hitesh industrial report on employ absenteeism

8/7/2019 Hitesh Industrial Report on Employ Absenteeism

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EMPLOYEE ABSENTEEISM

UNILEC

A Project Report

On


FOR

UNITED ELECTRIC INDUSTRIES LTD.

Submitted By

PATEL HITESH B.

Submitted to

SINHGAD BUSINESS SCHOOL (MATRIX), PUNE.

In partial fulfillment of the PGDM (Post Graduate Diploma in

Management).


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INDEX

(1) Introduction

(2) Industrial Profile

(3) CompanyProfile

(4) Product Profile

(5) Organization Structure

(6) Theoretical Background of Absenteeism

(7) SWOT Analysis in HR perspective

(8) Competitor Analysis

(9) Future Plan of the Company


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INTRODUCTION

1.1 INTRODUCTION TOTHE STUDY

Absenteeism is a serious workplace problem and an expensive occurrence for both employers

and employees seemingly unpredictable in nature. A satisfactory level of attendance by

employees at work is necessary to allow the achievement of objectives and targets by a department.

Employee Absenteeism is the absence of an employee from work. It is a major problem faced by

almost all employers of today. Employees are absent from work and thus the work suffers.

Absenteeism of employees from work leads to back logs, piling of work and thus work delay.

Absenteeism is of two types -

1. Innocent absenteeism - Is one in which the employee is absent from work due to genuine

cause or reason. It may be due to his illness or personal family problem or any other realreason

2. Culpable Absenteeism - is one in which a person is absent from work without any genuine

reason or cause. He may be pretending to be ill or just wanted a holiday and stay at home.

Many employees will, on occasions, need a few days off work because of illness, however,

when absences become more frequent or long term and reach an unacceptable level, action by

management is necessary. Absence from work can be expensive in both monetary and human

terms. The costs incurred when an employee is absent from work may include:

(i) Replacing the employee or requiring other staff to cover the absence;

(ii) Inability to provide services, or achieve section and departmental objectives;

(iii) Low morale and general dissatisfaction from other staff, particularly if the

absence is perceived as unwarranted

1.2TITLE OFTHE PROBLEM

A study on the Ways To Reduce Employee Absenteeism With Special Reference To United

Electrical Industries Ltd, Kollam

1.3O

BJECT

IVESOF

T

HE ST

UDY

1. To find out the various cause for absenteeism

2. To study the various measures adopted by the organization

3. To provide suggestions in the form of solutions to reduce the rate of absenteeism


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INDUSTRY PROFILE

One of the main problems the industrial world faces now is the scarcity of energy.

The demand is more and supply is less. More research is done to find out alternative sources

of energy. The researches are still in its beginning phase. Till some new alternate energy is

found out, the dependence will be on the existing forms. Electrically being the important

among them plays a major role in almost all industries. Apart from industries, it is the basic

form of energy for household purpose also. Production of electricity has become more

expensive which demands careful utilization and accurate measurement. Keeping this in mind

analogue measuring instruments has been replaced by electronic ones by suppliers of

electricity.

The share of electricity consumption of large buildings in t

he commercial sector is

currently of the order of 7 percent of countrys overall consumption, and it is growing at

about 12 percent over the last few years. Annual energy consumption in commercial

buildings, which is in excess of200 Kwh per square meter of floor area, is expected to be

brought down to 120-160 KWh when the standards are implemented. According to

Construction Industry Development Council (CIDC), residential and commercial

construction has been growing in excess of 10 percent per annum, and that accounted for

nearly 41 million square meters last year.

With escalating power demand in Southeast Asia, most countries in the region are

demanding novel electricity meters. Moreover, as increasingly more electric utilities install

meters at their customers (both small power and large power consumers) site, sales for both

single phase and three phase meters are increasing. Hence, the electricity meters market is

witnessing stable growth. This is likely to further accelerate with the transition of

electromechanical meters to electronic/digital meters.


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COMPANY PROFILE

HISTORY

United Electrical Industries Ltd., Kollam was incorporated in the year 1950 in the

private sector. It is the first factory in India to manufacture Electricity House Service Meters.

It is located at 3 km south of Kollam. The Company started its manufacturing activity in

technical collaboration with a world-renowned measuring instrument manufacturer M/s. Aron

Meters Ltd., England. It initially started with the assembly of single-phase meters with

imported components for subassemblies. The company owes its origin to Shri. K.P.S. Nair,

the chief electrical engineer or Travancore-cochin State and Shri. Abraham Pothen, an

eminent industrialist. Major shares of the company were taken over by the Kerala

Government in 1957 and reconstituted as a Public Limited Company.

As usual most industries, this company also had to face certain troubles like

inadequate working capital, labour unrest etc. The company gradually overcome this and

started establishing steady market for the product. In 1956, a plan of diversification was

initiated and manufacturing of MotorControl Gear was started with technical collaboration

from Mysore Electrical Industries Limited, Bangalore. In the same year, production of poly

phase meters commenced. The company entered into a technical collaboration with General

Electrically of India Ltd... Calcutta, for manufacturing of oil and air break circuit breaker up

to 22 Kv rating.

The Company manufactures Electricity House Service Energy Meters of both electro-

mechanical and static types, Motor Starters and contractors. At present the company is

mainly concentrating on the production of Static type Energy Meters and motor Starters. The

annual turnover of this organization is about Rs.16 crores and more than 90% of the

Companys turnover is from the sales of Energy Meters to KSEB, its employee strength is

140.

The major shareholder is Government of Kerala and is holding 99% of the total share

value. The Board of Directors of the Company comprises government nominees, usually

from the Industries Department and General Manager of the Company and also from among

other shareholders.

The mission, vision and quality policy of United Electrical Industries Ltd are

stated as follows:


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Mission:

To become the number one supplier of electricity meters and to grab two digit share in the

transformer & water meter markets in India by ensuring customer satisfaction of its products and

services and continuous improvement

Vision:

To become the pioneers through operational effectiveness and customer satisfaction

PRODUCT PROFILE

The main products of United Electrical Industries Ltd. are:

1. Energy meter

2. Oil immersed Ac motor starter

3. Air breaking switches

4. Water meters

1. Energy Meters

Two types of energy meters produced in this firm are:

a. High quality Electro-Mechanical Energy meters

Type KVI-M magnetic suspension bearing meters are designed and manufactured to

satisfy the highest standards of accuracy and reliability of energy measurement in Single

Phase ACCircuits. These are designed for tropical climate and fully complies with IS 13010

(2002) and its latest amendments.

b. Electronic Energy Meters (Single Phase & Three Phase)

Type UEM static meter is designed and manufactured to satisfy

the highest standard of accuracy and reliability of energy measurement in single phase and

three phase circuits. The meter is designed for tropical climate and fully complies with ISI

3779.(1999) REC specification.


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OIL IMMERSED AC MOTOR STARTERS (MCG)

Four types of AC Motor starters produced in this firm are:

a. Oil immersed Star Delta StarterType NSD

These control gears are available in the range of 10 HP to 200 Hp. Correct

sequence device incorporated in the unit ensures proper sequence of operation so that the

Starter is first put into the Star position for starting before a quick changeover is possible to

the delta position for running. Manual tripping is provided by a lever on the side of the

Starter.

Oil dashpot type overload relays are calibrated from full load to double full load and

are easily adjustable. Under voltage relays open the circuit in case of abnormally low voltage.

b. Oil Immersed Auto Transformer StarterType ATS

These starters are designed to provide control for A.C. Squirrel Cage

Induction Motors up to 200 H.P. where it is found necessary to minimize the starting current

and attain a higher starting torque. These starters embody an auto-transformer and reduce the

current taken by the motor while starting. These starters are a floor mountain type and

facilities are provided for mounting a pedestal type Ammeter.

c. Oil Immersed Slip ring Motor StarterType 1& Type 11 OSR

These starters are available in the range of10 H.P to 150 H.Pto

150 H.P. They have electrical interlock between the staor and rotor circuits. So that it is not

possible to start the motor unless all the rotor resistance are in circuits. The starter is fool-

proof as the motor can only be started from the full off position, Rotor resistance are ofhigh

grade resistance wires.

d. Fully automatic auto transformer starter type FAATS

The salient feature of this starter is its automatic switch over to full

rated voltage. These starting current is minimized to attain higher starting torque with the


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help of an auto transformer. Tippling is provided for40%60% and 80% of the voltage to be

supplied. The panel consists of a Thermal Overload Relay. StarContactor with timer (0.30

Sec), a Main Contactor and a Run Contactor. The starting time can be set by the user

depending upon the application. The temperature of the transformer is set to safe limit using a

thermostat.

3. AIR BREAK SWITCHES

Features

y The contact ends are Tin coated.

y The fixed contact element are made of excursed electrolytic grade copper flat with

flexible ends.

y The leakage current passes to earth and not between terminals of the poll or

between polls.

y Switch is permitted to pad locking in both open and close position.

\

4. WATER METERS

Water meters are inferential. Multijet, dry dial. Magnetic type. They have both pointer

& cyclometric reading counters and are duly sealed against tampering. The conform to IS

specification no. IS: 779-1994 Class B (latest amendment) Equivalent to international

standard ISO-4094.

ORGANIZATIONAL STRUCTURE

The company follows a functional organizational structure. There are the

functions or activities the company performs to carry on its activities. It is created by

grouping the activities on the basis of functions required for the achievement or

organizational objectives. For this purpose, all the functions required are classified into basic,

secondary, and supporting function according to their nature and importance. The basic or

major functions are those which are essential for the organization. In a manufacturing

organization like United Electrical Industries, basic functions are production and marketing.

If a manager feels that his span of management is too wide to manage effectively, which


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invariably happens in large organization, several department are created on the basis of

dividing a basic function into sub-function. For example, marketing may be subdivided into

marketing research, advertising, sale and so on. Thus the process of functional differentiation

may continue through successive levels in the organization.

BOARD OF DIRECTORS

Govt. Nominee

industriesManaging

Director

Govt. Nominee

Finance Department

Manager

Finance

Sr.Manager

(Commercial)Sr.Manager

(Production)

Sr.Manager

(R & D)

Sr.Personnel

Officer

Accounts

and

Costing

Procurement

sales

masrketin

Production

Maintenance

R & D

Quality

Assurance

Establishment

&

Personnel


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THEORETICAL BACKGROUND

DEFINITIONS OF ABSENTEEISM

i. Absents constitutes a single day of missed work(Martocchio & Jimeno 2003)

ii. Absence occurs whenever a person chooses to allocate time to activities that compete

with scheduled work either to satisfy the waxing and warning of underlying

motivational rhythms(Fichman 1984) or to maximise personal utility(Chelius 1981)

iii. An individuals lack of physical presence at a given location and time when there is a

social expectation forhim orher to be there. (Martocchio & Harrison, 1993)

iv. Absenteeism refers to Non-attendance of employee for sheduled work( Gibson, 1966

john, 1978)

v. Absenteeism is defined as a failure of an employee to report to work when he or she

is scheduled to do so

TYPES OF ABSENTEEISM

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

approach.

1. Innocent Absenteeism

Innocent absenteeism refers to employees who are absent for reasons beyond their control;

like sickness and injury. Innocent absenteeism is not culpable which means that it is

blameless. In a labour relations context this means that it cannot be remedied or treated by

disciplinary measures.

2. Culpable Absenteeism

Culpable absenteeism refers to employees who are absent without authorization for reasons

which are within their control. For instance, an employee who is on sick leave even though


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Written Counselling

If the absences persist, you should meet with the employee

formally and provide him/her with a letter of concern. If the absenteeism still continues to

persist then the employee should be given a second letter of concern during another formal

meeting. This letter would be stronger worded in that it would warn the employee that unless

attendance improves, termination may be necessary.

Corrective Action forCulpable Absenteeism

As already indicated, culpable absenteeism consists of absences where it can be demonstrated

that the employee is not actually ill and is able to improve his/her attendance. Presuming you

have communicated attendance expectations generally, have identified the employee as a

problem, have met withhim/her as part of your attendance program, made your concerns on

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

improvement despite your positive efforts, disciplinary procedures may be appropriate.

The procedures for corrective/progressive discipline for culpable absenteeism are generally

the same as for other progressive discipline problems. The discipline should not be

prejudicial in any way. The general procedure is as follows: [Utilizing counselling

memorandum]

Verbal Warning(s)

Written Warning(s)

Verbal Warning

Formally meet with the employee and explain that income

protection is to be used only when an employee is legitimately ill. Advise the employee that

his/her attendance record must improve and be maintained at an improved level or further

disciplinary action will result. Offer any counselling or guidance as is appropriate. Givefurther verbal warnings as required. Review the employee's income protection records at

regular intervals. Where a marked improvement has been shown, commend the employee.

Where there is no improvement a written warning should be issued.


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Written Warning

Interview the employee again. Show him/her the statistics and

point out that there has been no noticeable (or sufficient) improvement. Listen to the

employee to see if there is a valid reason and offer any assistance you can. If no satisfactory

explanation is given, advise the employee that he/she will be given a written warning. Be

specific in your discussion withhim/her and in the counselling memorandum as to the type of

action to be taken and when it will be taken if the record does not improve. As soon as

possible after this meeting provide the employee personally with the written warning and

place a copy ofhis/her file. The written warning should identify any noticeable pattern

If the amount and/or pattern continues, the next step in progressive discipline may be a

second, stronger written warning. Your decision to provide a second written warning as an

alternative to proceeding to a higher level of discipline (i.e. suspension) will depend on a

number of factors. Such factors are, the severity of the problem, the credibility of the

employee's explanations, the employee's general work performance and length of service.

THEORIESOF ABSENTEEISM

Absence behaviour is discussed in terms of theories on absences such as the notion of the

informal contract and withdrawal from stressful work situations, social exchange, withdrawal,

non-attendance,

Informal Contract

Gibsson (1966) attempted to explain some of the main features of

absence behaviour by means of the notion of an informal contract. The contract is viewed as

being made between the individual and the organisation. Gibsson (1966) was especially

interested in absences that were not long enough to activate formal legitimising (certification)

procedures. He used the concept of valence, referring to a persons positive or negative

relationships to a work situation and pointed out that if the combined valences of a work

situation are weak, it will be easier for people to legitimise their absences to themselves.


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Withdrawal from the Stress of Work Situations

In their study on absence, Hill and Trist (1953; 1962)

contributed a theory of absence as being the withdrawal from the stress of work situations.

Withdrawal is the central explanatory concept; thus, individuals experiencing conflicts of

satisfaction and obligations tend to express them through labour turnover, accidents, and

unsanctioned absences (this is, absences without formal permission). In addition to the views

of Hill and Trist (1962), Hanisch and Hulin (1991) theorised that absenteeism and other

withdrawal behaviors reflect invisible attitudes such as job dissatisfaction, low level of

organizational commitment, or an intention to quit. According to this view, an employee who

is absent from work is consciously or unconsciously expressing negative attachment to the

organization.

Social Exchange

Chadwick-Jones(1982) presented a case for the theory of

absenteeism that is social, not individual in emphasis. As a first step Chadwick-Jones (1982)

assumed the interdependency of members of work organisations. It seems obvious that

individuals do have some mutual obligations to peers, subordinates, and superiors (as well as

other relationships outside the work situation). In this context the rights and duties of

individuals are both subject to, and representative of, a set of rules about activities in the work

situation. What individuals do is therefore likely to be in answer to, on behalf of, in defence of,

as well as achieving a compromise with the rules of the group.

Withdrawal

According to Chadwick-Jones (1982), absence from work, where work

is

defined by the employees presence at a particular location (office or workshop) for a fixed

period each day, can be interpreted as an individual act of choice between alternative

activities; as withdrawal or escape from surveillance; as individual or group resistance to an

inflexible system. Thus, absence may also be viewed as a stratagem in inter-group relations,

as a defensive or aggressive act in inter-group conflict (Chadwick-Jones et al., 1982). For the

purpose of this research this theory has relevance, as the reasons for absence behaviour could


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be related to a choice of alternative activities instead of attending work.

Non-attendance

Another definition of absenteeism refers to the non-attendance of

employees for scheduled work (Gibons, 1966; Johns, 1978; Jones, 1971). The definition

distinguishes absenteeism from other forms of non-attendance that are arranged in advanced

(e.g. vacations) and specifically avoids judgments of legitimacy associated with absent events

that are implied by as sick leave. This definitional emphasis seeks to focus on the key

organizational consequences of unscheduled non-attendance instability in the supply of

labour to the organization resulting in the disruption of scheduled work processes and the loss

of under utilization of productive capacity (Allen, 1981; Jones, 1971, Nicholson, 1977). For

this research this definition will be applicable, as the researcher will not take into account

absences due to vacation leave and sick leave taken over more than three days.

EFFECTS OF ABSENTEEISM

1. ON INDUSTRY

Absenteeism in industry stops machines, disrupts processes, creates production bottle-necks,

hampers smooth flow or continuity of work, upsets production targets, result in production

losses, increases direct overhead costs , increase work load of the inexperienced , less

experienced or sub standard workers as substitutes, this in turn creating problems of

recruitment , training, job adjustments, morale and attitudes of the employees.

ON WORKERS

1. Absenteeism reduces workers earnings and ads to his indebtedness, decrease his

purchasing power. Makes it difficult for him to meet necessities of life, leading to

personal problems, and in many cases loss of employment and resultant disaster for

his dependents.

2. It affects both quantity and quality of production. If more number of workers are

absent the total output is affected. If alternative arrangement is made by employing

casual workers who do not posses adequate experience the quality of goods produced

is affected.

3. It affects the efficiency of workers. The workers who joins after a long period of

absence would normally be much less efficient.

4. It affects the discipline of the workers adversely. The worker who is attending to his

work irregularly may not care much about the discipline.


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PeculiarFeatures of absenteeism

On the basis of micro studies undertaken in different parts of the country, certain

observations may be made.

a. Th

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

he days

following the payments of wages and bonus.

b. Absenteeism is generally high among workers below 15 years of age and those above

40.The younger employees are not regular and punctual, presumably because of the

employment of a large number of newcomers among the younger age groups.While

the older people are not able to withstand the strenuous nature of the work.

c. The rate of absenteeism varies from department to department within a unit. As the

size of the group increases, the rate of absenteeism goes up. This difference in the rate

of absenteeism is believed to be due to the peculiar style and practices of

management, the composition of the laboue force and the culture of the organization.

d. The percentage of absenteeism is generally higher in the day shifts.

e. The percentage of absenteeism is muchhigher in coal ans mining industries than in

organized industries.

f. Absenteeism in India is seasonal in character.

g. It is the highest during March-April-may, when a land has to be prepared for monsoon

saving, and also in the harvest season, when the rate goes as high as 40 percent.

SWOT ANALYSIS

STRENGTHS

2. A large and strong distribution network. (In comparison to the other competitive brand Pepsi

is having better reach to the market.)

3. Professional and dedicated manpower. (Starting from the higher-level management to the

sales-man employees is having great degree of dedication and professional attitude towards

selling the products. On the other hand companies operational staff always try their

maximum strength to meet the demand and utilize the recourses to maximum.)

4. More emphasis on market penetration. (Companies efforts of providing products to the

customers doorstep are working vis--vis wherever the transportation is not possible dealers

are appointed.)


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WEAKNESS

1. HPL Socomet Pvt., Anchor Electrical Ltd. And Naina Powers Ltd. has more visibility than

United Electrical Ltd. blue color.

2. Low plant capacity because of which company is not able to meet its demand during the peak

season.

3. Lesser plant utilization during the off-peak seasons. (During the winter season as the demand

is very low, plant and resource utilization goes down.)

4. Lack of automaton in the administrative department in the plant, which results in wastage of

time and sometimes in resources also.

OPPORTUNITIES

1. Demand is more than the production. (Because of the heat the demand of the electric items

raised drastically which is the good opportunity for the company the rival brands are also

finding it difficult to complete the demand.)

2. In the rural & urban areas distribution network is far stronger vis.-I-vis to any of the

competitor. Therefore it is viable to make it more stronger, as this can restrict the entry of the

other brands in the both market.

THREATS

1. Not able to meet the market demand during the peak season. (As the plant capacity is very

low the company is not able to meet the existing demand during the peak seasons).

2. There is lot of complaints are coming up about the impurities . (Within the last 30 days I met

around 50 such complaints because of which retailers were very angry with the company).

3. Some of the equipments in the plant are quite old which one of the reasons for low production

is.

4. There is no proper policy of distributing the merchandising assets of the company to the

retailers. (Many of the retailers have so many things though their sales are low but few of

them dont have anything inspite of large sales.).


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The main compititor in the electricity measuring instrument manufacturing in India are:

y HPL Socomet Pvt, New Delhi

y Anchor Electricals Ltd, Daman

y Naina Powers Pvt. Ltd, Hyderabad

y ECE industries, Hyderabad

y TTL Ltd, Noida

y Avener Power industries, Hyderabad.

y

C

ounty meters, New Delhi

y Hemant Industries, Hyderabad

y ECIL, Hyderabad

y Avon Meters Pvt. Ltd, Chandigarh

y Bentec Electricals and Electronics, Kolkata

y Holy Meters India Pvt. Ltd., Hyderabad

y Capital power System,Noida

y Himachal Energy Pvt. Ltd., Solan

FUTURE PLAN OFTHECOMPANY

To become the number one supplier of electricity meters and to grab two digit share in the

transformer & water meter markets in India by ensuring customer satisfaction of its products

and services and continuous improvement

hitesh industrial report on employ absenteeism

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