A STUDY ON ANALYSIS OF ABSENTEEISM IN CUMI

A project report submitted to CENTRAL UNIVERSITY OF JAMMU in partial fulfilment of the

requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION- HUMAN RESOURCE MANAGEMENT

Submitted by:

Narinder Kumar

Roll No:-1300715

Department of Human Resource Management & Organisational Behaviour

Central University of Jammu, Jammu

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ACKNOWLEDGEMENT

Firstly I would like to express my immense gratitude towards our institution CENTRAL

UNIVERSITY OF JAMMU, which created a great platform to attain profound technical skills in

the field of MBA, thereby fulfilling our most cherished goal.

I would thank entire HR department of CUMI specially Mr S.INBARAJ, MANAGER HR, and

the employees in the HR department for guiding me and helping me in successful completion of

the project

I am very much thankful to my project coordinators MR. S.ESAKKIAPPAN and MR.YUVA

PRASAAD, DEPUTY MANAGERS HR for extending their cooperation in doing this project.

I convey my thanks to my faculty who helped me directly or indirectly in bringing this project

successfully.

Narinder Kumar

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EXECUTIVE SUMMARY

Carborundum Universal Limited (“CUMI”), as a constituent of the Murugappa Group, is

committed to high standards of corporate governance in all its activities and processes. CUMI

looks at corporate governance as the cornerstone for sustained superior financial performance and

for serving all its stakeholders. Apart from drawing from the various legal provisions, the group

practices are continuously benchmarked with industry practices. The entire process begins with

the functioning of the Board of Directors, with leading professionals and experts serving as

independent directors and represented in various Board Committees. Systematic attempt is made

to ensure symmetry of information.

Key elements in corporate governance are transparency, internal controls, risk management,

internal/external communications and good standards of safety and health. The Board has

empowered responsible persons to its broad policies and guidelines and has set up adequate

review processes. CUMI’s business strategy is evolved from Domestic & Global market trends,

Economic Growth, Competitor Analysis and Customer Industries’ Growth Plan. HR strategy is

linked to business strategy and facilitates the organization to achieve the objective by building

people capabilities.

CUMI’s concern for people has been driving force for the growth of the organization over the last

5 decades. The sustained growth over the past several years attributed to the knowledge, skill of

the people and technology. HR has always been one of the focus points in the business strategy.

The HR strategy is carefully linked to the Vision, Mission and overall business strategy of the

Company.

Absenteeism is a common but serious problem in CUMI. The high rate of absenteeism is mainly

due to lack of commitment to work. Absenteeism results in dislocation of work, increase in labour

costs, reduction in productivity and causes an increase in indiscipline. Among all the abrasive

plants under CUMI, this Thiruvottiyur plant large percentage of absenteeism in the first quarter of

2014 i.e. from April to June. After a number of counselling sessions and show cause notices send

to the employees, the standard of absenteeism does not seem to improve which is really affecting

the productivity of this plant. Therefore employees and human resource professionals should be

3

concerned when absence suddenly increases and they are desperate now to take whatever steps are

necessary to alleviate the problem.

With this background, the proposed objective of the study is to find out the socio-economic

background of employees in the company along with finding out the reasons of absenteeism, so

that some suggestions will be given in order to help the company in reducing absenteeism rates.

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TABLE OF CONTENTS---CHAPTER 1- INTRODUCTION PAGE NO.

1.1 Company Introduction 8

1.2Company Profile

8

1.3Joint Venture

9

1.4Subsidiaries of CUMI

10

1.5 CUMI Abrasives 12

1.6 HRM Practices of CUMI 14

1.7 Limitations of the study 16

CHAPTER 2- LITERATURE REVIEW 17

CHAPTER 3- RESEARCH METHODOLOGY

3.1 Identification of problem 20

3.2 Objectives of the study 20

3.3 Data source and data collection 20

3.4 Sample design 21

3.5 Relevance of the study 21

3.6 Scope of the study 21

CHAPTER 4- DATA ANALYSIS AND INTERPRETATION 23

CHAPTER 5- FINDINGS AND SUGGESTIONS

5.1 Findings 41

5.2 Suggestions 42

CHAPTER 6- CONCLUSION 45

BIBLIOGRAPHY & REFERENCES

ANNEXURE A

ANNEXURE B

ANNEXURE C

5

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CHAPTER 1

INTRODUCTION

1.1 Company Introduction

Murugappa Group

Founded in 1900, the INR 225 Billion Murugappa Group is one of India's leading business

conglomerates. The Group has 28 businesses including eleven listed Companies traded in NSE &

BSE. Headquartered in Chennai, the major Companies of the Group include Carborundum

Universal Ltd., Cholamandalam Investment and Finance Company Ltd., Cholamandalam MS

General Insurance Company Ltd., Coromandel International Ltd., Coromandel Engineering

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Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd., Sabero Organics Ltd.,

Shanthi Gears Ltd., Tube Investments of India Ltd., and Wendt (India) Ltd.

Market leaders in served segments including Abrasives, Auto Components, Cycles, Sugar, Farm

Inputs, Fertilizers, Plantations, Bio-products and Nutraceuticals, the Group has forged strong

alliances with leading international companies like Groupe Chimique Tunisien, Foskor, Mitsui

Sumitomo, Morgan Crucible and Sociedad Química y Minera de Chile (SQM). The Group has a

wide geographical presence spanning 13 states in India and 5 continents.

Renowned brands like BSA, Hercules, Ballmaster, Ajax, Parry’s, Chola, Gromor and Paramfos

are from the Murugappa stable. The organization fosters an environment of professionalism and

has a workforce of over 32,000 employees.

1.2 Company Profile

CUMI (Carborundum Universal Madras India)

CUMI was founded in 1954 as a tripartite collaboration between the Murugappa Group, The

Carborundum Co., USA and the Universal Grinding Wheel Co. Ltd., U.K.

The company pioneered the manufacture of Coated Abrasives and Bonded Abrasives in India in

addition to the manufacture of Super Refractories, Electro Minerals, Industrial Ceramics and

Ceramic Fibres.

Today the company's range of over 20,000 different varieties of abrasives, refractory

products and electro-minerals are manufactured in ten locations across various parts of the

country.

With state-of-the art facilities and strategic alliances with global partners, CUMI has achieved a

reputation for quality and innovation. CUMI is one of the five manufacturers in the world with

fully integrated operations that include mining, fusioning, wind and hydro power stations,

manufacturing, marketing and distribution.

Almost all of CUMI's ten manufacturing facilities have received the ISO 9001:2008 accreditation

for quality standards. A well connected marketing and distribution network of offices and

warehouses in India and abroad ensure that service to customers is given prime importance.

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CUMI's constant innovation and product upgradation, through in-house R&D and strategic

alliances with global leaders in grinding technology, have not only ensured its market leadership

in India and abroad, but also international recognition as a manufacturer of quality abrasives and a

provider of total grinding solutions.

CUMI's products are being exported to 43 countries spread across North America, Europe,

Australia, South Africa and Asia.

1.3 Joint Venture

• Wendt (India) Limited

• Murugappa Morgan Thermal Ceramics Ltd. ("MMTCL")

• Ciria India Limited ("Ciria India")

The basic profile and percentage share-holdings of CUMI in the subsidiaries / joint ventures are

given below:

Wendt India Limited

Total revenues increased by 30 percent to Rs. 339 million. Profit after tax increased by 54 percent

to Rs. 71 million. Further, a 1:1 bonus was issued. The dividend for the year is Rs 15 per share of

Rs. 10 each.

Wendt‘s Abrasives for Stone / Construction Industry Principal Business:

Manufactures abrasives for stone / construction industry (Diamond and CBN grinding wheels &

tools) and special purpose machines. This joint venture with Wendt Gmbh, allows CUMI to offer

its customers the full range of abrasives product viz., conventional and abrasives for Stone /

Construction Industry. It has a plant at Hosur in Tamil Nadu

Website: www.wendtindia.com-

Murugappa Morgan Thermal ceramics Ltd

Total revenues increased by 27 percent to Rs. 294 million. Profit after tax of Rs. 36 million was at

previous year’s level. Dividend for the year was Rs 10 per share of Rs. 10 each.

9

MMTCL’s ceramic fibre products Principal Business:

Manufactures ceramic fibre, which is a refractory material. The Company serves iron and steel,

power, petrochemicals, ceramics and furnace building industries. Its plant is located at Ranipet in

Tamil Nadu. As CUMI is also in refractories business there are synergies between MMTCL and

CUMI’s operations

Website: www.murugappamorgan.com

Ciria India Limited

Total revenues increased from 146 percent to Rs. 170 million. Profit after tax increased 282

percent to Rs. 26 million. A dividend of Rs. 20 per share of Rs. 10 each has been recommended.

1.4 SUBSIDIARIES OF CUMI

CUMI America Inc.

The revenues for the year were at $3.615 million when compared to $2.325 for the previous year.

The company reported loss of $0.7 million before taxes and a loss after tax on $0.49 million as

against a loss after of $0.39 million in previous year.

Principal Business: Marketing of Abrasive Products in the USA

CUMI Australia Pvt. Ltd.

The Company acquired a 51 percent stake in CAPL, a company engaged in the design, marketing

and application of industrial ceramics and ceramic-lined equipment used in the coal processing

industry. Since CAPL procures a significant requirement of industrial ceramics from CUMI, the

investment is expected to help CUMI increase its presence in Australia. For the year ended 31st

March 2014, the Company reported total revenues of AU$ 12.8 million and a profit after tax of

AU$ 1.3 million.

Website: www.cumi.com.au

Sterling Abrasives Limited

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Revenue for the year under review was Rs. 555.5 million. Profit after tax improved from Rs. 63.7

million to Rs. 60.8 million through cost reduction and enhanced operating efficiencies. A dividend

of 150 percent has been proposed for the year.

Sterling Abrasives Factory at Ahmadabad Principal Business: Manufacture of grinding Wheels

Website: www.sterlingabrasives.com

Southern Energy Development Corporation Limited ("SEDCO")

Revenue decreased from 192 million to Rs. 146 million. Profit after tax decreased from 61million

rupees to 4million rupees.

Principal Business: Operates a 5 MW natural gas based power plant as a captive source of power

for the Murugappa Group. The power plant is at Nallur, Tiruvarur District in Tamil Nadu.

Net Access India Limited

Income from operations increased from Rs. 196 million to Rs. 217 million. This improved

performance was a result of a stronger focus on timely delivery and cost control.

Net Access development centre at Chennai Principal Business: IT enabled Services Company

focusing on facilities management and internet related services.

CUMI Middle East FZE

The Company was incorporated in Dec. 2006 in RAK Free Trade Zone, Ras Al Khaimah, and

UAE. It has been set up as a Product Availability Point (PAP) to serve the African, Middle East

and Russian markets. The company has commenced operations in April 2006. Total revenue of

CUMI Middle East is about 2.4 million US dollars in 2014.

CUMI Canada Inc.

The Company was set up in 2006 to focus mainly for the Canadian and North American markets.

Together with CUMI America, the Company serves as a Product Availability Point (PAP) for the

CUMI's products for the North and South American markets.

Website: www.cumicanada.com

OAO Volzhsky abrasives works

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Volzhsky Abrasive Works established in 1961 is only producer of silicon carbide in Russia, the

largest producer of silicon carbide in Europe and the major producer of vitrified bonded abrasive

tools in Russia and CIS. Fusion and processing of SiC is the basis of the today’s plant production.

Production capacities allow to produce and process over 70 000 tons of SiC per year.

The second direction is production of vitrified and Bakelite bonded abrasive tools.

The third direction is manufacturing of refractory products made of the own SiC.

Volzhsky Abrasive Works» is a member of Federation of European Producers of Abrasives and

a member of Silicon Carbide Manufacturers Association.

1.5 CUMI ABRASIVES

CUMI pioneered the manufacture of Coated Abrasives, Bonded Abrasives and Tools for Stones in

India in addition to the manufacture of Super Refractories, Electro Minerals, Industrial Ceramics

and Ceramic Fibres. With strategic global alliances and state-of-the-art manufacturing facilities

spanning the Southern Asian region, China, Russia and Africa, CUMI has achieved a reputation

for quality and innovation.

The global abrasives industry is about USD 13 billion. The major players are Saint Gobain,

Tyrolit, Winterthur, Sia Abrasives and 3M. Till last year, CUMI was primarily an Indian player.

The acquisition of Volzhsky Abrasive Works, Russia has given CUMI a strong presence in the

Russian markets and also a sound base for increasing its global penetration.

In India, CUMI is the market leader. Apart from CUMI, Grind well Norton Ltd. (part of the Saint

Gobain group) is a major player in the domestic industry. 3M specializes in coated abrasives. In

addition, John Oakey & Mohan and SAK abrasives are the other abrasives manufacturers of

significance in India. The Indian market is also served by several small players operating in

specific product lines and also imports. While high-end imports are certain specialty products

from Europe, the low end ones are 'price only' products from China.

The characteristics of abrasives industry are as follows:

• Diverse industrial applications

• Perceivably low threats from substitute products

• Adequate raw material availability

• Application engineering support to users

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The key success factors are quality, cost, delivery and application engineering.

Key inputs are abrasive grains electricity, processed cloth, paper and resins.

Abrasives & Allied Products

An Abrasive is a hard, tough and wear resistant substance for grinding and polishing operations.

Manufactured through a complex and high technology process, these abrasives are used in metal

removal, cutting and finishing operations in almost all industries.

Coated Abrasives

These are manufactured by depositing grains over a backing material like cloth, paper or fibre.

Depending on the requirement of the customer, the backing material and type of grains will vary.

There are various types of grains like sintered aluminium oxide , silicon carbide, zircon, emery and

flint. The grains are of varied sizes referred as 'grits' and their sizes also vary from grit 12 to grit

2000. The backing on which these grains are coated will vary depending on the industry and

application to which the coated abrasives are supplied.

Initially, the grains are deposited over adhesive rich backing materials and jumbos of coated

abrasives (up to 1000 meters) are manufactured. Then, depending on customer order/usage, these

jumbos are converted into various shapes like sheets, belts, rolls, discs and flap wheels. The

geometry of the product also differs from each other based on application equipment.

Coated abrasives are used in light polishing applications in automobile, auto ancillaries, white

goods, hand and power tools, sanitary ware, furniture, and fabrication and construction industry.

Bonded Abrasives

These are divided into vitrified, resinoid and rubber products and manufactured by mixing grains

with bonding material, moulding them to shape and then subjecting the output to firing or baking

in high temperature and finishing the same to desired dimensions. The composition of the product

depends on the type of grains and type of bonding materials used. Sizes will vary between 10 mm

to 1200 mm with thickness ranging from 1 mm to 650 mm. Bonded abrasives are mostly in the

form of wheels but also in other shapes such as segments, sticks etc. Bonded abrasives for internal

purposes classified as Standard Products (i.e. those products which are made to standard

dimensions, grit sizes, shapes and grain / bond composition). These are sold largely through the

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distribution channel. Non Standard Products are those products which are made to exact

requirements of customers. CUMI's product range boasts of over 20,000 varieties of abrasives.

Bonded Abrasives are used in diverse applications like floor polishing, fabrication, polishing, off-

hand tool grinding and precision grinding of diverse products like crank shaft, balls and razor

blade across a wide spectrum of industries ranging from automobile, construction, fabrication,

steel, bearing etc.

Tools for stones

Diamond and cubic boron nitride (CBN) are known as Tools for Stones. Wheels and tools made

with these abrasives are used in high end applications. CUMI is present in this segment, through

its joint venture Wendt India Ltd., Bangalore, India. The major user industries for Tools for

Stones are automobile, engineering, cutting tools, refractories, ceramics tile, glass and steel.

Metal Working Fluids

Apart from abrasives, CUMI also manufactures metal working fluids for grinding applications. In

the metal working process, the right combination of machine, cutting tool and metalworking fluid

is required to produce an acceptable part.

Power Tools

CUMI recently launched a range of power tools used in metal working, construction, wood

working and interior decoration. Abrasives are used as accessories in power tools. The Company's

strong brand image and well established marketing network provide good synergies for this

product line with abrasives.

1.6 HRM Practices of CUMI

Some of the important HRM practices of CUMI Thiruvottiyur plant are as under:

Recruitment Policy: CUMI will recruit based on integrity, competency, and he ability to work in

a team. We would also endeavour to select individuals with leadership potential, customer

orientation and quality focus. Above all we also take the value-fit of the individual with the group

into consideration

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Career Planning Policy: CUMI believes that it is our responsibility to develop employees to

their fullest potential so that future challenges could be met with existing talents.

Compensation: CUMI believes that compensation should be based on the performance of an

individual and the individual performance is classified through a qualifiable/objective measure.

The performance rating will be:

• Exceptional contribution

• Significant contribution

• Good contribution

• Not meeting the requirements

• Not suitable

Attendance Policy: Attendance bonus is paid once in 3 months for the employees is continuous

and does not have late coming and loss of pay.

Leave Policy:

• Company provides 8 days of casual leave per year.

• Company also provides 8 days of sick leave, which can be availed by the employees at the

time of sickness, where doctor’s certificate is compulsory for the sanctioning of leave.

• Apart from that a special annual leave is computed on continuous service of an employee

for 240 days in a year, which is variable in nature.

Children’s Educational Benefit: The Company offers Rs.850 for S.S.L.C. and Rs.1200 for

H.S.S. of the top 6 student performers of the employees to motivate their performance.

Employees Bonus: Company offers an annual bonus of Rs.8400 per employee to share the

prosperity of the organization with its work force, in recognition of their contribution towards the

growth of the organisation.

Medical Insurance Facility: The company offers medical insurance covers i.e pays premium for

the medical insurance covering the employee and his/her family members, which includes

employee, spouse and two children.

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Transport and Food Facility: Subsidised food and transport facilities are offered to the

employees. Transport allowance of Rs.200/employee per month is paid by the company.

1.7 Limitations of the study

• A study on absenteeism in Carborundum Universal Madras India, Thiruvottiyur Chennai is

confined to only 50 employees of the organization in its Chennai premises. Hence the

results of the study may not be generalized and not universally applicable.

• There is a possibility that the employees might fill wrong information in the questionnaire

• Not every employee will provide sufficient proof for the reasons; he/she will give for

his /her absenteeism.

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CHAPTER 2

LITERATURE REVIEW

17

i. According to Luthans (1995), research has generally revealed a consistent inverse

relationship between job satisfaction and absenteeism, i.e. when satisfaction is high,

absenteeism tends to be low and when satisfaction is low, absenteeism tends to be high

ii. Absenteeism is a complex variable and is influenced by multiple factors. (Robbins, 1998;

Robbins, Odendaal & Roodt, 2003; Spector, 1997).

iii. Financial stress can induce physical and psychological responses. Financial stress affects

individuals’ health through physical impairments (Drentea & Lavrakas, 2000), drinking

problems (Moos, Fenn, Billings & Moos, 1989; Peirce et al., 1996), depression, and

reduced psychological well-being (Jackson, Iezzi & Lafreniere, 1997; MyVesta, 2001;

Mills et al., 1992; Pearlin, Menagahn, Lieberman & Mullan, 1981; Ullah, 1990).

iv. Genuine sickness accounts for between half and two-thirds of absences from work

(Huczynski & Fitzpatrick, 1989).

v. Stress influences absenteeism (Hendrix et al., 1987; Ivancevich & Matteson, 1980). The

literature has suggested that over 70% of all job absenteeism is tied to stress-related illness

(Adams, 1987).

vi. Employees who are suffering from stress at work are less likely to be productive. The

three most common reasons for unscheduled absences are personal illness (33%), family

issues (24%), and personal needs (21%). Stress as a reason for absenteeism has increased

over 300 percent since 1995 (CCH Inc., 2002).

vii. Jacobson (1989) has investigated a direct relationship between monetary incentives and

work floor attendance.

viii. Nisam (2010) stated that stress among employees, health problems, loneliness at

workplace, non-cooperation of colleagues causes absenteeism at workplace.

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ix. Absenteeism can fall under 3 broad categories: legal (such as public holidays), authorized

(such as approved holidays) and unauthorized (also referred to as casual absence).

Unauthorized absence is what most organizations strive to avoid and keep to a minimum.

CHAPTER 3

RESEARCH METHODOLOGY

19

3.1 Identification of problem

Absenteeism is a common but serious problem in CUMI. The high rate of absenteeism is mainly

due to lack of commitment to work and many other factors. Absenteeism results in dislocation of

work, increase in labour costs, reduction in productivity and causes an increase in indiscipline.

Among all the abrasive plants under CUMI, this Thiruvottiyur plant large percentage of

absenteeism in the first quarter of 2014 i.e. from April to June. Thus this project was done to find

out the reasons of absenteeism and to give suggestions for controlling it.

3.2 Objectives of the study

• To identify the socio-economic background of Carborundum Universal Limited

employees.

• To identify the consequences of absenteeism of employees from employee perspective.

• To identify the duration of leave taken by an employee in a month and the reason of

absenteeism from work

• To provide suggestions to reduce absenteeism in the organization.

3.3 Data source and data collection

This study involves collection of both primary and secondary data.

Primary data 1. Information through questionnaire method

2. By going through the official records of the

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employees

3. Counselling, on the basis of questions

predetermined by both the management and the

researcher, covering different fields of

absenteeism.

Secondary data 1. Through company officials regarding

company policies and procedures

2. Through settlement booklet (settlement

between the management and the workers)

3. Through official website of the company

3.4 Sample design

This study is concerned with the employees’ absenteeism in Carborundum Universal Madras

India (CUMI) at Thiruvottiyur plant, Chennai. Hence the employees of CUMI at Chennai

premises are taken as the population. However the sample has been selected on the basis of

following two conditions:

• The respondent should be an employee of Chennai plant.

• Must be a chronic unauthorized absentee in the company.

Sample respondents have been taken by looking into the attendance records, of the past 6 months,

of the employees and then through sorting in the descending order, a sample of top 41 absentees

has been taken.

3.5 Relevance of the study

• The study attempts to identify the frequency of leave taken by the employees.

• This study would help the management to formulate policies by which absenteeism

could be reduced and production could be increased.

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• This study can also help the management in reducing the cost of labour by taking

frequent actions against the employees who come under the category of unauthorized

absenteeism.

3.6 Scope of the study

• There are so many variables of absenteeism but in this study only few of them have been

covered like health, family and other issues, alcoholism etc.

• The scope of this study is limited only to the employees of this plant and is not universal

because the time was less and the sources were limited.

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CHAPTER 4

DATA ANALYSIS AND

INTERPRETATION

23

•

Data processing has been done through tables in the excel sheets, and representation of data

has been done through graph sheets and pie charts, for easy understanding.

,

Interpretation

Absenteeism during the first quarter of 2014 was very high during May

(8.76%) but later on during June it falls down little bit to 6.19%. This is

an overall absenteeism of non management staff and it is calculated using

the absence rate method as shown in the Annexure B.

TABLE 1 Total absenteeism of the organization

Overall Absenteeism Apr-14 May-14 Jun-14

TVT 5.41% 8.76% 6.19%

0

1

2

3

4

5

6

7

8

9

10

Absenteeism Apr-14 May-14 Jun-14MONTH

Absenteeism% (overall)

Chart 1

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TABLE 2Age of the Respondents

Age group No of employees%

25-40 1741.46

41-55 2356.10

Above 55 12.44

Total 41100.0

Chart 2

Interpretation

Majority of the employees (56.10%) belong to the age group of 41-55 years, followed by

(41.46%) employees in the age group of 25-40 years and remaining 2.44% of employees are in the

age group of above 55 years.

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Table 3 Module wise absenteeism records

Field No. of employees %

MOD 1 13 31.71

MOD 2 16 39.02

MOD 3 3 7.32

MOD 4 7 17.07

MOD 5 2 4.88

MOD 6 0 0

Total 41 100.0

Chart 3

Interpretation `

26

Majority (39.02%) of the absenting employees are from module 2, followed by module 1

(31.71%), then module 4 (17.71%), then module 3 (7.32%), then module 5 (4.88%) and there is

no absenteeism case from module 6.

Table 4Experience of the respondents

Experience No of employees %5-10Y 6 14.63

11-15 Y 12 29.2716-20Y 18 43.9021-25 Y 3 7.32

Above 25 Y 2 4.88Total 41 100.0

Chart 4

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Interpretation

Majority (43.90%) of the employees are having 16-20 years of experience, 29.27% of the

employees are having 11-15 years of experience, 14.63% of the employees are having 5-10 years

of experience, 7.32% of employees are having 21-25 years of experience and rest 4.88% of

employees are having above 25 years of experience.

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Table 5Leave taken per month

Range (leave/month on average) No of leave/month(average) %<=5 11 26.83

>5&<=10 20 48.78

>10&<=15 7 17.07

>15&<=20 2 4.88

>20&<=25 1 2.44

Total 41 100.0

Chart 5

Interpretation

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Majority (48.78%) of employees have taken 6-10 days of leave in a month, 26.83% of employees

have taken less than or equal to5 days of leave in a month, 17.07% of employees have taken 11-15

days of leave in a month, 4.88% of employees have taken 16-20 days of leave in a month and

2.44% of employees have taken 21-25 days of leave in a month.

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Table 6Educational Qualification of employees

Educational Qualification Frequency %SSLC 15 36.58

Plus two 5 12.19ITI/Diploma 18 43.90

Under graduation 3 7.32Total 41 100.0

Chart 6

Interpretation

Majority (43.90%) of employees are diploma holders, 36.58% of employees have educational

qualification up to SSLC, 12.92%of employees have educational qualification up to Plus two and

7.32% of employees have educational qualification up to graduation.ITI/Diploma

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Table 7No of work days lost from Jan to June 2014 (due to sample

employees)Month Total no of work days lostJan-14 233.5Feb-14 261Mar-14 413Apr-14 359May-14 454.5Jun-14 405.5

Chart 7

Interpretation

Maximum number of workdays (454.4) is lost during May 2014, 413 work days are lost during

March 2014, 405.5 work days are lost during June 2014, 359 work days are lost during April

2014, 2610work days are lost during February 2014 and 233.5 work days are lost during January

2014. These work days losses are associated only with the sample employees. These work days

are taken from Annexure C.

Table 8 Marital Status Marital status Frequency %Married 39 95Unmarried 2 5Total 41 100.0

Chart 8

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Interpretation

Majority (95%) of the employees are married and only 5% of them are unmarried.

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Chart 9

Interpretation

34

Table 9 Action of company

Company action Frequency %Counselling 28 68Notice without counselling 13 32Total 41 100.0

Majority (68%) of the employees have undergone counselling and most of them are not chronic

absentee and 32% of employees have not been counselled because of their chronic unauthorized

absenteeism. However enquiry against these employees occurs and necessary actions have been

taken against them, depending upon their previous attendance records.

Chart 10

35

Table 10Action against those who are not counselled

Action Frequency %Job rotation 1 8Show cause notice, enquiry under progress 5 38Enquiry completed, finally suspended 1 8Warning letter 6 46Total 13 100.0

Interpretation

Majority (46%) of the employees (who are not counselled) have been given a final warning letter

to improve their attendance, otherwise their unauthorized leave will be considered as LOP (loss of

pay), show cause notice has been sent to 38% of the employees to give reason for their

absenteeism (the enquiry is still under progress), 8% of the employees are suspended after

completion of enquiry and remaining 8% have undergone job rotation.

Table 11 Employees issues for absenteeism

Cases for absenteeism Frequency %Health problem cases 9 32Family problem cases 3 11Other cases 6 21Both health and family cases 2 7Both family and other cases 1 4Both health and other cases 5 18All the three cases 2 7 Total 28 100.0

36

Chart 11

Interpretation

Total health problem cases = 18, percentage = (18/28)*100 = 64.4%

Total family problem cases = 8, percentage = (8/28)*100 = 28.6%

Total other cases = 14, percentage = (14/28)*100 = 50%

Total cases = 40, percentage = (40/28)*100 = 143%

Here “28” is the actual no. of respondents. This percentage (total =143%) is more than the one

which is shown in the above table. This is because some of the employees have more than one

case for their absenteeism, which, later on, in the interpretation are treated separately. Majority

(64.4%) of the cases are related to the health issues and 28.8% cases are related to the family

issues.

Table 12 Health issue of the respondents

Health issues Frequency %Back pain 6 = 6/18*100=33.33

37

Neck pain 3 =3/18*100=16.67Shoulder pain 3 =3/18*100=16.67Stomach pain 1 =1/18*100=5.56Jaundice 1 =1/18*100=5.56Viral fever 2 =2/18*100=11.11High/low blood pressure 5 =5/18*100=27.78Weight loss 1 =1/18*100=5.56Chest pain/ asthma 3 =3/18*100=16.67Total health issues 25 =25/18*100=139.0Total health cases 18 (base) 100.0

Chart 12

Interpretation

Majority (33.33%) of the employees are suffering from back pain, 27.78% of employees are

suffering from high/low blood pressure, the tally of employees, suffering from neck pain, shoulder

pain and chest pain, is up to 16.67% each, 11.11% of employees are suffering from viral fever and

remaining employees are suffering from stomach pain, jaundice and weight loss, in equal ratio i.e.

5.56%. However the total percentage comes out to be 139%. This is because of the fact that some

of the respondents have more than one health issues and each health issue is treated separately.

For example: if a respondent suffers from 3 separate health issues, then he is included 3 times in

the above table, once against each issue.

Table 13 Family issues of respondents

Family issue Frequency %

38

Family's health issue 4 50Family functions 2 25Daughter school admission 1 12.5Family dispute(property issue) 1 12.5Total family issues 8 100.0Total family cases 8 (base) 100.0

Chart 13

Interpretation

Majority (50%) of the respondents have to take care of their ill family members, 25% of them are

busy in their family functions and rest of the respondents have given, family disputes and

daughter school admission, as the reasons for their absenteeism, in equal ratio i.e. 12.5%

39

Table 14 Other issues of respondents

other cases frequency %Alcoholism 3 21

Accident 4 29Far away from native place 3 21

Borrowed money 4 29Total other issues 14 100.0Total other cases 14 (base) 100.0

Chart 14

Interpretation

40

Majority (29%) of the respondents have met with accident (1 internal and 3 external) and same

ratio is for the cases of money borrowings in the form of loan, 21% of the respondents have given

habitual alcoholism as the reason for their absenteeism and the remaining 21% are far away from

their native place (family) and thus remain absent sometimes, to go and meet them.

Table 15 Income source of respondents

Income source Frequency %No other income source 21 75other income source 7 25Total 28 100

Chart 15

Interpretation

Majority (75%) of the respondents have no other income source other than this job but 25% of

them have other income sources like shop, agricultural land, sons well settled etc.

41

Table 16 Effects of absenteeism

Effects of absenteeism Frequency %No work no pay (LOP) 3 11Delay or loss of production 8 28.5Reduced quality in performance 8 28.5No growth / no promotions 6 21all of the above 3 11Total 28 100

Chart 16

42

Interpretation

Majority (57%) of the employees, in equal ratio (i.e. 28.5%) think that reduced quality of the

performance and loss of the production are the major effects of absenteeism, 21% of the

employees think that no growth no promotion will be the effect of absenteeism,11% of the

respondents think that no work no play (LOP) is the effect of absenteeism and the remaining 11%

think that all the above reasons will be the effect of absenteeism.

Table 17 Factors for reduction of absenteeism by respondentsFactors for reduction of absenteeism Frequency %Provide last chance to improve 5 18Increase in number of holidays 0 0Providing timely benefits 7 25Adopting job rotation 10 36Better working conditions 6 21Total 28 100

*

Chart 17

Interpretation

43

Majority 36% of the employees are demanding for job rotation, 25% of respondents are

demanding for timely benefits, 21% of the employees are demanding for better working

conditions, 18% of the employees are demanding for the last chance to improve their absenteeism

and no respondent has demanded for increase in the number of holidays.

CHAPTER 5

FINDINGS & SUGGESTIONS

44

5.1 Findings

1. The socio-economic background of Carborundum Universal Limited employees.

• Majority (56.10%) of the respondents, who are unauthorized absentees, belong to the age group 41-55 years

• Majority (39.02%) of the absenting employees are from module 2.

• Majority (43.90%) of the absenting respondents are having 16-20 years of experience.

• Majority (75%) of the respondents have no other income source.

2. The duration of leave taken by an employee in a month and the reason of absenteeism

from work

• Majority (48.78%) of employees have taken 6-10 days of leave, on an average, in a month.

• Majority (68%) of the employees have undergone counselling and most of them are not

chronic absentee and 32% of employees have not been counselled because of their chronic

unauthorized absenteeism.

• Out of total 28 cases:

Total health problem cases = 18, percentage = (18/28)*100 = 64.4%

Total family problem cases = 8, percentage = (8/28)*100 = 28.6%

Total other cases = 14, percentage = (14/28)*100 = 50%

• Majority (33.33%) of the respondents, among the health issue cases, are suffering from

back pain due to very physical work.

45

• Majority (50%) of the respondents, among the family issues cases, have to take care of

their ill family members,

• Majority (29%) of the respondents have met with accident (1 internal and 3 external) and

same ratio is for the cases of money borrowings in the form of loan.

3. The consequences of absenteeism of employees and how to reduce absenteeism, from

employee perspective.

• Majority (57%) of the employees, in equal ratio (i.e. 28.5%) think that reduced quality of

the performance and loss of the production are the major effects of absenteeism.

• Majority 36% of the employees are demanding for job rotation, 25% demanding for timely

benefits, 21% of the employees are demanding for better working conditions, 18% of the

employees are demanding for the last chance to improve their absenteeism.

46

5.2 SUGGESTIONS

1 There must be some grievance box for the employees so that they can put in their issues in

written form, which they have from the management that is resulting into the absenteeism.`

2 There must be free and easy communication between the worker and the employer, the

worker is comfortable enough to speak and discuss his/her issues that are resulting into the

absenteeism.

3 Since absenteeism is a major problem in CUMI now a days and is affecting the production

level of CUMI so, a separate panel should be formed to tackle the problem of

absenteeism and try to resolve the issues of the employees because management has a lot of

burden at CUMI, so might be they are not able to give proper time to the absenteeism related

issues of the employees and thus can offer the show cause notice.

4 The working conditions in some of the modules of CUMI plant are not satisfactory, there

is a lack of cold water facility which is the basic need of the worker while working under

very hot and humid conditions, the arrangement of the exhaust fans is also not proper in some

of the modules etc.

5 Job rotation is equally important because sometimes the workers might find their job not

interesting or they might feel bored because of doing same kind of work for longer times. So

its important for the organisation to go for job rotation as per the capability of the person.

Like from module 1 to module 6.Module 6 carries least absenteeism.

6 To provide the medical facility within the office premises free of cost and make it

compulsory that every worker has to come for regular check up in the office during the illness

so that the management keep an eye on the condition of the worker and no worker

7 Attendance award every year in the form of cash.

8 As far as the family related issues are concerned if a worker is working far away from his

family then management might make some transfers of the workers to some other

franchises or business of CUMI in a place which might be closest to the native place of

that employee.

9 In order to motivate workers, timely incentives, on the basis of their performance, must

be provided, especially to the casual and the contractual workers. This can be done annually.

47

10 If some person is becoming absent continuously because of his bad habits like alcoholism, to

spend time with wrong people (friends) etc then some counselling should be provided to these

employees and rehabilitation process should be arranged for them free of cost which might help

them in overcoming these habits.

11 On the basis of its observation regarding the capability of the employees the management can

put some additional and important responsibility on the shoulders of the capable and

responsible workers which can motivate them to come regularly and perform their duties.

12 Instead of providing the employees with additional holidays the company can organize one

small get together function in which all the members of all organisations should be invited

irrespective of their status in the organisation, in order to convince them about their importance in

the organisation which can motivate them to be regular.

13 Safety measures are also important for an employee while working in a manufacturing plant

otherwise an employee will have the fear of getting injured or even loss of life and thus he

remains absent from help.

14 Other facilities to improve the working conditions like proper drinking water, proper

ventilation, well required machinery (sometimes the burden of excessive manual work will also

compel the employee to remain absent thus to improve his efficiency, its important to provide

required machinery), proper dirt collection facilities etc should be provided.

15 Salaries of the employees should be revised properly because most of the workers will go

dual employment to earn more money because the money, they are earning might not be sufficient

enough to fulfil their basic needs and thus remain absent from the job. So the management of

CUMI in its next agreement has to provide sufficient salary to the employees so that they do not

go for dual job.

16 Appointment of Welfare/Labour officer.

17 Voluntary retirement scheme can be helpful because most of the responding absentees

belong to the age group of 41-55 years and are not fit for physical work because of health issues.

So the company can relieve them by using the scheme, and then recruit some fresh talent.

18 For those who are suffering from high/low BP problems are advised to go for some yoga

sessions because most of them are under a lot of stress due to high work load. So a suggestion was

48

given to make sure that such employees can work only for regular hours and they should not be

called upon for work during night shifts for proper stress management.

19 Some of them are suffering from back pain also because of the nature of their work. So they

must be shifted to some other module where so much of physical work is not required, for a

change so that they can get some time to relieve themselves from back pains.

20 Another suggestion given was that the management, during their new settlement with the

workers, for the next four years, can focus on increasing the allowances, which are directly or

indirectly related to the attendance. Whatever the increment, they will agree to give to the

employees; a major part of it must be included in the allowances related to the attendance. It will

help the management to convince the workers for coming regularly otherwise; they will lose the

major chunk of their increments, due to absenteeism.

21 The company has a policy that if an employee comes for at least 1 day in a month he is eligible

to get entire HRA, so it’s necessary to change this policy in order to reduce the absenteeism,

thereby increasing the number of presence days for giving HRA to the employees or by

giving HRA for daily attendance.

22 Counselling should be done in front of a panel that includes employees from management

side in order to make the counselling more healthy and effective.

49

CHAPTER 6

CONCLUSION

50

Absenteeism is a common but serious problem in CUMI. In the past few years, the rate of

absenteeism increase had put a check on the productivity of the company and increase the cost of

labour. Despite of the various initiatives taken and serious actions against the chronic absentees,

still the problem of absenteeism is not overcome yet. Thus, in order to help the management in

reducing absenteeism this study was conducted. The various reasons for absenteeism are found

out which include health problem, family problem, alcoholism, accidents etc. Some suggestions

have been given with respect to various reasons of absenteeism in order to help management to

reduce absenteeism and thus increase the productivity of the organization.

51

BIBLIOGRAPHY & REFERENCES

52

Bibliography

• C.R.Kothari, Research Methodology: Methods and Techniques, Second Edition, UBS

Publishers Distributors.

• Jon M. Werner, John H. Jackson, Human Resource Development, Seventh Edition,

Published by Cengage Learning India Private Limited.

• Mirza S Saiyadian, Human Resource Management, Fourth Edition Published by Tata Mc

Graw Hill Education Private Limited.

• Gary Dessler, Biju Varkkey, Human Resource Management, Eleventh Edition, Published

by Dorling Kindersley Private Limited, Licensees of Pearson Education in South Africa.

• www.citehr.com

• www.investopedia.com

• www.mbaskool.com

• www.cumi.murugappa.com

• www.murugappa.com

53

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UNITED ELECTRICAL INDUSTRIES LTD. KOLLAM” pp53-54.

55

ANNEXURES

56

Annexure A

QUESTIONNAIRE

1. Age of the employee:

• Below 25 years

• 25-40 years

• 41-55 years

• Above 55 years

2. Educational Qualification:

• No formal education

• SSLC

• Plus two

• ITI/Diploma

• Under Graduation

• Post Graduation

57

3. Experience of the employees in the present organization:

• Below 5 years

• 5-10 years

• 11-15 years

• 16-20 years

• 21-25 years

• Above 25 years

4. Marital Status:

• Married

• Unmarried

5. Number of family particulars and their occupation?

6. Duration of leave taken (authorized + unauthorised) by an employee in a month on

average basis (for the past 6 months):

• <=5

• >5&<=10

• >10&<=15

• >15&<=20

58

• >20&<=25

7. Module to which the employee belongs:

• Module 1

• Module 2

• Module 3

• Module 4

• Module 5

• Module 6

8. Is the company providing adequate number of leave to the employees on their request:

• Yes

• No

9. Please select the kind of reason for your absence:

• Health reasons

• Family reasons

• Other reasons

• Both health and family reasons

• Both health and other reasons

• Both family and other reasons

• All the three reasons

59

10. What are the various health reasons which are responsible for your absenteeism?

11. What are the various family reasons which are responsible for your absenteeism?

12. What are the other reasons which are responsible for your absenteeism?

13. Any other source of income:

• Yes

• No

If yes, kindly explain about the

source………………………………………………………………………………

14. Employee opinion about the effect of absenteeism:

• No work no pay

• Delay or loss of production.

• Reduced quality in performance

• No growth / no promotions.

• All of the above

15 Employee opinion about the action to be taken by the management In order to reduce the

absenteeism:

• Provide last chance to improve

60

• Increase in number of holidays

• Providing timely benefits (whether monetary or non-monetary)

• Adapting job rotation

• Better working conditions

If any other reason, please

specify………………………………………………………………………..........................

Thank you for your kind co-operation.

Annexure B

Measurement of Absenteeism

In this study absenteeism is calculated using absence rate method. For example: Suppose

a) Average number of employees in a work force : 100

b) Number of available work days during period : 20

c) Total number of available work days (a*b) : 2,000

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

e) Absenteeism percent (d/c)*100 : (93/2000)*100 = 4.65%

61

Across most industries, absenteeism around 3 percent is considered standard.

Annexure C

Work days lost

2014S. No. Jan Feb Mar Apr May Jun1 24.0 11.0 8.5 5 9.5 10.5

2 8.0 4.5 14.0 15 22.5 19

3 1.0 2.0 5.5 8 1 3

4 0.0 0.5 6.5 5.5 7 5.5

5 2.0 1.0 2.5 1 4.5 3

6 7.0 5.5 7.0 16.5 12.5 8

7 24.0 24.0 26.0 24 26 25

8 18.5 12.0 9.5 9 9 9

9 3.0 4.5 13.0 11.5 14 16

10 9.0 5.5 18.5 12.5 11 22.5

11 3.0 2.0 5.5 0 5 6

62

12 0.0 0.5 6.5 3 5.5 4

13 10.5 5.0 7.0 10.5 15.5 13.5

14 5.0 1.0 5.5 6.5 13 8.5

15 8.0 4.5 24.0 23 26 16

16 1.0 2.0 7.5 3.5 7 9

17 4.0 11.5 11.5 2 8.5 19.5

18 16.0 1.0 10.0 22 26 9.5

19 0.0 3.0 9.0 16 12 11.5

20 0.5 4.0 9.5 8.5 14 6.5

21 13.5 17.0 5.5 23 13 11.5

22 24.0 24.0 12.5 5 13 17

23 6.0 0.0 8.5 5.5 9.5 13.5

24 5.5 9.0 7.0 3.5 10.5 5

25 0.0 3.0 1.0 1.5 12 15

26 17.5 19.0 3.0 2.5 6.5 7

27 9.5 14.5 19.0 14.5 20 5

28 0.5 8.5 15.5 3.5 7 6

29 5.0 2.0 16.5 23 6 8

30 0.0 5.0 14.5 6.5 23 3.5

31 5.5 9.5 14.0 7.5 12.5 8.5

32 0.0 5.0 13.0 1 2 2

33 0.0 6.5 15.0 10 0 4.5

34 0.0 4.5 12.0 6 16 12.5

35 0.0 1.0 8.5 20 17 14

36 0.0 6.5 8.5 6.5 6 10.5

37 0.0 6.0 8.0 3.5 10.5 8

38 0.0 5.0 8.0 1.5 4.5 4

39 0.0 6.0 7.5 6.5 5 5.540 2.0 3.0 7.5 1 5 741 0.0 1.0 1.0 4 6 12

Total work days lost 233.5 261.0 413.0 359.0 454.5 405.5

63