2nd sem sip project

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DECLARATION I, Miss. LAXMI.M.DESAI student of MBA II semester, KLE’s Institute of Management Studies and Research, Hubli thank my institution for giving me an opportunity to undergo my project work. I had been for my project work at Karanataka Conveyors and System Pvt Ltd, Hubli. I hereby affirm that this project report on “ A STUDY OF EMPLOYEE’S ABSENTEEISM” has been undertaken by me during the said period as a part of my academic curriculum. I further declare that this project report is the result of my own efforts and has not been submitted earlier to any other college for any other degree. PLACE: HUBLI DATE:

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Page 1: 2nd Sem SIP Project

DECLARATION

I, Miss. LAXMI.M.DESAI student of MBA II semester, KLE’s Institute of Management Studies and Research, Hubli thank my institution for giving me an opportunity to undergo my project work.

I had been for my project work at Karanataka Conveyors and System Pvt Ltd, Hubli.

I hereby affirm that this project report on “A STUDY OF EMPLOYEE’S ABSENTEEISM” has been undertaken by me during the said period as a part of my academic curriculum.

I further declare that this project report is the result of my own efforts and has not been submitted earlier to any other college for any other degree.

PLACE: HUBLI

DATE:

By,

Miss. LAXMI .M. DESAI

( )

Page 2: 2nd Sem SIP Project

ACKNOWLEDGEMENT

The satisfaction and euphoria accompanies the successful completion of any task would be

incomplete without the mention of the people who made it possible, whose constant guidelines,

support and encouragement crown the success.

I sincerely extend my thanks to Mr. MOHAN.G.NAIK, Accounts Manager, Karnataka

Conveyors & System Pvt. Ltd. Hubli who mixed delicate mix of freedom, guidance and

monitoring to make this project a great success.

I thank our and all professors who showed keen interest in giving their valuable guidance

and constant encouragement during the project work.

I take this opportunity to express my profound gratitude to our Prof. SHWETHA .,

K.L.E’s Institute of Management Studies and Research, who as always been a constant source of

inspiration to me with his innovative ideas and guide me through out my project work.

I sincerely thank all the respondents and outlet owners who have spared their valuable

time and have provided all the information required by me.

Last but not the least I am very grateful to my non-teaching staff, parents and friends for

their co-operation and invariable support.

Page 3: 2nd Sem SIP Project

INDUSTRY PROFILE

The conveyors industry actually started in 1990 in the Minneapolis-St Paul area by a

group of men unloading wood shingles from rail cars.

Conveyors primarily perform the movement of uniform loads between fixed point.they

may be fixed or printable conveyors, straight or circular ones. The materials are fed to the

conveyors from others sources at the point of start. The conveyors with or without change in the

direction of the movement of materials. They also perform additional service like regulation of

the pace of production adjacent operation, positioning of material during handling and

temporary storing of materials between the ejection point. They are driven with the help of

power or without power through gravity.

Material handlings equipments are capital investment driven. They are not directly used

for production of the goods or commodities. They mainly help in the movement and storage of

goods. In other words help in easy movement and facilitation of goods. In other words help in

easy movement and facilitation of goods. They indirectly help in shoring up bottom lines by

ensuring less breakage and less damage to goods and other equipments and machinery. The type

of material handling equipments vary according to process application and need based

requirements for the purpose of convenience, the overall sector has been broadly categorized in

to fixed and non-fixed type. Fixed equipments could be stationary equipments that is capable of

moving and goods from one point to another.

The capacity of these equipments could typically range from 1 tone to several hundred

tons. The fixed type of material handling equipments would broadly include cranes and

conveyors. It is the type of manufacturing process which actually determines the category of

conveying that are chosen by the said industrial conglomerate or company. These conveying

system actually help in carrying the necessary material or inputs to the specific assembly activity

or process and the also help in moving the output to the warehouse for distribution.

Page 4: 2nd Sem SIP Project

Another major classification of material handling equipments includes the non-fixed

type as forklift trucks, moving cranes and palette trucks ( both fixed & mechanical). As the name

suggest, these equipments facilitate the movement of bulk materials from point to point. These

equipments find application in a cross-section of industries. Moving cranes are used in moving

bulk equipments in infrastructure projects such as flyovers, interstate high waves, ports etc. The

swiveling feature of cranes help in displacement of material at various project sites and also

transfer of goods from one point to another. These cranes operate on hydraulic principles and are

primarily used for raising and transferring heavy loads in workshop, container yards, warehouse

and ports. Forklift trucks are primarily used in inventories and storage. These trucks can handle

weight from 1.5 tons to 16 tons.

The indigenous material ailing sector is restricted to a very few players because of the

high capital cost. Currently dominant players in the fixed segment are Godrej, Voltas etc. as in

most of these allied industries, there are a few small players spread across the country who

manufacture a fair Varity of low technology uses therefore lower price realization. These small

players tend to meet the second hand requirements of containers yards and other part activities.

Godrej has been the pioneering manufacturer of forklift trucks. The diesel forklift trucks have a

capacity ranging from 1.5 to 16 tons where as the battery operated electric forklift trucks have a

capacity ranging from 1 to 2 tons.

Elecon engineering company Ltd has been one of the pioneering producers in bulk

material handling equipments. Their wide products and equipments portfolio caters to core

sectors such as cement, coal, power generation, fertilizers, chemical, steel plants and ports.

Increasing modernization of ports due increased tonnage material handling equipments

are finding more application. This calls for state of the art material perceptible shift in the mind

sets before most of the user industries realizes the value major factor in the purchase making

decision. Ironically even today there is no research oriented manufacturing in this sector. Most of

the players import transmission equipments and others system. Very few industries have their

own full-fledged R & D center.

Page 5: 2nd Sem SIP Project

INTRODUTION TO THE COMPANY

Karnataka conveyors & system private limited was born at an opportune time when the

economy in the country opened up with liberal salon.

Conveyors primarily perform the movement of uniform loads between fixed points. They

may be fixed as portable conveyors, straight or circulars ones. The materials are fed to the

conveyors from some other source at the point of start. The conveyors to the point of destination

carry them. They are dropped or fed to another conveyor with or without change in the dilation

of the movement of materials. They also perform additional service like regulation of the pace of

production, adjacent operation, positioning of materials curling handling & temporary storing of

materials between the injection & ejection point they are driven with the help of power or

without the power through gravity.

Material handling equipment are capital investment driven they are not directly used for

perdition of the goods or commodities mainly help in the movement & storage of goods. In other

words, they help in easy movement & facilitation of goods. They indirectly help in storing up

bottom lives by ensuring less breakage & less damage to goods & other equipment and

machinery. The types of equipment vary according to places application & need based

requirements. For the purpose of convenience, the over all suitor has been broadly categorized

into fixed & non-fixed types. Fixed equipment could be stationary equipment that is capable of

moving material & goods from one point to another.

The capacity of this equipment could typically range from one ton to several hundred tons.

The fixed type of material handling equipment would broadly include cranes & conveyors. It is

the type of manufacturing process which actually determines the category of conveying systems

that are chosen by the said industrial conglomerate or company. These conveying system

actually help in carrying the necessary materials or input to the specific materials activity or

process & then also help in moving the input to the silos or ware houses for distribution.

Page 6: 2nd Sem SIP Project

Another major classification of material handling equipment enclosed the non-fixed type

such as forklift tracks, moving cranes, palette tracks clot fixed and mechanical as the name

suggests, these equipment familial the movement of bank materials from the point to point.

These equipment find application in cross section of industries moving cranes are used in

moving bulk equipment in infrastructure project such as flyovers, interstate light waves, ports

etc. The swiveling facture of cranes help in displacement of materials at various project sites and

also in the transfer of goods from one point to another. These cranes operate or hydraulic

principals & are primarily used for raising & transferring heavy loads in workshops, container

yards warehouse & ports forklift tracks are primarily used in inventories & storage primarily

used in inventories & storage. Those tracks can handle weight from.

The indigenous material handling sector is restricted to a very players because of the light

capital costs currently dominant players in the non-fixed segment are Godrej, Voltas, Larsen &

Turbo etc. As in most of these allied industries, there are a few small players spread across the

country who manufacture a few varieties of low technology uses & therefore lows price

realizations. These small players fend to meet the second hand & requirement of contains yards

& other part activities.

Godrej has been the pioneering manufacture of forklift trucks in India & today continues

to produce a Lange of forklift, both diesel & electric forklift trucks have a capacity ranging from

1.5 to 16 tons where as the battery operated electric forklift trucks have a capacity ranging from

1 to 2 tons elector engineering company Ltd has also been one of the pioneering producers in

bulk material handling equipments their wide product & equipment portfolio caters to core

sectors such as cement, coal, power generation fertilizers chemical, steel plants & ports.

Page 7: 2nd Sem SIP Project

COMPANY PROFILE

Name of the Organization : KARANATAKA CONVEYORS & SYSTEM Pvt. Ltd.,

Promoter : Mr. Mahadev. V . Karmari.

Type of Organization : Pvt. Ltd.,

Type of Industry : Small scale Industry.

Year of Establishment : 1990.

No: of Directors : Two.

Location : N-26 Industrial Estate, Gokul Road, HUBLI.

Page 8: 2nd Sem SIP Project

ACHIEVEMENTS OF KCSPL

In the year 1994 the company was honored as the “BEST INDUSTRY” in the district by

the state govt. of karanataka for its outstanding performance.

In the year 1997 if was bestowed with prestigious “National award as the outstanding

Entrepreneur”

Employees of KCSPL

Total number of staff 25

Total number of workers 85

Total number of Employees at KCSPL 110

They have an experienced workforce, highly qualified Engineering staff, sophisticated

infrastructure, Modern CAD facilities. With Eves growing corporate client has. This sales force

is spread throughout the country through a nationwide network of dedicated marketing

personnel. Their goal is not merely to meet the targets but to ensure that the customers obis met.

The factory & office covers about 30,000 sq ft of manufacturing area with the following

Departments.

1. Marketing Department.

2. Engineering Department.

3. Designing Department.

4. Planning Department.

5. Purchase Department.

6. Stores Department.

7. Product Department.

8. Quality Control Department.

9. Personnel Department.

10. Finance & Accounts Department.

Page 9: 2nd Sem SIP Project

PRODUCTS MANUFACTURED IN KCSPL

1. Roller conveyors.

2. Belt conveyors.

3. Chain conveyors.

4. Salt conveyors.

5. Automation Industries conveyors.

Semi & fully automatic lines/testing lines.

Trim final vehicles.

Under body assembly cine with overhead bus bar, self propelled trolley,

pantographs etc.,

Pain shop conveyors.

Body shop conveyors.

Cross transfers conveyors.

Storage conveyors.

Elevators etc.,

CONVEYORS MANUFACTURED FOR EXPORT TO:

1. Toweyors for TRUN lines.

2. Slat conveyors for final assembly lines.

3. Twin chain conveyors for body storage.

4. Rollers tables free powered for paint shop 1 body- welding lines.

5. Transfer trolleys for paint shop/body welding lines.

6. Lift tables.

7. Skids for paint/ body welding lines.

8. Power & free single chain with one side roles for skid handling for paint shop.

9. Pendulum conveyors parts for paint shop.

10. Overhead under body line parts.

Page 10: 2nd Sem SIP Project

COMPANY OBJECTIVES:

The main objective of the company is to achieve an edge over the competitors to deliver

quality & value to customers especially in the field of automatic & semi automatic devices.

Manufacturing of low cost automation products, components landing devices petitioners &

conveyors for handling & assembling equipments at the same time to make sure that these

custom built products are user-friendly & cost effective.

Sub objectives are as follows:

1. To become key players in economy to faster trade, creating employment, opportunity,

increasing industrial production & accelerating the process of sustainable development.

2. To contribute to the area development & give recognition to North Karnataka &

Dharwad district in particular.

3. To modernize the organizational culture through the introduction of new ideas.

4. To use modern technology in maintaining quality & is increasing productivity.

5. To provide product & service as required by the market & customers.

6. To provide quality products as per the order placed by the customer and installation of

the products within stipulated time.

7. To have better understanding between management & workers.

Page 11: 2nd Sem SIP Project

ORGANISATIONAL STRUCTURE

Director

Operation Manager

Finance Manager

Design

Engineering

Production

Marketing

Planning

Material/Store

s

Central

Excise

Machine Shop

Assembly/

Fabrication

Vendor/

Quality

Operator 1

Operator 2

Operator 3

Workmen 20

Workmen 44

Workmen 2

Workmen 3

Page 12: 2nd Sem SIP Project

MARKETING DEPARTMENT

Page 13: 2nd Sem SIP Project

HIERARCHY OF MARKETING DEPARTMENT

Marketing process:

In Karnataka Conveyors & System Pvt Ltd. The marketing process begins when the

marketing representatives or the agents are sent to the customers to gather information about the

requirements of the customers.

Then the design is repaired according to the requirements of the customers & quotation or

estimation contain detailed information about the product, price, technical specification

Director

Operating Manager

Marketing Manager

Agents

Page 14: 2nd Sem SIP Project

transportation cost, tax & excise duty payable, payment terms & delivery date & other terms &

conditions.

Quotation is issued to the customer & if the customer is satisfied with the quotation then

the customer will place the order. After receiving the order the production work begins.

During the production if any charges are to be made, then the approval of the customer

will be taken to do so. Karnataka Conveyors & System Pvt Ltd, does not produce a standard

product. Te product differ from order to order. So it does not have a standard pricing policy.

KCSPL produces unique products which are more important foe the automobile industry.

KCSPL have some competitors and so the prices are formulated by looking competitor’s price,

product, quality and demand in the market & other factors.

A product is priced in following way at KCSPL

Fixed cost xxxx

Variable cost xxxx

Profit margin xxxx

Tax & duties xxxx

Total price xxxx

Page 15: 2nd Sem SIP Project

DISTRIBUTION CHANNEL:

The Distribution channel followed in KCSPL as follows:

The firm has selected a proper reasonable distant for its product because the nature of

distant channels. Trade discounts & distribution expenses etc, will influence the pricing policy of

the firm.

Customers

Marketing-Agent

Organization

Page 16: 2nd Sem SIP Project

KCSPL follows zero level or one level channel which is it market its products directly to the

final users & also with the help of agents

KCSPL agents are spread all over the country. These agents are selected with great care

because they represent the company. The agents are categorized on regional area.

The agents are categorized into following four regions

South Region : Bangalore & Chennai.

North Region : Delhi, Arababad & Gorgon.

East Region : Calcutta & Baroda.

West Region : Poona, Mumbai.

Functions of Agents:-

The main function of all the agents is to search is to search for the orders.

They have to negotiate with the customers on behalf of the organization.

They help in building beetles relation of the company with the customers.

They often visit the project site undertaken & recommended the necessary changes by

taking approval from the customers & products.

Page 17: 2nd Sem SIP Project

Sales commission given to the Agent :

Sales commission to the agents will be based on the amount of the order or project issued

by them. There the agents may get the order of small conveyors, which may cost about 20 lakhs

or they may get the order of 50 lakhs etc. so based on the amount of order commission will be

paid to the agents. Commission given to the agents is as follows,

If the project is of shackles then the agents will be paid 4% of the total project as

commission.

If the project is above 10 lakhs & below 25 lakhs then the agents will be paid 2.5% of the

total amount of the project as commission.

If the project is above 25 lakhs then the agents will be paid 1%vof the total amount of the

project as commission.

Then the change in the percentage of commission is so because, if the company pays a fixed percentage of commission all the projects then the cost of the product will increase. So to take care of all such problems the company has found the percentage slab the agents are also given incentives in the form of awards. The awards are given to the bases of the total order received dy them in the whole year. The highest is awarded.

BRAND EQUITY :

KCSPL has strong presence in conveyors & a record in creation & promotion of new products. In an era of brand personality, brand extension & brand equity. KCSPL is pioneer & market under in the industry. The company has created a corporate image by strategy of:

Providing quality goods. Customer orientation. Value of money.

Page 18: 2nd Sem SIP Project

New & innovative products.

Firm’s Policy towards Brand building :

Stress on customer satisfaction, which in turn leads to loyalty.

To develop product using customer perception.

Customer Orientation :

“The company values its customer & endeavors to maintain their confidence by providing product of high quality at reasonable price”

The company believes in the concept of “presumed” that is emphasizing the important of customer needs in the production. This policy has helped the group to get an idea of product value as perceived by the customer & devise positioning strategies based on the expectation of customer.

KCSPL products are both standardized & customized. They have established as ongoing relationship with their customer. They have taken care of all the 4 elements of customer satisfaction namely:

1. Intensity - They care for value of their products attribute.2. Congruence - They care about difference between expected & actual level of satisfacton.3. Ambiguity - They care how clearly the customer can relate his satisfaction to a product.4. Periodicity - Measure of frequency that a customer experience.

Page 19: 2nd Sem SIP Project

KCSPL prestigious customers:-

1. Hyundai motors India Ltd Chennai. 2. Kirloskar Electric Company Ltd., Hubli.3. Miven Mayfarm Conveyors Pvt, Ltd., Hubli.4. B.D.K Aquapre Hubli.5. Mahindra & Mahindra Pvt, Ltd., Mumbai & Nasik.6. H.M.T Ltd., Bangalore, Hyderabad.7. Bajaj auto Ltd. Pune, Aurangabad.8. Maruti Udyog Ltd., Gorgon.9. Ashok Letland Chennai.10. Murdeshwar Ceramics Ltd. HubliLambbodhar Granites Pvt Ltd, Hubli.11. B.D.K Aquapre Hubli.1. Mahindra & Mahindra Pvt, Ltd., Mumbai & Nasik.2. H.M.T Ltd., Bangalore, Hyderabad.3. Bajaj auto Ltd. Pune, Aurangabad.4. Maruti Udyog Ltd., Gorgon.5. Ashok Letland Chennai.6. Telco Ltd., Lucknow.7. Standard Engineering, Belgaum.8. Hyundai motor Indian Ltd. Chennai.9. Telco Construction Equipment Company Ltd., Dharwad.10. Escorts Ltd., Faridabad.11. Bharat Heavy Electrical Ltd., Bhopal

Page 20: 2nd Sem SIP Project

ENGINEERING DEPARTMENT

Page 21: 2nd Sem SIP Project

Hierarchy of Engineering Department

Managing Director

CEO

Engineering Manager

Draft Men

Page 22: 2nd Sem SIP Project

Responsibility of the Engineering Department

The main in-charge of the Engineering Department is the Engineering manager. The Engineering manager on receipt of the order from the customers will send the engineering personnel to the project side to see the requirement of the customers such as type of component to be used, the load component etc. They also negotiates on behalf of the company with the customers & decides the terms & conditions such as cost, delivery date, payment terms etc.

DESIGNING DEPARTMENT

Hierarchy of designing Department

Director

CEO

Design Manager

Draft Men (5)

Page 23: 2nd Sem SIP Project

Responsibility of the Designing Department :

There is a separate department called designing department in KCSPL headed by the Department the designing is one of the most important department in the company. The entire products manufacture by Karnataka conveyors requires good quality & new design. So that the customers will like & appreciates the products. The company believes that part from the inner material & quality of ill products the outer appearance of the products is also very important, so it must be well designed.

Design Department is the months of all the departments. This department has to confirm to international standards. This department sees that the design is safe, reliable, cost effective & efficient. The employees in this department are working on CAD- (Computer Aided Design) system.

Input of any design will be as per the requirement of the customers & to see that the design output satisfies the customers expectation in actual performance. The company receives that with our good & new design, which are appearing to the customers its products are incompact in their quality.

Functions of the Design Department :

On receipt of the order & collection of information about the requirement of the customers, negotiation takes place & the customer issues a purchase order. On the bases of the order the drawings are prepared & it is sent for approval after the approval the detailed drawings of the product is prepared.

The head of the design department has the overall responsibility of carry out previous of the designs at various stages & also takes corrective actions based on the review.

At various stages verification is done to ensure that the requirements of design output stage meets the requirements of the design output stage.

Page 24: 2nd Sem SIP Project

After successful design verification the design & development head conducts the validation. A successful validation shall prove that the product meet all the input requirements & its performance under implied output needs.

Any changes or modification in the product design is identified reviewed reform approval of design by the design department.

Responsibility of the Design in charge :-

He is responsible for creating new designs for all the products of the company. He has to take the approval of the management. He has to change designs from time to time & the concept for thee designs, change from

product to product. He has to guide his designing team and help then & use their creativity to develop good

design for the growth of the company. Objectives of Design Department :

“ To achieve excellence in design & meet customer expectations through product innovation, standardization & rationalization”

To achieve excellence in design & meet customer requirements. Achieve design improvement through continuous design review. Ensure competitive design for the product. Plan for design obsolesces & the induction of new designs features. Design new products to serve market martin i.e.,

New product to capture old market.

New product to capture new market.

Page 25: 2nd Sem SIP Project

PLANNING DEPARTMENT

Page 26: 2nd Sem SIP Project

Hierarchy of planning Department

Responsibility of planning Department :-

A plan is predetermined course of action planning is the process od deciding goals, formulating policies to achieve the organizational goods. Planning also involves forecasting & research.

KSCPL is a project oriented unit & once the department receives enquiry order through the agents or directly from the customers, the head of the department is responsible for drawing tentative & final manufacturing plan.

Managing Director

CEO

Planning Manager

Page 27: 2nd Sem SIP Project

All the departmental heads are responsible heads to submit the commitment & feedback information with respect to tentative & final plan within the due date all the departments are responsible to plan their departmental activities with regard to their tentative & final plan. The tentative plan consists of delivery dates of work orders, requirements of financial needs etc. the tentative plan is modified or amended if required. Then the financial plan is issued for the particular project.

Functions of planning Department :

Planning Department is one of the important departments in KCSPL, in which all the planning activity of the organization takes place. In KCSPL planning is done in two folds.,

Project Planning, & Process Planning.

In project planning, planning is done for coming period. The expenditure of the planned projects are estimated & presented to the top management. After analyzing, the managing director gives approval. Individual projects are assigned & they prepare their technical preference sheet. The parts of the project planning are:

Plant layout. Shop dimensions. Existing facilities. Special equipment requirements.

The process planning is concerned with planning the conversion or transformation processes needed to convert the materials into finished products. The major activities planning are:

Designing. Placing the order.

Page 28: 2nd Sem SIP Project

PURCHASE DEPARTMENT

Page 29: 2nd Sem SIP Project

Hierarchy of purchase Department

Following are the Responsibilities of Purchase Department

All the purchase activities related to various raw materials, stationary materials, equipments, instruments etc. are carried out by the material department.

To receive “request for purchase” from the factory. To send enquiries, get & compare quotations & select suppliers in consultation with the operating manager.

To place the purchase order for raw materials like iron sheets, shafts, equipments instruments, bearing motors, gearbox, electrical items etc.

To arrange for return of rejected materials & get replacement etc.

Director

CEO

Material Manager

Assistant (2)

Page 30: 2nd Sem SIP Project

To arrange for stationary materials, arrange for repairs of machinery & any other equipment, to procure machinery spare parts etc.

To make payment & arrange for onward dispatch of cheques/demand drafts to the supplier.

Following are the functions of purchase department :

Receives purchase requirements duly approved by the competent authority from the various department.

Evaluate various suppliers & if found suitable adds to the approved vendors list. Reviewing & updating approved vendors list annually. Prepares annual purchase budget in consultation with the director & respective

departmental heads & gets them approved. Gets quotation from approval suppliers & vendors. After getting approval from the director issues purchase orders to the respective vendors. Receives dispatch documents from the suppliers & forwards to the stores department. Passes the bill for payment after getting confirmation from stores officer about receipt of

materials.

Page 31: 2nd Sem SIP Project

STORES DEPARTMNET

Page 32: 2nd Sem SIP Project

Hierarchy of stores department

A separate room is provided for storing all materials assembly. The main in charge of stores department is the CEO & stores officer. The stores officer maintains all the required rewards & issues the material to the different following proper procedure stores officer reports to CEO who in turn reports to the director.

Director

CEO

Stores Officer

Assistant (2)

Page 33: 2nd Sem SIP Project

Techniques or Tools of inventory control used in KCSPL :

The stores department follows F.S.W. Analysis method there goods are classified on the bases of fast moving, slow moving & non moving materials with in organization. They also follow A.B.C analysis system for inventory control.

Proper storage of goods is very essential for effective production materials when received are to be properly examined tested & kept in a proper place known as store room in a scientific & systematic manner with a view of saving them from all kinds of damages, proper storing of material needs suitable classification & codification if is under the charge of an export storekeeper.

Functions of Store Department :-

Receiving goods into the stores after checking them with the content of goods received note & inspection report.

Maintenance of proper record of materials received & issued to production. Proper classification & codification of materials. Maintain the stores department neat & clean. Issue materials only against authorized requisition. Maintain stock levels for each item of materials. Prevent unauthorized persons from entering into the stores. Receive back surplus materials returned. Initiate purchase requisition for the replenishment of stocks.

Page 34: 2nd Sem SIP Project

PRODUCTION DEPARTMENT

Page 35: 2nd Sem SIP Project

Hierarchy of Production Department

Director

CEO

Production Manager

Machine Shop

Manager

Assembly/

Fabrication

Manager

Operator (4)

Operator (4)

Operator (4)

Workmen (18)

Workmen (30)

Page 36: 2nd Sem SIP Project

Following are the responsibilities of production departments:-

Production department has to work jointly with the marketing departments, design department, purchase department, quality control department, engineering department & finance department.

The work of the operating manager is to guide his juniors & achieve the production targets of company all the charges in the plant directly reports to the operating manager. The operating manager takes orders from the marketing department & accordingly sets the target & plants for the production she has to give the feedback or the entire department in the plant to the management he has to keep the staff & the workers informed about all the latest develop & changes so that they can guide the workers accordingly.

The production manager has to see that the production done at the plant is of required qualify. He has to also guide the engineering department & maintain the machinery for excellent production. The production manager advices the management while fresh personal are inducted & new machinery purchased.

Electrical department works under production & it consists of two persons. They do the day today maintains of factory & they also go on site for commissioning work. They prepare panel board covering the sequence of operation to be done, which is designed & wring test of the conveyors is also done. If the automation is very complicated then the export advice is taken from outside company & sometime the total control systems are handed to the contractors who are experienced in the field.

Plane layout is the overall arrangement of the production process, storeroom, tool room, stock room, material handling equipment, rates & stores, employees service & all other accessories required for facilitating the production in the factory as it encompasses production & services feasibilities & provinces fpr the most effective utilization of the men, material & machine consisting the process, it is a master blue print for conditioning all operations performed inside the factory.

Page 37: 2nd Sem SIP Project

Objectives of production Department :-

Work towards company goods. Ensure 100% quality product. Based on customer feedback, it should take corrective actions. Ensure 100% equipment uptime. Reduce wastages. Identify the root cause for equipment figure & set if right. Plans preventive eminence activities so that equipment work on its inbuilt capacity &

hence improves productively. Feedback to design Department. Optimum utilization of consumables. Taking care of the work emergencies.

Machines used in manufacturing of conveyors :-

Sl. No Name of the machines Operation1. Sharing Machine. Cuts the sheets into required sizes.2. Bending Machine. To change the shape of the sheets.3. Band Saw Machine. Cutting structured steels.4. Welding Machine. For welding.5. Milling Machine. Face filling, slotting.6. Drilling Machine. For drilling, Reaming, Tapping.7. Gas Cutting Machine. Use of LPG, Oxygen for more than 7mm sheets, gas,

cutting is used therefore shoring cannot be done. 8. EOT Crane. To hurdle the material in (?)9. Power Press. To change the shape of job.10. Height Gauge. To mark jobs.11. Shapes. Does a slot12. Bench Grinder. To sharpen.13. Lathe Machine. For turning, threading, facing.14. CNC Machine. For mass production turning.

Page 38: 2nd Sem SIP Project

KCSPL Manufactures different types of conveyors :

The following all the different types of conveyors manufactured by KCSPL

ROLES CONVEYORS Roles conveyors are flat, circular or spiral. They are driven through gravity generally materials having that bottoms are moved or boxes or pallets are moved.

BELT CONVEYORSBelt conveyors may be flat or elevated with upward or downward flow of materials. The materials of the belt should be suitable to the materials to be moved. Generally rubes covered converse steel plain fabric. Perforated sheets or moving wires are used as belts. The fixed or portable belt conveyors are used according to the requirements of production proves & system.

CHAIN CONVEYORSChain conveyors employ single or double strands of continue. Co-wrapped around head & tail sprockets which can be either stationary or moving the units are generally operated by motor drives attached to the head drive shaft.

SLAT CONVEYORSThe slat conveyors are fleshed with the ground & with the adjusted speed the slat conveyors from one side carries the trimmed & type fitted vehicle along the aught for final assembly operation like AC/oil/ fuel filling, seat fitting, Electrical connections etc.,

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The Production Procedure :

The required material is issued to the production department by the stores department. If there is excess work or the required machines are not available then the work is given to sub-contractors.

As this is tailor-made project based organization, the production process is not common for all the products, further there are many types of product that are manufactured by KCSPL. So, it is not possible to study the production process of all the conveyors, and then in this report, the manufacturing of chip conveyors has been highlighted as an example.

This is because chip conveyors is one of the popular products of KCSPL & there is much demand for such conveyors in the market.

Production Process of Chip Conveyors :

1. On the shoring machine the mild sheets are cut according to the size specified in the final assign of the chip conveyors that is to be manufactured.

2. These sheets are then bended to the shapes as required with the help of the bending machines.

3. They are bend the required shapes & marketing are done on them as to where the drilling is to be done, where the welding is to be done etc., after they are marked the welding process begins.

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4. Then the painting is done, the pointing booth is provided in the production department the painting is done with sprays.

5. Then the assembling is done where the various parts are joined & the final product is got after assembling the conveyors are tested by the quality control department to see wheaten it is working properly or, there is any problem.

6. After this they call the party to inspect & test it the party may do the inspection themselves or may appoint a third party for inspection. The third party may be an agent of the customers the agents inspect the process right from receipt of material till the dispatch of the end product after they inspect each process, they emboss the job at various stages.

7. One the inspection is done by the party then the goods are packed & dispatched mostly through lorries. The packing & forwarding is done according to the instructions given in the purchase order, when the company & the customers decide the type of packing & dispatching mode.

8. Then the payment is receives by the company.

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QUALITY CONTROL DEPARTMENT

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Hierarchy of Quality Control Department

Director

Production Manager

Quality Control Supervisor

Work Men (5)

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Quality Management :

“committed to produce good quality products by establishing & maintaining quality system.”

KCSPL has strived to achieve excellence in design, quality and manufacture & deliver defect free competitive products & service. On the time it is because of this fact that KCSPL has an envious record of quality. The company has maintained quality by following principles. Use of modern machinery in production of quality goods. Emphasizing quality control programmer continues up gradation of good machines & technology & regular training to the employees for production of good facility goods.

KCSPL says “Our customer success is our success we will deliver defect free competitive products & service on time”

Following are the responsibilities of Quality Control Department

The quality control department inspects the quality at various stages. The whole procedure of unloading to storing of raw materials & issue of raw materials for production purpose & bending, cutting, welding & fabricating, inspection is supervised by the facility control department. Their responsibility is to supervise the flow of activities in a sequential manner.

Firstly, when the raw materials are unloaded, the raw materials are inspected there the facility control department checks the quantity, shape, size, quality of raw materials & also see to it that they are according to the purchase order.

Secondly, the quality control department inspects the in-process materials. If cheeks the smooth flow of production process & also see whether all the workers are performing this job or not.

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Thirdly, inspection is also done by the quality control department to know whether correct parts are assembled to get the right product, this inspection is done at the assembled stage.

Finally, the quality control department does the final inspection, which is done after the conveyors are manufactured. They do the trial work to see if the conveyors are working properly. Some conveyors are designed with power circuits & some are designed without power circuits so far the conveyors with power circuits this trial is done.

PERSONNEL DEPARTMENT

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Hierarchy of personal Department

Managing Director

Manager Accounts &

Administration

Assistant (2)

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Personnel Department :

Organization is made up of people & function through people. The resources like man, machine, material machines are collected to ordinate utilized through people. These resources by themselves cannot fulfill the objective of the organization.

They need to be unfired into be team. It is through the combined effort of people that are efficiently utilized for attainments of organ objectives. All the activities or an organization are initiated & completed by the people who make up the organization. So personnel department is one of the important departments.

Duties of Personnel Managers :

1. He has to maintain the attendance of all the workers & employers of the company.2. He has to maintain the accounts of all the employees & make payments.3. He has to pass the accounts information to the finance department for funds.4. He has to co-ordinate with the legal department regarding any cases or other matters.5. He has to see to that the employees of the company are happy with the company & there

is no labor unrest in the company.6. He has to see that all the labors get all the benefit of ESI provident fund etc according to

the rules of the government.7. He is responsible to study the changes in rules & regulation of the government.8. He has to that the employees perform efficiently & are more commixed towards their

work.9. He has to keep employees records.10. He has to maintain accident reports.11. He has to look into the claims made by the employees.12. He has to maintain the records of PF & ESI.13. He has authority to grant leaves.14. He has to handle applications for job.15. He has to attend the court cases (labor matters).16. He has to handle correspondence.

Personnel Philosophy of KCSPL

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KCSPL believes in practicing sound and straight forward business principles considering the interest of the company & the welfare of the employees sure foundation of their prosperity.

“Man is that core of KCSPL a spirit that has survived all these years”

Following are the key steps followed :

The extension of men intellect by machine & the partnership of men & machine, to handle things faster & in a better way.

Injecting fresh blood in the form of trade apprentices & operative trainee. Providing adequate wages, good working condition, job security & suitable opportunities

for promotion & self-development. Creating a sense of belongingness & ensuring their willingness, co-operation & loyalty. Treating them as individual, giving them a sense of self respect & better understanding

of their role in the organization.

Provisions given to the employees of KCSPL :

The employees are insured under the “Group Gratuity Scheme” under LIC. Employees are eligible for 8.33% pension fund & provident fund where in 12%

employers and employees contribute respectively. The employee is eligible for this after ten years of service. The employee will get this benefit after retirement.

Employees get basic salary, HRA, TA, DA. Employees get gratuity after five years. They are provided with free uniform & shoes. The salary is that ranges from 2950 to 16000 are paid. Promotion is in the form of annual increment.

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Provisions given to the workers of KCSPL :

Workers are provided with uniform, shoes, hand gloves, safety belts & aprons, the workers are supposed to wear while performing the jobs.

The workers are allowed ten casual leaves that is one leave for every twenty days. Workers are given sick leaves & it is included in the casual leaves. If the worker attends duty for one month without any leave then that worker will get

bonus. The worker is eligible for ESI only if salary is less than 10,000. The wages are paid to the workers are according to the minimum wages act. Training is provided to the new workers. Annual gift with bonus are given to the workers every year. Books are also provided to

the workers children but that is only for two children. Compensation is given to the workers against one accident.

Functions of Personnel Department are as follows :

Manpower planning, deciding number of employees & the type of employees required. Job analysis describing nature of job & recruitment of people. Staffing : recruitment & selection. Orientation : introducing the new employees with aspects of new job. Training : to provide skill & more knowledge about job to employees so that they can

perform their job more effectively. Performance Appraisal : appraising the employees about the performance of their job.

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Career Planning : assessing an individual employee potential in the organization for the growth.

Compensation : determining how much compensation must be paid to the employees who meet with aliment.

FINANCE DEPARTMENT

Finance department plays a very important role is the existence & progress of an organization finance department is concerned with procurement of adequate finance & it effective utilization for the achievement of organizational goals.

Something merest claret the flow of economic captivity & foul tats ill smooth operation tonal is the agent that produces this result finance is master which provides access to all the sources required for running the business activities. Therefore it is said that business needs money to make money. All managerial functions such as careful planning, executing co-ordination control etc, can be discharged only by possessing adequate financer.

Acquiring assets sure as land, building, machinery tools & materials for the firm, payments of wages & salary to the staff & meeting day today expenditure such as payment of rent, incurring marketing expenses require finance.

Financial management is concerned with the efficient use of important economic resources namely capital funds, financial management are a serialized. Activity which is concerned with the procurement of finance & its effective utilization for the attainment of the common objectives of the financial planning, financial administration & financial control.

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Objectives of the Finance Department :

Maintenance of adequate liquid assets. Profit maximization. Assuring fair return to the investors. Building up reserves for growth, diversification & prosperity. Ensuring effective, efficient & economic utilization of finance.

Functions of Finance Department :

1. To forecast the financial needs of organization.

2. To decide when, wheel & how to acquire funds to meet the firms to meet the firms financial needs.

3. To decide how much cash must be invested in fixed assets & current assets.

4. To see to if that adequate supply of cash is available at all time for the sooth reining of the business.

5. To see to it that there is continues cash inflow & outflow without any interruption.

6. To ensure supply of adequate funds to all parts of the organization.

7. To negotiate with banks, financial institutes & other suppliers of credit, so as to obtain the funds at most favorable terms.

8. Preparing trail balance, P&L account & Balance sheet.

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9. Handling sales tax matters control exercise, entry tax and professional tax etc.

EXECUTIVE

STATEMENT OF THE PROBLEM:

Absenteesim is probably one of biggest problems that a manger has to handle on an

ongoing basis as it impacts on service deliverly ,staff morale and could lead to financial losses. If

the cause has been identified and solutions implemented and an employee continues to be absent

from his/her workstation then the only solution would be normal disciplinary procedures.

Absenteeism is a habitual pattern of absence from a duty or obligation. An absence refers

to time an employee is not on the job during scheduled working hours, except for a granted leave

of absence, holiday, or vacation time. However, employee absenteeism is not just an employee

issue it is an organizational problem and therefore becomes everyone's responsibility.

Usually most origination requires a low absenteeism rate to meet objectives .do

employees occur with the employer? Employees usually do not believe that they are failing to

meet their fundamental obligation of service delivery when they are not at allocated workstation

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doing what they are paid to do. They see themselves as being at work where as the employer sees

them as being unproductive and not focusing on the origination’s goal and objectives.

MEANING OF ABSENTEEISM

Absenteeism is the term generally used to refers to unscheduled employee from the workplace.

Many causes of absenteeism are legitimate –personal illness or family issues, for example- but

absenteeism also can be traced to other factors such as a poor work environment or workers who

are committed to their jobs. if such absences become excessive, they can have a seriously

adverse impact on business operation and ultimately ,its profitability.

Cost of absenteeism

“Unscheduled absences hurt”, wrote M .Michael markowich in summary of an article he wrote

for the September 1993 issues of small scale reports”. most sick leave policies foster a ‘use it or

lose it’ mind-set, and employees feel entitled to a certain number of stick days .” markowich

went on to note that a survey of 5000 companies conducted by commerce clearing house

Inc.(CCH Inc).found that unscheduled absences cost small businesses, at that time,$62,636

year, on average, in cost productivity, stick time and replacement costs.

NEED FOR THE STUDY

The success of any manufacturing organization depends largely on the workers, the

employees are considered as the backbone of The Karnataka conveyours & system pvt ltd

in gokul hubli.

The study is on employee absenteeism in industry.

This study can be helpful to the management to improve its core weaknesses by the

suggestions and recommendations prescribed in the project.

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The need of this study can be recognized when the result of the related study need

suggestions and recommendations to the similar situation.

The employee absenteeism is booming HR issue in many industries .It helps to know the

employee satisfactions level and it help to find cause of employee absenteeism, based on

certain factor like working condition, leadership style, work stress, leave days, and salary

level. To know the reason for labour absentiseem.

To know how absentiseem is recorded.

To know the effect of absetiseem on production.

To know how absentiseem is recorded.

Objectives to study

To understand the functioning of live organization.

To gain a practical insight into organisation and improve ones knowledge.

Find out how far what ever theoretical knowledge we have attained is actually applicable

in practices in live situation in the origination .

Make it necessary for us to come out with the in here innovative skills within us.

Scope of study

The study focuses on labour absentiseem in Karnataka conveyours and system private

limited.

Limatation of labour absenteeism

Lack of motivation: the quality of labour decreases while absenteeism may rise.

Growing dependency : a break in production may cause problems to the entire process.

Loss of flexibility :workers have limited knowledge while not many jobs opportunities are

available.

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Higher start-up costs:high intial costs necessary to buy the speciality machinery lead to

higher break-even point.

RESEARCH METHODOLGY:

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

may be collected for either theoretical or practical research.

Therefore research methodology is a way to systematically solve the research problem. It may be

understood as a science of studing how research is done scientifically. In the various steps that

are generally adopted by a researcher in studing his research problems along with logic behind

them.The research methodology of the present study involves the following.

Methodology

a) Primary Data.

Interview schedule.

Personal Inteview

b) Secondary Data.

Related information from internet

Books & publications.

Sample size

Nearly 10 samples are taken in Karnataka conyevours pvt Ltd..,

Types of Absenteeism

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Authorized Absenteeism : if an employee is absent himself from work by taking

permission from his superior and applying for leave,such absenteeism is called

authorized absenteeism

Unauthorized absenteeism : if the employee is absent himself from work without

informing or taking permission and without applaying for leave, such absenteeism is

called unautorised absenteeism.

Willful absenteeism : if an employee is absent himself from duty willfully, such

absenteeism is called wilfu absenteeism.

Absenteeism caused by circumstances beyond one’s control : if an employee is absent

himself from duty owing to the circumstances beyond his control like involvement

accidents or sudden sickness, such absenteeism caused by circumstances beyond one’s

control.

Features of absenteeism:

The rate of absenteeism is the lowest on pay day,it increases considerably on the

days following payments of wages and hours.

The rate of absenteeism varies from department to department within an

organization generally , it is high in production department.

Absenteeism is generally high among the workers below 25 years of age abd

those above 40 years of age.

Absenteeism in traditional industries is seasonal in character

Cause of absenteeism :

Maladjustement with the working conditions : if the working conditionds of the

company are poor ,the workers cannot adjust themselveswith the company’s

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Social and relirious ceremonies :social and religious functions delicer the workers

attenction from the work.

Unstatifactory housing conditions at the work place.

Industrial fatigue : the industrial fatigue compels the working to remain outside

the work place.

Unhealthy working conditions : the poor and intolerable working conditions in the

factories irriates the workers . excess heat,noise,either too much or too low lighting,poor

ventilation, dust,smoke etc. cause poor health of the workers. These cause the workers to be

absent.

Poor welfare facilaties : though a number of legislations concerrinf=g welfare facilaties

are enacted ,may ogranisation fail to provide welfare facilaties .this is either due to the poor

financial position of the companies or due to the exploitative attitudes of the employer . the

poor welfare facilities include poor sanitation , washing, bathng, first-aid, ambulance, rest

rooms, drinking water, canteen, shetter, crèches etc. the dissatification workers with thes

facilaties , prefer to be away from the work place .

Alcoholism : workers mostly ,prefer to spend money on the consumption fo liquor

and enjoyment after getting the wages. Therefore , the rate of absenteeism is more

durng the first week of every month.

Indebtness : the low level wages and unplanned expenditure of the workers force

them to borrow heavily . the research studies indicates that workers borrow more

then they try to escape from the place in order to avoid the moneylenders .this

leads to absenteeism.

Maladjustement with the job demands : the fast changing techonolgy demand s

higher level skills from the workers . some workers fail to met thes demand due

to their lower level education and/or absence of training.

Unsound personnel policies : the improper and unrealistic personnel policies

result in employee dissatifiaction . the dissatification employees in turn prefers to

be way from the work.

Inadequate leave facilaties : the inadequate leave facilaties provided by the

employer forces him to demand on E.S.I. leave which allows the workers to be

away from the work for 56 days in a year on half pay.

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Low level of wages : wages in some organization are very poor they are quite

inadequate to meet the basic needs of the employees . therefore employees go for

tother employment during their busy seasons and earn more money. Further ,

some employees take up part time job. Thus ,the employees resort to

moonlighting and themselves from work.

Measures to minimise absenteeism

Absenteeism affects the organization from the multiple angles . it

CHAPTER-II

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REVIEW OF LITERATURE

Absenteeism is a habitual pattern of absence from a duty or obligation. An absence refers

to time an employee is not on the job during scheduled working hours, except for a granted leave

of absence, holiday, or vacation time. However, employee absenteeism is not just an employee

issue it is an organizational problem and therefore becomes everyone's responsibility.

2.1 Says FRANCES DAVIES

Absenteeism can have an enormous effect on the productivity of an organization. The

average American worker takes six days sick leave a year, and although this is significantly less

than in places such as Europe it is still having a big impact on US staffing resources and

productivity. The loss of productivity due to short/long-term illness, disability is therefore

proving to be a major headache for companies. Effective absence management programs can be

the best remedy for reducing absenteeism.

“Every time an employee is absent from work there is a loss of productivity to the

organization,” explains Sharon Kaleta, President and CEO of the Disability Management

Employers Coalition (DMEC). “One person absent from work may not create a problem, but

several people absent for one or more days can have a significant financial impact to the

organization.

IMPACT OF ABSENTEEISM

There are many forms of absenteeism, ranging from short-term illness, long-term illness, unauthorized absence and persistent lateness, to other authorized absences such as annual leave

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     Information regarding absenteeism among workers in an industrial establishment on account

of reasons other than strikes, lockouts, lay-off, weekly rest or suspension, provide a sound

database for gauging the employee’s morale, commitment and level of job satisfaction which

have a direct bearing on productivity of the establishment. It is one of the indicators to monitor

and evaluate various labour welfare programs and labour policies.

2.3.1 Instill enthusiasm to curb absenteeism, the Hindu

EVERY organization, irrespective of size and composition, is plagued by the problem of

absenteeism. Managers know that employees are not always genuinely sick when they fail to

turn up for work, yet they cannot stop them from calling in sick or saying that they have to attend

to some personal work. There could be a hordes of reasons for absenteeism. Sometimes an

employee may not simply turn up for work because his morale is low or he is just not motivated

to work.

It is observed that if employees were happy doing their work, they would be less inclined

to take even a day off. Many employers think that paying their workers handsomely or providing

better working conditions or improving job security can reduce absenteeism. But such benefits

do not guarantee a reduction in employee absenteeism. The solution actually lies in

understanding and meeting the emotional needs of workers and trying to find out what really

motivates them to come to work and give their best.

A wise manager would endeavor to understand the needs of workers at the recruiting

stage itself. The manager can try and choose the right person for the right job. Getting to know

the applicant well by focusing on the human side rather than on their qualifications and

experience can do this. Efforts should be made to find out the kind of work and responsibilities

that make an employee happy, the enthusiasm for work and ability to get along with other

people. The manager must ascertain that the job suits the candidate.

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The next step would be to build employee's trust. As an employer if you have taken

efforts to choose the right candidates for the job, then it is equally important that you believe in

them and trust them to do their job. This trust, though, has to be communicated to the employees.

If the employer believes that the employees cannot do their jobs well, cannot take

decisions on their own and do not do a fair day's work then this is what they will actually do. On

the contrary, if the manager's perception of employees is that they are efficient workers,

independent thinkers and able decision makers, then they will go to any extent to prove it.

The most important step to counter absenteeism is for the manager to constantly give the

employees feedback and motivate them to perform better. But most are woefully lacking in this

ability, they simply are not comfortable telling their staff about their performance.

So it is important that managers provide feedback to employees on a regular basis on

what they are doing well and the areas of improvement. If you notice something that requires

mention tell the employee about it and tell it immediately lest the significance of the feedback

should be lost.

If you postpone your feedback on things the employee is not doing rightthen it will be

assumed what is being done is right or that you do not notice such things or you do not care.

Some more tips on giving the right kind of feedback:

Do it in private, on a one-to one basis

Focus your feedback on one or two things

Do not personally attack the employee

Be honest and prompt with feedback

Reducing employee absenteeism is in the employer's hands. If the staff has to be

motivated enough to think twice about taking a day off, their work has to be made interesting. In

short, they need regular feedback and be made to feel that they play an important part in the

business.

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This can be done by giving the employees greater responsibility, training and developing

their skills and focusing on what they are doing right. Involving employees both formally and

informally in the aspects of the business will create a sense of belonging. These measures make

employees feel good about what they are doing and thus increase job satisfaction. Organizations

would be prudent if they tackle absenteeism before it becomes a contagion.

Title: LABOUR ABSENTEEISM

Author(s): Michael J. Peel, Nick Wilson

Journal: International Journal of Manpower

Year: 1990

Publisher: MCB UP Ltd

Abstract: Using a random sample of 49 UK engineering companies, the influence of profit

sharing, share-option schemes and the perceived degree of employee participation in decision

making on inter-firm lab our absenteeism rates are investigated. After controlling for a number

of firm-specific factors, suggested as theoretically appropriate in the extant literature, the key

empirical results indicated that firms which had adopted sharing schemes appeared to experience

significantly lower absenteeism rates than their non-sharing counterparts..

2.4 GUIDE LINES FOR ABSENTEEISM CONTROL

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

2.4.1 INNOCENT ABSENTEEISM

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Innocent absenteeism refers to employees 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 lab our relations context this means that it cannot be remedied or treated by

disciplinary measures.

2.4.2 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 absenteeism. To be culpable is to be blameworthy. In a lab our relations context this

means that progressive discipline can be applied.

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

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

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

counseling and treatment, the majority of employees will overcome their problems and return to

an acceptable level of regular attendance.

2.4.3 IDENTIFYING EXCESSIVE ABSENTEEISM

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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.

2.4.4 INDIVIDUAL COMMUNICATION

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

individually meet with each employee whom has been identified as having higher than average

or questionable (or pattern) absences. 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. Listen carefully to the employee's responses.

2.4.5 PROOF OF ILLNESS

Sometimes it is helpful in counseling 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. Seldom is the

conflict more difficult to resolve than where personal medical information is involved.

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Unions will often strongly object to any efforts by management to inquire more deeply into the

nature of an employee's illness. You will need to consider the restraints of any language in

collective agreements in relation to this issue.

2.5 COUNSELING INNOCENT ABSENTEEISM

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

1. Initial counseling(s)

2. Written counseling(s)

3. Reduction(s) of hours and/or job reclassification

4. Discharge

2.5.1 Initial Counseling:

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

If absence is prolonged, keep in touch with the employee regularly and stay updated on the status

of his/her condition. (Indicate your willingness to assist.)

You may require the employee to provide you with regular medical assessments. This

will enable you to judge whether or not there is any likelihood of the employee providing regular

attendance in future. Regular medical assessments will also give you an idea of what steps 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

written warning may be necessary.

2.5.2 Written Counseling

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If the absences persist, you should meet with the employee formally and provide him/her

with a letter of concern. If the absenteeism still continues to persist then the employee should be

given a second letter of concern during another formal meeting. This letter would be stronger

worded in that it would warn the employee that unless attendance improves, termination may be

necessary.

2.5.3 Reduction(s) 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 ultimatum, as a reduction in hours is a

reduction in pay and therefore can be looked upon as discipline.

2.5.4 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 Arbitrator would

consider the following in ruling on an innocent absenteeism dismissal case.

1. Has the employee done everything possible to regain their health and return to work?

2. Has the employer provided every assistance possible? (i.e. counselling, support, time off.)

3. Has the employer informed the employee of the unworkable situation resulting from their

sickness?

4. Has the employer attempted to accommodate the employee by offering a more suitable

position (if available) or a reduction of hours?

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

Corrective Action for Culpable Absenteeism

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As 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 you have communicated attendance expectations generally, have identified the

employee as a problem, have met with him/her as part of your attendance program, made your

concerns on his specific absenteeism known and have offered counselling as appropriate, with no

improvement despite your 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.

The general procedure is as follows: [Utilizing counseling memorandum]

1. Initial Warning(s)

2. Written Warning(s)

3. Suspension(s)

4. Dismissal

Verbal Warning

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

an employee is legitimately ill. Advise the employee that his/her attendance record must

improve and be maintained at an improved level or further disciplinary action will result.

Offer any counseling or guidance as is appropriate. 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.

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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 you can. If no satisfactory explanation is given, advise the

employee that he/she will be given a written warning. Be specific in your discussion with

him/her and in the counseling memorandum 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. The

written warning should identify any noticeable pattern

Suspension (only after consultation with the appropriate superiors)

If the problem of culpable absenteeism persists, 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.

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

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