“A STUDY ON ABSENTEEISM OF WORKMEN

IN MRF LTD. TIRUVOTTIYUR CHENNAI”

Submitted in partial fulfillment of the requirements

For the award of degree in

MASTER OF BUSINESS ADMINISTRATION

By

SHATHEESH L

Reg. No: 2941516

DEPARTMENT OF MANAGEMENT STUDIESSATHYABAMA UNIVERSITY

(Established under Section 3 of UGC Act 1956)JEPPIAAR NAGAR, RAJIV GANDHI ROAD

CHENNAI 600119

SATHYABAMA UNIVERSITY(Established Under section 3 of the UGC Act, 1956)

Accredited with B++ Grade by NAACJEPPIAAR NAGAR, CHENNAI - 600 119

DEPARTMENT OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This is to certify that this Project Report is the bonafide work of

SHATHEESH L Reg no:2941516 who carried out the project entitled “A STUDY

ON ABSENTEESIM OF WORKMEN IN MRF LTD TIRUVOTTIYUR

CHENNAI” under our supervision from January 2010 to March 2010.

Internal Guide External Guide

Mr. D. SENTHIL KUMAR (Name in Capital letters with signature)

Head of the Department

Ms.Vaishali C Mahajan MBA.,(Ph.D)

Submitted for Viva Voce Examination held on_________________

Internal Examiner External Examiner

2

DECLARATION

I SHATHEESH L hereby declare that the Project Report entitled “A

STUDY ON ABSENTEEISM OF WORKMEN IN MRF LTD TIRUVOTTIYUR

CHENNAI” is done by me under the guidance of Mr.D. SENTHIL KUMAR

MBA, Mcom,.(Ph.D) Lecturer, Sathyabama University, Chennai is

submitted in partial fulfillment of the requirements for the award of the

degree in MASTER OF BUSINESS ADMINISTRATION.

DATE:

PLACE: SIGNATURE OF THE CANDIDATE

3

ACKNOWLEDGEMENT

I would like to whole heartedly thank and express my sincere

gratitude to the Chancellor, Thiru. Dr JEPPIAAR, M.A.B.L., Ph.D., for his

constant encouragement in the development of this Project.

I also sincerely thank our Directors Thiru. Marie Johnson, B.E.,

M.B.A., Tmt. Mariazeena Johnson, B.E., M.B.A., for the constant

encouragement and stimulating atmosphere provided to me.

I also wish to thank the Vice Chancellor Dr.N.Manoharan M.E.,

Ph.D., and Ms.Vaishali C Mahajan MBA.,(Ph.D) Head of the

Department, for their valuable advice and support.

Most of all, I extent my sincere thanks to Mr. D. SENTHIL KUMAR

MBA, Mcom,.(Ph.D) Lecturer, MBA Department for their continuous

encouragement , guidance and support throughout the development of this

Project.

I also extend my sincere thanks to my family for their encouragement

and support.

SHATHEESH L

4

CHAPTER 1

INTRODUCTION

Absenteeism has been recognized as a vital issue affecting discipline and

production in the organized industry today. It is a major socio – psychological

problem in industries. Absenteeism in Indian industry is not a new phenomenon.

The Royal Commission of Labour reported, “High absenteeism prevails among

industrial labours mainly due to their rural orientation”. Absenteeism is a serious

problem for a management because it seriously involves heavy expenditure and

loss of production. The main objective of organization is to maximize profit by

maximum utilization of men, materials and money. When there is a problem of

absenteeism the three above said sources are not fairly utilized.

Absenteeism is one of the common factors, which affects both the

production, and the growth of the organization. No company can afford to allow

high incidence of absenteeism to eat up its hard earned corporate profits. In

general the absent rate indicates the relative cost to a given company because

production workers simply cannot produce as much annually when absent rates

are high as they can when absent rates are low. When the employees are away

from the work, it is difficult for the employer’s to maintain production schedule.

Reduction of absenteeism is beneficial not only to the industry but also to

the nation as a whole. The treatment of dismissal by the employer would never

ultimately help to reduce absenteeism

5

Labour force is an integral and important component of the wealth of

nations, as other factors like land, capital, and machine. Measured by what labour

contributes to output, productive capacity of human beings is now vastly larger

than all other forms of wealth taken together which has chiefly contributed to

economic growth of countries.

An employee is under an obligation not to absent himself from work

without good cause during the time at which he is required to be at work spot by

the terms of his contract of service. Absence creates many administrative

problems, resulting in dislocation of work. The contribution of labour towards

production is possible only when the individual comes to the work spot and delivers

his labour to somebody. Labour is inseparable from the labour himself. He sells his

labour in person. A labourer works to earn, to do so it is imperative on his part to

be present on the work spot everyday.

When the workers are absent from the work, it leads to loss in the man-

hours, which has direct influence on the production and productivity. This

underlines the importance of the need for workers to be present.

Absenteeism refers to the absence of an employee from work who is

scheduled to be at work. It refers to the loss of man – hours on account of the

absence of a percentage of workers scheduled to be at work.

Absenteeism plays an important role in the productivity of the

organization.

“More the Absenteeism, Less Would Be the Productivity”

6

Absenteeism affects

The Employer – Production/Profitability

The Employee – Earnings

The Nation – Economic condition

Though many studies have been conducted on absenteeism a clear

understanding is necessary to deal with the problem and to reduce absenteeism.

An industry, which has got a bad record of absenteeism, cannot claim to have

neither good industrial relations, nor high morale of work force.

7

1.1 INDUSTRY PROFILE

THE INDIAN TYRE INDUSTRY AN OVERVIEW

HIGHLIGHTS

The Tyre industry is Rs.9000 crore industry.

The fortune of this industry depends on the agricultural and industrial

performance of the economy, the transportation needs and the production of

vechicles.

While the tyre industry is mainly dominated by the organized sector, the

unorganized sector holds sway in bicycle tyres.

In the last five years (1994 – 95 to 1998 – 99), the industry managed to

achieve a compound annual growth of only 4.40 percent. However in the

last fiscal the industry registered a growth of 7 percent.

Natural rubber constitutes 25 percent of the total raw materials cost of the

years.

The ratio of natural rubber content to synthetic rubber content is 80:20 in

Indian tyres, whereas worldwide, the ratio of natural rubber to synthetic

rubber is 30:70.

SECTOR COMMENTS

Ever since the first Indian tyre company, Dunlop Rubber Company (India)

was incorporated in 1926, the tyre industry has grown rapidly and today it’s a

Rs.9000 crore industry. India has 2.61 lakh villages, connected by 6.23 lakh kms of

metalled roads and 9.81 lakh kms of unmetalled roads. These villages are linked to

small towns and cities. There is a daily traffic of over 4.12 lakh trucks, 1.27 lakh

buses, 7.23 lakh cars, and thousands of taxis, two – wheelers, three – wheelers,

8

tractors and animal drawn vehicles on Indian roads. There exists a vast potential

for the tyre industry in India.

MARKET PROFILE

While the tyre industry is mainly dominated by the organized sector, the

unorganized sector holds sway in bicycle tyres. The major players in the organized

tyre segment consist of MRF, Appollo tyres, Ceat and JK Industries, which account

for 63% of the organizes tyre market. The other key players include Modi Rubber,

Kesoram Industries and Good year India, with 11%, 7%, and 6% share

respectively. Dunlop, Falcon, Tyre corporation of India Limited (TCIL), TVS –

Srichakra, Metro Tyres and Balkrishna Tyres are some of the other players in the

industry. MRF, the largest tyre manufacturer in the country, has strong brand

equity. While it rules supreme in the industry, other players have created niche

markets of their own.

SECTOR SPECIFIES

The tyre industry is a major consumer of the domestic rubber production.

Natural rubber constitutes 80% of the material content in Indian tyres. Synthetic

rubber constitutes only 20% of the rubber content of a tyre in India. Worldwide, the

ratio of natural rubber is 30:70. Apart from natural and synthetic rubber, rubber

chemicals are also widely used in tyres.

Most of the RSS-4 grade natural rubber required by the Indian tyre industry

is domestically sourced, with only a marginal amount being imported. This is an

advantage for the industry, since natural rubber constitutes 25% of the total raw

material cost of the tyres.

9

The two types of synthetic rubber used in tyres are Poly Butadiene Rubber

(PBR) and Styrene Butadiene Rubber (SBR). The former is used in most of the

tyres, while the latter is mainly used in the radials for passenger cars. Synthetic

rubber accounts for 14% of the raw material cost. Unlike in the case of natural

rubber, India imports 60% of its synthetic rubber requirements.

Apart from rubber major raw materials are nylon tyre cord and carbon black.

The former is used to make the tyre strong and impart tenacity to it. The latter is

responsible for the colour of the tyre and also enhances the life span of the tyre.

Nylon tyre cord comprises 34%, while carbon black accounts for another 13% of

the raw material cost. In India, the carbon black is of the N660, N220 and N330

variety.

SECTOR TRENDS

Crossply tyres have been used in India for several decades. In these tyres,

the ply cords run across each other or diagonally to the outer surface of the tyre.

Rayon and Nylon tyre cords are used as the reinforcing medium. These tyres can

be retreaded twice during their lifetime and are hence preferred by Indian transport

operators who normally overload their trucks. A vehicle with the normal carrying

capacity of around 12 tonnes is usually loaded with double the capacity. Moreover,

one also has to contend with the bad suspensions and bad road conditions. No

wonder, 95% of the tyres used in India are cross plies.

Radial tyres have their cords running radially from bead at 90-degree angle

to the rim or along the outer surface of the tyre. The reinforcing mediums used in

these tyres are polyester, nylon, fiberglass and steel. Hence, these tyres are 20%

more expensive than the cross plies. But they have a longer life and provide lower

10

fuel consumption. The unhealthy condition of the Indian roads has resulted in radial

tyres accounting for only 5% of the tyre industry as against a global trend of 60%

with two – thirds of the capacity of all major tyre manufacturers being reserved for

radials; this is a real cause for concern.

CONCLUSION

The industry, already bogged by over capacity, is facing a severe threat of

dumping of cheap tyres by South Korea. Under the Bangkok agreement, signed

between India and South Korea in 1976, import of tyres from the latter into India

would attract a concessionary duty of 33% as against the normal tariff of 40%.

Two years ago, the industry estimated the growth in the passenger car

radial demand at 20% per annum. However, the auto recession has hit them badly.

But South Korea made a killing by dumping cheap car radial tyres and walked

away with 11% of the tyre market.

Another threat to the industry is the price of its raw materials, most of which

is petroleum by – products. Carbon, synthetic rubber and nylon tyre cord are

offshoots of petrochemicals. Thus, the future of the industry will swing with the

supply of crude oil. The biggest threat, however, is yet to fully materialize. It will be

from global major like Bridgestone and Michelin, which controls 36% of the global

tyre market. These players have set up their bases in Southeast Asia and the

slump of the market, is becoming then towards India. Bridgestone has tied up with

ACC for a 100% radial tyre unit and Michelin is also marketing its products through

retail outlets.

11

1.2 COMPANY PROFILE

MRF Ltd., India’s largest Tyre Company, is the 13 th largest tyre company

in the world and one of India’s world-class companies. MRF operates in six

manufacturing plants in India and has been awarded ISO 9002 quality

certification for all its manufacturing plants. The company caters to almost every

segment in the tyre market heavy – duty truck/bus tyres, light commercial

vehicle tyres, passenger car tyres, two wheeler tyres and ferm service tyres.

The company has continued in the same vein and has been posting

excellent results, not withstanding the winds of recession blowing across the

economy. Performance of the company has been commendable in light of the

fact that the user industry is facing a slowdown. The company has benefited

from better productivity and operational efficiency.

Once the first tyre factory was set up in the early sixties, there was no

looking back for the company. From Rs.100 crore turnover in 1979, it touched

Rs. 1,000-crore in 1993 to double at Rs. 2,000 crore in 1996, the golden jubilee

year.

MRF has emerged as the largest tyre manufacturer in India and 13 th

largest in the world with a built capacity of six million tyres from 6 factories. It

boasts of 68 sales centers, 2,500 distributors and exports to 65 countries.

12

MRF has also made its mark as the number one toy manufacturer in India

with 24 percent market share in the organized sector. The entire range of over

200 Funskool toys produced in collaboration with the US major, Hasbro Inc. has

also been arrayed in one section of the expo.

The company caters to a host of impressive clients. It has signed on to be

the sole supplier for auto giants like

General motors

Fiat

Ford

Opel

Daewoo

Hyundai

Maruti

Ashok Leyland

MRF Company has it today the country’s largest tyre manufacturer and

market leader. One of the largest rubber company both worldwide and in the

Indian sector. It is the only tyre company to straddle the subcontinent with giant

manufacturing facilities at Chennai, Arokkonam, Kottayam, Goa, Medak and

Pondicherry. MRF are the market leader in almost every segment:

Superlug – Country’s largest selling truck tyres

Zigma – Country’s largest selling radial car tyres

Legend – Country’s largest selling conventional car tyres

Nylogrip – Country’s largest selling two wheeler tyres

Shakti – Largest selling tractor tyres

13

Besides these MRF is the largest producer of procured retread and, it is

perhaps the largest in Asia today.

The company is also renowned for its exports, which have also been

witnessing positive growth. The company has recently entered the radial tyre

segment and has met with positive response. The performance of the company

could further improve with the revival of the auto industry. Thus MRF can be

expected to retain its position in this segment too.

MRF bagged many awards, like

Visvesvary Award for the Best Business house in South India.

The Harvard Business School Award for the Best Corporate

Performance

Six Quality Improvement Award instituted by B.F.Goodrich

Continue to be the 1st in “JD Power Rating” for the past 3 years.

The National Institution of Quality Assurance Award.

Readers of the A & M Magazine ranked MRF, as one of India’s most

admired marketing companies.

14

1.3 REVIEW OF LITERATURE

The EUROPEAN FOUNDATION for the Improvement of Living and

Working Conditions did a project study titled “Preventing Absenteeism at Work

Place” in the year 1997 for the whole of the 15 countries coming under the

European Union. One of the recommendations given by the study is:

Employers and workers can have a knowledge base to start preventive

and reintegrative activities at the work place. These activities should

Use a systematic and comprehensive approach.

Be based on the needs of the work force.

Aim at active employee participation.

Be applied across all workers in the company.

Another project titled “Ill Health and Work Place Absenteeism” focused on

the health related issues of absenteeism. In the main phase of the research,

detailed studies were made of different approaches to reducing absence

associated with ill health.

DEFINITIONS FOR ABSENTEEISM

Hackett defines absenteeism as “a temporary cessation of work for not

less than one whole day, on the initiative of workers, when his presence is

expected.

15

Technically it can be defined as a ratio of the number of production man –

days or shift lost to the total number of production man – days or shifts

scheduled to work.

According to the circular issued by the Labour Department, Government

of India, absenteeism rate refers to “the total man – shifts lost because of

absence as a percentage of the total man – shifts scheduled”.

An employee is to be considered scheduled to the work, when the

employee has available work and the employee is aware of it, and when the

employer has no reason to expect, well in advance, that the employee will not

be available for work at the specified time.

“Absenteeism is any failure of an employee to report for or to remain at

work as scheduled, regardless of reason”.

Labour Bureau of India defines absence as a failure of a worker to report

for work when he is aware that the employer has work available to him.

Absenteeism is the tendency of a worker to abstain from his scheduled

work. For the purpose of statistics, a worker is treated as absent when

He does not turn for work by obtaining prior permission.

He is on leave with pay (Full or Part)

The worker is on leave without pay even though the worker receives

social security benefits for sickness, maternity benefits etc.,

When the worker absconds from duty.

16

According to a circular issued by the Labour Department, Govt. of India,

absenteeism rate refers to “the total man- -shifts lost because of absence as a

percentage of the total man – shifts scheduled”.

For estimating the rate of absenteeism we require the number of persons

scheduled to work and the number actually present. A worker who reports for

any part of shift is to be considered as present.

An employee is to be considered scheduled to work, when the employee

has available work and the employee is aware of it, and when the employer has

no reason to expect, well in advance, that the employee will not be available for

work at the specified time.

Regularly scheduled holidays, ordered lay – offs, strikes and bandhs are

excluded while estimating absenteeism.

Rate of Absenteeism

Absence = (Number of daily absentees during a period) *100

(Number of employees)*(Number of working days)

CAUSES OF ABSENTEEISM

The rate of absenteeism is the highest on the last and the first working

days in the week and after the paydays. The enterprises with paid sick leave

have greater absences than their counterpart, manufacturing units have higher

rate of absence than the non – manufacturing ones, the shop have greater rate

17

of absences than the office rates, the night shift involves more absence than the

day – shifts, and the job satisfaction is also negatively related to absenteeism.

Rates of sickness absenteeism indicate a health rather than a morale

problem, it should be separately estimated. However whatever be the nature of

absenteeism it can upset production schedule badly, especially in line and group

production systems.

The causes of absenteeism can be categorized into three. It includes

In-plant causes

Personal causes

Community causes

In – plant Causes

In – plant causes of absenteeism include:

In – effective selection and placement procedures

Excessive fatigue

Over – staffing

Under – staffing

Irregular flow of production

In – effective use of skills

Poor supervision

In – adequate training programme

In – effective grievance procedure

18

Low morale

Poor employer – employee relations

Personal Causes

The personal causes of absenteeism are:

Illness of oneself or of one’s family

Seeking other employment

Household responsibilities

Child care

Recreation

Use of alcohol

Community or Social Causes

The community or social causes include:

Inadequate housing

Poor transportation

Marketing and shopping difficulties

Lack of social facilities such as hospital and credit

Seasonal factors such as cultivation season, marriage season,

amusement and religious festivals

19

CONTROLLING AND PREVENTING ABSENTEEISM

There are several measures to control and prevent absenteeism. The

most effective measures to control absenteeism relate to good records, careful

analysis, and good supervision. Efforts may be made to determine where

absenteeism takes place, when it takes place, who is involved and why he/she

is involved.

Other measures to control include effective placement, adequate training,

penalty for absence, and rewards for attendance, delegation of responsibility of

control to foreman, effective personal practices and improved working conditions

and obtaining union co – operation.

The work milieu is very important since a large part of the workers daily

life is spent there. The atmosphere obtaining in a plant therefore affects his

attitude to his work, and either persuades him to attend regularly or keeps him

away.

It has been indicated that a large part of absenteeism is caused by a

small part of work force that the same individuals are involved throughout their

work history rather than in a particular year, it indicates that the individuals with

positive attitudes have low absenteeism. Moreover life stress and illness have

positive relationship with absenteeism. These facts provide the basis to control

absenteeism effectively. In addition to this, inter – departmental contests and

awards, and time - offs for personal needs such as shopping have been found

effectiveness in preventing absenteeism.

20

CHAPTER 2

RESEARCH INFORMATION

2.1 OBJECTIVE

Primary Objective

The primary objective of the project is to study about absenteeism and

the rate of absenteeism prevailing in the industry. The study also includes the

attitude of the workers towards the company who belongs to chronic absentees.

Secondary Objective

To study the reasons for absenteeism.

To find the factors leading to absenteeism.

To find whether the workers are motivated by the introduction of new

schemes by the company.

To find measures to control absenteeism.

To find the relationship between absenteeism and the various factors

leading to absenteeism.

To receive suggestions from the workers for reducing absenteeism.

21

2.2 NEED FOR THE STUDY

Absenteeism is a common factor prevailing in the Indian industries. The

main objective of organization is to maximize profit by employing minimum number

of men, material and money. When there is a problem of absenteeism the above

said factors are not fairly utilized. So the need for reducing absenteeism is not only

the need for the company but also the need of the nation.

The study conducted in MRF, Tiruvottiyur is to find the reasons for the

absenteeism, the factors leading to absenteeism, to find whether the workers

are motivated after the introduction of the various schemes to reduce

absenteeism etc. The study is also conducted to analyze the relationship of

various factors with absenteeism.

Moreover to know the attitude of the workers towards the organization is

the most important one because in a factory like MRF, which employees more

than 1000 workers, the attitude is the basic factor that defines the worker’s

morale and rate of satisfaction.

22

2.3 SCOPE OF THE STUDY

Absenteeism is not a new problem in the Indian industries. It is a universal

fact. Absenteeism is one of the common factors, which affect both the production,

and the growth of the organization. So controlling and preventing absenteeism

become the aim of the whole nation.

Chronic absentees are persons who habitually stay away from their work.

Unauthorized absence will increase the workload of other workers. Moreover the

production will decrease and the company will be in a position to close the

business. This is not only the problem of the company alone; it will affect the

employer, the employee and the community as a whole.

23

2.4 LIMITATIONS

The study was conducted within a limited time period.

The sample size is limited to 150 from the population of 300.

Only the absentees who absented more than 20 days in the year 2003

and 2004 are taken as the population.

The data provided by the respondents may be false at times.

The researcher was asked to interview the workers in Tamil language.

Researcher is conducting the project for the first time.

24

2.5 RESEARCH METHODOLOGY

2.5.1 Research Design

Descriptive Research Design has been followed to conduct the

research study. The success of any formal research depends on its sound

research design. As the aim of this project is to identify the factors leading to

absenteeism and the relationship between various factors and absenteeism this

project is purely descriptive in nature.

2.5.2 Sampling Technique

Stratified Random Sampling is used for the study. Under stratified

sampling the population is divided into several sub – populations that are

individually more homogenous than the total population. Stratified sampling results

in more reliable and detailed information.

2.5.3 Population

MRF Tiruvottiyur has a total population of 1014. The workers who have

been absent for more than 20 days in the year 2003 and 2004 are selected for the

study. So the population for this particular research is 300. 50% of the population

(150) is selected for the study as the sample size.

25

2.5.4 Method of Data Collection

Both primary and secondary data collection have been taken for this

research study.

Primary Data:

The primary data are those, which are collected afresh and for the first time,

and thus happen to be original in character. The primary data is collected using a

well – designed questionnaire both in English and Tamil language. The primary

data is collected by direct interview with the workers. The questions included were:

Dichotomous questions

Open ended questions

Closed ended questions

Secondary Data:

Secondary data means data that are already available. The secondary data

is collected with the help of company records, company manual, internet etc.,

2.5.5 Statistical Tools

The statistical methods, which are used, for the research are:

Percentage analysis

Chi – square analysis

26

CHAPTER 3

ANALYSIS AND INTERPRETATION

Analysis and interpretation is the main part of a project study. The statistical

methods used for this particular study of absenteeism are:

Simple Percentage Analysis

In simple percentage analysis the number of respondents for each factor is

converted into percentage basis. So the percentage of each factor leading to

absenteeism can be known from the simple percentage analysis.

Statistical Analysis

statistical measure used in the context of sampling analysis for comparing a

variance to a theoretical variance. It is a non – parametric test. Chi – square is

used to show the dependency or to determine whether the two classifications are

independent.

27

3.1 CROSS TABULATION

GENERAL PROFILE OF ABSENTEES

Table No.3.1.1

DEPARTMENT

MARITAL STATUS

Total

AGE

TotalGrand TotalSingle Married

20 - 30 31 - 40 20 - 30 31 - 40 41 - 50 >50

Tyre Curing 1 - 1 - 7 5 12 24 25

Tyre Building 3 1 4 2 8 6 4 20 24

Tyre Finishing - - - - 2 1 7 10 10

General Leave Reserve

1 - 1 4 6 1 3 14 15

11D Banbury - - 1 11 - 2 14 14

Others 4 - 4 2 21 10 25 58 62

Grand Total 9 1 10 9 55 23 53 140 150

INTERPRETATION

In the Tyre Curing department, from a total of 25 absentees, 12 of the

absentees are from the age group above 50. In the Tyre Building department, from

a total of 24 absentees, 8 of the absentees are from the age group 31 – 40. From a

total of 10 absentees in the Tyre Finishing department, 7 of the absentees are from

the age group above 50. In the department General Leave Reserve, from a total of

15 absentees, 6 are from the age group 31 – 40. In 11D Banbury, 11 of the

absentees are from the age group 31 – 40 from the total of 14. The department

others include Band Building, House Keeping, Banner Cutter etc. From the total of

62 absentees, 25 are coming under the age group above 50 in the others category.

Finally from the 150 absentees 140 belongs to the married category.

28

GENERAL PROFILE OF ABSENTEES

Table No.3.1.2

EXPERIENCEINCOME

AGEGrand Total

20 - 30 31 - 40 41 – 50 >50

<5 yearsYes 1 - - - 1

No 7 1 - - 8

6 – 10 yearsYes 2 8 - - 10

No 8 26 - - 34

11 – 15 yearsYes - 5 4 - 9

No - 12 3 - 15

16 – 20 yearsYes - - 4 - 4

No - 3 6 2 11

>20 yearsYes - - 3 24 27

No - 1 3 27 31

Grand Total 18 56 23 53 150

INTERPRETATION

Among the absentees who are having more than 20 years experience 24

persons have some other source of income. 4 of the absentees who belong to 16 –

20 years experience have some other source of income. Among the absentees

who are having 11 – 15 years experience, 5 persons have some other source of

income. 8 absentees who are having 6 – 10 years experience have some other

source of income. Only 1 person who is having less than 5 years experience have

some other source of income. From the table it is clear that there is a direct

relationship between age and the number of persons who is having other source of

income. As the age increases, the number of persons who is having other source

of income also increases.

29

3.2 SIMPLE PERCENTAGE ANALYSIS

RATE OF ABSENTEEISM IN DEPARTMENTS

Table No. 3.2.1

DEPARTMENTNO. OF

RESPONDENTSPERCENTAGE

Tyre Curing 25 17.00

Tyre Building 24 16.00

Tyre Finishing 10 7.00

General Leave

Reserve15 10.00

11D Banbury 14 9.00

Others 62 41.00

Total 150 100.00

Figure No. 3.2.1

TC TB TF GLR 11D OTH0%

10%

20%

30%

40%

50%

17% 16%

7% 10% 9%

41%

Departments

Series1

INTERFERENCE

The department others include Band Building, House Keeping, Banner

Cutter, Homogenisation etc., 41% of the absentees are from the respective

departments. 17% from Tyre Curing, 16% from Tyre Building, 7% from Tyre

Finishing, 10% from GLR, and 9% from 11D Banbury.

30

EXPERIENCE RELATED WITH ABSENTEEISM

Table No. 3.2.2EXPERIENCE NO. OF

RESPONDENTS

PERCENTAGE

<5 Years 9 6.00

6 – 10 Years 44 29.30

11 – 15 Years 24 16.00

16 – 20 Years 15 10.00

More than 20 Years 58 38.60

Total 150 100.00

Figure No. 3.2.2

0%5%

10%15%20%25%30%35%40%

6%

29.30%

16%

10%

38.60%

Experience

<5 y 6 - 10 y 11 - 15 y 16 - 20 y >20 y

INTERFERENCE

The workers who are having experience more than 20 years is absenting

more. This shows their dissatisfaction in the job, or may be due to their health

problems. 29.3% of absentees belong to 6 – 10 years experience. 16% absentees

belong to 11 – 15 years’ experience. 10% belongs to 16 – 20 years’ experience

and only 6% belong to <5-year experience.

31

REASONS FOR ABSENTEEISM

Table No. 3.2.3REASONS NO. OF

RESPONDENTS

PERCENTAGE

Shift Timing 27 18.00

Working Condition 23 15.30

Work Load 50 33.30

Dissatisfaction With

Job

37 24.60

All The Above 13 8.60

Total 150 100.00

Figure No. 3.2.3

st wc wl dj all0%

5%

10%

15%

20%

25%

30%

35%

18.00%15.30%

33.30%

24.60%

8.60%

Reasons

INTERFERENCE

33.3% of the absenteeism is due to the workload in the company. 24.6% is

due to dissatisfaction with job, 18% is due to the shift timings, 15.3% is due to the

working condition and 8.6% is absenting because of all the reasons mentioned

above.

32

OPINION OF THE WORKERS REGARDING EFFECTIVE

MEASURES TO REDUCE ABSENTEEISM

Table No. 3.2.4

EFFECTIVE

MEASURES

NO. OF

RESPONDENTS

PERCENTAGE

Superior- worker

relationship

23 15.30

Shift schedule 39 26.00

Working condition 20 13.30

Wage policy 31 20.67

Leave rules 37 24.60

Total 150 100.00

Figure No. 3.2.4

SW15%

SS26%

WC13%

WP21%

LR25%

Effective measures

INTERFERENCE

26% of the absentees believe that re – arranging the shift schedule is the

most effective measure to reduce absenteeism. 25% of the absentees feel that

revising the leave rules is the effective measure. 21% thinks that changing the

wage policy is the best. 15% wants to improve the superior – worker relationship

and 13% wants to improve the working condition, health, safety and welfare

measures.

33

RATE OF PERSONAL PROBLEMS LEADING TO ABSENTEEISM

Table No. 3.2.5

PERSONAL

PROBLEMS

NO. OF

RESPONDENTS

PERCENTAGE

Health 49 32.60

Festivals & other

domestic functions

29 19.30

Indebtedness 11 7.30

Alcoholism 19 12.65

Family problems 42 28.00

Total 150 100.00

Figure No. 3.2.5

Hea Fes Ind Alc Fp0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%32.60%

19.30%

7.30%

12.60%

28.00%

Personal Problems

Series1

INTERFERENCE

From the chart it is clear that health is leading to more absenteeism than the

other factors. The percentage of absenteeism due to health is 33%. 28% of the

absenteeism is due to family problems. 19% of the absenteeism is due to festivals

and other domestic functions. 13% of workers is absenting because of alcoholism.

The rest 7% is absenting because of indebtedness.

34

RATE OF SATISFACTION OF MOTIVATION

Table No. 3.2.6

SATISFACTION WITH

SCHEMES

NO. OF

RESPONDENTS

PERCENTAGE

Strongly Agree 12 8.00

Agree 43 28.60

Neither Agree Nor

Disagree

19 12.60

Disagree 53 35.30

Strongly Disagree 23 15.30

Total 150 100.00

Figure No. 3.2.6

SA A NAD D SD0%

5%

10%

15%

20%

25%

30%

35%

40%

8.00%

28.60%

12.60%

35.30%

15.30%

Absenteeism Related With Motivation

INTERFERENCE

It is evident from the chart that 35.3% are not satisfied with the motivation

given by the company. 15.3% strongly agree that the schemes introduced by the

company are not enough to reduce absenteeism. 28.60% believes that the rate of

motivation is enough. 8% firmly believe in that.

35

NATURE OF JOB OF THE ABSENTEES

Table No. 3.2.7

NATURE NO. OF

RESPONDENTS

PERCENTAGE

Interesting 15 10.00

Adjustable 45 30.00

Risky 41 27.30

Boring 22 14.70

Frustrating 27 18.00

Total 150 100.00

Figure No. 3.2.7

Int10%

Adj30%

Ris27%

Bor15%

Fru18%

Nature of Job

Int Adj Ris Bor Fru

INTERFERENCE

About 30% of the workers are adjustable with the job, 27.3% is absenting

because of the risk involved in the job, and 18% of the workers are getting

frustrated with the job. 14.6% is workers are getting bored with the job. Only 10%

are interested in the work.

36

RATE OF SATISFACTION OF RELATIONSHIP WITH SUPERIORS

Table No. 3.2.8

RELATIONSHIP WITH

SUPERIORS

NO. OF

RESPONDENTSPERCENTAGE

Friendly with superior 50 33.30

Superior is

humanitarian36 24.00

Never talked with

superior7 4.70

Difference of opinion

with superior53 35.30

Afraid of superior 4 2.70

Total 150 100.00

Figure No. 3.2.8

F H NT DO A

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%33%

24%

5%

35%

3%

Relationship With Superiors

INTERFERENCE

About 35.3% of the absentees have some difference of opinion with the

superiors. 33.3% if friendly with superiors, 24% feel that their superior is

humanitarian, 4.7% said that they never talked with superior and the rest 2.7% is

afraid of their superior.

37

RATE OF SATISFACTION OF RELATIONSHIP WITH

CO – WORKERS

Table No. 3.2.9

RELATIONSHIP NO. OF

RESPONDENTS

PERCENTAGE

Highly Satisfied 26 17.30

Satisfied 95 63.30

No Opinion 15 10.00

Dissatisfied 10 6.70

Highly dissatisfied 4 2.70

Total 150 100.00

Figure No. 3.2.9

HS S NO D HD0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

17.30%

63.30%

10.00%6.70%

2.70%

Relationship With Co - Workers

INTERFERENCE

About 63.3% of the absentees are satisfied with the relationship with their co

– workers. 17.3% are highly satisfied. So the relationship with co – workers cannot

be said as a reason for absenteeism. 10% have no opinion about their relationship.

Only 6.7% is dissatisfied and 2.7% is highly dissatisfied with their relationship with

their co – workers.

38

PERCENTAGE OF AWARENESS AND UNAWARENESS

ABOUT SCHEMES

Table No. 3.2.10

AWARENESS ABOUT

SCHEMES

NO. OF

RESPONDENTSPERCENTAGE

Yes 59 39.30

No 91 60.70

Total 150 100.00

Figure No. 3.2.10

Yes No0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

39.30%

60.70%

Awareness About Schemes

Ser...

INTERFERENCE

From the chart it is clear that about 60.7% of the absentees are aware about

the schemes introduced by the company to reduce absenteeism. Only 39.9% is

aware about the schemes. So this is a reason for absenteeism.

39

3.3 FINDINGS

According to the objectives

The main reasons behind absenteeism are the dissatisfaction with job and

the workload of the workers. Apart from that health problems of the aged

workers also lead to high rate of absenteeism.

The main factors, which lead to absenteeism of the workers, include the low

rate of satisfaction towards motivation, and low rate of satisfaction towards

wages.

Even though the absentees are not fully motivated, a small part of the work

force is motivated for a better work after the introduction of the schemes.

There is a significant relationship with the factors leading to absenteeism

and absenteeism in most of the cases.

In Detail

Absenteeism is more in the departments like tyre curing, band building, tyre

building etc., which involves difficult task. Workload and working condition

may be the reason for absenteeism in these departments.

Percentage analysis according to age gave the result that 31 – 40 aged

workers are absenting more. This may be due to family responsibility and

other family problems.

40

It is clear that a major part of the absentees are married. This is due to

various personal problems, family problems, child care, other household

responsibilities etc.,

A large part of the absentees are coming from the near by localities, that is

from less than 3 kms. So the absenteeism is not due to distance. This shows

their low morale towards the company.

The most shocking fact is that the major groups of absentees are

experienced persons. This is because of the high rate of job security in the

company and may be because of health problems.

Other source of income is not a reason for absenteeism. Most of the

absentees depend only on the company for their living.

Awareness about leave rules and leave facilities is not the reason for

absenteeism. Most of the absentees are very much aware about the leave

rules and leave facilities.

The age group below 40 years is absenting because of workload and the age

group above 40 years are absenting because of their high dissatisfaction in

the job.

More than half percentage of the absentees is very much dissatisfied with

their wages.

Most of the workers feel that the company is not giving enough rewards for

their good performance. This will generate a psychologically negative attitude

from the workers towards the company.

41

Unawareness of the schemes introduced by the company can also be said

as a reason for absenting. Most of the workers are unaware of the schemes.

The workers are not satisfied with the motivation given by the company. The

company can introduce more useful schemes for reducing absenteeism.

Another main factor is the lack of good relationship with the superiors.

Majority of the workers have some difference of opinion with the superiors.

Relationship with the co – workers is not a reason for absenteeism. A major

portion is very much satisfied with the co – worker relationship.

The most appropriate suggestion given by the workers to reduce

absenteeism is to re – arrange the existing shift schedule.

42

3.4 SUGGESTIONS

One main suggestion to reduce absenteeism is allowing a normal rate of shift

exchange between the different shift workers. This will allow the worker to do

overtime and the other worker’s absence will not affect the organization.

Get-together of the workers in different shifts should be conducted once in two

months for at least 2 hours. This will help to increase the relationship and

mutual understanding among the different shift workers.

The rest interval or the lunch break is only a pause to the workers for a highly

motivated work for the next session. So after the lunch the worker should feel

fresh. Some entertainment like Television, music etc can relieve the strain of

the workers. Moreover at least some workers will try to keep up the timings

indirectly for the lunch break and to come back for work.

Increased rate of job security is one reason for absenteeism. So the

management should make an agreement with the union that a worker who

absents without any truthful reason for more than the limited days should be

suspended from the company. That worker’s photograph and the warning letter

given to him should be displayed on the notice board. This will create a fear of

the loss of job in the minds of the workers.

An officer should be appointed to enquire about the reasons for the

absenteeism of the workers and should provide counseling programmes for the

mentally depressed persons to reduce their personal problems.

Providing accommodation to the workers is another way to reduce

absenteeism. If charging very cheap rental, this can bring profit to the company

in the long run. Moreover the other advantages include:

43

Absenteeism due to distance can be reduced.

The workers will be motivated.

Superiors can identify the reason for absenteeism very easily.

Will improve the relationship between the workers.

Alcoholic relief programmes should be conducted to the workers who absents

due to alcoholism.

Incentives to the workers can be given by the middle of every month. This will

help to reduce the difficulty of the worker to face his colleagues without money

since because friend circle is very important for each and every person.

Moreover the other workers will be motivated to do more work and earn more

money.

Programmes should be conducted regarding, how to save money from even

from less wages. Once they start saving, the workers will not feel that they are

not getting enough wages.

Since the supervisor is the immediate leader to the workers keen interest should

be taken in appointing superiors. Superiors should deal with the workers in a

psychological manner to influence the workers.

Apart from all these improving the working condition, health, safety and welfare

measures are also important. Improving the superior - worker relationship is

another important factor.

Some group games and other entertaining programmes can be conducted for

the workers to make the job interesting.

44

Counseling can be given to the workers, who have some personal problems.

Management should help the workers when they are in need.

3.5 CONCLUSION

MRF is one of the India’s largest tyre manufacturers. Since manpower is

most important, the problem of absenteeism affects the organization in many ways.

The main reason that is the basis for absenteeism is the workers morale towards

the organization. The company should take necessary steps immediately to

increase the morale and satisfaction of the workers because workers form the

integral part of the organization.

The management should convince the workers about their importance in the

organization and the workers should feel that they belong to the MRF Family. The

study helped to identify the reasons for absenteeism and the satisfaction level of

the workers towards the various factors leading to absenteeism.

The management can take steps to reduce absenteeism by implementing

the suggestions and can take some more measures by considering the causes of

absenteeism. MRF can become the largest tyre manufacturers in the World if they

adopt necessary steps to reduce the problems in the factory.

45

REFERENCES

C.R.KOTHARI : Research Methodology

Methods and Techniques

WISHWA PRAKASAN

NEW DELHI

C.B.MAMORIA : Personnel Management

Himalaya Publishing House 1998

P.C. TRIPATHI : Personnel Management and Industrial

Relations

Sultan Chand & Sons

WAYNE.C.CASIO : Personnel Management

Website : www.mrftyres.com

www.google.com

46

APPENDIX

47

48

QUESTIONNAIRE

I. PERSONAL DETAILS :

1. Name (optional) :

2. Employee No :

3. Department :

Tyre Curing Tyre Building Tyre Finishing General Leave Reserve Others

4. Age

20 – 30 years 31 – 40 years 41 – 50 years Above 50 years

5. Marital Status :

Single Married

6. Distance from place of stay :

Less than 3 kms 4 – 6 kms 7 – 9 kms 10 – 12 kms More than 12 kms

7. Total experience in the company :

49

Less than 5 years 6 - 10 years 11 - 15 years 16 - 20 years More than 20 years

8. Do you have any other source of income? Yes No

9. Are you aware of the leave facilities and leave rules pertaining to you?

Yes No

10. If yes mention the leave facilities:

II. REASONS FOR ABSENTEEISM

11.What are the reasons for absenteeism?

Shift work Working condition Work load Job – dissatisfaction All the above

12.The nature of your job.

Interesting Adjustable Risky Boring Frustrating

III. PERSONAL PROBLEMS

50

13.Which of these personal problems is leading to more absenteeism?

Health Festivals and other functions Indebtedness Alcoholism Family problems

IV. WAGES

14.Are you satisfied with the present wages you are getting now?

Highly satisfied Satisfied No opinion Dissatisfied Highly dissatisfied

15.The company is not giving enough rewards according to your performance.

Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree

V. MOTIVATION

16.Are you aware of the schemes introduced by the company to reduce absenteeism?

Yes No

17. If yes mention any two:

51

18.Do you agree that the schemes introduced are enough to reduce absenteeism?

Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree

VI. RELATIONSHIP

19.How is your relationship with your superiors?

Friendly with superior Superior is humanitarian Never talked with superior Have some difference of opinion with superior Afraid of superior

20.Are you satisfied with the relationship with your co-workers?

Highly satisfied Satisfied No opinion Dissatisfied Highly dissatisfied

21.Are you satisfied with the rest intervals provided?

Yes No

22.Among these which one you feel the most prompt to reduce your absenteeism.

Improving the superior-worker relationship Re-arranging the existing shift schedule Improving the working condition, health, safety, welfare measures etc. Changing the existing leave rules Revising the wage policy

23. If you have any other suggestions please specify:

52

53