---------------------------------------------75-77

How to organize Bradford Factor

Implementation of Bradford Factor

Recommendation------------------------------------------------------------------------78-

79

Conclusion---------------------------------------------------------------------------------80

Appendix----------------------------------------------------------------------------------81-86

References ---------------------------------------------------------------------------------87

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EXECUTIVE SUMMARY

In today‘s globalized business ―Employees‖ are the most important and valuable

asset in every organization. A well trained employee can make dynamic and

profitable organizations because of effective employees can contribute to the

effectiveness of the organization Competent and motivated people can make things

happen and enable an organization to achieve company valuable goals.

Organizations have now started realizing that the systematic attention to human

resources is the only way to increase organizational efficiency in terms productivity,

quality, profits and better customer satisfaction. TYA is one of such organisation

facing/battering against the problem of Absenteeism and Attrition. Employee

retention and monitoring absenteeism is critical to the long-term health and success

of any organization; however it is becoming increasingly difficult for companies

across the globe to attract, motivate and retain critical talent.

As per the current market scenario attrition TVS, Nucleus, Geometric, HCL, Infosys,

Wipro are also facing huge amount of attrition in their accounts. The facts revealed

that job security, personnel problems, leaves, job designing for the student trainees

etc. was the main reason for student trainees leaving the organization and

incentives, canteen nourishment, recreation and welfare facilities etc. are the basic

causes of absenteeism.

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Objective

Effectiveness of ―Earn & Learn‖ scheme for Student Trainee.

To identify the causes of absenteeism and attrition of student trainees in a

management setup.

To study relations between supervisors/line leader with the student trainees

on absenteeism.

To understood the theoretical aspects of Absenteeism and Attrition.

To give suggestions to the management on reducing absenteeism and

attrition through finding and observation.

Purpose

The basic purpose of the report is to understand the reasons behind

Absenteeism rate in TATA YAZAKI AUTOCOMP LTD and what measures

can be taken up by the organization to bring the rate of Absenteeism to

steady level.

As per the record absenteeism in past year is rising, so with the help of this

report problem areas are identified and measures are suggested. This

recommendation would benefit TATA YAZAKI AUTOCOMP LTD in achieving

its goal.

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Introduction

TATA AUTOCOMP SYSTEMS LTD

Tata AutoComp Systems Limited promoted by the Tata Group, provides products

and services in the automotive industry to Indian and global customers which

includes other major automobile company like (Ashok Leyland, BMW India,

Mercedes-Benz India, Eicher Motors, Fiat, Force Motors, Ford India, General Motors

India, Hero Honda, Hindustan Motors, Honda Scooters, Honda Siel Cars India Ltd,

International Tractors John Deere India, Mahindra and Mahindra, Mahindra Renault,

Man Force Trucks, New Holland, Piaggio, Punjab Tractors, Royal Enfield, Skoda,

Swaraj Mazda, Tata Motors, Toyota Kirloskar Motor Pvt. Ltd., Tractors and Farm

Equipment Limited).

Code of Conduct and Business Ethics

1. Ethical Business behaviour, adhering to a Code of Conduct — in every sphere

and with all constituents — has been the bedrock on which the Tata‘s have

built and operates its enterprises. The management of business ethics is an

integral part of the overall excellence initiatives undertaken by the Group. The

adoption of a common code of conduct reinforces our commitment to a

shared set of ideals, values and beliefs.

2. As a condition of employment, each officer and employee is expected to

comply with this Code of Conduct and will be accountable if he or she fails to

do so. Any violation of this code, or any conduct that violates any law, rule,

regulation, or ethical or professional norm, is subject to disciplinary action, up

to and including termination of employment.

3. The ethics statement serves as a benchmark by which each of their daily

business decisions should be measured and lies at the very core of the Tata

way of doing business. ―At our company, ethical standards guide our business

conduct. We act lawfully and with integrity in our dealings with our customers,

business partners, shareholders, and with each other.‖

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YAZAKI CORPORATION

The Yazaki Group is comprised of 170 companies at 437 business sites in 39

countries including Japan and employs approximately 160,000 people. The

organization of the Yazaki Group consists of Yazaki Corporation, four domestic

group companies, 90 overseas group companies, 74 domestic affiliates and one

specific public benefit corporation. Yazaki manufactures and sells automotive parts,

electric wires, gas equipment and air-conditioning equipment in Japan, and

manufactures wire harnesses (assembled electric wires for automobiles) and other

automotive parts overseas.

Fundamental Management Policy

1. Increase company efficiency and provide the most value to our customers

worldwide through continuous effort and the implementation of new concepts.

2. Uphold the law, respect regional cultures, and contribute to economic and

social development.

3. Contribute to a prosperous future society through business focused on the

environment and security.

4. Conduct business openly and fairly, and aim for coexistence and co-

prosperity.

5. Care for people by creating a corporate culture that prioritizes individuality and

teamwork, while empowering people's dreams.

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TATA AUTOCOMP SYSTEMS LTD

BUSINESS UNIT’s

Fig 1.0

Other Units

Fig 1.1

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TATA YAZAKI AUTOCOMP LIMITED

Tata Yazaki Autocomp Ltd. (TYA), a 50:50 joint venture between Tata Autocomp

systems Limited and Yazaki Corporation of Japan was amalgamated in October

1997 and started commercial operations from July 1999. It‘s having almost 13 acres

of land in the High Cliff Industrial Estate, Near Village Kesnand, Off Ahmednagar

Highway, District Pune. It is located at a distance of 16.5 k.m. from the Pune Railway

Station. Geographically it is situated at 74* and 16‖ East of Greenwich at an

elevation of 603 meters from the mean sea level. The Kesnand village is located at a

distance of 1.5 k.m. while Wagholi village is located at a distance of 2.5 k.m.

The Company is a store house of technology with a work force of highly qualified and

experienced professionals. The Company is capable of designing and manufacturing

high quality wiring harnesses, which is able to meet the most demanding market and

automobile requirements.

TYA is a leading manufacturer of wiring harnesses for the automotive industry. The

company has established capabilities in product design, development and

manufacturing and is highly respected by its global clientele for its reliability and

timely delivery at highly competitive costs.

The Tata Yazaki Edge

Cost-effective manufacturing capabilities

Flexibility in Product mix & customer demands.

Wiring harnesses for a variety of segments of the automobile industry,

including passenger cars and commercial vehicles

Design and manufacturing technologies from Yazaki Corporation, Japan, the

world's largest producer of wire harnesses.

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The Company Vision, Mission & Value is stated below

Vision

To be the preferred destination for sourcing Automotive Wiring Harness in chosen

geographies creating benchmark value for investor.

Mission

Customers: To develop strong bonding through

Exceeding customer expectations in Quality, Cost and Delivery performance

Flawless new product launches (meeting all agreed program milestones)

Creating value through differentiated product offerings

Shareholders: To create benchmark value by delivering

TSR in top quartile of Indian auto-comp industry

Employees: To create an organisation that promotes excellence by

Providing pre-planned avenues for development and growth

Freedom to experiment

Work-life balance

Suppliers: To foster long term partnerships by

Delivering on transparent contractual terms

Ensuring enhancement of their processes and capabilities

JV Partners: To build a credible partnership by

Creating a benchmark India operation

Protecting intellectual property rights

Ensuring transparent dealings

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Community: To make a difference in community

Through sustained efforts in chosen felt needs

Create a carbon neutral footprint

Values

Customer Focus

Anticipating, understanding and focusing efforts on the meeting the customer

needs and exceeding expectations

Passion for excellence

Relentlessly improving, continuously raising the bar

Integrity in all our dealing

All our actions and dealing should be capable of standing the test of public

scrutiny

Respect and understanding

We must caring, compassionate, humane and respectful in all our

interpersonal dealings

Responsibility

Take ownership for the consequences of one‘s decisions and actions

Quality Policy

Be First Choice for all Customers, Employees, Suppliers and Partners by Continual

Improvement of Quality Management Systems & Satisfying Customers‘ Current &

Future Needs.

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Quality Objectives

Meeting customers‘ Needs on Time & in Full

Improve Productivity Continually

Relentlessly focusing on the bets in class Quality, Cost, and Delivery

Performance

Upgrade and Build individual and team skills continually

Create Clean and Safe Environment

Environmental Policy

We are committed to help creating a safe, clean & green environment through….

Conservation of natural resources by optimal and judicial usage

Compliance with relevant Environmental, Legal & other requirements

Continual improvement in Environmental Management Systems and

prevention of Pollution

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Product

Tata Yazaki Autocomp Ltd is into production of the wiring

Harness for the four wheeler vehicles in the segment of light

vehicles as well as heavy vehicles for the Indian roads in

national level & International levels of roads. It also supplies

wiring harnesses for applications such as air bag assemblies.

What is wiring Harness?

Wiring harness is as similar as the nerves and blood of the body, the

automotive wire harness is links the on-board electronic devices to each

other. A high-end vehicle with various features houses up to around 3,000

electronic circuits. Along with these circuits come a huge number of wires,

which must be bundled together and arranged in such a way that they can fit

the shape of the car and be accommodated without being visible.

The transmission system of wire harnesses made by the TATA YAZAKI Group is

arranged into the following four sections:

1. ―Information system network‖ to which information devices are connected. This

network deals with audio and visual data, including that related to navigation.

2. ―Body system network‖ to which power windows and headlights are connected.

This network is responsible for in-vehicle safety and comfort.

3. ―Driving system network‖ to which the key components of the vehicle, such as the

engine and the brakes, are connected.

4. ―Power supply management system‖ which controls the electricity that powers the

electronic devices. (See fig 1.0)

Fig 1.3

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Integrated modular wiring harnesses providing power to the vehicle

Battery cables capable of carrying heavy currents from the battery to other

parts of the vehicle

Connectors and terminals that connect various sections and modules of the

vehicle. The product range includes specially designed double-locking,

waterproof connectors and terminals, grommets, etc.

Junctions and fuse boxes for car safety and protection

CUSTOMERS

Tata Yazaki has the necessary supply-chain and logistics capabilities to deliver on

time to customer locations around the world and provides Yazaki with a well-

established base to service the requirements of carmakers in Japan and Europe.

The company is on the top-supplier lists of companies like Toyota, Honda, Tata

Motors, General Motors and Volkswagen.

Market Competitions

While running a manufacturing industry, the competition is as usual there for each

and every sector. So in the field of wiring harness there are few giant manufacturers

who can affect the business of TATA YAZAKI.

The Competitors are as follows:-

Motherson Sumi Systems Limited (MSSL) is one of the leading and the largest

manufacturer of integrated wiring harnesses in India, the Motherson sumi group

holds over 65% share of the Indian passenger car wiring harness market. Their

major clients Maruti Motor and Hundai Motors.

Lear Corporation is a US based company known for its quality automobile products

in different segment of vehicles.

Minda Industries Limited it is also one of the service provider of wiring harness.

The company they provide service Bajaj,Volkswagen,General Motor,Mahindra,

Mercedes,BMW,Toyota,Audi,Volvo,escort,JCB,Skoda,Honda,Hyundai,Maruti,Fiat,

Nissan etc.

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Delphi Corporation is one of the largest automotive parts manufacturer based in

US. Clients of Delphi are Ford Motor, GM, Nissan, Maruti Suzuki, Honda 2 wheelers,

TVS motor etc.

Growth in last 10 years at TATA YAZAKI AUTOCOMP LTD

Fig 1.4

Manufacturing Facilities

Fig 1.5

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Tata Yazaki has started plants in selective location in India to support the operations

of different customers. The stars marked in the above picture are the locations where

Tata Yazaki is operating.

Pune plant supports the production of GM, Volkswagen, Honda, Fiat and Tata

Motors. Uttarakhand plant supports manufacturing of Tata Ace. Jamshedpur plant

supports the manufacturing of commercial vehicle. Sanand plant supplies harness

for Nano. Bangalore plant supplies harness for Toyota and Nissian cars.

As most of the customers of the Tata Yazaki are operating on Just in Time (JIT)

concepts hence to support its customers Tata Yazaki started its manufacturing plant

close to the customer premises reducing transportation cost and increasing the

flexibility.

The Pune plant is broadly classified as P1 and P2 plant. P1 plant is used to

manufacture all Tata Motors Harness manufacturing 100% harness for Indica,

Indigo, commercial Vehicles, Nano (plan to shift to Sanand) include as the plant

handles single customer hence follows batch production system.

P2 plant is used to manufacture harness for Honda, TKM, GMI and VW. As the

customers are different the operations required are also somewhat different hence

cellular manufacturing techniques is used in P2 plant by combining all the machines

required to manufacture family of harness for a particular customer.

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Operational Process of Wiring Harness in shop floor

Fig 1.6

Mai kotei (Pre Assembly)

Wire Cutting : This is cutting the wire from both ends

Wire Stripping : This operations involves removal of the conductor from the

wire ends up to specific length to improve contact with the Terminal

Wire Crimping: This is punching the Terminal on to the wire.

Jointing: this involves punching multiple wires into a common terminal.

Insertion: Insertion includes insertion of Rubber seal, HST etc.

Aotokotei

Subassembly

Layout

Wire Insertion

Tapping

Wire Cutting Wire

Striping

Wire

Crimping

Sub-

Assembly

Junkan

Taping

Layout

Part fitment Electrical

Inspection

Packaging

Visual

Inspection

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ACTIVITY OF COMPANY: 5’S

Fig 1.7

21

Organisational Hierarchy

Fig 1.8

22

Human Resource Hierarchy

Fig 1.9

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TYA Manpower

Wiring harness is labour intensive product/process, were most of the activities are

performed by manual labour. The list of activities include, during the time of wiring

harness are Skilled, Semi-skilled and Un-skilled. For this TYA has engaged various

types of employee those who works to achieve the targets.

The following category list:-

Permanent Operators.

Temporary

Newly Joined ‗Earn & Learn‘ scheme student.

Apprentice.

Contractual employees.

Total Manpower: - 3328

Student Trainees: - 1641

Management Employees: - 1687

Fig 2.0

Basically in TYA more than 49% of the workforce (Production Unit) done by the

contract people (Student Trainee) and 51% percent is done by management

professional.

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Earn & Learn Scheme

The government of Maharashtra initiated the scheme for unemployed youths. Where

the student can learn by the time they earn also. TYA implemented it and give

chance to boost up the talent of the youngster, that help to fulfil the needs of

employment in the nation and give growth as well as chance to perform/prove them

self. The kind of training provides in under TATA brand is much more than

expectations for the students.

TYA started this scheme in the year 2008 with two companies called DMCFS

(Deccan Management Consultant Finishing School) and MPTA (M.P.Training

Academy).

TYA incorporated this scheme in order to achieve the following return and overcome

problem area.

support the government initiative,

It provide trained man power for longer duration,

Needy people will join TYA which in the process will reduce attrition rate.

Scheme and the process

Under the scheme TYA select SSC/HSC/ITI passed students who possess

strong desire to pursue higher studies, through a well-designed process

includes written tests, Colour blindness test & personal interviews.

Antecedents checks & academics verifications

Selected students are deputed to the concerned departments after induction

program through TYA – Learning Center.

Industrial training to these students with regard to ―job‖ is imparted under the

supervision of company instructors & company supervisors.

Students start performing regular assigned job which is monitored by the

instructors & company supervisors.

Students start delivering expected output / productivity within 3 to 4 weeks‘

time.

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Students also attend theory classes twice a month on their weekly off days at

their institute; it is a part of the curriculum & also appears for the periodic

exams that were held in their respective institutes.

The classroom training is given by the institute.

Monthly schedule: working day as per the company and training in industry, 2

days in institute, weekly off as per the company.

Duration: 2 /3 years

Stipend: Rs.4,500 per month

Facilities

Insurance Policies: Mediclaim &GPA (Group Policy Accident)

Dress code: Apron as applicable

Other facilities: Transportation, Canteen facility, etc. as applicable

Certificate: After successful completion of the course, the student will be

awarded the Diploma from Recognized University.

Benefits to organizations:

• To have longevity in retaining these trainees (min.2/3 years).

• To minimize engagement of contract labours in operation areas.

• Better efficiency with quality.

• Better discipline – Conduct Behaviour & Attendance.

• The students are SSC / HSC/ITI passed where they can be prepared

according to the requirements and culture of the organization.

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Agencies working Under TATA YAZAKI

Triumala Industrial Academy

Triumala is one of the leading academy /organisation in the field of HRM with

expertise and experience in the management field. They started ―Earn and learn

scheme‖ for their students. There management collaborate with Tata Yazaki

Autocomp Ltd for their student training purpose, which gives them a beneficial

exposer for their student career in the field of HRM. In that case, TATA provide

ballistic kind of training to the student that give tuning in their personal working skill.

The management of Triumala knows that todays globalised market is totally practical

oriented , that‘s the reason they provide training to their student, where the student

so as to make them compatibility to work in the present industrial scenario.

Purpose: TIA start with their ―Earn and learn scheme‖ with a vision of empowering

individuals to become employable as per industry and social needs. The best part of

the program is that the students are not required to pay for their training and

coaching but they get paid for the learning period of ‗stipend‘.

Course: TIA therefore approached the company with the proposal to place the

student to be selected by it and enrol them for two years certificates course to be

continued by TIA. It has an arrangement and requisite with camp education society,

ITC Pradhikaran Nigidi Pune, and authority to impart theoretical and practical inputs

to the student approved by the government of Maharastra & TIA.

Duty and Responsibility:-

Tirumala shall ensure that the students are well trained on the company

policies and they fully comply with the same.

The company shall pay during the period of this MOU to the TIA scholarship

and expenses as given below:

12th pass student ITI Pass student

1st year Rs.4500/+500/- per student Rs.4000/+500/-per student

In addition Rs.1000/- per student per month towards course for training and

administrative.

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BSA Training Academy Pvt. Ltd.

BSATA is a Pune based company which register under companies Act, 1956 is one

of the leading organisation in the field of education, they establish there system with

mission to bridge the gap between industry expectation. They provide all the

knowledge that is required for an operator level, carved from all the engineering

branches in such a way, so then the student can apply faster to their practical

session or in industry.

Purpose: BSATA believes that this cannot happen; only by the way, of classroom

training, hence this innovative method is implemented for on the job training.

Course: They pickup SSC/HSC/ITI passed candidate and enrolled after careful

scrutiny. Apart from this, they acquire necessary soft skills during their training

program. Then BSATA approached to the company with proposal to give an

opportunity to revelation their student that will useful for the company.

The detail terms and condition are as follows:

1. Advance certificate course in Diploma in Engineering.

3 years of BSATA course which include paid training. The stipends awarded to the

candidate per month are as follows:-

Student stipend – per student

per month

1st Year 4000/-

2nd year 5000/-

3rd Year 5500/-

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Yashaswi Institute of Technology

Yashaswi Institute is a Pune based company Approved by AICTE, Ministry of HRD

Govt. of India and Recognized by Govt. of Maharashtra & Affiliated to University of

Pune, An ISO 9001 Certified Educational Society also register under companies Act,

1956 is one of the leading flagship company in terms of education, they establish

there system with mission to Shaping Lives. They believe, every student is highly

versatile and possesses latent skills and talent. It is their endeavour to tap such

strengths and provide a pathway to accomplish a mission of moulding better human

beings for the world.

Purpose: To fulfil the unemployment gap in the state with providing human resource

capital throughout the industries.

Course: They provide all the knowledge that is required for an operator level, carved

from all the engineering branches in such a way, so then the student can apply faster

to their practical session or in industry.YIT is running 1 year earned and learn

scheme with TATA YAZAKI, where TATA YAZAKI provide OJT (On Job Training) to

YIT student it also include stipend of Rs.4500 per month.

Student Profile & Selection Criteria

Particular Minimum Requirement

Qualification S.S.S/H.S.C/I.T.I

Age 18-25 year

Written Test (GK, Numerical Aptitude,

Reasoning & English)

Min 60%

Interview Technical & HR

YIT also conduct class room training during their weekly off for 2 days in a month.as

per the policy TYA bear all the expenses of the student during the training period. In

case of any misconduct by the trainee the scholarship will terminated by the TYA as

per the agreement of legal practices.

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Deccan Management Consultant Finishing School

Deccan management consultant is one the best of it kind of HRM with experience

and expertise in the field for over three decades. DMCFS has tie up with

Government I.T.I Aundh.

Course: They provide module of soft skill for 12th passed student of DMCFS. Then

the management of DMCFS approach for the student ‗Earn & Learn‘ scheme. Where

the TYA ready to provide on the job training to the student by placing them actual

process to give them industrial exposure and they provide scholarship as follows.

12th pass student ITI Pass student

1st year Rs.4000/- per month per student Rs.4000/- per month per student

M.P.Training Academy Ltd (MPTA)

MPTA is very particular about their course that they provide to the students. MPTA

carefully scrutiny the student (SSC/HSC/ITI) passed student and then they put

student on the job training. The training duration of the student is about 36 month

and the stipend.

Course: - Advance Certificate course in Application Engineering and Certificate

course in wiring skills and personality development are provide by the MPTA

management.

The candidate will be awarded monthly stipend as follows.

Years Stipends

1st year Rs.4500/-

2nd year Rs.5000/-

3rd year Rs. 5500/-

MPTA also provide classroom training for their student, which help them to compare

theoretical knowledge with the practical.

30

Agency wise student Trainees volume

Fig 2.1

Here is the chart state that the total 1641 student trainees are as July 2010.whichh

divided in to five agencies.

31

Introduction to Industrial Relationship (IR)

In a simple world Employer-Employees Relations is known as Industrial Relations

with a view to differentiate between employer-employee relations within the Group

and these relations when they take the shape of relations between two Groups –

Management and Employees., the main functions of every organization should avoid

any dispute with them or settle it as early as possible so as to ensure industrial

peace and higher productivity. Personnel management is mainly concerned with the

human relation in industry because the main theme of personnel management is to

get the work done by the human power and it fails in its objectives if good industrial

relation is maintained. In other words, good Industrial Relation means industrial

peace, which is necessary for better and higher productions (Citehr, 2010).

Definition:-

―Industrial Relation is a relation between employer and employees, employees and

employers and employees and trade unions‖

- Industrial dispute Act 1947

―The designation of a whole field of relationship that exit because of the necessary

collaboration of men and women in the employee process of the industry‖

- Prof. Dale Yoder

32

An important features affecting to Industrial Relations are as follows:

1. Industrial Relation do not emerge in emptiness they are born of employment

relationship in an industrial setting. Without the existence of the two parties, i.e.

labour and management, this relationship cannot exist. It is the industry, which

provides the environment for industrial relations.

2. Industrial Relation are characterized by both conflict and co-operations. This is the

basis of adverse relationship. So the focus of Industrial Relations in on the study of

the attitudes, relationships, practices and procedure developed by the competing

parties to resolve or at least minimize conflicts.

3. As the labour and management do not operate in separations but are parts of

large system, so the study of Industrial Relation also includes vital environment

issues like technology of the workplace, country‘s socio-economic and political

environment, nation‘s labour policy, attitude of trade unions workers and employers.

4. Industrial Relation also involve the study of conditions conductive to the labour,

managements co-operations as well as the practices and procedures required to

cause the desired co-operation from both the parties.

5. Industrial Relations also study the laws, rules regulations agreements, awards of

courts, customs and traditions, as well as policy framework laid down by the

governments for eliciting co-operations between labour and management. Besides

this, it makes an in-depth analysis of the interference patterns of the executive and

judiciary in the regulations of labour–managements relations.

In fact, the concepts of Industrial Relations are very broad-based, drawing heavily

from a variety of discipline like social sciences, humanities, behavioural sciences,

laws etc.

33

What is Absenteeism?

―Absenteeism is the practice or habit of being an absentee and an absentee is one

who habitually stays away from work.‖

According to Labour Bureau of Shimla: - Absenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to work.

Absenteeism is the term used to describe the fact of an individual is missing his or

her regular daily activity.

Absenteeism is ―Non-attendance of employees for scheduled work when they are

expected to work‖.

Absenteeism – The state of chronic absence from work

Absenteeism– State of not being present

Absenteeism– The Practice of regularly staying away from work with good reason.

According to Labour bureau, Govt. of India – Absenteeism is defined as the failure

of a worker to report for work when he is scheduled to work. A worker is considered

scheduled to work when the employer has available for him and the worker is aware

of it. Authorized absence is also treated as absence while presence even for a part

of the shift is treated as presence for whole shift.

34

Definition for a worker

According to labour bureau, Govt. of India – Workers are defined to include all

persons employed directly or through any agency, whether for wages or not, in any

manufacturing process or in cleaning any part of machinery or premises used for

manufacturing process or in any other kind of work, incidental to or connected with

the manufacturing process or the subject of manufacturing process. Labour engaged

in repair and maintenance or production of fixed assets for factory‘s own use or

labour employed for generating electricity etc., is also included.

Contract workers are defined as all persons who were not employed directly by an

employer but through the contractor. These workers may be employed with or

without the knowledge of the principal employer (labour bureau, 2010).

There are two types of absenteeism, each of which requires a different type of

approach are as follows:-

1. Innocent Absenteeism

Innocent absenteeism refers to employees those who are absent for reasons beyond

their control; like sickness and injury. Innocent absenteeism is not culpable which

means that it is blameless. In a labour relations context this means that it cannot be

remedied or treated by disciplinary measures (Benefits, 2010).

2. Culpable Absenteeism

Culpable absenteeism 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 though he/she is not sick, and it can be proven that the employee was

not sick, is guilty of culpable absentee is to be culpable is to be blameworthy. In a

labour relations context this means that progressive discipline can be applied.

For the large majority of employees, absenteeism is genuine, innocent absenteeism,

which occurs infrequently. Procedures for disciplinary action apply only to culpable

absenteeism. Many organizations take the view that through the process of

individual absentee counselling and treatment, the majority of employees will

overcome their problems and return to an acceptable level of regular attendance

(Benefits, 2010).

35

Identifying Excessive Absenteeism

Attendance records should be reviewed regularly to be sure that an employee's sick-

leave days are excessive compared to other employees. If a supervisor suspects

that an employee is excessively absent, this can be confirmed through reviewing the

attendance records.

If all indications show that an employee is excessively absent, the next step is to

gather as much information as possible in order to get a clearer picture of the

situation. The employees' files should be reviewed and the employee‘s immediate

supervisor should document all available information on the particular employee's

history.

Individual Communication

After all available information has been gathered, the administrator or supervisor

should individually meet with each of the employees whom has been identified as

having higher than average or questionable (or pattern) absences or chronic cases.

This first meeting should be used to bring concerns regarding attendance to the

employee's attention. It is also an opportunity to discuss with the employee, in some

depth, the causes of his or her attendance problem and possible steps he or she can

take to remedy or control the absences. Interviewee should carefully to the

employee's responses.

The manner of the meeting should not be oppositional, but a major purpose of the

interview is to let the employee know that management treats attendance as a very

important component of overall work performance. Counsellor should keep

comments non-threatening and work-oriented. Stick to the facts (i.e. patters, profiles,

rates etc.). The employee should be given a copy of their attendance report with

absences highlighted for discussion.

This interview will give the opportunity to explore in depth with the employee the

reasons for his or her absence. Gather facts - do not make any assumptions.

Provide support and counselling and offer guidance as the occasion demands to

assist the employee to deal with the specific cause of the absence. Often, after the

initial meeting employees reduce their absenteeism. Meeting shows, that

36

management are concerned and that absenteeism is taken seriously. The

employee's attendance should be closely monitored until it has been reduced to

acceptable levels. Appropriate counselling should take place as is thought

necessary. If a marked improvement has been shown, commend the employee. The

meeting should be documented and a copy placed in the employee's file (Benefits,

2010).

Proof of Illness

Sometimes it is helpful in counselling employees with excessive innocent or culpable

absenteeism to inquire or verify the nature and reasons of their absence.

The extent to which an employer may inquire into the nature of and reasons for an

employee's absence from the workplace is a delicate issue. The concepts of an

employee's privacy and an employer's need for information affecting the workplace

often come into conflict.

Occasionally is the conflict more difficult to resolve than where personal medical

information is involved. Unions will often strongly object to any efforts by

management to inquire more deeply into the nature of an employee's illness. Where

management need to consider the restraints of any language in collective

agreements in relation to this issue.

However, the following "rules of thumb" can be derived from the existing

jurisprudence:

There is a prevailing right to privacy on the part of an employee unless the

employer can demonstrate that its legitimate business interests necessitate

some intrusion into the employee's personal affairs.

When such interruption is justified, it should be strictly limited to the degree of

interruption required by the employer's interests.

An employee has a duty to notify his employer of a future absence, the cause

of the absence and its expected duration. This information is required by the

employer to meet its legitimate concerns to have at its disposal facts that will

enable it to schedule work and organize its operation.

An absent employee has an obligation to provide his employer with

information regarding any change to his condition or circumstances relating to

37

it‘s which may affect the employer's needs as described in item 3 above. As

such, the interests of the employer in having this information outweigh the

individual employee's right to privacy.

An employer rule requiring proof for every absence is unreasonable if an

absenteeism problem does not exist.

A simple declaration by the person claiming to be sick is not satisfactory

proof.

The obligation to prove sickness, where the employer requires proof, rests

with the employee.

An employer is permitted upon reasonable and possible grounds to refuse to

accept a physician's certificate until it contains sufficient information to satisfy

the employer's reservations. (I.e. seen by physician, some indication of return

to work, etc.). Nonproduction of a required medical certificate could result in

loss of pay until the certificate is produced.

Where a medical certificate is rejected by an employer (as in 8 above) the

employer must state the grounds for rejection and must point out to the

employee what it requires to satisfy the responsibility of proof.

An employer may require an employee to prove fitness for work where it has

reasonable grounds to do so. In a health care setting, the nature of the

employer's business gives it a reasonably tempting interest in this personal

information for measuring fitness.

Where any unusual circumstances raise reasonable suspicion that an

employee might have committed an abuse of an income protection program

an employer may require an employee to explain such circumstances. For

example, an employer may require response as to whether the illness

confined an employee to his/her bed or home; whether an employee engaged

in any outside activity and the reasons for the activity.

In summary then, any interruption into the employee's privacy must be shown to be

reasonable, based on the individual circumstances and in relation to the operation of

the employer's business. If income protection abuse were suspected the level to

which such interruption is "reasonable" would be far greater than in the case where it

is not. In case management are not clear on whether an inquiry is legally justified it is

advisable to consult your superior (Benefits, 2010).

38

After the Initial Interview

If after the initial interview, enough time and counselling efforts, as appropriate, have

passed and the employee's absenteeism has not improved, it may be necessary to

take further action. Further action must be handled with extreme caution - a mistake

in approach, timing or severity can be crippling from both an administration and

labour relation's point of view.

Determining whether counselling or disciplinary action is appropriate, depends on

whether the employee's absences are innocent or culpable. If the employee's

absenteeism is made up of both innocent and culpable absences, then each type

must be distributed with as a separate issue. In a labour relation's context, innocent

absenteeism and culpable absenteeism are equally exclusive. One in no way affects

the other (Benefits, 2010).

Counselling Innocent Absenteeism

Innocent absenteeism is not guilty and therefore disciplinary action is not justified. It

is obviously unfair to punish someone for conduct, which is beyond his/her control.

Absenteeism, no matter what the cause, executes losses on the employer who is

also not at fault. The damage suffered by the employer must be considered against

the employee's right to be sick. There is a point at which the employer's right to

expect the employee to attend regularly and fulfil the employment contract will

dominate the employee's right to be sick. At such a point, the termination of the

employee may be justified, as will be discussed.

The procedure an employer may take for innocent absenteeism is as follows:

1. Initial counselling

2. Written counselling

3. Reduction of hours and/or job reclassification

4. Discharge

39

Initial Counselling

Presuming you have communicated attendance expectations generally and have

already identified an employee as a problem, you will have met with him or her as

part of your attendance program and you should now continue to monitor the effect

of these efforts on his or her attendance.

If the absences are intermittent, meet with the employee each time he/she returns to

work. If absence is lengthy, keep in touch with the employee regularly and stay

updated on the status of his/her condition. (Indicate management willingness to

assist.)

HR Manager may require the employee to provide them with regular medical

assessments. This will enable management to judge whether there is any probability

of the employee providing regular attendance in future. Regular medical

assessments will also give an idea of what step the employee is taking to seek

medical or other assistance. Formal meetings in which verbal warnings are given

should be given as appropriate and documented. If no improvement occurs, so then

written warning may be necessary (Benefits, 2010).

Written Counselling

If the absences continue, then HR staff should meet with the employee formally and

provide him/her with a letter of concern. If the absenteeism still continues to continue

then the employee should be given a second letter of concern during another formal

meeting. This letter would be stronger expressed in that it would warn the employee

that if not attendance improves, termination may be necessary (Benefits, 2010).

Reduction of hours and or job reclassification

In between the first and second letters the employee may be given the option to

reduce, his/her hours to better fit his/her personal circumstances. This option must

be voluntarily accepted by the employee and cannot be offered as an demand, as a

reduction in hours is a reduction in pay and therefore can be looked upon as

discipline.

If the nature of the illness or injury is such that the employee is unable to fulfil the

requirements of his/her job, but could for example benefit from modified work, advice

the employee to bid on jobs of such type if they become available. (N.B. It is

40

inadvisable to "build" a job around an employee's incapacitates particularly in a

unionized environment. The responsibility should be on the employee to apply for an

existing position within his/her capabilities (Benefits, 2010).

Discharge

Only when all the previously noted needs and conditions have been met and

everything has been done to accommodate the employee can termination be

considered. An Authority would consider the following in ruling on an innocent

absenteeism dismissal case.

Has the employee done everything possible to regain their health and return

to work?

Has the employer provided every assistance possible? (i.e. counselling,

support, time off.)

Has the employer informed the employee of the unworkable situation resulting

from their sickness?

Has the employer attempted to accommodate the employee by offering a

more suitable position (if available) or a reduction of hours?

Has enough time elapsed to allow for every possible chance of recovery?

Has the employer treated the employee prejudicially in any way?

As is evident, a great deal of time and effort must elapse before dismissal can take

place (Benefits, 2010).

These points would be used to substantiate or disprove the following two-fold

test.

1. The absences must be shown to be clearly excessive.

2. It must be proven that the employee will be unable to attend work on a regular

basis in the future.

Corrective Action for Culpable Absenteeism

As above already indicated, culpable absenteeism consists of absences where it can

be demonstrated that the employee is not actually ill and is able to improve his/her

attendance. Presuming management have communicated attendance expectations

generally, have identified the employee as a problem, have met with him/her as part

41

of your attendance program, made management concerns on his/her specific

absenteeism known and have offered counselling as appropriate, with no

improvement despite management positive efforts, disciplinary procedures may be

appropriate.

The procedures for corrective/progressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems. The discipline

should not be prejudicial in any way (Benefits, 2010).

The general procedure is as follows:

1. Initial Warning

2. Written Warning

3. Suspension

4. Discharge

Verbal Warning

Formally meet with the employee and explain that income protection is to be used

only when an employee is legally ill. Advice the employee that his/her attendance

record must improve and be maintained at an improved level or further disciplinary

action will result. Offer any counselling or guidance as is suitable. Give further verbal

warnings as required. Review the employee's income protection records at regular

intervals. Where a marked improvement has been shown, commend the employee.

Where there is, no improvement a written warning should be issued (Benefits, 2010).

Written Warning

Interview the employee again. Show him/her the statistics and point out that there

has been no noticeable (or sufficient) improvement. Listen to the employee to see if

there is a valid reason and offer any assistance management can. If no satisfactory

explanation is given, advise the employee that he/she will be given a written warning.

In this case, the HR person should be specific for discussion with him/her and in the

counselling document as to the type of action to be taken and when it will be taken if

the record does not improve. As soon as possible after this meeting provide the

employee personally with the written warning and place a copy of his/her, file.

42

The written warning should identify any noticeable pattern if the amount and/or

pattern continue; the next step in progressive discipline may be a second, stronger

written warning. Your decision to provide a second written warning as an alternative

to proceeding to a higher level of discipline (i.e. suspension) will depend on a

number of factors. Such factors are the severity of the problem, the credibility of the

employee's explanations, the employee's general work performance and length of

service (Benefits, 2010).

Suspension (only after consultation with the appropriate superiors) If the problem of

chronic absenteeism continues, following the next interview period and immediately

following an absence, the employee should be interviewed and advised that he/she

is to be suspended. The length of the suspension will depend again on the severity

of the problem, the credibility of the employee's explanation, the employee's general

work performance and length of service. Subsequent suspensions are optional

depending on the above condition (Benefits, 2010).

Dismissal (only after consultation with the appropriate superiors) Dismissals should

only be considered when all of the above conditions and procedures have been met.

The employee, upon displaying no satisfactory improvement, would be dismissed on

the grounds of his/her unwillingness to correct his/her absence record (Benefits,

2010).

43

What is Attrition?

A reduction in the number of employees through retirement, resignation or death.

Expert Comments

“OUR ASSEST WALK OUT OF THE DOOR EACH EVENING.WE HAVE TO MAKE

SURE THAT THEY COME BACK THE NEXT MORNING “

Narayana Murthy

Attrition has been a major concern for most of the companies in the current

competitive scenario. The word Attrition means, a reduction in the number of

employees through resignation or separation at the employees will. Retirement,

Voluntary retirement service and employee leaving due to end of contract are not

considered as attrition (Docstoc, 2010).

Attrition rate is the rate of reduction in size or number. It is the mathematical

representation of the attrition in a particular organization or an institution.

Attrition leads to dual loss to an organization:

Firstly, company loses on a talent and thus costs incurred on them are a

waste.

Secondly it employees a new employee and thus needs to incur costs on

them. Thus the following costs:

Recruitment cost

The cost to the business when hiring new employees includes the following 6 factors

plus 10 percent for incidentals such as background screening:

Time spent on sourcing replacement

Time spent on recruitment and selection

Travel expenses, if any

Re-location costs, if any n Training/ramp-up time

Background/reference screening

Recruitment cost for the new recruit to replace the employee leaving(Docstoc,

2010)

44

Training and development cost

To estimate the training and development costs, the expenses incurred on training of

the employee who is leaving should be taken as well as that to be incurred to train

the new employee is also to be considered. To estimate the cost of training and

developing new employees, cost of new hires must be taken into consideration. This

will mean direct and indirect costs, and can be largely classified under the following

heads:

Training materials

Technology

Trainers‘ Time

(Docstoc, 2010)

Administration cost

Its include:

Set up communication systems

Add employees to the HR system

Set up the new hire‘s workspace

Set up ID-cards, access cards, etc.

Thus, it can be evident from the above that losing an employee causes an

organization a large amount of expenses. An organization thus tries to retain its work

force (Docstoc, 2010)

45

Research Methodology

The system of collecting data for research projects is known as research

methodology. The data may be collected for either theoretical or practical research

for example management research may be strategically conceptualized along with

operational planning methods and change management.

Sample selection and size

The population for the study comprised of absentees for current year, the total

sample size is 100 workers out of 250 respondents and 17 for the 2nd questionnaire.

Date collection and statistical tools

The sources of data for the purpose of study were both primary and secondary.

Primary data was collected through questionnaire which was mainly close-ended

questionnaire and discussion with workers as well as the line leaders, supervisors

and Head of the department which includes Learning centre, Production department

etc. whereas secondary data was collected from records maintained by IR

department that is time office. Percentage method is used for the analysis of data

and bar and pie graphs are used to present that data.

46

Data analysis and Interpretation

Questionnaire 1stAnalysis

The sample size of the analysis is 100.

01) What’s your father occupation?

Fig 2.2

The respondent states their fathers occupations are as follows:

The majority of 53.6% respondents states that their father is a farmer by

occupation, 18.8% are job holders, 11.6% are labourer, and retired

business men and government service holder has very low margin.

As per the statistical data those father has agriculture land in their native

places they can be remain absent during the time of harvesting season

of the crops and fruits, because in that time manpower is necessary for

them for cropping and it‘s give more earn then they working in

organisation and the same student those fathers has good amount of

agriculture land in their native places.

47

02) How do you rate your job?

Fig 2.3

The respondent those who rate their job as Very Good, Good, Satisfactory and

Unsatisfactory are follows:-

This question help to know how much please TYA contract trainee are in the

company and where they stand (Happy to join TYA). The majority respondents rates

their job as (Very Good) 46% which shows the quit good response from them for the

management point of view.36% of the respondents state Good, 17% of the

respondent are satisfy from their job and the main thing is only 1% of respondent is

Unsatisfied. That means the working condition is quiet better than ever.

48

03) How do you find your working conditions?

Fig 2.4

The view of respondents about the working conditions in the factory such as the time

of the shifts, lunch hours, the breaks are found over all good. It is found that the

majority of the workers find their working conditions are good since 30% of the

respondents were having very good opinion and the 41% of respondent claim that

the working condition is good. Nearly 28% of the respondents were satisfied with

their working conditions and 12% of the respondents were finding unsatisfactory

working atmosphere.

The rating of working condition is matched with previous question of job rating that

shows the workers feel that factory conditions are very good to work.

49

04) Do you feel there are growth/ opportunity in TATA YAZAKI?

Fig 2.5

According to the above chart the majority of the workers find the growth/opportunity

in TATA YAZAKI is No. the acceptance levels is 24.8% those who think that they has

future scope in the company. Where 13.6% of the respondents are don‘t know about

their carrier in the company. But the total majority is with No and don‘t Know is

61.6%.

As mention above 61.6% of respondent believe that they didn‘t seek any

growth/opportunity, in that case the attrition rate should be high in the company. For

reducing the attrition rate company should make proper induction stating company‘s

career policy so that student trainees can see their future growth in the company.

50

05) I normally take leave for...

Fig 2.6

In the given chart employee took leaves, the majority are with the family problem

68.8%,18% are for self-sickness,2.8% for social ceremony and 14% respondent has

other sort of reasons.

The Family problems are as follows:

Parents Sickness

Spouse/kids sickness

Cause of death

Family conflicts

Litigation from landlord

Above problems are mentioned by the respondent and these are the basic reasons.

14% of the respondent marked any other reasons as: banking transaction, missing of

the company pickup bus at morning, living at a far distant place.

51

06) Welfare facilities mentioned below are satisfactory?

Fig 2.7

The view of the respondent regarding the welfare facilities that mention above

pie chart are as follows:-

Overall the student-trainees view regarding the welfare facilities are, medical is

57.2% satisfactory, transport is 50% satisfactory, and canteen is 44.8% satisfactory.

Whereas recreation contrasts to this is nearly 19.6% which leads to unsatisfactory.

The satisfactory level of recreation is very low; it should be more in terms of facilities.

Canteen also shows the good figure 44.8% but as per the respondent they need

proper facilities and hygiene in the canteen.

52

07) Your direct supervisor/co-worker supports you to perform better at work?

Fig 2.8

Above mentioned pie chart shows that there is good relationship from both the side.

96.4% respondents reply yes for the support and have a good relation with their line

leader or supervisor that help them to work in a team and achieve zero defect. 3.6 %

of respondent replied No.

This statistical data indicates that most of the workers do not have any problem with

supervisor. It also indicates the good relationship principal in the factory.

The 3.6% of respondents who didn‘t get support from his/her supervisors is because;

supervisor/line leader cannot devote time to the student trainees due to their busy

schedule. For this duration of time management should engage student trainees in a

proper way that they didn‘t get crumble in line.

53

08) Do you have a secondary source of income?

Fig 2.9

As per the given data majority of the people has farming 36.8% of their second

source, where business has 14% and 14% has different kind of sources for income.

In the previously mentioned question ―what is your father occupation‖, the majority of

the respondent stated that 53.6% were above state graph, 36.8% respondent has

farming as source of income. 16.8% of the respondents don‘t have farming as their

source of income. So it might be that their father works in some other‘s agriculture

land. For these kinds of student and also 35.2% of the student those who don‘t have

any other source of income in that case management should take care of these

types of student trainees for their future endeavours.

54

09) Does Stress or Fatigue lead to lower your performance at workplace?

Fig 3.0

As per the mention data only 8.4% out of 100% face stress and fatigue during their

working hour, where as 37% of the respondent replied sometimes he/she feel stress

or fatigue, but 54% of respondent replied never.54% is good sign for the company

where employees can perform better.

Now the major task for management to reduce the 8.4% to 0% because this type of

student trainees can damage machines, lack of production and she/he can commit

suicide also. So management should introduce some more kind of

recreation/counselling techniques for the student trainees that make them

happy/stress-free.

55

10) Are you satisfied with your work?

Fig 3.1

As per the statistical analysis of Q3 & Q6 is very good. So in this question the

statistical also shows the positive responses like above mention Q3 & Q6.

In this given data the majority is goes with satisfied. The 71.2% of the respondent

are well satisfied with their job description, 22% are highly satisfied or in other word

they are happy with the work they are performing. Where the only 6.8% of the

respondents are unsatisfied with their work. So the management always must look to

reduce the percentage to zero because only satisfied employee can give good

performance in the organization.

56

11) Which shift does you like the most, why?

Fig 3.2

Shift timing is one of the major factor that effecting the absenteeism in an

organisation.

From the above diagram, 64.4% of the respondents are like to work in first shift

which is 06:00 am to 02:00 pm with their working hours, 13.6% like to join in general

shift (08:30 am to 05:00 pm), 23.2% of respondent are like to work in second shift

(02:00 pm to 10:00 pm) and only 2.4% of respondent are like to work in night shift

which is night 10:00 pm to morning 06:00 am.

In above mentioned figure only 2.4% of the student trainees like to work at night

shift. Those who are working at night management can provide them midnight snack

for refreshment.

57

12) What losses do you foresee when you remain absent?

a) To company: - Less Production

b) To yourself: - Less in payment

c) No Response

Fig 3.3

The respondents know very well what kinds of losses do they foresee, where the

majority of respondent 83.6% knows that they will get less payment and company

was suffer from production point of view.

Above mentioned graph shows 83.6% of the student trainees are working for the

money, where the scheme was launch as ‗Earn &Learn‘. They didn‘t mention that

they get less practical knowledge. So the management should make them aware

about the purpose of coming to the company.

The respondent those who didn‘t reply they might know what they are really losing in

their career.

58

Questionnaire 2ndAnalysis

01) How many student trainees working under you/your department?

Fig 3.4

There are 10% of therespondent state that they have more then 30 strudent under

them, 5% of the respondents has less then 15 student uder them and 20% of

respondent has 15-30 student in their line.

59

02) Rate the following activities conduct for new trainee students joined in

your department. (1=Poor, 2= satisfactory, 3= Good, 4= excellent)

Fig 3.5

1. Induction of student Trainees

2. Introduction to subordinates/Team Members

3. Initial on the Job training

4. Training Under supervision

5. Explanation about individual targets

6. Brief on safety & discipline

60

03) When do you assign him/her the job?

Fig 3.6

The majority of 7% respondent mention they assign trainees in production line in 1st&

2nd week,where 3% respondent placed them in 3rd week or after.

61

04) What is the average absent percentage of student trainees in your

department /Line?

Fig 3.7

In a line the majority of 5% of respondent are facing less than 5% of

absenteeism,8% of respondent facing 5%-15% of absenteeism,15%-20% and > 20%

facing 2%-2% each absenteeism in their line or department.

62

05) What do you think are the possible reasons for the absenteeism?

(Rate them as per the number) (1=Poor, 2= satisfactory, 3= Good, 4= excellent)

Fig 3.8

1. Health Issue: 29.4% of respondent said it is poor, 58.8% satisfactory, and

11.7% good. Due to self-sickness trainees took unauthorised leaves.

2. Working conditions: 11.6% of respondent said it poor, 35.2% satisfactory, and

41.1% good and 11.7% is excellent. That means it is not a cause of

absenteeism in a company.

3. Medical facilities in TYA: 23.5% of respondent said it poor, 29.4% satisfactory,

41.1% good and 5.8% excellent. So medical facility need to be improved.

4. Management & co-worker‘s support: 23.5% of respondent said it poor, 41.1%

satisfactory and 35.2% good. As respondent state 41.1% satisfactory and

35.2% good so it means student trainee gets support from their line leader but

sometime due to hectic schedule they didn‘t spare time with the student

trainees.

63

5. Motivation & Respect: 29.4% of the respondent said poor, 35.2% satisfactory

and 35.2% good. Due to motivation and respect function student trainees took

leaves and sometime trainees tells lie also.

6. Shift timings: 23.5% of respondent said it is poor, 35.2% satisfactory, 41.1%

good and 11.7% excellent. The respondent feels that it is not a cause of

absenteeism.

06) Your feedback regarding discipline of the student Trainees?

Fig 3.9

Above mentioned statistical data show 8% of the respondents feels that the

descipline of student trainees are good, 7% are satisfactory and 2% are poor.So

monthly wise extra training will help to be more deciplince in an company.

64

07) How often do you check their ID card/process licence etc.?

Fig 4.0

In this given data 9% of line leader check student ID card at daily basis,7% check in

weekly basis and 1% of them check in monthly basis.Those who are checking

trainees ID card in weekly or monthly bases they should check daily.

65

08) What is the student trainee attrition rate in your department/Line?

Fig 4.1

The attrition rate are as follows:

6%of respondent states they faced 10%-20% of attrition in their

Line/Department.where another 6% of the respondent faced 5% to 10% of attrition

in their Line/Department and 5% faced less than 5% of attrition in their

Line/Department.

66

09) Duration of training for student trainees should be extended from 1year/7

months to 2-3 years.

Fig 4.2

The huge number of majority 16% are agree that the training period is to be extented

for 2/3 years and 1% oppose thisbecause it will provide trained manpower for long

duration.

67

10) Are the Student Trainees clear about their job responsibility?

Fig 4.3

As per the respondent views 53% of the student are fairly clear about their job. 35%

of the respondent feels good and 12% of the student trainees are not clear about

their job and responsibility.

After the process of training from learning center,when student get placed in different

production line that time few of them get placed in such line where they don‘t know

the process so the lineleader/supervisor train about the process. In that time student

trainee get confused or do not get cleared views about their responsiblities.

68

11) What are the reasons for attrition? (Rate them as per the number)

(1=Poor, 2= satisfactory, 3= Good, 4= excellent)

Fig 4.4

1. Monetary factor : 41.1% of respondent said poor and 58.8% satisfactory. As

per the data student trainees need hike in payment.

2. Working Condition : 11.7% of respondent said poor,35.2% satisfactory, 47%

good and 29.4% execellent. As per the percentage mentioned over all

working condition is good.

3. Support from Supervisor : 17.6% of respondent said poor, 29.4% satisfactory,

47% good and 5.8% execellent.The majority of the respondent support the

student trainees.

4. Personal Problem: 35.2% of respondent state poor,41.1% satisfactory and

23.5% good.Respondent belive that due to personel problem trainees left the

organisation.

5. On time payment Issues: 47% of respondent state poor,35.2%

satisfactory,11.7% good and 5.8% execellent.Student trainees face maximum

proble of on time payment issue so this may cause attrition.

69

12) Give your feedback about the contract supervisors?

Fig 4.5

Do they visit your line/department daily? YES/NO

Do they obtain your signature on OT/ Attendance Card? YES/NO

Do they take prior approval in genuine case for leave etc.? YES/NO

Do they inform you in advance about left/break employee‘s detail? YES/NO

70

Finding and Observations

There are no restroom facilities for the employees in shop floor.

Canteen issue.

P1 staff canteen area stinks due to water recycling process.

Toilets of shop floor are unhygienic.

The relationship of the student trainees with the management is satisfactory.

On time payment issue.

10th and 12th pass out trainee face grasping problem.

Student Trainee gets confused due to different types of colour wires.

Spend more time in training e.g. :- During their training process they got

thought for the first level or section of production but during placing them in to

their respective line they get assign to work in second level or section in the

line. Then line leader or supervisor spends more time to train them according

to the line/job assign.

There are many cases of over time.

There is no proper documentation for outdoor duty.

Working condition is friendly and safe.

Good facilities provided to the trainee.

Salary is insufficient as per the rising living standard of the peoples.

Majority of the student trainee like to work in First and General Shift.

Lacking in recreation facilities in the factory.

Major reason for absenteeism is family problem and self-sickness.

There is no proper leave structure of the contract trainees.

There are no perquisite and fringe benefits facilities.

71

No proper intimation given to respective contractors about absent manpower.

There is no such future for the contract people in the company after

completion of training period.

There is a good upward and downward communication in the company.

More than 30% of workers are attach with other work like agriculture.

Contract trainees are well aware with the disciplinary action.

Implementation of Kaizen.

Tobacco is prohibited in TYA campus but it still in use in shop floors.

Lots of work pressure.

The relation between Line leaders/supervisors and student trainees are

respectable.

Limitations of the Study

The study was limited only to Tata Yazaki Autocomp Ltd unit only.

As sampling is taken as an element of the study there might always be

sampling errors.

The sample under consideration may not reflect the whole population.

Survey and study has been carried out in a span of only 2 months due to

time constraint.

Since absenteeism and attrition is a vast topic to be discussed, the study

may not reflect each and every aspects of the study like findings

absenteeism rate and attrition rate of an organisation.

Production Line is too busy to interact with the student trainees as well as

the line leaders and supervisors for research process.

Problem to report to the reporting Manager due to her tight schedule.

72

Effects of Absenteeism in TYA

The effect of absenteeism firstly reduces the income of the workmen on the principle

of ―No work No Pay‖. Consequently the loss is also to the employer both in discipline

and efficiency and thus the industry suffers due to loss of production and income.it

also effect the relation between the TYA customers if the material didn‘t meet the

target.

The absenteeism affects harmfully for the employee as well as the worker and give

rise to many industrial conflict and labour problem. It also affects the attitude of the

workers towards industry and industrial life.

Measurement of Absenteeism

For calculating the rate of absenteeism we require the number of people scheduled

to work and number of people actually present. Absenteeism can be finding out of

absence rate method.

For Example:

a) Average number of employees in work force: 100

b) Number of available workdays during period: 20

c) Total number of available workdays (a x b): 2,000

d) Total number of lost days due to absences during the period: 93

e) Absenteeism percent (d [divided by] c) x 100: 4.65%

73

Calculation of Absenteeism Rate

For calculating the rate of absenteeism, it requires the number of people scheduled

to work and number of people actually present.

ABSENCE RATE = No.OF MAN DAYS LOST X 100

No. OF MAN DAYS PLANNED TO WORK

Or

ABSENTISM RATE = No. OF TOTAL ABSENTS IN A YEAR X 100

TOTAL WORKING DAYS IN THAT YEAR

The Measurement of Attrition Rate

For calculating the attrition rate the formulas are as follows:

Attrition Rate = Attrition for the month X 100

Total Headcount

Or

Attrition %= (No. of Employees Quit) X 100

(Avg. Employees during that time frame)

Above mention formulas help to find out the attrition rate of the company.

74

The Bradford factor & Absenteeism

The Bradford Factor is a systems used to calculate a score for each employee's

absence is a year. The higher the score, the more disruption the employee‘s

absence is causing the company.

Bradford scores are a way of identifying individuals with serious absence and

patterns of absence worthy of further investigation. It helps highlight causes for

concern and often is one of the starting points in an attendance procedure.

Using the Bradford Factor helps to discourage excess absenteeism and allows

managers to compare employee attendance between different departments, as well

as across the company as a whole.

How is it works?

S x S x D = Bradford points score

S = the number of occasions of absence in the last 52 weeks

D = the total number of days‘ absence in the last 52 week

Examples

Employee A has 9 sick days in a year, 4 are single day absences and 5 are in a

block.

S = 1(1) + 1(1) + 1(1) + 1(1) + 1(5) = 5

D = 1 + 1 + 1 + 1 + 5 = 9

score = 5 x 5 x 9 = 225

Employee B has 15 sick days in a year, 3 blocks of five days.

S = 1(5) + 1(5) + 1(5) = 3

D = 5 + 5 + 5 = 15

score = 3 x 3 x 15 = 135

The examples show that B has more sick days than A, yet B's Bradford Score is

lower than A‘s. This is because multiple single day absences are considered more

disruptive to a company, than fewer longer periods of absence (Article base, 2010).

75

How to organize the Bradford Factor in TYA

There are no set rules for using the Bradford Factor; it is down to each organization

to determine the ways in which it uses the score. However, used effectively, the

Bradford Factor can reduce absenteeism dramatically, serving as a deterrent and a

method for tackling persistent absenteeism.

Studies have shown that by educating staff about the Bradford Factor, and then

showing them their score on a regular basis, absenteeism can be reduced by over

20%. This is largely down to staff understanding that taking the odd day off here and

there will quickly multiply their Bradford Factor score. The Bradford Factor places a

value on the absence which an employee can clearly see. Where the absence is not

absolutely necessary, this can serve to deter absenteeism. When this is used in

conjunction with a points system the Bradford Factor can be effectively utilized to

deter unnecessary absenteeism.

For example the Bradford Factor can be utilized by creating ―triggers‖

Whereby certain actions are taken when an employee‘s Bradford score reaches a

certain point. For example, the UK Prison Service has used the following triggers:

o 51 points – verbal warning.

o 201 points – written warning

o 401 points – Final warning

o 601 points – dismissal

Setting these triggers is entirely dependent on the organization using the Bradford

Factor. It is usually advisable to use the Bradford Factor as one of a number of

absence policies. However, setting these triggers and making staff aware of them, in

addition to taking action, resulted in the Prison Service reducing absenteeism by

18%. By implementing mandatory procedures for tackling absenteeism across an

organization led by the Bradford Factor, an organization can remove the potential for

differences across teams and management and remove the difficulties and

reluctance that line managers often face when having to discipline a close staff

member.

The Bradford Factor can provide organizations with a two pronged method for

tackling absence: proactively deterring absence in the first place and utilizing a set

procedure to identify and tackle persistent absenteeism.

76

Implementation of Bradford Factor

Calculating the Bradford Factor for one member of staff over a given period is not a

difficult proposition. However, calculating the Bradford Factor over a rolling 52 week

period, across multiple teams and locations and considering different types of

absence is a very difficult task.

As a result of the exponential nature of the formula (S x S x D), even the least

mistakes in calculation can result in a wide variance of an employee‘s Bradford

Factor score.

For example: For an employee who has had 10 days off in a year in total, on two

separate occasions:

2 X 2 X 10 = 40 (which does not trigger a warning – fewer than 50)

However, if their absence is either not recorded correctly, or is calculated wrong by

just one day:

3 X 3 X 10= 90 (which does trigger a warning – over 50)

You can see that their score is more than double, despite the small mistake. Getting

the formula the wrong way round can have even more significant results:

10 X 10 X 2 = 200 (which would trigger disciplinary proceedings – over 200)

If an organization wants to tackle absenteeism effectively, using the Bradford Factor,

including using an employee‘s Bradford Factor score in potential disciplinary

proceedings, then the process for calculating the Bradford Factor has to be full proof,

consistent and equal.

To achieve this, an organization will need to ensure:

Absence reporting and monitoring is consistent, equal and accurate

both over time and across the whole organization.

The calculation of an employee‘s Bradford Factor score is based on

these accurate, equal and updated absence records.

Management and staff have access to updated Bradford Factor scores.

Without these processes in place the calculation of the Bradford Factor is extremely

difficult and time consuming. In addition to this; unequal processes for reporting and

calculating the Bradford Factor could be discriminatory; every one‘s Bradford Factor

score should be subject to the same, indisputable criteria.

77

Recommendation

Absenteeism and attrition is a serious problem for management because it involves

heavy additional expenses. The management should take the following measures to

reduce the rate of absenteeism and attrition:-

Administrative:

Provide Incentives- An incentive provides an employee with a boost to their

motivation and avoid unnecessary absenteeism. Incentives like best

performer in line and perfect attendance bonus pay for every month of perfect

attendance can improve a lot.

Bradford factor can also be used to identify and cure excessive

absenteeism.

Job security believing that he/she will be able to grow, develop their skills on

the job and through training, and have the opportunity for advancement or

career progress leading to higher earnings.it will help when a student placed

in the company after their 3 years training periods.

Leave system should be there for the student trainees because they have

also some kind of personnel work to do.

Employee satisfaction survey should held in a quarterly to find out the main

cause or root for high rate of attrition/absenteeism/turnover in the company.

Recreation and welfare facilities need more focus.

Employee Assistance Program- If management confront an employee

about this or her frequent absenteeism and that will easy to find out the

problem.

Develop open communication between managers, supervisors and

employees.

Employees should be made aware of the disciplinary actions against the high

rate of absenteeism.

Birth day celebration should be there.

Tobacco should be prohibiting in the campus.

Improve salary structure for student trainee to stop attrition.

78

The Salary of the employee at that particular level may be less as compared

to that level in the market.

Exit interview of the student trainees should be there.

Need attention towards job designing.

Proper explanation of their job responsibilities.

Recruit more ITI personnel instead of 10th& 12th pass students.

Provide additional training to the trainees.

Infrastructure:

Canteen needs nourishment in hygiene factors and facilities.

Rest room should be provided.

79

Conclusion

The Human Resource Dept. at TATA YAZAKI AUTOCOMP LIMITED.is a perfect

example of integration of core HR and systems. Though TYA has come out from a

merger phase long back, all the systems are already in place. But as per the new

policy issue by the corporate office TATA AUTOCOMP SYSTEMS LIMITED (TACO),

the whole process is little challenging .Their systems and procedures are well

defined and work is made easy. But at times this proves as a disadvantage to the

company because, employees might not think much and go on with the processes

and systems as they are. They may not think rationally.

In the end to conclude this report I would like to specify that the project allotted to me

on ―Student Trainee Earn & Learn Scheme‖ which contain student Absenteeism and

Attrition. The project was of huge that help me to understanding the working

environment of an organization, thereby providing a primary source of experience.

In this project while identifying the reasons of absenteeism and attrition of the

workers of TYA, Pune I got an opportunity to interact with in shop floor and in

telephonic process to observe their behaviour and attitude toward the management

or company .

In the end I would like to thank the whole HR group, contract supervisors and the

student -trainees for coordinating with me for gathering information for my project

work at TATA YAZAKI AUTOCOMP LIMITED and helping me in accomplishing this

project and boosting my assurance by appreciating and recognizing my efforts.

80

Appendix

Questionnaire 1

Name:-……………………………………………………………………………………………………………..

Employee No:-……………………………………………………Contact No:-………………………………

Agency name: -………………………………………………......Date of Joining:-…………………………

Line & Plant :-……………………………………………Line Leader Name:-………………………………

___________________________________________________________________

01) What‘s your father occupation?

…………………………………………………………………………………………………

02) How do you rate your job?

Very Good Good

Satisfactory Unsatisfactory

03) How do you find your working conditions?

Very Good Good

Satisfactory Unsatisfactory

04) Do you feel there are growth/ opportunity in TATA YAZAKI?

Yes No Don‘t Know

05) I normally take leave for...

Social Ceremonies Self-Sickness

Family Problems Any other

06) Welfare facilities mentioned below are satisfactory?

Medical Recreation

Canteen Transport

07) Your direct supervisor/co-worker supports you to perform better at work?

a)…………………….......................................c)………………………………

b)………………………………………………...e)………………………………….

Yes No

81

08) Do you have a secondary source of income?

Business Farming Any other…………………

09) Does Stress or Fatigue lead to lower your performance at workplace?

Always Sometimes Never

10) Are you satisfied with your work?

Highly satisfied Satisfied Not Satisfied

11) Which shift does you like the most, why?

First General

Second Night

12) What losses do you foresee when you remain absent?

a) To company…………………………………………………………………………

b) To yourself………………………………………………………………………….

Any comment

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

82

Questionnaire 2

Personal Information

Employee No:-

Age Gender

Designation Department Line

_________________________________________________________

01) How many student trainees working under you/your department?

Zero <15

15 to 30 >30

02) Rate the following activities conduct for new trainee students joined in your department.

(1=Poor, 2= satisfactory, 3= Good, 4= excellent)

Induction of student Trainees

Introduction to subordinates/Team Members

Initial on the Job training

Training Under supervision

Explanation about individual targets

Brief on safety & discipline

03) When do you assign him/her the job?

1st week 2nd week After 3 weeks

04) What is the average absent percentage of student trainees in your department /Line?

<5% 5 to 15%

15 to 20% >20%

1 2 3 4

83

05) What do you think are the possible reasons for the absenteeism? (Rate them as per the

number) (1=Poor, 2= satisfactory, 3= Good, 4= excellent)

Health Issue

Working conditions

Medical facilities in TYA

Management & co-worker support

Motivation & Respect

Shift timings

06) Your feedback regarding discipline of the student Trainees?

Very Good Good

Satisfactory Poor

07) How often do you check their ID card/process licence etc.?

Daily Weekly

Monthly Never

08) What is the student trainee attrition rate in your department/Line?

<5% 5 to 10%

10 to 20% >20%

09) Duration of training for student trainees should be extended from 1year/7 months to 2-3

years.

Yes No Don‘t know

10) Are the Student Trainees clear about their job responsibility?

Not Clear Fairly Clear

Good Excellent/Perfect

1 2 3 4

84

11) What are the reasons for attrition? (Rate them as per the number)

(1=Poor, 2= satisfactory, 3= Good, 4= excellent)

Monetary factor

Working Condition

Support from Supervisor

Personal Problem

On time payment Issues

12) Give your feedback about the contract supervisors?

Do they visit your line/department daily? YES/NO

Do they obtain your signature on OT/ Attendance Card? YES/NO

Do they take prior approval in genuine case for leave etc.? YES/NO

Do they inform you in advance about left/break employee‘s detail? YES/NO

13) What measures have you taken to reduce absenteeism in your department/line?

……………………………………………………………………………………………………………

……………………………………………………………………………………………………………

……………………………………………………………………………………………………………

………………………………………………………………………………………………………….

14) Suggestion points for Management for retention of student trainees.

……………………………………………………………………………………………………………

……………………………………………………………………………………………………………

……………………………………………………………………………………………………………

……………………………………………………………………………………………………………

……………………………………………………………………………………………………………

……………………………………………………………………………………………………………

1 2 3 4

85

Fig 4.6

Sectors contribution by TATA Son’s

Fig 4.7

The Yazaki Group Responsibilities

Fig 4.8

86

Bibliography

Articlebase,2010 ―Bradford Factor‖ Retrieved on 18/07/2010 from

http://www.articlesbase.com/human-resources-articles/what-is-the-bradford-

factor--1159605.html

Benefits, 2010 ―Absenteeism‖ Retrieved on 22/06/2010 from

http://www.benefits.org/interface/cost/absent2.htm

Docstoc,2010 ―Attrition‖ Retrieved on 03/07/2010 from

http://www.docstoc.com/docs/23608519/Project-on-HR-PROCESSES-and-

ATTRITION-ANALYSIS

LabourBurreau,2010 ―Labour Bureau‖ Retrieved on 17/06/2010

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