In-Company Training Report

On

“[HR] ABSENTEEISM”

Completed in “Escorts Ltd.”

Submitted in partial fulfillment of the requirement of

Bachelor of Business Administration.(B.B.A.),Guru Jambheshwar University of

Science & Technology,Hissar.

(Session: 2008-2009)

Training Supervisor:

Submitted by:

Kamlesh Yadav Jashvir Singh

(HR Manager) B.B.A.(Final yr.)

Directorate of Distance Education

Guru Jambheshwar University of Science &

Technology,

Hissar

INDEX

Acknowledgement

Preface

Company Profile

Industry Profile

Introduction of Absenteeism

Magnitude of Absenteeism

Causes of Absenteeism

Objective of the Study

Research Methodology

Observation

Personal Functions

Limitations

Conclusions

Suggestions

Questionnaire

Bibliography

ACKNOWLEDGEMENT

A summer trainee’s life is never easy. Often viewed as an overtly inquisitive

outside, he/she is believed to be more of a hindrance than an asset by

many organizations. The industry guide who is often a middle level

manager finds little time to spend with the trainee amidst his / her heavy

schedule of tasks, deadlines to meet and “BOSSES” to please. However I

did not have any horrid time thanks to my college and industry guide.

Many people were instrumental in enabling me to complete and compile

this project on time and as I reflect on the most fulfilling times of my life, it

is a moment for me to extend my deed sense of gratitude, respect and

sincere thanks to all those who extended their help and gave guidance to

me at every stage of my project.

I would also like to thank the management of the Organization for providing

me with resources like internet, books, journals, etc to facilitate my

learning on this topic.

Last but not the least, my appreciation goes to my family and my friends

who believed in my capabilities and encouraged me during this report.

(Jashvir Singh)

PREFACE

For the deep inclination into the management concepts Practical Training

is an important aspect. Theoretical knowledge gives us the fundamental

concepts of management, and Practical training teaches us those tact and

skills, which are successfully employed to capture today’s competitive

market. Theoretical lecture must be correlated with practical training to

make learning process more effective and to provide to judge and apply

one’s theoretical knowledge. Thus Training plays an important role in

development and sharpening ones skills in the field of business

management and administration.

I have under gone 8 weeks summer training in ESCORT LTD. Faridabad,

Great deal of attention is paid towards strategic factors of culture, climate,

environment with respect to Sales System of Escorts Tractors, because it

goes a long way in developing and maintaining good labour & management

relationship, which is the hallmark of Escorts, Faridabad.

Being a student of Business Administration, this Training contributed a lot

in gaining knowledge about the actual business environment set up at

ESCORTS LTD.

COMPANY PROFILE

The Founding Philosophy

Over six decades back two young men set out on a journey together armed

with little beyond intelligence, business acumen and determination and

dreams aplenty. They believed that India could only achieve total freedom

with a breakthrough in the field of agriculture and mechanization would

have to rule the fields. Their youthful enthusiasm had kindled the hope that

one day they would make a mark of their own. They were in fact writing the

first chapter of what has come to be widely recognised as one of the

greatest success stories in Indian industry.

Escorts came into being with a vision. A vision that eschewed easy paths

to profitability, and sought instead for ways to make a contribution. A

vision that led two young brothers, Yudi and Hari Nanda, to branch out of

their family's prospering transport business and institute ventures that

were to become the foundations of Escorts Limited. On 17th October 1944,

Escorts Agents Limited was born at Lahore (now in Pakistan) with Mr. Yudi

Nanda as Managing Director and Mr. Hari Nanda as Chairman. It was a

trendsetting marketing house driven by the same business philosophy,

which had given their family enterprise an unrivalled reputation: customer

concern. Not long afterwards, this driving ambition to go beyond the

expected led Hari Nanda to the first of his many successful business

insights - the discovery of the great business potential that lay in India's

villages. This led to the launch, in 1948, of Escorts (Agriculture and

Machines) Ltd., with Yudi Nanda as Director. Though separate business

entities then, both companies had two great strengths in common: the

dynamic Nanda brothers and the unifying force of the name they gave their

companies; Escorts, literally 'escorting' their products and services to the

customer while most other businessmen were just selling.

Tragically, Mr. Yudi Nanda died in an accident in 1952 - but his spirit

remained embedded in the foundations of the company. Mr. H P Nanda

then took on the mantle to realise the dreams which he had always seen

with his brother.

Escorts (Agents) Ltd., and Escorts (Agriculture and Machines) Ltd. merged

in 1953 to create a single entity -Escorts Agents Pvt Ltd. Having initially

started with a franchise for Westinghouse domestic appliances, by this

time the Company had already expanded its marketing and service

operations, representing internationally known German and American

organisations such as MAN, AEG, Haniel & Leug, Knorr Bremse, MIAG and

BMA for sophisticated electrical and mechanical engineering equipment

and Minneapolis Moline and Wisconsin for agricultural tractors,

implements and engines. Escorts made a major thrust into the agricultural

arena by taking on the marketing and service franchise for Massey

Ferguson tractors in Northern India, which soon comprised 75% of MF's all-

India sales - a signal tribute to Escorts' inherent strengths. Its first

industrial venture came up in 1954, in partnership with Goetzewerke of

Germany for the manufacture of piston rings and cylinder liners - followed

by production of pistons in collaboration with MAHLE, also of Germany, in

1960. The company's incorporation in its present name, Escorts Limited,

was effected on 18th January, 1960. Escorts' next major industrial activity

was the assembly of tractors in 1961 in technical cooperation with URSUS

of Poland. Subsequently this led to the manufacture of the country's first

indigenous tractors under Escorts' own brand name, which were to play a

pivotal role in the Green Revolution. This went on to lay the foundations

that even today are the Company's core strengths -relevant, world-standard

technology through strategic international alliances; a broadbased

marketing and service network yet unrivalled; powerful symbiotic

relationships with suppliers and dealers; and above all, the crusade to

make a difference.

Beyond the growth of the organisation, these principles have ensured that

Mr. H. P. Nanda's contribution to the cause of industry and the consumer

will endure. He pioneered the revolutionary concept of 'interdependence'

between ancillary and large industries, institutionalising vendor

development and in the process building Faridabad and the entire belt of

townships in the region. He introduced the discipline of service going

before marketing, reassuring the customer that Escorts would stay with

them, that they were here for the long run. He built lasting alliances with an

array of the world's most respected names in tractors, industrial

equipment, two-wheelers, construction equipment and

telecommunications. Going further, he created institutions devoted to

value engineering and training, not only as investments in the company's

future but also as catalysts for the enhancement of Indian industry as a

whole the Escorts R&D Centre and the unique Escorts Institute of Farm

Mechanisation. His concern extended to the society in which he worked,

and he manifested it by establishing the Escorts Medical Centre at

Faridabad, Escorts Heart Institute and Research Centre at New Delhi, as

well as numerous village development programmes. And above all, he

imbued the corporation with his own pioneering, entrepreneurial spirit,

instilling both a conscience and a vision of leadership.

Escorts is testimony to the valour, vision and values of its Founder Mr. H P

Nanda. He remains the inspiration for our courage, spirit of adventure and

ability to ‘Think Big’. These qualities are his enduring legacy and have

inspired and encouraged us down the decades and will continue doing so

in all our endeavors.

The History Of Escort

The genesis of Escorts goes back to 1944 when two brothers, Mr. H. P.

Nanda and Mr. Yudi Nanda, launched a small agency house, Escorts

Agents Ltd. in Lahore. Over the years, Escorts has surged ahead and

evolved into one of India's largest conglomerates. In this journey of six

decades, Escorts has had the privilege of being associated with some of

the world leaders in the engineering manufacturing space like Minneapolis

Moline, Massey Ferguson, Goetze, Mahle, URSUS, CEKOP, Ford Motor

Company, J C Bamford Excavators, Yamaha, Claas, Carraro, Lucky

Goldstar, First Pacific Company, Hughes Communications, Jeumont

Schneider, Dynapac . These valued relationships be it technological or

marketing, are our highly cherished experiences treasures, which have

helped us inculcate best in class manufacturing practices and to emerge as

a technologically independent world class engineering organization.

1944 - Launch of Escorts (Agents) Ltd.

1948 - Pioneered farm mechanization in the country by launching Escorts

Agricultural Machines Limited, with a franchise from the U.S. based

Minneapolis Moline, for marketing tractors, implements, engines & other

farm equipment. Launch of Escorts (Agriculture and Machines) Ltd.

1949 - Franchise of Massey Ferguson tractors for northern India

1951 - Escorts established India’s first private Institute of Farm

Mechanisation at Delhi.

1953 -Escorts (Agents) Ltd. and Escorts (Agriculture and Machines) Ltd.

merged to form Escorts Agents Pvt. Ltd.

1954 - 1st industrial venture of Escorts to manufacture piston rings in

collaboration with Goetze of Germany, in an era when joint ventures of

Indian firms with foreign companies were virtually unheard of.

1958 - Started importing Massey Ferguson tractors from Yugoslavia for

marketing the same in India.

1959 - Collaboration with Mahle of Germany to manufacture pistons. Soon,

Escorts became the largest producer of piston assemblies in India.

1960 - Set up of Escorts Limited

1961- Setting up of manufacturing base at Faridabad for manufacture of

tractors in collaboration with URSUS of Poland and 50% indigenous

components. Launch of Escort brand of tractors. Collaboration with

CEKOP of Poland for manufacture of motorcycles and scooters. Escorts

moves into high gear by nurturing the two wheeler culture. The first

Rajdoot motorcycle rolls off the assembly line.

1969 - Escorts Tractors Limited was born. A technical and financial joint

venture with the global giant Ford Motor Company, USA, to manufacture

Ford tractors in India. The years ahead saw Escorts grow as the largest

tractor manufacturer in India.

Escorts Institute of Farm Mechanisation (EIFM) established at Bangalore.

Escorts Employees Ancillaries Ltd. (EEAL), a unique venture in industrial

democracy comes into being.

1971 - 1st February, the first tractor FORD 3000 rolled out of the factory.

Escorts Diversifies And Starts Manufacturing Construction

Equipment

1974 - Crossing national boundaries, Escorts exports for the first time. After

winning a global tender, 400 tractors were exported to Afghanistan, which

was perhaps the world's largest ever airlift of tractors.

1976 - FORD 3600, an advancement in Farm Mechanisation launched. Trial

production of in-plant manufacturing of engine parts (Block & Head).

1977 - Escorts enters the world of self-developed technology by setting up

its first independent R&D Center. Escorts Scientific Research Centre

marked its beginning at Faridabad by developing its own Engines for E-27

and E-37. Due to constant technology absorption, indigenisation level

touched 72% for FORD tractors. 2nd plant at Bangalore for manufacturing

piston assemblies was set up.

1979 - Collaboration with JCB Excavators Ltd., UK for manufacture of

excavators.

1980 - Foray into healthcare, Escorts Hospital and Research Center set up

in Faridabad.

1983 - Escorts Tractors Limited (ETL) established a state-of-the-art research

and development centre to spearhead newer breakthroughs in Farm

Mechanisation and to maintain industry leadership. Line concept

introduced for engine block machining. 11,000 ton floating dry-dock

Escorts I launched.

1984 - JV Escorts - Yamaha to manufacture motorcycles

1984 - Signing of agreement with the Japanese bike giant Yamaha to

manufacture motorcycles with Yamaha technology. Collaboration with

Jeumont Schneider of France to manufacture EPABX systems

Collaboration with Dynapac of Sweden to manufacture vibratory road

compactors

1985 - Escorts Tractors Limited (ETL) offered its first Bonus Issue (1:1).

1988 - Escorts Heart Institute and Research Centre (EHIRC), a world class

cardiac care facility launched in New Delhi.

1989 - Joint Venture with Claas of Germany to manufacture harvester

combines.

1990-91 - First Public Issue in February 1991, over-subscribed four times.

Shares listed on Delhi and Bombay Stock Exchanges.

1993 - FORD 3620 tractor launched.

1996 - Disengagement of joint venture collaboration with New Holland and

launch of FARMTRAC Tractor.

1997 - Joint Venture with Carraro of Italy for manufacturing and marketing

of transmission and axles.

Joint Venture with First Pacific Company of Hong Kong - Escotel Mobile

Communications.

1998 - POWERTRAC series of tractors launched.

MoU was signed with Long Manufacturing Company, USA for setting up a

Joint Venture in USA.

1999 - MoU for Joint Venture with a Polish Company POL-MOT was signed

for assembly, manufacturing and marketing of Farm Machinery.

2004 - Divested Escotel Mobile Telecommunications to Idea Cellular

TS16949 certification for Agri Machinery Group.

2005 – Divested Escorts Heart Institute and Research Centre (EHIRC) to

Fortis Healthcare.

2006 - Divested in Carraro India Ltd.

Set up new manufacturing facility in Rudrapur for manufacture of new

range of railway.

Mr. Rajan Nanda

Chairman

An alumnus of Doon School, Dehradun, Mr. Rajan Nanda

took over as Chairman of Escorts Group in the year 1994.

That was the time when the Indian economy had begun to

burgeon as a result of liberalization. The task before him

was to prepare Escorts Group for the emerging competitive,

globalised business environment and steer it to greater heights. Displaying

vision and leadership qualities, Mr. Nanda undertook a major restructuring

programme to give sharper focus to the Group's businesses. Under his

stewardship the Escorts Group today is moving ahead in the high growth

areas of agri machinery, construction equipment, railway equipment and

auto components.

Mr. Nanda is an active member of several apex trade and industry bodies.

As member of the CII National Council he has served as Chairman of its

Agriculture Committee in the past years. He played a pivotal role in

promoting the cause of Indian agriculture and his endeavours resulted in

the Government announcing the long-awaited National Agriculture policy.

Mr. Nikhil Nanda

Joint Managing Director

Mr. Nikhil Nanda is an alumnus of Wharton Business School, Philadelphia.

Having graduated in Business Administration in 1995, he majored in

Management and Marketing, before undergoing professional training with

JC Bamford Excavators Ltd., U.K.

He is a member on the Board of most Group companies since 1997 and has

the overall responsibility for managing the Group's agri, construction and

engineering businesses. Combining contemporary management

techniques with real life practical approach, Mr. Nikhil Nanda has been

responsible for driving the business growth initiatives of the Group to

strategically position it in the global arena.

Mr. Nanda is also among the five Indians selected as the Global Leaders of

Tomorrow for the year 2001 by the World Economic Forum, Geneva.

Mr. Rohtash Mal

Executive Director and Chief Executive Officer - Agri Machinery Group

An alumnus of Indian Institute of Management Calcutta and Indian Institute

of Technology - Delhi, Mr. Mal has over 27 years of rich and varied

experience. In his last assignment as the Chief Executive he was

responsible for the entire operations of Bharti Fieldfresh Ltd. Having

started his career with Ballarpur Industries Ltd., in his stint of 17 years he

went on to become the Vice President (Sales & Marketing) of its paper

division. Later at Maruti Udyog Ltd. as its Chief General Manager (Sales &

Marketing) for 3 years, he was highly successful in sales and marketing of

its passenger cars. In addition, spread over 6 years and three assignments,

Mr. Mal had been with Bharti Airtel Ltd. in its mobility and broadband /

telecom services business verticals as the Chief Executive.

With rich experience in successfully driving business growth in sectors

like paper, automobiles, telecom and retail, Mr. Mal is now driving Escorts

to significantly improve its competitive advantage and attain an even

dominant position in the Agri Machinery sector.

Mr. K.S. Havaldar

Business Head - Engineering Division

An Engineer by profession, he has over 37 years experience. He is

responsible for driving the Engineering Division business which includes

Railway Equipment and Auto Components businesses. Earlier as Head of

the Railway Equipment business, he had successfully achieved the turned

around that business. He has already expanded this line of business by

Starting of a new plant in Rudrapur, in the State of Uttra Khand is part of

his ambitious expansion plans for the business.

Mr. Kamal Bali

CEO – Escorts Construction Equipment Limited (ECEL)

A mechanical engineer from IIT Roorkee, Mr. Bali has over 25 years' of

experience. Having started his career with Eicher Limited, till recently he

was the Managing Director and CEO of the Italian tractor manufacturing

company Same Deutz-Fahr, India. Mr. Bali has also been associated with

the Escorts Group earlier and was looking after all India sales for the Agri

Machinery Group. With his strong business orientation and leadership

capabilities Mr. Kamal Bali is spearheading ECEL to that of a dominant

player in the Construction Equipment segment at a time when the

infrastructure Industry is witnessing spiraling growth.

Mr. G.B. Mathur

Vice President - Law & Company Secretary

Has considerable experience in Secretarial and Legal matters. Having

joined Escorts in 1993, Mr. Mathur is responsible for all Company law

related matters and is also the custodian of the shareholder related

matters. Prior to joining Escorts he was the Company Secretary at Chambal

Fertilizers & Chemicals Ltd.

Mr. Rakesh Kumar Budhiraja

Group Chief Financial Officer

A Chartered Accountant by profession and also an LLB, MBA (Finance) and

a Company Secretary. Has over of 27 years of rich and varied experience in

all facets of Finance, strategic planning, Restructuring of Businesses,

Treasury Management, and Secretarial functions. Prior to joining Escorts,

he worked for more than 5years as Vice President (Finance) with JK Tyres

& Industries Ltd. Earlier he was Chief Financial Officer & Company

Secretary with Kajaria Ceramics Ltd. He has worked for tyre, ceramics,

fertilizer & Chemicals, textiles and export house companies during his

tenure of service.

As the Group CFO he aims to substantially improve the economic

performance, shareholder value and enhance financial discipline within the

organization & bring high standards of Business focus.

Chairman Message

Dear Shareholder,

The Indian economy during the year has grown in all

sectors and there has been a supporting growth in

consumption that has given the country a GDP

growth of 8% in real terms. Ironically however, the

farm sector was confronted with many adversities that have

reduced its growth to mere 3% and was expected to decline

further.

Whilst the country had a normal monsoon and harvested a good

standing crop, the support price given by the Government to the

farmers was unattractive – in fact it was lower than the cost at

which India was proposing to import wheat. This has upset the

agriculture market very extensively. The lapse of this crop

income limited the farmers from raising fresh loans for buying

equipment and for some farmers they had to repay old loans.

There has been higher NPA from farm loans and hence lower

lending by banks.

The above vicious cycle is proposed to be corrected a year later

in the next wheat crop to be harvested in March-April ’08. The

Food and Agriculture Ministry has already fixed the support price

and the standing crop is assessed to be good. The farmers’ cash

flow will thus become positive and business will begin to grow

again.

FUTURE PLANS

PROPER DIVERSIFICATION INTO NEWER MARKET.

OPTIMUM UTILISATION OF RESOURCES.

ENHANCED CORE SECTOR INVESTMENT.

POWER ALLIENCE.

GLOBAL TRUST.

COMPUTATION OF ALL OFFICES AND MARKETING

ESTABLISHING.

GROUP SALES TO CROSS 5000 CRORES BY 2005 AD.

INFRASTRUCTURAL RENEWAL.

REENGINEERING PLANTS PRODUCTION AND SUPPORT

SYSTEM FACILITIES.

SYNERGIC EFFORT TO DEVELOP HUMAN RESOURCE AND

MAKE IT MORE DYNAMIC.

Industry Profile

INDIAN TRACTOR INDUSTRY : INTRODUCTION

India is predominantly an agricultural country 70% of the population lives

in villages and villages depend upon agriculture for their bread and butter.

Since Indian valley civilization, agriculture is the main source of income but

at that time the agriculture was manual work. Before independence Indian

agriculture was in very bad situation. But since 1947, when Indian became

independent, the farmers also became independent. They had seen many

ups and downs in their income. After independent in five-years plans, first

priority was assigned to agriculture government tried best to improve the

industry but a systematic planned approach for development started in

1950, since then irrigation was recognized as key factor for agriculture.

Education and research were also taken as a major initiative.

All these developments made mechanization mandatory for agriculture and

imports of tractors began. Acceptance of mechanization was slow, in fifty’s

the use of tractor was very low. Green Revolution was the result of tractor

was barely 10000 in 1970. The industry was producing around 25000 to

30000 tractors. Today, India is the largest tractor market estimating

2185000 tractors per annum with the annual growth of 12.3. Today the

tractor industry is of about 5000 crores.

With the 12% of arable land, today India has 4.7% of the world’s tractor.

India splits tractors largely into four categories i.e… 20-30hp, 31-40hp, 41-

50hp, 51 & above. 21-30hp and 31-40hp ranges together are nearly 76%.

SEGMENT OF TRACTORS ACCORDING TO HP WISE

Tractor Range 1965-97 1997-2000 2000-2003 2003-2008

20-30 HP 24% 22% 17% 10%

31-40 HP 51% 50% 54% 55%

41-50 HP 19% 20% 22% 25%

50 & above 6% 8% 7% 10%

Demand for big up segment is increasing as per the table shown. In the

budget of 1995-96, the central government has given subsidy of Rs. 30000

per tractor. The subsidy was for the user of low up segment tractors (for

small farmers). The government wants to increase the usage of tractor for

higher agriculture production. In the budget of year 1998-99, the finance

minister Mr. Yashwant Sinha has levied 8% excise duty on the imports.

This was to save the Indian tractor industry form the slow down of

economy and the East Asian Crises. According to economic survey of

1997-98 the production of agriculture has dropped by 205%. Until 1993-94

small tractor (below 25hp) were exempted for the excise in bid to

encourage small farmers. Because in India, almost 65% farmers has less

than 4 acres of arable land.

According to business, due to the Mahindra & Mahindra and Swaraj

tractors would be benefited about Rs. 10000 to Rs. 12000 per tractor as

compared to others, which imports parts from abroad. The compound

average growth rate during last six years has been arpond 15%. The level

of tractorization is high in Punjab & Haryana at arpond 95&74 per thousand

hectares respectively. The tractor demand is driven by agriculture

Products, Interest Rates, Total Agriculture Credit, Total Irrigation Facilities

and Crop Pattern. Among them, credit is strongly correlated sale. Nearly

80% of the tractor’s sale is through credit.

Financial Pattern:

As stated above that 80% of the tractor is financed through credit rates

essentially through commercial banks, regional banks, regional banks,

rural banks and state level land development banks. The credit worthiness

of the farmer is ascertained to have minimum holding of 6 areas of

cultivated land to be eligible for loan. However bank can provide on smaller

landholding subject to farmer establishing his credit worthiness. The credit

inflow since financial year 1996 is increasing support from NSBARD. This

has already allocated 2000 crores from current year.

HISTORICAL BACKGROUND :

Indian agricultural in the fifties allowed age bound tradition and was

considered backward. The country did not produce enough food grain to

feed its 36 crores population and famines were recurrent features. Import

of food grains became necessary to meet the short fall in domestic

production, there by causing a drain on scare foreign exchange resources.

It therefore became imperative to high priority to the development of

agriculture.

ESCORTS MISSIONS

FOR AN ENTERPRISE BUSINESS

MISSION EMBODIES THE

SPIRIT OF ITS

ENDEAVOUR ACTS A GUIDING

LIGHT FOR CONSTANT DEVELOPMENT AND GROWTH.

THE MISSION OF ESCORTS IN

“ENGINEERING CHANGE WITH CONTINUOUS IMPROVEMENT”

ENGINEERING CHANGE THROUGH

CORE COMPETENCY FOR

GREATER SYNERGY REINFORCING

BONDS WITH CUSTOMERS

AND ESTABLISHING POWER

SYMBIOTIC RELATIONSHIP WITH

INTERNATIONAL ALLIES,

PREPARING GLOBAL MARKET.

IT WANTED TO MAKE

A LASTING DIFFERENCE,

TO ITS SHAREHOLDER,

ITS CUSTOMERS,

BUSINESS ASSOCIATES,

ITS EMPLOYEES AND COUNTRY

ON A WHOLE.

THE ESCORTS SYMBOL

The Escorts symbol means than a seen by the eye. It has been prepared with

certain objective in mind and is symbolic in more then one way.

The philosophy behind Escorts and the ‘E’ in the Escorts is “Enterprise”. The

Hexagon is s symbol of productivity, precision when interposed as a nut. It

symbolizes a craftsmanship, and mending productivity. The sprains

superimposed on the Hexagon represent the workers and the people of the

Escorts. This forms the letter ‘E’ the first of Escorts a company even on the

more changing unveiling the future.

QUALITY POLICY

We shall strive to continuously

Improve to meet the ever rising

Expectations of our customers

At the lowest cost.

Each one of us must fulfill the

Need of our customers, both

Internal and external, with the

Highest degree of commitment,

Thereby creating a quality

Organization geared to ensure

Total customer satisfaction and

The sustained health and

Prosperity of our business.

QUALITY OBJECTIVES

Escorts Limited – Construction Equipment Quality Objectives are derived for

the quality policy and are intended to provide quality direction to employees in

the day to day operation of the plant.

The quality objectives are applicable to Construction Equipment is approved by

Plant Head. The approved quality objectives are below:

Escorts Limited- Construction Equipment Quality Objectives are derived

from the Quality policy and are intended to provide Quality Director to

Employees in the day to day operations of the company.

We will attempt to give our Customers the best value for their money by

supplying products to match customer specifications / needs.

We will attempt full customer satisfaction by monitoring customer

perceptions and brand image of our product through market surveys and

periodic direct customer contact in the market place.

We will pursue continuing improvement in Product Quality and

Productivity by suitable indicators to measure the trends of improvement

resulting from our efforts.

We will strive to ensure full commitment and conformance to the Escorts

Limited – Construction Equipment Quality Management System in all

areas of work and take prompt corrective action on any problem that may

occur.

We will work together as a team across departments and organizational

levels using Task Forces to develop a common focus and greater

effectiveness in solving problems.

Specific Corporate and Departmental Objectives form a particular year

will be derived from the above used to monitor and control company

operations.

Best value for money, customer satisfaction, continued improvement in product

quality, productivity conformance to quality management system in each area of

work, prompt corrective action and team building are the major focus areas of

quality objective of Construction Equipment.

ISO 9001

The international organizational organization for standardization (ISO) is a

specialized international agency for standardization, presently comprising the

national standard bodies of 91 countries including India.

The objective of ISO is a promote development of standardization with a view to

facilitate international exchange of goods, services and also develop a

cooperation in the sphere of intellectual scientific, technological and economic

activities.

The Escorts Tractors Ltd enjoys a formidable reputation in the market solely

because of its unrivaled quality. It is because of the company’s entirely

uncompromising commitment to quality improvement and maintenance that in

the course of the year it became the first tractor company in the country to

receive the highly coveted and prestigious ISO-9001 certification under the

revised rules of 1994.

PROBLEM DEFINITION MEANING

Employees who is not available for duty is counted as absent from

duty. If he is on sanctioned leave it will be counted as

“Authorized Absenteeism”. In case he is not available to work

without any or pre-sanction it would be counted “Unauthorized

Absenteeism”.

Different authorities have, variously defined absenteeism.

According to Labour Bureau, Simla “Absenteeism is the total

man shifts lost because of absences as an percentage if the total

number of man shifts schedule to work”. In other words, it

signifies the absence of an employee from work when he

scheduled to be at work; it is unauthorized, unexplained,

avoidable and willful absence from work.

Thus,

Number of man-daysabsent *100

Absenteeism= Man days on available for the purpose of one

period

For calculating the rate of absenteeism, two facts are taken into

consideration-The number of persons scheduled to work and the

number actually present.

Absenteeism=Number of persons days lost *100

(avg. no of the person)*(no of work days)

An employee is considered scheduled to work when the

employer has work available 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 specialize time.

Any employee may stay away from work if he has taken leave, to

which he is entitled, or on the ground of sickness or some

accident, or without any previous sanction of leave. Thus absence

may be authorized or unauthorized, willful or caused by

circumstances beyond ones control.

The absenteeism problem is two folded. Firstly, there is

distinct loss to workers because the irregularity in attendance

reduces their income when no work, no pay is the general rule.

The loss of the employer is still greater as both discipline and

deficiency suffers.

Secondly either an additional employment has to be met

throughout the year to meet5 this emergency or the industry has

to depend solely on workers who present themselves at the gate

and who are not generally to the mark. This maximizes varopi8s

factors like:

1 Wastage of raw materials

2 Loss of man hours

3 Loss of man days

The maintenance of an extra complement if a worker leads

to serious complications and evils.

Absenteeism is a serious problem for the management because it

involves heavy additional expenses, reserves and understudies

are kept in readiness to take the place of the absentees, falling

which the overhead cost of idle equipment has to be faced.

Industrial employees do not usually ask for leave of absence in

advance or even give notice during their absence as to how long

they would be away. The management is generally uncertain

about the probable durations of an employee’s absence and

cannot take appropriate measures to fill the gap.

ABSENTEEISM IN ESCORTS

Absenteeism is the failure to report to work.

1. Its obviously difficult for an organization to operate

smoothly and to attain its objectives if employees fail to report

their jobs. The workflow is disrupted, and often-important

decisions are delayed. The organizations (like our ESCORTS) rely

heavily upon assembly –line production absenteeism is

considerably more than a disruption; it can result in:-

1 A drastic reduction in quality of output.

2 Sometimes can bring a complete shutdown of the production

facility.

2. Absenteeism has a direct impact on the organizations;-

1 Effectiveness

2 Efficiency

3. Although most absences have a negative impact on the

organization, we can conceive of situations in which the

organization may benefit by an employees voluntarily choosing

not to come to work in jobs in which an employees needs to be

alert .If the employee is ill or is under stress it better not to report

to work but should take rest.

Even in management jobs where mistake are less

spectacular, performance may be improved when managers

absent themselves from work rather than make a poor decision

under stress.

4. Absenteeism is one of the most widespread obstacles to

productivity, profitability and competitiveness. It causes

overtimes late deliveries, dissatisfied customers and decline in

morale amongst workers who are expected to cover for absent

colleagues.

5. Well the production of the company in a way depends

upon the presence of the workers.

Absenteeism effects adversely in smooth production.

Though absenteeism is related to efforts to reduce absenteeism,

in a planned manner.

6. It is not unusual for managers to find themselves

shutting down lines, scaling back services, or scheduling

weakened work because they struggle to fill positions left open

by absent employees. Employees’ absence usually fall in one or

more:-

1 Predictable

2 Unpredictable

3 Schedule

4 Unscheduled

5 Controlled

6 Uncontrollable

We can cover the absences in the following ways:-

1. Use a shift schedule system that allows employees sufficient

scheduled time off. This allows them to deal with personal needs

such as doctors’ appointment, meetings and reduces problems

associated with many uncontrollable sources of absences.

2. Provided incentives to the workforce to use their vacation time

when the workload is low. e.g give employees an extra day of

vacation for every week of vacation taken during your low

production season. From a financial Perspective, there are many

situations where this is the best way to cover vacation.

3. Staff your operation above the minimum requirements. When

absence occurs, the openings are automatically filled with the

extra personnel on shift. Disadvantage is that these extra

personnel may be idle during seasons when absenteeism is low.

4. Use overtime to cover vacancies as they occur .While this is a

very good use of overtime, it works best in an environment that

does not experience large fluctuations in workload from week to

week. In theses organization overtime is a scare resource that

can be easily absurd – resulting in fatigue lower productivity and

increased costs.

5. Cross training between work areas so that personnel from

one department can be used in other department if there is a

crisis. This is a good business practice as long the cost for cross

is not excessive.

6. Use temporary personnel

In company that have some positions requiring little

training to perform; this can be the least expensive source of

absence coverage. The works best when full time employees

cover all full time positions. Some of the full time employees

must have the ability to “Step-up” to the next job if needed. When

an absence occurs, it is covered by a trained person in the next

lower position- Creating a chain of setups until the actual

vacancy is at the lowliest skill level position .A temporary

employee can then covers the vacancy.

7. Reschedule work to be performed when resources are

available .This strategy usually requires the operation to carry

additional product inventory to smooth variations in production

capacity and product demand.

8. Smooth out the variability of controllable absences using

predetermined limits. This places some of the burden on the

workforce to spread out their absences and is is easier to cover

absences with fewer resources.

MAGNITUDE OF ABSENTEEISM

It is observed that the phenomenon of absenteeism does not

exist only in Indian industry, it is a universal fact. The difference

is only in terms of magnitude. The rate of absenteeism varies

from 7% to nearly 30%. In some occupations. it has risen to

abnormal level of 40%.The extant of absenteeism may differ from

industry to industry, place to place and occupation to occupation.

It may also differ according to the make-up of the

workforce .Absenteeism may be extensive in a particular

department of an industry or a concern.

Absenteeism in Indian industry is not a new phenomenon. The

royal commission on labour reported.” high absenteeism prevails

among industrial labour mainly due to their rural orientation.”

Absenteeism means practice of being absent from the duty by

the employees. It disturbs the smooth functioning of the

company and effects on production/productivity of the plant.

The problem of absenteeism is being given a serious view and a

comprehensive study on absenteeism of the plant was carried

out in 1997.From the analysis and study the following facts

revealed that plant absenteeism is being affected by following

types of absenteeism:

1 Authorized leaves

2 Unauthorized leaves

3 Compensatory leaves

REASONS FOR ABSENTEEISM

Absenteeism is due to lack of “Commitment” on the part of the

work force. The worker in the process of the early stages of

industrialization is more prone to absenteeism, prolonged and

sporadic withdrawal from the industrial work, wildcat stoppages,

naked violence and destruction of machines and property.

Absenteeism is due to the factors that influence workers

commitment.

According to Hone ”Absenteeism is related to new values &

norms which are developing among the workforce as a result of

technological developments. Work and leisure are now cherished

by worker and these he want to enjoy along with the monetary

benefits he gets for his service. The economic considerations,

therefore, decides whether one would like to be absent from

work.”

The attitude and practice of the management also contribute to

absenteeism. A traditional management treats workers as

hirelings, while an enlighten management treats them as human

beings. This difference in behavior leads in the former situation

to high absenteeism & in the latter situation to a close affinity

with the organization, the result being lower absenteeism.

The general causes of

absenteeism may be:-

BETTER QUALIFICATION

A worker who is educated has done 10th or 12th or ITI generally

remain absent because they can use their education in some

other work also. If they are having some technical knowledge

also then they after being permanent in the company either starts

working somewhere else or they start the business of their own.

Whereas the workers who are uneducated are more regular in

their work as there is no other way opened for them except to

work here for his earnings?

INDEBTEDNESS

Most of the workers suffer from a high degree of indebtedness.

Workers are always worried about financial matter.

MALADJUSTMENT WITH FACTORY CONDITIONS

Workers usually with rural background finds himself caught

within great factory walls, he is bewildered by heavy traffic, by

jostling, by strangers speaking different languages and he is

weary of the misery of slums & of failing for long hours .He is

subject, to strict discipline. He is under constant strain.

Sick & old type remains absent from work by reason of ill health,

weak constitution, chronic disease or old age. The family oriented

become chronic absentees because of their over identification &

family affairs. The lack of balance between family involvement &

job is another cause of their deviant work behavior.

UNSATISFACTORY HOUSING CONDITIONS

The workers who come to towns usually find they not wanted &

they swell the number of unemployed & casual worker. They

experience housing difficulties. Not less than 95% of the houses

occupied by industrial workers in India are unsatisfactory for

healthful habitations. Health conditions are naturally bad, leading

to high morbidity and consequent ill health. They, therefore, make

frequent visits to their village home to get relief from such

unsanitary and unhealthy surroundings.

INDUSTRIAL FATIGUE

Low wages compel a worker to seek some part time job to earn

some side income. But this often results in constant fatigue,

which compels him to remains absent form the next day and if

fatigue affects him seriously, him absence may continue for quite

some time.

ABSENCE OF ADEQUATE WELFARE FACILITIES

Absenteeism is also due to inadequate welfare facilities available

to workers for a vast majority of industrialist in India still look

upon welfare work as a barren liability than a wise investment.

IMPROPER AND UNREALISTIC PERSONNEL POLICIES

In most cases unskilled, untrained, illiterate and inexperienced

are recruited who fail to cope with and adopt themselves to their

jobs and to their industrial environment.Favourism and nepotism

are rampant.

REASONS FOR ABSENTEEISM

Absenteeism is due to lack of “ commitment” on the part of the

work force .The worker in the process of the early stages of

industrialization is more prone to absenteeism , prolonged and

sporadic withdrawal from the industrial work, wildcat stoppage,

naked violence and destruction of machines and property.

Absenteeism is due to the factors that influence workers

commitment.

According to hone” absenteeism is related to new values and

norms which are developing among the workforce as a result of

technological developments. Workers and this he wants to enjoy

along with the monetary benefits he gets for his services now

cherish work and leisure. The economic consideration, therefore

decides whether one would like to be absent from work.

The attitude and practice of the management also contribute to

absenteeism. A traditional management treat workers as hirelings

while an enlighten management treats them.

We can cover the absence in the following ways:-

1 Use a shift schedule system that allows employees sufficient

scheduled time off. This allows them to deal with personal

needs such as doctors appointment, meeting and reduce

problem associated with many uncontrollable source of

absences.

2 Provide incentives to the workforce to use their vacation time

when the workload is low e.g. give employee an extra day of

vacation for every week of vacation taken during your low

production season. From a financial perfective, there are many

situation where this is the best way to cover vacation.

3 Staff your operation above the minimum requirements. When

absences occur, the opening the automatically filled with the

extra personnel may be ideal during seasons when absenteeism

is low.

4 Use overtime to cover vacancies as they occur .While this is a

very good use of overtime, it works best in an environment that

does not experience large fluctuation in workload from week to

week .In these organization overtime is a scare resource that can

be easily absurd resulting in fatigue. Lower productivity and

increased costs.

5 Use temporary personnel in company that have some position

requiring little training to perform; this can be the least expensive

source of absenc3e coverage. This works best when full time

employees cover all full time positions. Some of the full time

employees must have the ability to “step-up” to the next job if

needed when an absence occurs. It is covered by a trained

person in the next lower position creating a chain of setups until

the actual vacancy is at the lowest skill level position’s temporary

employees can than cover the vacancy.

6 Reschedule work to be performed when resources are

available .This strategy usually requires the operation to carry

additional and product demand.

7. Smooth out the variability of controllable absence using

predetermined limits. This places some of the burden on the

workforce to spread out their absence and is easier to cover

absence with fever resources.

OBJECTIVES OF THE STUDY

The objective of the study undertaken by me at farmtrac Division

of Escorts Limited was:

ABSENTEEISM

1. To find the various reasons of erratic absenteeism among

employees.

2. To prepare a platform to look over the problem of the

employees.

3. To find out ways in order to reduce if not able to completely

remove the problem of the employees.

SCOPE

The scope of the study was limited to the category of the workers

only because in management cadre absenteeism is almost nil as

people of this cadre are punctual in coming to the organization

and therefore conducting this study in this cadre would had been

useless. Absenteeism of workman is a matter of concern before

shop managers, as it effects adversely in smooth production.

Though Absenteeism is related to personal reason of workman,

but it becomes necessary on the part of the mgmt to put efforts to

reduce absenteeism in a planned manner .So I also talked to the

supervisors to know their suggestions for the management.

SPECIAL LEAVE

1. It is a leave granted under exceptional circumstances and is

discretionary subject to joint approval by the Business Head

and Corporate HR Head OR approval by the Chairman.

2. It may not be with pay, allowances and benefits.

SHORT LEAVE

1. A maximum of two short leaves in a month can he taken

either

at the beginning or at the end of the shift or between 10.00 am

and 12.00 noons.

2. Illness leaves will be dedicated to the casual leave account

3. In case short leave applied is for the third time e in the month,

it will result in debiting half day CL. In case no CL is due these

leaves will result in leave without pay.

LEAVE-WITHOUT-PAY

1. Leave-without-pay is the leave applied and granted but not

due

as per rules and/ or leaves balance of the employees.

2. Miscomputation of leaves violating the combination rules will

also result in leaves-without-pay.

EXECUTIVE SUMMARY

The project conducted in Powertrac Division of ESCORTS was

aimed at finding out the position of absenteeism, the reason for it

to give suggestion to improve the condition.

For the purpose of collection of the information the mode of

communication of survey adopted was the collection of primary

data through personal interview of the workers.

Under 10 major heads or reasons of absenteeism a broad view of

the basic reasons of absenteeism was tried to be found out. The

ten reasons chosen were:

1 Lack of proper transportation

2 Habitual intoxication

3 Better qualification

4 Sickness self

5 Side business

6 Seasonal farming

7 Bad working condition

8 More involvement in social works

9 Difference with co-workers/senior

RESEARCH METHODOLOGY

THE SCOPE OF THE STUDY

The study will be conduct at HR Department ESCORTS. All the

employees working at AMG plant will considered under the scope

of the survey work.

THE SIZE OF THE REPRESENTATIVE SAMPLE:-

The size of the sample is 50.

THE METHOD OF SELECTING THE SAMPLE:-

Random sampling is the method used.

METHODS OF DATA COLLECTION:-

The data for the survey will be collected from primary as well as

secondary data source.

THE PRIMARY SOURCE OF DATA COLLECTION:-

1 By administering the questionnaire to manager.

2 By inter-views of manager.

THE SECONDARY SOURCE OF DATA COLLECTION:-

1 The policy towards employees.

2 Job satisfaction policies.

To meet through the objectives of the Project and to know the

very basic reason that lead to habitual absenteeism the method

adopted was structured and undisguised persons interview .The

interview was structured because the main reasons of

absenteeism were already sorted out and along that line only I

wished to conduct the interview. It was undisguised so as to

extract the best possible behavior from the respondent .This

feature was mainly incorporated to land some sort of flexibility to

the questionnaire. The list contained 60 workers. Before going for

the interview process a study was made about rate of

absenteeism in Powertrac division of ESCORTS of past 5 years

and the reasons for it were tried to be found out. Out of various

reasons 9 basic and important reasons were selected out on

which the interview was based.

Before calling the workers for the interview their past history

of absenteeism was studied, the reasons given by them for

absence, discipline, disciplinary action taken against them.

I personally went to the heads of various departments and

requested them to send the concerned workers. The workers

were called in the personnel Department and interviewed. While

talking to the workers care was taken to make them feel

comfortable and to create a friendly environment so that the talk

could be a friendly one .When I first contacted the people they

were suspicious but once they were told that I am not from the

management and was doing this study as an independent person

they became very open and helpful. They were told the purpose

of study that it was for academic purpose and was for the benefit

also for if the report is read by management they may get a

chance to peep into the root necessary steps may be taken to

improve the condition.

The sample size taken was 50.

After the interview an exhaustive study was done observation and

suggestions thereby made finally led to the completion of the

project.

PRIMARY DATA

Excessive absenteeism means the workers who have more than

25% of leaves without pay in a year. i.e in a year they have taken

more than 90 days of leaves without pay.

This habitual absence is generally defined in the standing

orders. According to standing order” Habitual means an act of

omission or commission which is repeated three times within a

period of 12 months .The word habitual absence do not mean a

number of times absence spread over a reasonable period.

According to the rules company an employee can be sanctioned

without pay leave only unto a maximum of 30 days during a

calendar year.

In spite of the many measures taken like

--Home inquiries

--Warnings by the management

The problem has not been really taken care of but it does not

mean that the powertrac division management has been able to

do anything thy have been able to reduce the quantity.

Below is the data given:-

In 2003 the problem was with 87 workers. The mgt decide to

curtail the problem with counseling and monitoring followed by

home inquiries and warnings. The mgt was able to reduce it to

quite an extent.

In 2007 the problem was 74 employees which was further to 60 in

2008 the list of 2005 contains only 60 such workers which were

the target of study.

TARGET: 60 people

PERSON INTERVIEWED: 50 People

SAMPLING TECHNIQUE:

STAGE1-Choosing the employees for interview

SAMPLE TYPE: Stratified and random

STAGE11-Calling for interview

Sample type-Random/Convenience

Reasons taken for study11

DOMESTIC PROBLEM

-Sickness self

- Lack of proper transportation

-Habitual omtpxocation

-Any side business

-Seasonal farming

-Involvement in social activities

-Involvement in politics

-Fatigue

-Loan

JOB RELATED PROBLEMS

-Bad working conditions

-Difference with superior

LEAVES AND ARRENDANCES

GENERAL RULES:-

1. There are three of leaves which are given in a calendar year:

Earned leave

Casual leave

Sick leave

2. More than one type of leave cannot be combined in one day.

3. Employee joining during the course of the year can avail CL

and SL Pro-rata basis. EL accrues only in January of the next

year to the extent of prorate calculation of number of ELs in the

year of joining.

4. Application an ailment of any leave more than due will result

in leave without-pay.

5. Leave entitlement extent of accumulation and encashment for

m2 and above is as follows.

SICK LEAVE:

1. A medical certificate issued by a registered doctor must

support application of sick leave for more than 2 day.

2. Sick leave is credited to the employees leave account at the

beginning of the year.

EARNED LEAVE:-

1. ELS can be availed subject to a minimum of three days at a

time and can be availed up to a maximum of three times in a year.

2. EL can be taken for less than three days if SL & CL have

exhausted.

3. For any period when you are on leave without pay, leave is not

earned, and hence proportionate education in the number of ELs

to be credited will be made.

4. Minimum of 10 days has to he availed by an employee every

year, otherwise the same shall lapse at the end of the year.

5. EL is credited at the beginning of the FOLLOWING year, Once

the accumulated EL in a clean day year will be restricted to 20

days in case the 10 days is not actually availed in that calendar

year.

6. For encashment of EL, only basic salary and special

allowance

is taken into account. The amount is taxable as per rules.

ADVANCE EARNEAD LEAVES:-

1. Advance earned leave is granted in the following contingencies,

if sufficient number of ELS is not there in the leave balance of the

employees.

A. Hospitalization or death of any member in the family.

B. Accident leading to immobilization of sell

C. Riots, curfew, natural calamity: flood, fire, earthquake etc,

D. Marriage of self/daughter/son

2. Maximum advance EL sanctioned cannot be more than the

leave computed till the date of application for advance EL.

3. Request for advance EL must be supported with proof

justification and cannot be made more than once in an year.

4. Habitual absentees are not entitled for advance EL.

STUDY LEAVE:-

1. All confirmed employees below 50 years of age, who have

completed three years of regular service, are eligible.

2. Leave is granted up to a maximum of twelve months in the

entire service of the employees. It can be divided at the most

into two occasions subject to the maximum limit.

3. Leave is without pay, allowances and benefits. It can however,

be prefixed by earned leave lying to the credit of the employees.

4. Request for leave should be submitted to division department

head along with admission notification and other details of the

course to the pursued.

5. Sanctions of leave are discretionary. Leave will be allowed only

for professional courses beneficial to the company.

LONG SICKNESS LEAVE:-

1. Subject to SL and EL standing to the credit6 of the employee

being exhausted, management may, at its sole discretion, grant

this leave up to a maximum of 90 days in the event of long

sickness/hospital.

2. The leave is with pay, allowances and benefits.

Thus the personnel department manages the human in the

organization and creates the harmonious working relationships

among the employees and brings about their utmost individual

development.

OBSERVATION

1 It was observed that the rate of absenteeism was quite high in

case of workmen who have come from rural areas they have

agricultural land at their native places and have to go to look after

the cultivation, particularly in harvesting season. Many of such

workers come from joint families giving o there property. Such

workman often visit their native places to attend various types of

ceremonies an d work of their joint families.

2 The second category of the workmen, who often remain from

duty, is of those persons who take up industrial employment to

uphold their dignity in the society from which they hail.

3 The third category is of such ski9lled workman who can earn

more in a day by doing a outside the establishment then getting

one day wages by attending their duties in the establishment.

These workmen area generally those people are having a better

qualification and have some technical skills due to which they get

the job easily outside the premises.

4 The fourth category involves those workmen who are trade

union leaders or social workers their time there due to which they

remain absent from their duty.

5 As April is the season of marriages so large no of marriages

occur in this month and employees go on leaves to attend these

ceremonies.

6 Further the employees still have strong bonds of attachment

with their villages and they avail leaves during harvesting

season.

7 The rate of absenteeism is the lowest on the payday. It

increase considerably on the days following the wages and

bonus, when workers either feels like having a good time or in

some cases return home to their villages to make purchases for

the family.

8 The incident of absenteeism booth before and after a holiday,

has found to be higher than that on normal days.

9 The percentage of absenteeism is generally higher in the night

shifts than in the day shifts.

10 Another major reason for absenteeism was the side business,

which many of the workers were having. Though only few

accepted this directly but many others accepted it by pointing

indirectly.

11 Further the employees remained absent because of their habit

of intoxication, some of the workers agreed of their being

involved in bad habit of intoxication., They drink at night, which

causes them to sleep late in morning and thus keeping them

away from work.

12 One case was very peculiar in which both father and son were

working i9n powertrac division of ESCORTS and both were

habitual absentees main reason being that they both were

involved in drinking habit and nei9ther of them was sorry for their

attitude.

13 Yet another reason was bad working conditions like high

temperature inside, lack of proper ventilation, etc.

14 Availability of compensatory leave facility was rather misused.

Workers work day to night at a stretch for a week or two and then

avail the facility of compensatory leave.

15 Out of the sample interviewed hardly any worker was really

worried about being absent. They take it very casually. Many

workers said that they were absent just for fun, in their words.

1. It was observed that sickness of the family or self were the

most common excuses. Other major a reason of the absenteeism

was the side business that many of the workers were having.

2. Out of the sample interviewed hardly any worker was really

worried about being absent. They took it casually. The only

measures taken by management are warnings and suspensions.

3. There is an urgent need to review the practice of overstay

through which employees earn compensatory leave and turn

cause absenteeism which further necessitates overstay of other

employees thus triggering a vicious cycle of overstay and

absenteeism.

4. Improvement can be made through counseling. Employees

can be motivated through fringe benefits and financial benefits.

5. Another measure, which shou8ld be taken to improve the

condition, should be rehabilitation of alcoholics. This problem

can be removed if the worker is motivated to leave it and also buy

providing aid to him if he decided to stop this habit.

Further acc. To decision of Supreme Court absentees is a

misconduct for which only punishment can give but the person

cannot be strucked off. Due to this decision management has not

much to do. Therefore the only measures taken by the

management is warning of suspensions and maximum that they

can do is the suspension of few days.

PERSONNEL FUNCTION IN THE COMPANY

This division takes pride in people who strive for excellence-

people who are not merely satisfied with what they have but are

looking for “more” and better for betterment of their products

their organizations and themselves. It provides therefore is to

provide with an environment where one can learn and grow.

This has its own objectives and strives to reach there. And for

this is required co-ordination among employees, their healthy

spirit, mind, good working environment, sound industrial relation

etc and here comes the role of personnel department which is to

hire the right people for various jobs, equip them to handle the

job and keep them motivated.

The key to success, it is said, is not just the state of the art of the

technology; it is the state of the art of the people. The company

recognizes that human resources are its most important assets.

While recruitment is done very carefully to ensure that only the

best get selected, the various system operating with in the

company be it the compensation and benefit package, the

evolution systems or the reward systems are all geared to attract

the best talent available. The company attaches utmost

importance to human resources development for it realizes that

human resources need to be shaped to respond to business

needs and the imperatives of change. The endeavor is to

constantly underline the talent base with two basic objectives;

clarity of purpose and motivation for individual career growth

through self-improvement. Programmers are instituted at all

levels to improve productivity and to check individual potential

for growth. To keep managers in touch with the latest in

management techniques, ESCORTS has tied up with premier

management institute for programmers at all levels. At the worker

and staff levels, the company has also successfully implemented

the concept of incentive linked pay scales, to achieve greater

efficiency. Every blue-collar worker at ESCORTS is pension able,

a feat not many companies can boast of.

Thus the personnel department is responsible for many

functions. Some of these are:-

1 Manpower planning, recruitment & induction

2 Training & development of employees

3 Union negotiations

4 Appraisal, increments & promotions

5 Employee health, safety & welfare

6 Maintaining personnel needs

7 Industrial relations

8 Grievance handling

9 Employees benefits & services

10 Workers education & tours

11 Industrial safety

12 Fire presentation & fighting

13 Suggestion scheme

14 Health awareness and guidance

15 First aid facilities

LIMITATIONS

1 Availability of less time.

2 Busy schedule of the employees.

3 Lack of co-operation.

4 Biasness of the employees.

5 It is very lengthy project and large amount of data required,

which was not an easy work.

6 Shortage of secondary data.

CONCLUSION

EMPLOYEES ABSENTEEIS mean employee who is not available

for duty is counted as absent from duty. If he is on sanctioned

leave it will be counted as ‘‘Authorized absenteeism”. In case he

is not available to work without any leave or pre-sanction it would

be counted ‘‘Unauthorized Absenteeism”.

There are many conclusions:-

1 The study of ESCORTS LTD. enables us to conclude that

overall attitude of the system is quite promising but still there is

certain drawback present in the system in which need to be

corrected in order to make the system more acceptable and

beneficial for every employee of the organization.

2 Responses highlight that the employees are not fully satisfy

with facilities provide to them especially the long procedures

followed for sanctions the travel and bank loans.

3 There are various issues on which absenteeism levels of

employees are very high.

4 Company provides healthy facilities to the employees.

5 The various guidelines are properly state and followed in the

relation to the accidental prone areas.

6 There is due emphasis on cleanliness both in the plant and in

township.

SUGGESTIONS

After undergoing the study by taking personal interviews of the

workers, few drawbacks did came-up. Few steps can be taken to

do away with drawbacks, though some of the drawbacks are the

limitations, which are nearly impossible to done away with

though they can be toned down.

The workers should be explained the rules and regulations

relating to attendance.

Proper orientation of the induction program is very necessary. A

case was seen in which a worker met with an accident inside the

factory premises and got his left arm fractured. To the rules of the

of the company any accident should be reported within 24 hrs.

But the above person did not known about it and so could not get

the desired facilities. He was absent for days thinking that it

would be called leave. But because there was no registration it

was counted as absenteeism. He then had to go out for treatment

causing him again to be absent.

-There is an urgent need to review the practice of overstay

through which employees earn compensatory

- Leave and in turn cause absenteeism which further necessitates

overstay of other employees thus triggering a vicious cycle of

overstay and absenteeism.

-Counseling has always been the best way to any solution. Past

study also shows that counseling is an effective measure.

Counseling should be done at least once in two months.

-Most of the workers give reasons of sickness this may be

because of unhealthy working condition. Therefore management

should take measures to provide proper working condition.

-Proper fringe benefits and financial incentives should be given to

regular employees. This can motive other workers to be regular if

they come to know about the extra benefit which they could avail.

-Another basic reason found out for absenteeism was in sufficient

welfare schemes and housing facilities and frequent visit to

hometowns. To improve this following measures.

1. Reincarnation centers for entertainment

Although it is a costly project bearing large expenses but

result will be decreased absenteeism and increased production.

Most of the good organizations have their own townships, which

is lacking in ESCORTS.

-A reason found out for absenteeism was side business of

workers why do workers go for it it means lack of proper wages

allowances and job security. Measures should be taken to

maintain a sufficient reasonable level of wages.

-Worker in need should be granted leaves liberally so that they are

at work when needed.

-Habitual absenteeism should be made aware of their absenteeism

the more the employees are kept informed about there absence

the greater is the chances of reduction in the rate of absenteeism.

Absentee is to be made aware of his absence to make him feel

that he is not only important but he is greatly needed.

As absenteeism of workman is a matter of concern before shop

managers, as it effects adversely in smooth production. Through

absenteeism is related to personal reasons of workman, but it

becomes necessary on the part of the management to put efforts

to reduce absenteeism in a planned manner. Thus I also talked to

the junior manager in order to assess their preparation about

worker absenteeism. The junior manager gave the following

suggestions:-

-In order to control the high rate of absenteeism, the management

should do home visits of the habitual absentee.

-The management should introduce some social recognition

programmers.

-The management should give them awards for being punctual.

Management can motivate them in this way .Also it can inspire

others to be punctual.

-The mgt should not be scared of the union and should take

disciplinary action against the absentee. Management position is

very pathetic because of the dominance of union.

-Inter personal relation should be improved, because if a worker

has good relation with his boss than only he will frankly tell his

problems or the reasons for taking leave, and the mgt can try to

work upon those reasons.

- List of absentees should be displayed on the notice board

Mgt should issue the show cause notice to the absentee

After joining the plant I hardly faced any problem. Everyone in

my department was very helpful and co-operation .I got good

guidance from my senior. Under their guidance I chose my

subject for the project. After I prepared my questionnaire on the

basis of selected problem. I was provided the list of the habitual

absent workers with my sample being 50 workers.

It was after I started the project that I faced problem. While

working on the project various limitation occurred. Various

limitations faced were:

-Shortage of secondary data. Secondary data needed for the study

was not easily available. The files given contained the data, which

was insufficient.

-Paucity of time due to wastage –Sometime only one worker could

be contacted in a day because the man did not turn up. This led

to wastage of time and others led to paucity of time.

-Out of the target of 60 only 50 could be contacted because some

were still irregular staying away from work, which created lot of

problems.

-I was visualized as management people, so it was difficult for the

workers to open up.

RESEARCH DESIGN

The research design is descriptive as well exploratory in nature.

The interview of people is to descriptive nature to obtain

information to get better insight about the issue at hand.

2. SAMPLE DESIGN:-

The sampling design for the selection of

sample is based on convenience sampling because of

respondent who participated in the sample was those who were

conveniently available & there were no specific criteria on which

they were selected.

3. AREA COVERED:-

The research design area was FARIDABAD.

4. SAMPLE UNIVERSE:-

Most of people in FARIDABAD.

5. SAMPLE SIZE:-

The entire people visit in the research area covered 60 people.

6. COLLECTION OF DATA:-

All the data collected was of primary in

nature. Primary data was collected through QUESTIONAIRE,

OBSERVATIONAL & INTERVIEW METHOD.

7. DATA INTERPRETATION:-

After the data collection was over

coding& editing of the data started. Any non-response and non-

seriously filled questionnaire was not considered for analysis.

QUESTIONAIRE

WORKERS PROFILE

NAME

AGE

ADDRESS

QUALIFICATION

TRADE

MONTHLY INCOME

Q.1 WHAT IS YOUR EXPERIENCE IN THE COMPANY?

Q.2 DO YOU THINK WORKING ENVIRONMENT IS

SATISFACTORY?

1. YES

2 NO

Q.3 HOW MANY HORS DO YOU NORMALLY WORK?

Q.4 WHAT IS THE MODE OF TRANSPORT YOU USE?

1. PUBLIC TRANSPORT

2. COMPANY BUS

3. OWN CONVENIENCE

Q.5 DOES THE JOB INVOLVE ANY KIND OF RISKS?

1. YES

2. NO

Q.6 IS YOU ALCOHOLIC?

1. YES

2. NO

Q7. IF YES, THEN WHAT IS THE FREQUENCY?

Q8.DO YOU HAVE ANY MEDICAL HISTORY?

Q9. WHAT IS THE NUMBER OF SALARIED PERSONS IN

THE FAMILY?

Q10 HOW MANY MEMBERS ARE THERE IN YOUR

FAMILY?

Q11. IS ANY MEMBER HAVING ANY LONG MEDICAL

HISTORY?

Q12. IS ANY OTHER BUSINESS BEING PRACTICED IN

YOUR FAMILY?

Q13. ARE YOU ACTIVELY INVOLVED IN ANY SOCIAL

ACTIVITITY?

1. YES

2. NO

BIBLIOGRAPHY

1. KOTHARI, C.R: RESEARCH METHODOLOGY

2. GUPTA S.P: STATISTIC

3. PRASHAD L.M: ORGANISATIONAL BEHAVIOUR

4. KOTLER, PHILIP: MARKETING

5. INTERNET SITES:

A. WWW.ESCORTS.COM

B. WWW.INDIATIMES .COM

C.WWW.GOOGLE.COM

D. WWW.NAUKRY.COM