Essay: Employee absenteeism

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Employee absenteeism is a major problem in our industries. It is habit of being absentee (it is the person who habitually tries to stay away from work place).Organisations often have to p a huge cost of absenteeism in terms of its effect on the production, planning, efficiency and functioning of the organisation.

High rate of absenteeism is neither desirable for employers nor employees. In majority of organization high rate of absenteeism has an adverse effect on both quality and quantity of production, efficiency of workers and organization, organizational discipline and most importantly in fulfilment of organisational objective.

Introduction

The most cited rationale for intervention in the workplace is to improve the quality of life and productivity of workers and to reduce economic losses through absence, sickness, disability and absenteeism: Today many employers associate poor health with reduced employee performance, safety and morale. The organisational costs of workers in poor health, and those with behavioural risk factors, include high medical disability, compensation expenses, elevated absenteeism and employee turnover, and decreased productivity at work (often referred to as absenteeism). In addition, one worker’s poor health may negatively affect the performance of others who work with him or her. The cause of absenteeism , its effect on productivity and cost in terms of finance and administrative effectiveness is quite clear ,but what is unclear is how to take affirmative action to control absenteeism.

Absenteeism has the potential to cause numerous impacts upon an organization; these

include lost productivity, poorer quality of product / service, decreased customer satisfaction,

and a negative effect on the performance/morale of other employees. Other operational

consequences of absenteeism include greater financial costs to the employer, as well as a

greater employee workload. Each of these impacts has the potential to cripple an

organization’s operational ability, and seriously undermine its efforts to stay competitive or

viable. Hence it is necessary to develop effective strategies to curb the absenteeism in Indian

organizations.

Cost associated with absenteeism

‘ Payroll cost for temporary staff

‘ Overtime may have to be scheduled to fill position left by absent staff

‘ Cost of training supervisor in cost of absenteeism

‘ Cost of time

‘ Low productivity

Reason to Choose The Topic

During internship, in my post graduation programme in JK Tyre Industry , with the discussion with the senior HR Manager i came to know about the problem which company was facing i.e ABSENTEEISM of EMPLOYEES from WORKPLACE. And i find it quite interesting to work on it to gain some practical knowledge and find out the CAUSE of absenteeism. After working on it i founded real significance.

Employees taking frequent off from work becoming problematic for organisation. This type of absence is sending wrong signals to colleagues who are willing to contribute in organisation to cover off staffs.

Absenteeism Types

Absenteeism are classified in to four types

(1) Authorized Absenteeism:

If an employee absent himself from work by taking permission form his superior and

applying for leave

(2) Unauthorized Absenteeism:

If an employee absent himself from work without informing or taking permission and without

applying for leave.

(3) Willful Absenteeism:

If an employee absents himself from duty wilfully

(4) Absenteeism caused by circumstances beyond One’s Control:

If an employee absent himself from duty owing to the circumstances beyond his control like

accidents or sickness

Effects of Absenteeism

Absenteeism cause harmful to both the employees and the workers for the following reasons

1. Normal work ‘ flow in the factory is disturbed

2. Overall production in the factory goes down.

3. Difficulty is faced in executing the orders in time.

4. Casual workers may have to be employed to meet production schedules. Such workers are not trained properly.

5. Overtime allowance bill increases considerably because of higher absenteeism.

6. when a number of workers absent themselves, there is extra pressure of work on their colleagues who are present.

7. Workers lose wages for the unauthorized absence from work.

8. Habitual absentees may be removed from services causing them great hardship.

Causes of absenteeism

‘ Nature of work

‘ Poor working conditions

‘ Absence of regular leave arrangements

‘ Accidents

‘ Poor control

‘ Irregular transport facilities

‘ Low pay

‘ Lack of interest

‘ Alcoholism and Gambling habits

‘ Low level of wages

‘ Miscellaneous causes

Absenteeism in Indian Industries

The reasons for absenteeism are many. The factors contributing to absenteeism from work includes individual and environmental factors.

These consists of sickness, accidents, occupational diseases, poor production planning (flow of work), bad working conditions and inadequate welfare conditions, lack of trained labours, insecurity in employment, collective bargaining process, rigid control system, lack of supervisory support, lack of interest, lack of cohesive and cordial culture and so on.

The individual reasons may vary from organization to organization depending upon the organizational climate, employee’s attitude and influence of external organizational factors (market forces, social activities that influence the industrial culture prevailing in geographical zone etc.).

Review of Literature

Many authors are of the opinion that the good health maxim – ‘Good Health is Good Business’ is one of the supreme beliefs of any organization..

According to Macdonald2 ‘ the two important employee well-being approaches include Employee Assistant Programs (EAP’s) – workplace programs in which employees receive short term counselling for issues such as substance abuse, or other personal or family problems; and workplace Health Promotion Programs (HPP’s) on the other hand traditionally offer educational, organisational or behavioural interventions that aim to support the development and maintenance of health related behaviours conducive to the wellbeing of the overall workforce. The premise behind these two approaches is that they improve health and this reduces absenteeism and costs.

.

Absenteeism rate = Number of Man days lost *100 Individual frequency = number of absent employees/average number of employees*100

Bhatia and Valecha (1981) studied the absenteeism rates of textile factory and recommended that closer attention should be paid to improve the Quality of Work Life.

Kavoussi et al. (1978) compared the unauthorized absenteeism rates in two large textile factories and recommended that closer attention be paid for improving the Quality of Work Life.

Raghvan (1978), the Ex-Chairman of BHEL, a public sector organization, stressed the need for worker’s participation in management.

Labor Bureau Simla, defined the term ‘absenteeism’ as ‘the failure of a worker to report for work when he is scheduled to work’

Despite the significance of their presence, employees sometimes fail to report at the work place during the scheduled time, which is known as absenteeism

Objectives:

The basic objectives of this paper are-

‘ To identify the rate of absenteeism of ‘worker’

‘ To identify the cause of absenteeism

‘ To suggest some measure to reduce rate of absenteeism.

Research Methodology

The nature of the study is descriptive
research and interview based also which involves the senior officer of J K Tyre company and few workers who were permitted by the HR manager to collect data from. .

This research is based on primary as well as secondary data. Primary data was collected through a questionnaire survey of a sample of 30 employees of organizations. The secondary data was collected from articles from google on absenteeism , website of the J K Tyre company , study by different researchers (mentioned in references) The questionnaire consisted of a few responses recorded on a five-point scale with the following options: Strongly Agree, Agree, Neither Agree nor Disagree, Disagree and Strongly Disagree. The others were recorded as multiple check-type answers, and included open-ended questions as well.

JK Organisation Profile

JK Organisation, the Rs 21,000-crore conglomerate with a workforce of over 40,000, has business interests across the globe, spanning over 90 countries.

The JK Organisation traces its origin in the 18th century, when it came into being under the leadership of Lala Kamlapatji and his father Lala Juggilalji, therefore the name ‘J.K.’.

While the flagship businesses are Tyre & Industries, Cement and Paper, the group umbrella also includes Fenner India, JK Seeds, Umang Dairies and JK Agri Genetics.

The group also has a significant presence in the clinical research and insurance solutions through its companies: CliniRx Tangent Research and JK Risk Managers & Insurance Brokers Ltd.

The Group on an expansion spree with the three flagship businesses

The Tyre business has recently announced an investment of INR 1,430 crore to expand capacity for the production of trucks, buses and car radial tyres at its plant near Chennai over the next 15 months.

The other flagship business JK Lakshmi Cement also announced its expansion plan with a cost structure of Rs 1,550 crore, involving setting up of a 2.7 million-tonnes-a-year (mtpa) Greenfield project at Durg, Chhattisgarh along with captive limestone mine and two grinding units.

Continuing the growth momentum is JK Paper business that has commissioned its Rs 1,750-crore expansion at Rayagada, Orissa, adding nearly 60 per cent to its paper production capacity.

, JK Organizations’ business footprint spans six continents and 100 countries.

The 125+-year-old group derives its ethics and values from decades of abiding engagement in national service and nation building.

The business rose to prominence in Kanpur, India, under Lala Kamlapat Singhania, a nationalist, who heeded Mahatma Gandhi’s call for satyagraha against British colonial rule and burnt his own stock of English cloth.

He also established the Uttar Pradesh Chamber of Commerce.

JK Tyre Profile

JK Organization owes its name to late Lala Juggilal Singhania and his illustrious son late Lala Kamlapat Singhania, a dynamic personality with a broad vision.

1st Plant at Kankroli ‘ 1976

‘ Pioneered Radial Tyre revolution in India

‘ Initial capacity ‘ 55 MT/ Day, Present Capacity 207 MT/Day

‘ 5 Plants in India – Capacity 715 MT/Day

‘ KTP ‘ Kankroli Tyre Plant

‘ BTP ‘ Banmore Tyre Plant

‘ VTP ‘ Vikrant Tyre Plant ‘ Bias

‘ VTP ‘ Vikrant Tyre Plant ‘ Radial

‘ VTP ‘ Vikrant Tyre Plant ‘ OTR

‘ 3 Plants in Mexico – Capacity 290 MT/Day

‘ Wide distribution Network ‘ 110 (Depots & C&F)

‘ Trade Representatives all over the World

‘ 7500 Plus Employees,

(Incl. 2282 at KTP)

‘ Export to 75 Countries & Six Continents

Vision – TO BE AMONGST THE MOST ADMIRED COMPANIES IN INDIA COMMITTED TO EXCELLENCE.

Mission – Be a Customer Obsessed Company-Customer first 24×7

‘ No.1 Tyre Brand In India

‘ Most profitable Tyre company in India

‘ Motivated and committed team for excellence in performance

‘ Be a green company

‘ Deliver enhanced value to all stakeholders

‘ Enhance global presence through Acquisition / JV / Strategic Partnerships

Core Values

Excellence comes not from mere words or procedures. It comes from an urge to strive and deliver the best. A mindset that says, when it is good enough, improve it. It is a way of thinking that comes only from a power within.

‘ Caring for people

‘ Integrity including intellectual honesty, openness, fairness and trust

‘ Commitment to excellence

JK Tyre & Industries Ltd is an Automotive Tyre, Tubes and flaps manufacturing company based in Delhi, India. The name JK is derived from the initials of Kamlapatji and his father Seth Juggilal.

Stock price: JKTYRE (NSE) ‘ 132.40 -0.90 (-0.68%)

5 Apr, 3:30 PM IST – Disclaimer

Headquarters: India

Chairperson: Raghupati Singhania (Md)

Revenue: 60.15 billion INR (2012’2013, US$890 million)

Founded: 1874

Market Shares of J.K. Tyre Industries Pvt. Ltd.

Absentee Trend of 4 Years

Findings and Discussion

1. Availability of Physical Well- Being Facilities in the Organisation

As noted earlier, physical facilities are very important for employee well-being. The sample was provided with six basic options to check the availability of physical well-being facilities in various organisations. The options are gymnasium; nutritionist, nutritious food, outdoor activities, other fitness initiatives and no facilities. People allowed to choose more than one option. Figure 1 shows that 27% of the sample said that there is a gymnasium in their organisation, 8% said that there is a nutritionist; 20% said that there is nutritious food, 27% said that their organisation takes other fitness initiatives like organising fitness runs, and walks. About 43% said that their organisation does not provide any physical well-being facilities. From Figure 1, it is clear that although 57% (100-43) of the sample said that their organisation provides one or more physical facilities, a large number (43%) said that there was complete absence of physical well-being facilities in their organisation. This shows that provision of physical well-being facilities by various organisations is average and not very satisfactory.

2. Availability of Mental Well-Being Facilities in the Organisation

Mental well-being facilities are equally important for the employee to work effectively and efficiently and achieve the goals of the organisation. The sample was provided with six basic options to check the availability of mental well-being facilities in various organisations. The options are motivational talks, counselling, entertainment events, meditations, other facilities and no facilities. People were allowed to choose more than one option. Figure 2 shows that 45% of the people surveyed said that their organisation arranges for motivational talks, 33% said that their organisation provides counselling facility, 33% said that their organisation arranges for entertainment events, 12% said that their organisation provides meditation facility, 20% said that their organisation provides other kinds of mental well-being facilities and 29% said that their organisation does not provide any facility. From Figure 2, it is clear that about 71% of the people said that their organisation provides one or more mental well-being facilities. Therefore, as compared to physical-being facilities, the provision of mental well-being facilities by various organisations is satisfactory.

3. Encouragement of employee initiatives and suggestions

Encouragement of employee initiatives and suggestions can be regarded as a subset of mental well-being facilities because it will lead to job satisfaction and belongingness in the organisation.

Figure 3 shows that 23% of the people surveyed strongly agree that their organisation encourages employee initiatives and suggestions, 49% agree, 18% neither
agree nor disagree, 6% disagree and 4% strongly disagree. The response of about 72% people surveyed is positive which means that many organisations are encouraging employee initiatives and suggestions and are indirectly contributing to the mental well-being of the employees.

4. High Involvement Management

As noted earlier, an organisation which follows the high involvement management model provides greater autonomy, discretion and control over work to the employees. This will increase their job satisfaction. Thus, high involvement management can be considered as a mental well-being facility.

Figure 4 shows that 25% of the people surveyed strongly agree that their organisation provides greater autonomy, control and discretion over their work, 57% agree, 10% neither agree nor disagree, 8% disagree and none of them strongly disagree. The response of about 82% of the people is positive is positive which means that many organisations are following the high involvement management model and are indirectly contributing to the mental well-being of the employees.

5. Frequency of work leaves permitted by the organisation for going on a vacation.

Vacations relieve the stress of employees and will increase their productivity. An organisation should permit vacation leaves sometimes. Figure 5 shows that 2% of the people surveyed said that their organisation permits vacation leaves very often, 31% said often, 45% said sometimes, 12% said rare and 10% said very rare. The response is positive as a majority of them said their organisation permits vacation leaves sometimes. The percentage of people who said that vacation leaves are permitted very often and often are also greater in number as compared to those who said vacation leaves are permitted rarely or very rarely. Thus, it is clear that many organisations are taking care of mental-well-being of employees by permitting vacation leaves.

6. Effective grievance redressal

Effective grievance redressal by the organisation will lead to employee satisfaction. Thus, it can be considered as a part of mental well-being facilities. Figure 7 shows that 8% of the people surveyed strongly agree that their organisation redress their grievances effectively, 41% agree, 29%neither agree nor disagree, 16% disagree and 6% strongly disagree. Thus, about 49% of the people surveyed gave a positive response. It can be said that the situation is good but there is scope for improvement in this area.

7. Safety precautions

Along with providing physical and mental well-being facilities, an employer should also take care of the safety of the employees to ensure overall well-being of employees. The sample was provided with six basic options to check if the organisations are taking any safety precautions. The options are display of safety instructions, emergency exits, safety equipment, first aid, others and no facilities. People were allowed to choose more than one option. Figure 7 shows that 69% of the people surveyed said that their organisation displays safety instructions to be followed in cases of emergence, 71% said that there are emergency exits, 55% said that there is safety equipment, 77% said that there is first aid facility, 12% said that there are other safety precautions taken by the organisation and 4% said that there are no facilities. Thus, it is clear that a large number of organisations are taking proper safety precautions for the well-being of their employees.

Limitations and Future Scope

The difficulties faced while writing this paper are as follows-

‘ Limited Research Unlike other Human Resource areas, there is limited research available on employee absenteeism . So, almost the entire paper is based on primary and secondary research.

‘ Time Consuming The questionnaire survey was time consuming. People took a long time to respond to the questionnaire.

‘ Interview The interview was also time consuming as 3 to 4 visit to the company was required.

‘ There are some more limitations for research which are as follows:-

a) As it was not possible to visit each department the true picture of working condition could not be judged.

b) The workers were busy with their work therefore they could not give enough time for the interview.

c) The personal biases of the respondents might have entered into their response.

d) Some of the respondents give no answer to the questions which may affect the analysis.

e) Respondents were reluctant to disclose complete and correct information

Because of a small period of time only small sample had to be considered which doesn’t actually reflect and accurate and intact picture.

The future scope of this paper would be to conduct a similar research on a larger scale which was not possible here. Also, a detailed research on physical and mental well-being facilities and assessment of their implementation and utilization can be conducted. Further, this research pertains only to well-being facilities provided to white collar employees. Hence, a similar research can be conducted on the well-being facilities available for blue collar employees

Conclusion

At the end it is conclude that, employee well-being is very important. A mix of physical and mental well being of employees will help the HR department to achieve the objective of organisation more effectively and efficiently and will reduce the frequent absenteesim of worker.

Absenteeism is more due to:

‘ Habit and attitude of workmen.

‘ Health related issue

‘ Family issues of workmen.

‘ Sickness in family.

Others source of income of workmen

Absence from work place is becoming habitual on the part of employees in the organization.so it is very important for organizations to overcome the frequent absence for effecient and effective workflow.

Recommendations

‘ Strike a balance between physical and mental well-being facilities

Productivity increases only if employees are fit, both physically and mentally. Provision of one type of facility does not help in achieving the goal of effectiveness and efficiency. Therefore, employers should provide both these facilities and there should be a proper balance between them. Example- Tata Consultancy Services, WIPRO.

‘ Cost efficient facilities

Many small organizations cannot afford to provide expensive well-being facilities like gymnasiums or arranging entertainment events. These organizations should opt for cost-efficient facilities.

Example- They can substitute entertainment events with meditation and fitness runs can be substituted for gymnasiums.

‘ Equality in the organisation

All the employees in the organisation should be treated equally without discrimination. Equal opportunities for personal growth and promotions should be provided to all the employees. This will lead to job satisfaction which is an important factor of mental well-being and reduce absenteeism .

Health department

Apart from HR department, organizations should have a health department which should include nutritionists, counsellor’s, physicians and ENT doctors. The Health department should also maintain a proper health record of all the employees. This will help to cure the basic health problems of the employees inside the organization itself.

Example- Tata Consultancy Services.

‘ Support employees in tough/unexpected situations-

The changes in external environment may severely affect the employees. In such situations, the organisation should support the employees

Suggestions

‘ To attend absenteeism problem in the organization following points are suggested:

‘ Industries should organize more awareness programmes .

‘ There should be freque
nt home visit and counseling of workmen

‘ Reward good attendance

‘ Set clear attendance expectation

‘ Provide employee support

References

1. Kristen Castillo, (2016) Why More Employers Are Investing in Well-Being in 2016, http://www.futureofbusinessandtech.com/workplace-wellness/why-more-employers-are-investing-in-well-being-in-2016 (accessed on 5th Feb 2017)

2. Fenton, S-J., Pinilla Roncancio, M., Sing, M., Sadhra, S. & Carmichael, F., (2014) Workplace wellbeing programmes and their impact on employees and their employing organisations: A scoping review of the evidence base.

3. Leonard L. Berry Ann M. Mirabito William B. Baun, (2010) What’s the Hard Return on Employee Wellness Programs?, https://hbr.org/2010/12/whats-the-hard-return-on-employee-wellness-programs (accessed on 5th Feb 2017)

4. Employee Absenteeism: A Guide to Managing Absence, (2011) http://www.nutritionandhealth.ie/Sectors/NHF/WWC.nsf/vPages/About_the_campaign~the-need-for-workplace-wellbeing!OpenDocument (accessed on 5Th Feb 2017)

5. Arogya World, (2015) Arogya World Recognizes 20 Companies in India as 2015 Healthy Workplaces, http://arogyaworld.org/arogya-world-recognizes-20-companies-in-india-as-2015-healthy-workplaces/ (accessed on 5th Feb 2017)

6. KT Srinivas, (2013), A Study on Employees Welfare Facilities Adopted at Bosch Limited, Bangalore ,Volume 2(12)

7. Logashakti K. , A Study on employee Health , Safety and Welfare measures of Chemical Industry in view of SalemRegion, Volume 1, Issue 1

8. Bockerman Petri, High involvement management and employee well being

9. Lalitha k.(2014) A Study on employee welfare measures with reference to IT Industry , Volume 2, Issue 7

10. Jain Arjita, Study of employee welfare & Benefit Practices at Indian Oil Corporation Limited, Volume 2, Issue 2

11. S Ravi (2016), Management A Study on Employee Welfare Measures with Reference to Small Scale Industries at Hosur, Tamilnadu,

12. http://www.indianmba.com/Faculty_Column/FC239/fc239.html about absenteeism in Indian industries. (accessed on March 28, 2017)

13. http://wandersite.com/2017/03/15/absenteeism-among-workers-worker/ Labor Bureau Simla definition and Types of Absenteeism, Causes of Absenteeism (accessed on March 28, 2017)

14. https://www.researchgate.net/publication/22388205_The_effects_of_unsatisfactory_working_conditions_on_the_epidemiology_of_unauthorized_absenteeism_in_an_old_textile_factory_in_Isafan_Iran Researchers conclusions (accessed on March 28, 2017)

15 .http://www.theijes.com/papers/v1-i1/M011080084.pdf A Study on Titan Industry Lmt.Banglore volume 1 ISSN:2319-1813 ISBN 2319 – 1805

Questionnaire

Research on Employee Absenteeism

‘Employees are the greatest assets of an organisation’. Employee well- being should be given utmost importance if an an organisation wants to achieve the desired goals.

I the students of Amity Business School, Jaipur is conducting a small survey on employee well-being as a part of our internal assessment. In our survey, we will be focusing on whether organisation is taking measures for employee well-being. We kindly request you to fill the following questionnaire as a part of this survey. The information provided by you will be kept confidential and will be used only for academic purpose.

Part 1- Personal Details

Name

Age *

o 18-25

o 25-40

o 40-55

o 55 and above

Gender *

o Male

o Female

o Others

Educational Qualification *

o UG

o Graduate

o PG and above

o Professional Qualification

Nature of Job *

o Government Employee

o Private

o Entreprenuer

o Any other

Number of earning members in the family *

o One

o Two

o Three

o More than three

Email:

Part 2- Subject-Oriented Questions

My organisation/management provides me greater autonomy, discretion and control over my work. *

o Strongly Agree

o Agree

o Neither Agree nor Disagree

o Disagree

o Strongly Disagree

My organisation provides me with the following physical well-being facilities. (Tick whichever is applicable, you may tick more than one) *

o Gymnasium/Aerobics

o Nutrionist

o Nutritious Food

o Outdoor Activities (Lawn Tennis, Badminton, Swimming Pool, Golf, etc.)

o Other Fitness Initiatives

o No facilities at all

My organisation provides me with the following mental well-being facilities. (Tick whichever is applicable, you may tick more than one) *

o Motivational Talks

o Counselling (Personal and job related)

o Entertainment events

o Meditation

o Other

o No facilities at all

My organisation encourages employee initiatives and suggestions. *

o Strongly Agree

o Agree

o Neither Agree nor Disagree

o Disagree

o Strongly Disagree

My organisation takes the following precautions for my safety when I am on the job. (Tick whichever is applicable, you may tick more than one) *

o Display of safety instructions

o Emergency exits

o Safety equipment

o First Aid

o Others

o No facilities at all

The frequency of my work leaves (permitted by the organisation) for going on a vacation is- *

o Very Often

o Often

o Sometimes

o Rare

o Very Rare

My HR department redresses grievances effectively. *

o Strongly Agree

o Agree

o Neither Agree nor Disagree

o Disagree

o Strongly Disagree

Part 3- Open Ended Questions

If there are other fitness initiatives in your organisation, please specify.

If your organisation provides other mental well-being facilities (other than those mentioned above), please specify.

If your organisations takes other precautions for your safety (other than those mentioned above), please specify.

Provide some suggestions to HR managers to improve employee well-being.

.

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