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A study on
EMPLOYEES’ ABSENTEEISM
With reference to
ITC LIMITED – ABD- ILTD DIVISION
A project report
submitted in partial fulfillment
of
the requirements for the award of degree
MASTER OF BUSINESS ADMINISTRATION
CHAPTER – I
INTRODUCTION
TOPIC OF THE STUDY
In almost all organizations, management is
confronted with the day-to-day problem of employee absenteeism.
Employee absenteeism, scheduled or unscheduled, for short or long
periods, legitimate or without acceptable reasons, remains a
problem in most organizations. Approximately one third of
organizations keep proper records of absenteeism. The impact of
absenteeism on an organization (the cost, measurement, managing
and control, as well as benchmarking absenteeism against other
similar organizations) is not always considered or established. Many
organizations do not have adequate absenteeism policies.
Management are not always aware of the impact of absenteeism on
their organizations, despite the fact that absenteeism can have a
major impact on an organization’s productivity, profits and
employee morale.
Absenteeism can have many reasons but has
only one result. It destroys the family income and the company’s
Economy. It is suicidal for the worker in the long run.
Every industrial organization strives hard to
maintainable and willing labour force. Modern industrial worker
expects a meaningful, satisfying and challenging job and job
environment. In this regard, industries should aim at creating a
conductive and congenial working environment, which would go a
long way in attracting, recruiting, developing, utilizing and retaining
competent workforce to achieve three vital objectives-improving
productivity and worker efficiency, improving quality of goods and
services and reducing and controlling costs of operations.
Concept:
By absence we mean failure of a worker to report for a work
when he is scheduled to work i.e when the employer Authorised
absence is also treated as absence, while presence even a part of a
day or shift is non-considered absence. Absence on account of
strikes, lockout or lay-off is not taken into account. Weekly and
scheduled holidays are not included. A worker is taken to be a
person who is “regular” employee and is not a “badly” or a “casual”.
It will be appropriate to maintain that it makes little difference
whether we speak of term “absence of works”, “absenteeism” or
“non-attendance”. All these can be used as if they are
interchangeable.
We may define absenteeism to be the manifestation of a
decision by an employee not to present himself at his place of work
at a time when it is planned by management that he should be in
attendance, and when he has been notified of such expectation.
Absenteeism has been defined by different authors and agencies.
Some of the definitions ate give below:-
DEFINITIONS:
1) U.S. Department of Labour defines “absenteeism” as the
failure of worker to report on the job, when they are scheduled
to work.
2) Mr. K. C. Fenelong has defined – “ Absenteeism is absence
from work, when work is available.”
3) Absenteeism refers to workers absence from his regular task
when he is normally Absenteeism.
A general definition of absenteeism includes time
lost, because of illness and accident and time away from the job
due to personal reasons whether authorized or unauthorized.
Authorized absence on leave with pay is also treated as absence.
AIM OF THE STUDY
The aim of this study is to undertake a theoretical study
on absenteeism and to conduct an empirical investigation into the
cause of absenteeism and identify job factors that may have an
influence on absenteeism in organizations.
NEED FOR THE STUDY
The study on the “ABSENTEEISM” at ITC
LIMITED – AGRI BUSINESS DIVISION-ILTD. Human resources are key
to the organization & are heterogeneous in natures Absenteeism
has great importance on the performance of the organization .
Increased in absenteeism results decrease in productivity through a
loss of man hours .Management of ITC Ltd –ABD-ILTD felt the need
to investigate the case of absenteeism.
OBJECTIVES OF THE STUDY
To study the rate of absenteeism & the factors influencing
absenteeism.
To study the economic benefits of the employee in the
organization
To study various causes of absenteeism in ITC LTD - AGRI
BUSINESS DIVISION-ILTD.
To find out the external factors for absenteeism.
To suggest feasible measure to reduce the rate of
absenteeism.
METHODOLOGY OF THE STUDY
To study the absenteeism of employee in ITC LTD -
AGRI BUSINESS DIVISION-ILTD the following methodology is used
the data collection. The study is confined to ILTD is based on both
primary data & secondary data.
SOURCES OF PRIMARY DATA:
The main sources of primary data are collected
through structured questionnaires followed by personnel interview
from employee at various levels.
SOURCES OF SECONDARY DATA:
The sources of secondary data pertaining to the study are:
Attendance registers of ITC LTD - AGRI BUSINESS DIVISION-
ILTD.
Synopsis from various sections of personnel department.
Annual\monthly report of ILTD.
Journals, books, internet website.
METHOD OF SAMPLING:
A population of 132 technicians is taken for
administering random questionnaire. Out of it 90 were the data
responded. The sample size is 90 employees.
LIMITATIONS OF THE STUDY
The researcher could collect only 90 employee responses to
the questionnaire.
The sample does not cover all the workers in the organization
due to logistical constraints.
The accurate of the information is not granted although care
has been taken to cross check information through separate
question.
Some employee were not able to share their options &
feelings freely while interviewing them. so it was the
disadvantages to gather correct information.
The study is limited to period of 30 days.
CHAPTER – Ii
Industry & company profiles
INDUSTRY PROFILE
INTRODUCTION:-
ITC is one of India’s foremost private sector
companies that has a diversified presence in cigarettes, hotels,
paper boards & specially papers, packaging, Agri- business, branded
apparel, packaged foods and confectionary, greeting cards and
other FMCG products.
ITC’s Agri Business Division is one of the India’s
largest exporters of agricultural products. ILTD Division, part of Agri
business, is the largest buyer, processor and exporter of cigarette
tobacco’s in India. The efforts of ILTD in tobacco development and
export marketing have enable India to become the fifth largest
producer and eighth largest exporter of cigarette tobaccos in the
world. The division has successfully leveraged technology up
gradation at the farm and processing ends to meet the
requirements of customers for quality and grades.
The Chirala Green leaf threshing factory has state
of the art processing lines that have reached optimum productivity
levels in through put and yields. Besides ensuring superior product
quality. These processing lines represent the global benchmark for
green leaf threshing plants.
Looking back in history British American
Tobacco Company had set up Indian leaf tobacco Development
Company to handle the procurement of tobacco in India and actively
encourage its growth by farmers. ILTD had discovered a promising
tobacco growing area in Andhra Pradesh called the south India leaf
area (SILA). Having established growing and buying points, the
important mile stone in ILTD history was establishment of the
processing facility at Chirala in 1922. From hand stemming
operations during 1922-80, today the GLT has grown into a state of
the art green leaf threshing factory with a capacity of 430 tones of
green leaf per a day. From an subsidiary to cigarette factories of
ITC, The division has grown with targets set to exports 50% of its
processed Tobacco in year, due to its continually improving
processing capabilities And expanding customer base.
TOBACCO INDUSTRY:
Tobacco grown in India for over centuries, contributes
significantly to the well being of the country. From the marginal
farmer growing tobacco on unirrigated, small land holdings to
retailers in remote corners of India, over 26 million people benefit
from their direct or indirect association with the tobacco industry.
Grown on a commercial scale in over 100 countries
world wide, tobacco forn1s a major part of the socio-economic
lifeline of over ,15 developing countries. Besides creating economic
prosperity for rural populations, it generates substantial revenues
for those governments and boosts agro-exports.
The global production and consumption of tobacco
continue to grow at an estimated rate of 1.95 and the total market
in tobacco products is valued at US $275 billion-about 78%of India's
GDP. Tobacco and export of tobacco products are a major source of
income of developing countries- over 70% of Malawi's and 40% of
Zimbabwe's exports earnings come from tobacco. Brazil and china
also depend on tobacco export incomes, which are in the region of
US $1.5 billion.
In India, tobacco is a major contributor to agrarian
economy, the exchequer and to agro-exports. Six million farm
laborers find gainful employment in tobacco farming. The tobacco
industry provides almost 10% of governments excise collections and
4% 0f all agro-exports. While 85% of tobacco consumption
worldwide is in the form of cigarettes, in India it is less than 20%. A
skewered taxation policy has restricted cigarette volumes but
ensured that cigarettes account for 87% of revenue generated by
the tobacco sector. So, modest volumes have limited the
tremendous revenue potential of cigarettes and cigarette tobacco.
The global import-export trade in tobacco was worth $30 billion in
1994 of which 25% billion was genet\rated by cigarettes. With 78%
of Indian tobacco being non-cigarette types, exports have been
correspondingly modest-less than 1 % of the global trade. What
emerges clearly is the opportunity that cigarettes and cigarette
tobaccos offer in tem1S of revenue, improving quality of
employment, developing the rural economy and increasing foreign
earnings.
THE FARMERS FRIEND
Among commercial crops, tobacco occupies a unique
and distinct positsm. Tobacco uses just 0.3% of arable land to yield
it of agricultural value nearly 4o/t of India's agro-exports. No other
crop provides such value to the farmer under similar conditions in
India. It is grown in a large number of states with Andhra Pradesh,
Karnataka, west Bengal, TamilNadu, Bihar, Utter Pradesh, Orissa
and Maharashtra being the major tobacco providing areas. Andhra
Pradesh and Karnataka are the two states growing the cured
Virginia tobacco used in making cigarettes and also the exportable
variety.
Tobacco is drought resistant crop grown
substantially on non-irrigated soils. More than 50% of tobacco
cultivation takes place in areas without irrigation. This is significant
in a country like India where 70_ of arable land lacks irrigation. At
the same time it is the only hardly crop that withstood the residual
moisture and organic matter during three consecutive cyclones in
Andhra Pradesh and gave the farmer well yields.
It is short-term cash crop compared to other main
crops of the region and takes between four to six months to grow.
The tobacco farmer to cultivate other crops for the rest of the year
can use the land. Growing tobacco improves soil fertility there by
increasing the yield of other crops on the same soil.
The cigarette tobacco grower receives regular
scientific inputs on improving yield and quality, and developing new
varieties from the private sector as well as the b\government. The
central tobacco research institute in Rajahmundry, Andhra Pradesh,
has played an important part in agricultural research project that
spans six state agricultural universities and six centers under the
Indian council for agricultural research.
CREATING WEALTH FOR THE NATION
Though tobacco is a significant contribute to the
Indian exchequer, revenue generation from the segments restricted
by the nature of tobacco consumption. Despite being only 19% of
tobacco consumption, Rs 3500 crores out if the Rs 4036 crores
(nearly 87%) that accounted at tobacco excise in 1996 was x-
accounted by the cigarettes. If all tobacco consumption was in the
form of cigarettes, excise collections would theoretically have been
in the range of Rs 18000crores and would account fit 30% of the
government excise revenues instead of 10% if provides now. More
cigarettes b\generation mean a giant leap in revenue generation.
Cigarette excise is determines by length and type.
Therefore, the Kingsize segment (cigarettes longer than 75mm)
pays the highest excise Rs 1100 per 1000 cigarettes-and also has
the smallest market share only about 15% Excise rates in India have
increased annually. Volumes in the conventional length segment of
cigarettes has shown a small growth of 2.7% since 1993-94 while in
sharp contrast the excise revenues have grown at compound a\rate
if 10.7%. This volume and revenue growth must be seen in contrast
with the impressive performance of the micro segment (non-filter
cigarettes not exceeding 60mm in length) after duly reduction in
March 1994, even though this reduction was sustained for a brief
period of two years. But in India, only 5% of all types of smoked
tobacco products are in the form of filter cigarettes. This share is
likely to shrink further with the budget proposals of a 16% hike in
the 70mm filter cigarette segment, which accounts for 44% of the
cigarette industry,
The golden leaf in India yields tremendous
promise. It is capable of not only making a much larger socio-
economic contribution at home, but had the ability to make India
emerge as a major player in the world tobacco market. India has the
infrastructural facilities, trained and experienced workforce
spanning all stages of tobacco production, and favorable agro-
climate conditions-factors, which undoubtedly augur well. It needs a
progressive tobacco policy to harness these advantages.
In order to attain the stated objectives, the
government needs to focus on these fundamentals.
The specific duty structure in 1987 should be retained in view
of enhanced revenues it provides and in order to achieve
litigation free tax collections.
The rate of duty of micro segment should be restored to Rs 60
per 1000 cigarettes, which has not affected the existing level
of industry and fetches major benefits to excise revenue.
Retain single point taxation for cigarettes and discourage levy
of luxury and entry tax by state governments, which
contravene the Act of 1957.
Excise duty should be reduced by 5%, the weighted average
impact of sales taxes on cigarettes, till the Supreme Court
pronounces a judgment on pending cases.
Give due consideration to premium segment which provide
impetus to the high quality, exportable tobacco. This will also
protect excise erosion on account of increased smuggling of
foreign brands.
The cigarette industry should be allowed the benefits of
bringing back damaged or defective goods for reprocessing.
Denial of this benefit has caused substantial loses to the
industry.
If it is not possible to bring down rates, current rates should be
maintained for at least two or three years to stabilize the
market and encourage cigarette volume expansion.
Today's world increasingly relies on a. common
agenda, particularly in the context of commerce. In globalize
environment, all nations flow with the main stream of internal
trends. India is no exception. It has to convert its threats into
competitive advantage to emerge as a dominant player. Tobacco
offers this opportunity to India.
AREAS IN OPERATIONS AND VARIETIES OF TOBACCO
Variety Areas
FCV - Traditional – Guntur - Prakasam - Nellore- Krishna
–
Khammam Dist.
FCV - NLS-East & West Godavari Dist.
FCV - Mysore-Assam-Chick Mangalore- Shimoga.
VAC - Yeleswaram Burely- East Godavari Dist.
VAC - Vinukonda Burely-Guntur Dist.
VAC - Light Soil Burely-Orissa State-North Coastal
Agency
Areas in A.P.
FAC - WAF-Kurnool Dist (White Ash frill)
LAC - EAC- West Godavari
Rustic - Gujarat
Lalchapadia- Gujarat
Laljudy - Gujarat
TYPES OF TOBACCO GROWN IN INDIA
1. FCV TOBACCO
a. Traditional Black Cotton : Andhra
b. Northern light soil tobaccos : Andhra
c. Southern light soil tobaccos : Andhra
d. Monsoon crop : Mysore
e. Monsoon crop : Orissa-Development
2. ACV VARIETIES
a. Monsoon Burely : Andhra
b. HDGRB : Andhra
c. SCN : Andhra
d. Rustica : Gujarat
e. Cigar tobacco : Madras
f. Bidi tobacco : Gujarat, Maharashtra and Madhya
TOP TOBACCO COMPANIES RANKED BY SALES:
1) Altria Group, Inc.(MO)
2) British American Tobacco p.l.c.(BAT)
3) Japan Tobacco Inc.
4) R.J.Reynolds Tobacco Holdings, Inc.(RJR)
5) Altadis, S.A.
6) Gallaher Group Plc(GLH)
7) Carolina Group (CG)
8) Reemtsma Cigarettenfabriken GmbH
9) Imperial Tobacco Group PLC (ITY)
10) UST Inc. (UST)
1) Altria Group, Inc. (MO): The house the Marlboro Man
built, Altria Group ( formerly Philip Morris Companies ),is
the world’s largest tobacco firm . Altria operates its
cigarette business through subsidiaries Philip Morris USA
and Philip Morris International, borh of which sell
Marlboro – the world’s largest-selleing cigarette brand
since 1972 .The company controls about half of the US
tobacco market. However, tobacco is only part of the
story. The company owns 84% of Kragt Foods, the
world’s #2 food company (after Nestle), which makes
Jell-O,Kool-Aid, Maxwell House, Oscar Mayer, and Post
cereals. The tobacco giant bought Nabisco in late 2000,
folding it into Kraft’s food portfolio. Altria owns 36% of
SAB Miller plc.
2) British American Tobacco p.l.c.(BAT): When people
pick up smoking, British American Tobacco (BAT) picks
up steam. Spun off in the reorganization of B.A.T.
Industries, BAT is the world’s #2 tobacco firm ( behind
Altria Group ) with about 15% of the market. It sells
nearly 780 billion cigarettes in about 180 countries.
BAT’s international cigarettee brands include Dunhill,
Kent, Lucky Strike, and Pall Mall; it also makes loose
tobacco and regional cigarette brands. Its US unit,
Brown & Williamson (Kool and GPC cigarettes), is
merging with the US tobacco business of R.J.Reynolds
Tobacco (RJRT).Companies controlled by South African
billionaire Anton Rupert own about 28% of BAT.
3) Japan Tobacco Inc.: Japan Tobacco has plenty to puff
about. It controls more than 70% of the cigarette market
in a country where half the men smoke and warning
labels suggest,” there’s a risk of damage to your health ,
so let’s be careful not to smoke too much.”A state
monopoly until 1985 , Japan Tobacco company, after
Altria and British American Tobacco. Its JT International
unit (acquired from R.J.Reynolds )sells Camel, Salem,and
Winston brands outside the US . The company also
operates in foods, pharmaceuticals, agribusiness,
engineering, and real estate.
4) R.J.Reynolds Tobacco Holdings, Inc.(RJR): Give it
up? R.J. Reynolds Tobacco Holdings (RJR)has been
smoking for more than 120 years , but increasing taxes
and court costs have encouraged competition from
cheaper discount brands. Although RJR has been forced
to cut costs to maintain profits, the firm’s R.J.Reynolds
Tobacco company subsidiary (RJRT)continues to be the
#2 US cigarette maker , with a market share of about
23% --compared with the 49% share of the Altria Group
(formerly Philip Morris).RJRT’s Camel, Doral, Salem, and
Winston brands are among the best-selling cigarettes in
the US . RJR is merging its US tobacco business with
Brown & Williamson, the third largest US tobacco
company.
5) Altadis, S.A.: When the smoke finally settles over
London , Gallaher Group helps kick it up again .The #2
UK cigarette company, Gallaher makes tobacco products
and sells them in Asia, continental Europe,Ireland,Russia
and other former Soviet republics, and K. Its premium
cigarettes include top UK brands Benson & Hedges and
Silk Cut;mid-priced brands include Berkeley; and low-
priced brands include Dorchester and Mayfair. Gallaher
also makes Hamlet cigars, Amber Leaf hand-rolled
tobacco, and Condor pipe tobacco.
6) Gallaher Group Plc (GLH): When the smoke finally
settles over London , Gallaher Group helps kick it up
again. The #2 UK cigarette company, Gallaher makes
tobacco products and sells them in Asia, cintinintal
Europe, Ireland, Russia and other Soviet republics, and
the UK. Its premium cigarettes include top UK brands
Binsom & Hedges and Silk Cut; mid-priced brands
include Berkeley; and low-priced brands include
Dorchester and Mayfair. Gallaher also makes Hamlet
cigars, Amber Leaf hand-rolled tobacco, and Condor
pipe tobacco.
7) Carolina Group (CG): Newport news provides the
best read on Carolina Group’s Lorillard Tobacco, the #4
cigarette maker in the US. Lorillard accounts for about
25% of parent company Loews’ sales, but more than
85% of the profits. Newport, Lorillard’s top brand, is the
#2 cigarette brand in the US and brings in nearly 90% of
Lorillard’s sales; its other brands include Kint, Maverick,
Old Gold, and True . The company has joined the rest of
the tobacco industry in reaching legal settlements with
all 50 states. A Florida appeals court overturned a $16
billion verdict against the company in May 2003.Loews
established Carolina Group in 2002 as a tracking stock
for its tobacco holdings.
8) Reentsma Cigarettenfabriken GmbH: Cigarette
maker Reemtsma Cigaretten fabriken has rolled tobacco
since 1910. The German company controls about 29% of
its home market and is one of the largest tobacco
companies in Europe. The company produces more than
60 brands, including Davidoff, Peter Stuyvesant, R1,
West. It sells its cigarettes through affiliated operations
in about 100 countries in Asia, Europe, and the
Americas. The UK’s Imperial Tobacco owns Reemtsma.
9) Imperial Tobacco Group PLC (ITY): The UK’s #1
cigarette maker (ahead of Gallaher Group), Imperial
Tobacco Group has traded up to an even bigger throne.
The company’s purchase of German tobacco firm
Reemtsma (Davidoff and West cigarettes ) nearly
doubled its size and made it the world’s #4 tobacco
company. Imperial’s brands include Lambert & Butler,
the UK’s #1 cigarette, as well as Castella cigars, and
Amphora and St Brunopipe tobacco. Its Drum brand is
the #1 hand- rolling tobacco worldwide, and Rizla is a
top cigarette paper. Acquisitions in Australia and New
Zealand have assured Imperial’s presence in emerging
markets.
10) UST Inc.(UST): for UST, the best part of a
baseball game is watching the players spit.A holding
company primarily for U.S. Smokeless Tobacco
Company, UST is the US’s largest manufacturer and
distributor of snuff and chewing tobacco. Its brands
include Copenhagen, Skoal, Red Seal, and Rooster. The
company’s International Wine & Spirits unit brings in
12% of sales by producing California wines under the
Conn Creek and Villa Mt. Eden labels and premium and
sparkling wines grom Washington under the Chateau
Ste. Michelle and Columbia Crest brands. UST also
produces premium cigars (Dom Tomas, Asteal and
Helix). Subsidiary UST International sells the firm’s
products outside the US, primarily in Canada.
ABOUT ITC COMPANY
LEADERS FOR OVER 90 YEARS:
ITC is the market leader in cigarettes in India. Its
India Tobacco Division (ITD) Pioneers the marketing of
cigarettes in India way back in 1910. ITC. Today is one of the
world's finest cigarettes manufacturing and marketing companies.
Backed by state-of- the-art technology and a portfolio of valuable
brands, ITC produces over 65 billion cigarettes a year.
ITC also pioneered the cultivation and
development of cigarette leaf tobaccos in India. With a 90 years
history of working closely with tobacco farmers, its Indian Leaf
Tobacco Development (ILTD) Division is the country's largest
buyer, processor and exporter of cigarette tobaccos. ILTD is
credited with bringing about the economic transformation of the
tobacco farmer in Andhra Pradesh where it is fondly referred to as
the "Talli Company" (Mother Company in Telugu).
HISTORY AND EVOLUTION:
ITC was incorporated on August 24, 1910 under
the name of 'Imperial Tobacco Company of India Limited'. Its
beginnings were humble. A leased office on Radha Bazaar Lane,
Kolkata, was the center of the company's existence. The company
celebrated its 16the birthday on August 24, 1926, by purchasing the
plot of land situated at 37, Chowringhee, (now renames J.L. Nehru
Road) Kolkata, for the Sum of Rs 310,000. This decision of the
company was historic in more ways than one. It was to mark the
beginning of a long and eventful journey into India's future. The
company's headquarter building, 'Virginia House', which came up on
that plot of land two years later, would go on, to become one of
Kolkata’s most venerated landmarks. The company's ownership
progressively indianised, and the name of the company was
changed to I.T.C Limited in 1974. In recognition of the company's
multi-business portfolio encompassing a wide rage of business -
Cigarettes & Tobacco, Hotels, Information Technology, Packing,
Special1y papers, Paperboards, Agri-Exports and Lifestyle Retailing -
the full stops in the company's name were removed effective
September 18, 2001. The company now. Stands rechristened 'ITC
Limited'.
Though the first six decades of the company's
existence were primarily devoted to the growth and consolidation of
the cigarettes and Leaf Tobacco businesses, the Seventies
witnessed the beginnings of a corporate transformation that would
usher in momentous changes in the life of the company.
In 1975 the company launched its Hotels business
with the acquisition of a hotel in Chennai, which was rechristened
ITC-Welcome group Hotel Cho1a'. The objective of lTC's entry into
the hotels business was rooted in the concept of creating value for
the nation ITC chose the hotels business for it's potential to earn
high levels of foreign exchange, create tourism infrastructure and
generate large-scale direct and indirect employment. Since then
lTC's Hotels business has grown to occupy a position of leadership,
with 44 owned and managed properties spread across India. It also
has a marketing and reservation arrangement with the Sheraton
Corporation, the reputed international hotel chain.
In 1979, ITC entered the Paperboards business by
promoting ITC Bhadrachalam Paperboards Limited, which today has
become the market leader in India. Bhadrachalam Paperboards
amalgamated with the company effective March 13, 2002 and
became a Division of the Company, Bhadrachalam Paperboards
Division. In November, 2002, this division merged with the
company's Tribeni Tissues Division to form the Paperboards &
Specialty Papers Division. ITC's paperboards' technology,
productivity, quality and manufacturing processes are comparable
to the best in the world. IT has also made an immense contribution
to the development of Sarapaka, an economically backward area in
the state of Andhra Pradesh. It is directly involved in education,
environmental protection and community development.
In 1985, ITC set up Surya Tobacco Co. in Nepal
as a joint venture with the reputed Soaltee group. In August 2002,
Surya Tobacco became a subsidiary of ITC Limited. Its name was
changed to Surya Nepal Private Limited (Surya Nepal).
In 1990, ITC acquired Tribeni Tissues Limited, a
specialty paper manufacturing company and a major supplier of
tissue paper to the cigarette industry. The merged entity was
nan1ed the Tribeni Tissues Division (TTD). To harness strategic and
operational synergies, TTD was merged with the Bhadrachalam
Paperboards Division to form the Paperboards & Specialty
Papers Division in November 2002.
Also in 1990, leveraging its Agri-sourcing
competency, ITC set up the international Business Division (IBD) for
export of Agri-commodities. The Division is today one of India's
largest exporters.
Recently, ITC's Packaging & Printing business
has launched a line of high quality greeting cards under the brand
name "Expression". ITC has also entered the Lifestyle Retailing
business with the Wills Sport range of international quality relaxed
wears for men and women. ITC has spun off its information
technology business into a wholly owned subsidy. ITC InfoTech India
Limited, to more aggressively pursue emerging opportunities in this
area.
THE ITC WAY:
ITC is a board-managed professional company,
committed to creating enduring value for the shareholder and for
the nation. It has rich organizational culture rooted in its core value
pf respect for people and belief in empowerment. Strong corporate
governance policies and systems back its philosophy of all-round
value creation.
ITC's corporate strategies are aimed at
matching its core capabilities with market opportunities to produce
superior shareholder value.
The key corporate strategies are:
Continue to focus on the core businesses of Cigarettes &
Tobacco, Hotels, and Packaging & Paperboard.
Ensure that each of its businesses meets the three
criteria of sustainability, namely Market Standing,
Profitability and Internal Vitality. Exit from businesses,
which do not meet these criteria within an agreed time
frame.
Ensure that each business is internationally competitive
in the Indian global market,
Create distributed leadership within the organization by
nurturing talented and focused top management teams
for each of the businesses.
Institute and practice a system of corporate governance
appropriate to ITC's character and constitution. Such a
system of governance must achieve a wholesome
balance between the need for executive freedom for
management and the requirement of a framework for
effective accountability.
Secure the future growth of the company by creating
new businesses, which leverage the strength of its core
competencies, residing in various businesses.
NO STOPS FOR ITC:
No stops to our commitment beyond the market
No stops to our vision of contributing to the nation
No stops to our endeavor to become world-class
No stops to our creation of sustained shareholder value
We have pulled out all the stops.
ORGANIZATION ENVIRONMENT
MAIN PRODUCTS:
The main products from the green leaf threshing
factory at Chirala are Un- manufactured tobaccos…
Lamina
Stem
AVR/export scrap
The services that are assured with the product
Improved shelf life
Elimination of non tobacco related material (NTRM)
Pest and mould free
Storage and handling/cool stores
ORGANIZATIONAL CULTURE:
ITC’s core values are aimed at developing a
customer- focused high performance organization which creates
values for all its stake holders.
TRUSTEESHIP:
As professional managers, we are conscious that ITC has
been given us in “Trust” by all our stake holders. We will redeem
the trust reposed in us by continuously adding value to ITC.
Unmanufactured tobaccos
ILTD
Domestic customers
Export and users
MerchantsOther and users
GLT at
Chirala
CUSTOMER FOCUS:
We will always be customer focused. We will deliver
what the customer needs in terms of value, quality and satisfaction.
RESPECT FOR PEOPLE:
We will respect and value people and uphold
humanness and human dignity. We will value difference in individual
perspectives. We want individuals to dream, create, experiment in
pursuit of opportunities and achieve leader ship through teamwork.
EXCELLENCE:
We will strive for excellence in whatever we do. We will
do what is right, do it well and win.
INNOVATION:
We will constantly innovate and strive to better our
processes, products, services and management practices.
ETHICAL CORPORATE CITIZENSHIP:
We will pursue exemplary standard of ethical behavior.
We will at all times comply with the laws of the land.
ILTD DIVISION VISION STATEMENT:
Build and sustain ILTD as a world class business
organization.
ILTD DIVISION MISSION STATEMENT:
Achieve international competitiveness in cost, quality
and services.
ILTD DIVISION OBJECTIVE:
To continuously enhance product and process quality
through contemporary technology and operational excellence. The
factory management efforts are to harness the loyalty and sense of
belonging of the employees for alignment with the vision, mission
and objectives leading to a culture of stretch and innovation, there
by enhancing contribution.
ORGANIZATIONAL CHALLENGES:
There are many proprietary green leaf processing
units who are their main competitors in India.
Company Exports-Mkgs
(in 2002-03)
ILTD 24 (total 76)
PSSH 11
BBL 8
ML 4
MA 4
DECCAN 10
DELTA 7
The volumes of the competitors are smaller than ILTD
volume. Although they are competitors to ILTD,( Considering a
larger perspective) they are partners in promotion of exports from
India. ILTD shares information and provides them a part of their
volumes for processing for both developing their capabilities and
having alternate capacity for contingencies.
In the changing market scenario, some of them are in
the process of establishing cigarettes factories and entering into a
tie up with international merchants.
Strength off ILTD is the largest state of the art
processing facility, professional management and world wide
network apart from established internal communication system and
corporate monitoring systems.
Factors Chirala Average competition
Costs
Manpower 1.13 0.47
Power 1.04 1.52
Coal 0.22 0.60
Maintenance 0.53 0.78
Total 2.92 3.37
Productivity
Kg/man-day
200 116
The labour costs and standards of safety at Chirala are
much higher than competition and this is more than offset by higher
productivity and lower energy, maintenance costs. The advantage
of Chirala factory has over competition are long term strategy and
goals, implementation of systems such as ISO 9000 for product
quality, external audits and caliber of professionals engaged and
close association with end users.
STRATEGIC CHALLENGE:
Large number of illiterate employees
Growing percentage of young employees who have greater
aspirations & requirements
To align new employee aspirations with the organization goals
and vision.
Greater requirement for social responsibility initiatives
Product traceability and integrity and value chain integration
Demand for higher yields
More stringent product quality tolerances
AWARDS:
ITC's Packaging business has won numerous awards for
its quality, environmental management systems and product
excellence:
First in India to be assessed at Level 6 on the International
Quality Rating Systems (IQRS).
Both the Chennai and Munger factories have obtained ISO
9002 certification. The Tinivottiyur and Munger factories have
also received the ISO 14001 Environment Management
Systems certification.
Quality Improvement Benchmark Awards for 1997 and 1998.
British Safety Council Swords of Ron or in 1999 for both the
Chennai and Munger factories.
CAPEXIL Special Export Award for 1999 and Top Export Award
for 2000/01.
The World Star award for Aashirvaad Select 2-kg pack in the
Consumer Pack category in 2002, Wills Natural Lights in 1999,
Royal Velvet & Passport whisky cartons in1998 and Nargis
lined tea cartons and Vacupack bulk packaging for tea in
1997.
Asia star awards for packaging excellence in 1999, 2000 and
in 2001 we have received 3 Asia star awards for Surya lOs,
Royal Stag 750ml and No.1 Gift Pack.
India Star Awards for unique, innovative and visually
appealing packaging in 2002 for the Aashirvaad Select 2-kg
pack and for Bagpiper Gold, Royal Challenge and Sara lee
Celebration packs in 2000.
BOARD OF DIRECTORS:
Chairman
Y. C. Deveshwar
Executive Directors
S. S. H. Lehman
Non-executive Directors
C.R. Green
Y.P. Gupta
P.B. Ramanujam
B. Sen
J.B. Stevens
Ram S. Tameja
T.M. Nagarajan
B. Vijayaraghavan
A.Prasad.
PROFILE OF ITC LTD – AGRI BUSINESS
DIVISION-ILTD IN A.P
Plant was also considered as "The largest tobacco
threshing in Asian continent". In ITC Limited, ILTD Division has a
history of 85years of partnership with formers and leadership in the
cultivation of Cigarette Tobacco. ITC introduced natured and
developed Virginia and purely Tobacco in India. There are Six
Chronological events in ILTD starting from 1980- 1990.
In ILTD Division there are Two Factories in A.P. one is at
Anaparthi and another is at Chirala. Guntur is the Head Office for
these two factories. Chirala is located at distance of 350K.M. from
Chennai and south east of Hyderabad.
The first activity in Chirala was in the year 1918, started
with leaf buying, redrying factory was setup in the year 1926 at
Chirala over the period with changes in the environment and
business needs, green leaf threshing plant was setup in the year
1985 with increase in customer demands. Second line was added in
the year 1990 - 91 to enhance the production capacity. The plant is
with state of art and technology and was considered as one of the
best plants in India in turns of products quality and this division is
located in Perala village outskirts of Chirala, which is providing
agricultural commodity, as it deals with agricultural commodity, the
operational phase in each and every year, varies with seasonal and
non-seasonal periods.
Modernization has been a continuous process at Chirala
factory keeping customer needs as the guiding post. In 1984 the
factory switched over from hand stripping to mechanize threshing
with an initial installed capacity of 4 Tons per hour. Today the
factory has 2 threshing lines capable of threshing 13 Tones per
hour. Both the threshing lines are designed for soft threshing with
abundant classification area to achieve a high product quality.
The factory has a quality control laboratory of
international standards with facilities for online monitoring and infra
analyzer to analyze chemistry of Tobacco. The factory has also a 33
KV sub-station of 5MVA capacity from the State Electricity Board and
have a standby captive generation power plant for 100% power
requirement of the factory. The leaf storage capacity is of 7.5 million
Kgs. With facilities for mechanized unloading and loading operation.
The quality of the product supplied to the domestic and overseas
customers is a true reflection of the morale and commitment of the
employees of the factory continuous improvement in various
aspects of the quality of the Product.
ILTD BUSINESS AND ORGANIZATION MISSION
STATEMENT:
“To enhance the wealth generating capacity of the enterprise
in globalizing environment, delivering superior and sustainable
stake holder value"
ILTD DIVISION LONG TERM BUSINESS OBJECTIVES:
1. To be dominating player in every field in which, we choose to
operate.
2. To attain and maintain the leadership position in exports
among private sector companies in India.
3. To become one of the foremost institutions in the world for
plant material based formulation/ products commercial scale
to make this world safer place to live.
4. To reestablished and strength in over image as a friend of the
farmer as an institution contributing. Significantly to rural
prosperity through improving the economics of the farming
community and tribal population.
INTERNATIONAL RECOGNITION:
Quality: Chirala green leaf-threshing facility is the world’s first ISO
9002 certified tobacco-processing plant
Safety: The factory is the one of the safest factories, a fast
confirmed by the awards of the British Safety council for the years
1993 & 1994 and sword of honor for 1994.
ENVIRONMENTAL CERTIFICATION:
ILTD’s Green leaf threshing plant at Chirala
has been awarded the BS 7550 certification, a British environmental
system standard, by the Bureau Verities Quality International
(BVQI). Chirala becomes the first ITC unit to get the Environment
Management System (EMS) certification and joins a select brand of
companies in India to have this distinction.
PROGRESSING STAGES IN ILTD:
1. Feeding
2. Conditioning
3. Band reeling
4. Dividing
5. Picking
6. Threshing
7. Classification
8. Redrying
9. Processing packing
10. Prizing Marking
The first activity in Chirala was in the year 1918,
started with leaf buying, redrying factory was setup in the year 1926
at Chirala over the period with changes in the environment and
business needs, green leaf threshing plant was setup in the year
1985 with increase in customer demands. Second line was added in
the year 1990/91 to enhance the production capacity. The plant is
with state-of-art- and technology and was considered as one of the
best plants in India in terms of product quality and this plant was
also considered as "The largest tobacco threshing plant in Asian
continent". This division is located in Perala village outskirts of
Chira1a adjacent of industry in Chirala, which is providing
agricultural commodity, as it deals with agricultural commodity; the
operational phase in each and every year varies with seasonal and
non-seasonal periods.
Seasonal Period: - It starts from November and ends with July with
a gap of one or two months.
Non-seasonal period: - It starts from august and ends in October.
During seasonal period, the plant is engaged with threshing green
leaf tobacco with full utilization. On the contrary during the seasonal
periods spread over four months in the year i.e., during monsoon
period in the area of plant shutdown. During the above period the
seasonal workers are discharged. The engineering and essential
service personnel will be carrying out the maintenance and of the
plant.
EMPLOYEE PROFILE:
MANPOWER CLASSIFICATION:
The unionized employees are of three distinct
categories viz.,
1. Clerical/class' A'
2. Technicians
3. Class 'B' workers
1. Clerical/class' A':
This category comprises of all
Clerical staff members,
Watch & ward,
Compounders,
Pharmacists,
Male nurse and
Quality inspectors
In the scale of S-1, S-2, S-3.
There are both Non-seasonal and seasonal employees with in
this category. All clerical class 'A' employees are monthly
rated/monthly paid employees.
Except those working in the watch & ward all other clerical
staff are under the functional control of the Factory Accountant and
therefore the matters pertaining to their transfer, allocation of
duties department wise etc., are required to be dealt with by the
Factory Accountant/ Management accountant.
Technicians:
This category consists only Non-seasonal employees in the
following scales VIZ.,
T-1
T-2
T-3
T-4 &
T-5
Technicians don't consist of seasonal employees. This is
because the machines that are to be used while threshing the
tobacco must be maintained for the' good quality of output. So this
work will be there for the entire year.
This category is a pool of technically qualified employees
catering to the needs of production and Engineering Departments.
By virtue of their allocation to different Departments, they perform
the duties in respective departments but are interchangeable from
one Department to another depending upon the need. Technicians
are monthly rated/monthly paid employees.
Class 'B' workers:
This category of employees consists of both Non-seasonal
and seasonal components. The scales in this category are as
follows:
Non-seasonal
1. Monthly Rated (MRB-I)
2. Monthly Rated (MRB-2)
3. Monthly Rated (MRB-3)
Seasonal
1. Daily Rated (DR-I)
2. Daily Rated (DR-2)
3. Daily Rated (DR-3) se of the study.
The Non-seasonal class 'B' workers are monthly
rated/monthly paid and the seasonal class 'B' workers are daily
rated/weekly paid.
All class 'B' employees posted in the plant are in scale 2
either daily rated or monthly rated. Identified jobs specified below
are in scale3 either daily rated or monthly rated:
A. Maistry
B. Cylinder operator
C. FL truck Driver
D. Quality control laboratory
E. Boiler Home
F. Markers
G. BOPT operators
The remaining employees posted in Departments other than
the plant or the jobs specified above shall be in scale 1.
THE NON-UNIONIZED CATEGORY:
These employees are not members of any union but for the
purpose of working out the establishment, they shall be counted
against the vacancies of unionized staff of clerical/class' A' or
tec1micians as the case may be.
The terms of appointment and other service conditions to the
senior grade are specific and differ from other members of
unionized cadre.
Non unionized
Category Numbers
Managers 31
Staff y 11
Sr. Grade 12
Managers are qualified degree/diploma holders in
different fields of specialization as required for their role. Staff Y is
junior managers and Sr Grade is Supervisors who have grown from
unionized cadre.
Unionized Seasonal Non-
Seasonal
Total
Technicians Nil 158 158
Class A 140 34 174
Class B 1516 125 1641
Badli 313
Technicians category are a pool of technically qualified
employees who cadre to the needs of production and engineering
departments. Clerical are primarily those who maintain the accounts
and capture data at different locations in the factory. Class B are
those engaged for mostly manual tasks in the factory and the
majority are illiterates.
Each of the unionized categories of employees has their
own democratically elected union and the elections are held once in
two years. These office bearers are elected by their category of
employees across the ILTD Division with representatives for the
division for the operating units.
LEAVES AND HOLIDAYS:
Employees in different categories are entitled to
different types of leaves. The details are as follows:
TYPES OF LEAVES:
Annual leave
Sick leave
Casual leave
Seasonal clerical/ class ' A':
1. Annual leave:-
The actual working days of the season are taken and the
annual leave is calculated at the rate of one day for every 20 days,
if the actual leave thus calculated is less than 7 days. 7 days
minimum is credited to the account of the employee where the
number is excess of 7 days, actual number of days is credited.
All the other rules as per non-seasonal clerical/class' A'
where the employee report for the duty again during the year, the 7
days leave shall be adjusted against the yearly entitlement based
on actual working days during the year.
There is no provision for accumulation. Annual leave as
due is en cashed at the closure of any seasonal paid along with
the .season's final payments.
2. Sick leave:
As per non-seasonal clerical/class' A' with full wages. No
accumulation.
3. Casual leave:
14 days wages on a flat rate. The rates applicable at any
given tome are communicated by DHQ.
Non-seasonal clerical/class ' A':
1. Annual leave:
All clerical class' A' employees are entitled to annual
leave at the rate of one day for ever 20 immediately preceding year.
Leave shall be credited on the 1st January every year
considering the working days of the previous year. For the purpose
of calculating the working days of the previous 'year, only days on
which the employee is physically present shall be taken.
In other words, leave availed during the-previous year
shall not be counted as working days.
The leave calculated as above should be subject to a
minimum of26 working days for those who have put in 240 days or
more working days, for others shall be in proportion to the actual
working days.
While calculating the actual working days any fraction
of20 in excess of 10; days shall be treated as 20 days.
FOR EXAMPLE:
Working days leave
20 1 Day
29 1 Day
31 2 Days
40 2 Days
49 2 Days
51 3 Days
60 3 Days
69 3 Days
71 4 Days
Annual leave shall be allowed to be accumulated up to a
maximum of 90 days.
2. Sick leave:
On 1st January of every year 14 days sick leave is
credited to the leave account of the employee. Sick leave can be
accumulation up to a maximum of 90 days.
Sick leave shall be sanctioned only on the
recommendation of the company medical retainer.
3. Casual leave:
On 1st January every year, 10 days casual leave shall be
credited to the account of the employee. No accumulation of casual
leave is permitted. Unused leave at the end of the year shall lapse.
In case an employee is confirmed in the middle of the
year, annual leave shall be. Calculated as per details given in the
class of Non-seasonal employees. Leave shall however be credited
to his account on the first of January of the next year along with
other non-seasonal employee. For the period he has worked as a
seasonal and no leave pay shall be payable to him since he would
'not be discharged from service along with other seasonal due to
confirmation. Similar treatment shall be given to sick leave also.
Technicians:
1. Annual leave:
All rules pertaining to Non-seasonal clerical/class 'A' are
applicable to technicians except the accumulation limit.
Accumulation limit in the case of technicians is 180 days.
2. Sick leave:
On 1st January of each year 14 days leave is credited to
the leave account of the employee. Sick leave can be accumulated
up to a maximum of 90 days.
Sick leave shall be sanctioned only on the
recommendation of the company medical retainer.
3. Casual leave:
On l5th January each year, 10 days casual leave shall be
credited to the account of the employee. No accumulation of casual
leave is permitted. Unused leave at the end of the year shall lapse.
Non-seasonal class 'B':
1. Annual leave:
All rules pertaining to non-seasonal clerical/class 'A' are
applicable to non- seasonal class 'B' except the accumulation limit.
Accumulation limit is 60 days.
2. Sick leave:
In 1st January of each year 14 days sick leave is credited
to the 'leave account of the employee. Sick leave can be
accumulated up to a maximum of 90 days. Sick leave shall be
sanctioned only on the recommendation of the company medical
retainer.
3. Casual leave:
On 1st January of each year, 10 days of casual leave
shall be credited to the account of the employee. No accumulation
of casual leave is permitted. Unused leave at the end of the year
shall lapse.
Seasonal class 'B':
1. Annual leave:
Annual leave is calculated at the rate of one day for
every 20 of work put in. There is no maximum in case of seasonal
class 'B'. The actual days arrived at; as per the above calculation is
the annual leave. Annual leave is encashed at the time of closure of
season. No accumulation is permitted.
2. Sick leave:
14 days with full wages for a calendar year. No
accumulation.
3. Casual leave:
14 days with wages at a flat rate. No accumulation.
4. Extra-ordinary sick leave:
In certain cases where employees suffer from prolonged
sickness. Extra ordinary sick leave is granted depending upon the
length of service of the employee whenever such case is come up
the application along with the details of the sickness and necessary
recommendation of the company's medical officers are required to
be sent to Guntur. Employee Relations Manager only is authorizes to
sanction extra-ordinary leave.
5. Quarantine leave :
Quarantine leave is a special kind of leave granted to
the employee in the event of one of his family member confronting
communicable disease. The intention of Quarantine leave is to see
that the employee in the factory do no (confront such
communicable disease through the employee in whose family one of
the members is suffering from communicable disease. The treating
doctor certifies that the employee who is otherwise healthy is
capable of passing on this disease to the employers in the Factory.
Such leave that is permissible is 14 days quarantine leave is in
addition to all other types of leave that the employee is entitled to
this 14 days shall not be dedicated only leave.
6. Half day leave:
If an employee is required to leave the work spot due to
personal emergency is entitled to apply for half-day casual leave.
CHAPTER – Iii Literature review
ABSENTEEISM
Absenteeism has been variously defined by different authorities .
According to Webster’s dictionary:-
,”Absenteeism is the practice or habit of being an
‘absentee’, and an ‘absantee’is one who habitually stays away.”
According to labour bureau, simla ,
’ Absenteeism is the total manshifts lost because of
absences as a percentage of the total number of manshifts
schedules to work .”
In other words,it signifies the absence of an employee
from work when he is scheduled to be at work ;it is
unauthorized ,unexpected , avoidable, and willful absence from
work . For calculating the rate of absenteeism, two facts are taken
into consideration -----the number of persons scheduled to work and
the number actually present. A worker who reports for any part of a
shift is to considered present. An employee is to be 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 specialized 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 one’s control.
MAGNITUDE OF ABSENTEEISM:
Management of absenteeism has been 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 from 7 percent to 30 percent .
In some occupations, it has risen to abnormal level of 40 per cent in
some seasons. The extent 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 work force.
There have been many systematic studies of
absenteeism in Western industrialized countries. For example, it has
been observed that absenteeism among the younger workmen is
extensive on Mondays after the week end , particularly among
unmarried men who, after a late night on Sunday perhaps with their
girl friends , find it difficult to get up and come on time and
concentrate on work; and it is the lowest on pay day.
In the USA, I have been observed that curiously
enough, the extent of absenteeism is greater among youngsters
than among the older employees, greater among women than men.
Young men general found to be absent for a variety of reasons,
including restlessness and a sense irresponsibility. In some cases,
absenteeism of particular workers is due to reasons connected with
the job; a worker, for example, may be absent because he does not
like his job for some reason, or because he has unsatisfactory
relations with his supervisor with other employees. Absenteeism
may also be due to sickness, real or feigned.
There has been a phenomenal rise in absenteeism in
some industries. In the cotton textile industry in madras, it shot up
from 8.9 % in 1951 to 16.0% in 1980. Increased from 12.7% to
22.0% in Bombay, 8.3% to 14.9% in Ahmadabad; and 12% to 24.8%
in Kanpur. In the engineering industry, it increased from 13.9% to
19.1% in Maharashtra; in west Bengal from 10.1% to 17.3%; and in
Karnataka from 9.7% to 15.7% during the same period. A similar
trend was noticed in woolen industry, where in the same period, the
percentage of absenteeism went up from 10.6 to 18.8 in Dhariwal;
in gold mining in Karnataka from 10.2 to 18.0; in the plantations
industries in Karnataka from 18.3 to 20.7. In the coal mines, the
increase ranged between 13.5 to 20.4 per cent.
These figures are of unauthorized absenteeism. If to
these are added the liberal provisions in awards and settlements
for privilege leave, casual leave, sick leave and maternity leave, it
would be found that the number of non-working days in the year in
the industries in India is very large.
Absenteeism in Indian industry is not new phenomenon.
The royal commission on labour reported that “high absenteeism
prevails among industrial labor mainly due to their rural
orientation.”since then , a number of individual researchers have
investigated the problem, and have pointed out that absenteeism in
our industries varies from 7 per cent to 15 per cent .its incidence is
high in plantations and in mines; and it is higher in northern India
than in southern India.
PECULIOUR FEATURES OF ABSENTEEISM:
On the basis of micro studies undertaken in different
parts of the country, certain observations may be made.
a) The rate of absenteeism is the lowest on pay day; it
increases considerably on the days following the
payment of wages and bonus.
“The level of absenteeism is comparatively high
immediately after pay day, when workers either feel like
having good time, or in some other cases return home to
their village to make purchases for the family and to
meet them.”The incident of absenteeism, both before
and after a holiday, has also been found to be higher
than that on normal days.
b) Absenteeism is generally high among the 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 new
comers among the younger age groups; while the other
people are not able to with stand the strenuous nature of
the work.
c) The rate of absenteeism varies from department to
department with in the unit .for example ,in mixing and
blow room ,and in the bundling and the baling jobs in
which only a few workers are employed and the physical
condition are better than in other departments ,the rate
of absenteeism is comparatively low .as the size of a
group increase, the rate 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 labor force and the culture of the
organization .
d) The percentage of absenteeism is generally higher in
night shifts than in the day shift s. This is so because
workers in the night shifts experiences greater
discomfort and uneasiness in the course of their work
than they do during day time .
e) The percentage of absenteeism is much higher in the
coal and mica mining industries than in organized
industries . this high percentage of absenteeism is due to
the engagement of labourers in the fields,marriagies
and festivals ,which together are estimated to account
for about 75 percent of the cases of
withdrawals ,drunkenness, relaxation or sickness .
f) Absenteeism in India is seasonal character .it is the
highest during March–April-may ,when land has to ready
to monsoon sowing ,and also in harvest season ,when
the rate goes as high as 40 percent .
RESONS FOR ABSENTEEISM:
The phenomenon of absenteeism has been explained in
various ways. According to one line of thought ,absenteeism is due
to lack of “commitment” on the part of the opinion that since “the
degree of commitment varies with the degree of a country’s
industrial growth or maturity ,absenteeism is inversely related to
industrial development …. The worker in progress of the early
stages on industrialization is more prone to absenteeism, prolonged
and sporadic withdrawal from industrial work. Wild cat stoppages,
naked violence, and destructions of machines and property.
Absenteeism is due to the factors that influence a worker’s
commitment”.
Hone the other hand ,refutes this contention ,and is of
view that “absenteeism is related to new values and norms which
are developing among the work force as a result of technological
developments .work and leisure are now cherished by the
worker ,and these he wants to enjoy along with the monetary
benefits he gets to his services. The economic condition, therefore,
decides whether one would like to be absent form work.”
The royal commission on labor observed that “high
absenteeism among Indian labor is due to its rural orientation and
its frequent urge for rural exodus. “According to Acharya:”in modern
industrial establishments, expect, perhaps, in very small ones, the
individual personality is more or less irretrievably submerged in the
general mass through the sheer incidence of being throw together
with other individuals for a certain purpose , during a good bit of
each day’s life .the individual has no elbow-room and is hammered
into a set pattern, while the human sprit clamours for open spaces
and unfettered air so that it may kick its legs about for a change .”
The incidence of industrial fatigue, trying climate, universal
malnutrition and appallingly bad working conditions aggravate the
feeling for change among industrial workers and sometimes impel
them to visit their village homes frequently for rest and relaxation.
American authors hold the view that absenteeism due to
the “internal administration of an organization.”According to
them,”the work milieu is very important since a large part of the
worker’s daily life is spent there.” The atmosphere obtaining in a
plant, therefore, affects his attitude to his work, and either
persuades him top attend regularly or keep him away .Irritating
uncertainty, irregularly, and confusion in the factory are likely to be
important causes of absenteeism .
The attitude and practice of the management also
contribute to absenteeism. A traditional management treat workers
as hirelings, while an enlightened management treats them as
human beings. This difference is behavior leads, in the former
situation, to high absenteeism, and in the later situation to a close
affinity in the organization, the result being lower absenteeism.
Various empirical studies on the micro level in the India
have been undertaken to find out the cause which have contribute
to a high percentage of absenteeism. A few of these illustrative
studies may be quoted here .
Unsuitable working conditions.
Unfavorable mental attitude arising out of boredom,
disconnect with wages, resentment against supervisor;
Lack of provision for general welfare.
Inadequate medical facility for minor injuries.
Increase distance between management and workers.
Sinha analysis twenty variables in relation to absenteeism under the
three heads
In_plant causes
Personal causes and
Community and social causes.
The general causes of absenteeism may be discussed:
MALADJUSTMENT WITH FACTORY CONDITIONS :
As a worker continues to live in the city, urban life
becomes distasteful to him because of his insanitary conditions
prevailing there. He finds himself caught with in great factory walls;
he is bewildered by heavy traffic, by jostling, by stringer speaking in
different languages; he confusion by different religions and tastes;
and he is weary of the misery of slums and of toiling for long hours.
He is subject to strict discipline and is ordered by complete stringers
to the things which he cannot understand. As a result, he under
constant strain, which causes him serious distress and impairs his
efficiency. All these factors tends to persuade him to maintain his
contacts with his village.
SOCIAL AND RELIGIOUS CEREMONIES:
Social and religious functions divert workers from work
to social activities. In large number of cases, the proportion of
absenteeism due to sickness, accident or maternity is not as it is
due to other causes, including social and religious causes. For
example, the absenteeism in the textile industry due to sickness,
accident or maternity amounted to an average of 4.9 percent; due
to social or religious and other cause, it was 5.1 percent. The report
of the study group on iron and steel industry points out:”some
religious considerations account for absenteeism to a certain extent.
UNSATISFACTORY HOUSING CONDITIONS:
The workers who comes to towns usually find that they
are not wanted and they swell the number of unemployed and
casual workers. They also experience housing difficulties. Not less
than 95 percent of the houses occupied by industrial workers in
India are unsatisfactory for healthful habitation. A room of about
10’x10’ accommodates a large family and occasionally two families;
often ten to fifteen persons sleep in one room. The housing of
migrants combines the worst characteristics of both rural and urban
slums. Not only are the sites most insanitary but the material used
for erecting huts are also very filthy. Forsaken places like the slopes
along the railway lines, banks of open drainages streams, waste
land adjoining dirty locations in towns, open space earmarked for
dumping the town refuse are chosen by them. Health conditions are
naturally bad, leading to high morbidity and consequent ill_health.
They, therefore, make frequent visits to their village homes to get
relief from such insanitary 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 remain absent for the next day; and if fatigue
affects him seriously, his absence may continue for quite some time.
UNHEALTH WORKING CONDITIONS:
Irritating and intolerable working conditions exit in
factories. Heat and moisture, noise and vibrations in the factory,
bad lighting conditions, dust, fumes and over_crowding---all of these
affect the worker’s health, causing him to remain absent for a long
time.
ALCOHOLISM:
It has been observed that most of the absentees are
alcoholics. Also, the present system of disbursing wages for
employees at the end of week is also enhancing the absenteeism
percentage. These employees, after receiving their wage either an
Saturday or Monday, going to cheap liquor shops and spending their
money. It is taking a day or two to recover from that effect, Hence
absenting from duty.
ADDITIONAL SOURCES OF INCOME:
As the employees are depending upon additional
sources of income like, agriculture, business daily labor etc. Some of
the employees are giving more importance to these jobs than
employment in industries.
Company is also offering various types of loans to the
employees, which are mostly misused by the workers these loans
are given to be workers without proper verification of reasons
stated. Taking this as an advantage, workers, mostly alcoholics, are
quoting silly and not genuine reasons for sanctioning loan . Amounts
drawn from these loans are mostly used for alcohol, only in few
cases: the actual purpose of the loan is served.
INADEQUATE LEAVE FACILITIES:
Most of the employees are of the opinion that absence
can be changed as leave by obtaining the respective supervisor / in-
charge, even without prior intimation to them.
Having this opinion and the practice of sanctioning
leaves, employees are absenting without prior permission. This is
affecting planning of work. Supervisors with work oriented rather
than man oriented approach are also a factor which compels
workers to absent themselves on an E.S.I certificate rather than
avail of leave on bonafide grounds.
MEASURES FOR CONTROL ABSENTEEISM:
“Absenteeism is a serious problem for a management
because it involves heavy additional expenses. Reserves and
understudies are kept in readiness to take the place of the
absentees, failing 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 the probable
duration of an employee’s absence and cannot take appropriate
measures to fill the gap”.
As regards measures to be adopted to remedy the
situation, the labour investigation committee, 1946, was of the
opinion that “proper conditions of work in the factory, adequate
wages, protection from accidents and sickness, and facilities for
obtaining leave for rest and recreation constitute the most effective
means of reducing absenteeism.”
The Encyclopedia of social sciences suggests the
measures to reduce the rate of absenteeism:
The personnel management should encourage notification,
especially in cases of sickness when the duration of absences
is likely to be long.
The case of personal and family circumstances, e.g., illness of
children in the case of married women employees which make
absence unavoidable, leave should be grant liberally.
To reduce unavoidable absence due to sickness and industrial
and industrial accidents, programmes of industrial hygiene
and safety should be strengthened.
It should be noted no single measure can be effective in
controlling absenteeism; but a skilful combination of various
measures would measures would definitely lead to the desired
results. These measures are:
ADOPTION OF WELL DEFINED RECRUITMENT PROCEDURE:
The selection of employees on the basis of communal,
linguistic and family consideration should be discouraged or
avoided. The management should look for aptitude and ability in the
prospective employees and no easily yield to pressure or personal
likes and dislikes. Application blanks should invariably be used for a
preliminary selection and as tools for interviews. The personnel
officer should play a more effective role as a coordinator of
information, provided that he has acquired job knowledge in the
function of selection. Employers also should take into account the
fact that selection should be for employees’ development; their
reliance, therefore, on intermediaries for the recruitment of
employees should be entirely done away with. They should, as far
as possible, rely on employment exchanges.
PROVISION OF HEALTHFUL AND HYGIENIC WORKING
CONDITIONS:
In India, where the climate is warm and most of the
work involves manual labor, it is essential that workers should be
provided with proper and healthy working conditions. The facilities
of drinking water, canteen, lavatories, rest rooms, lighting and
ventilation, need to be improved. Where any one of these facilities
is not available, it should be provided. All these help in keeping the
employee cheerful and increase productivity and the efficiency of
operations throughout the plant.
PROVISION OF REASONABLE WAGES AND ALLOWANCES AND
JOB SECURITY FOR WORKERS:
Some of the wages of an employee determine his as
well as his family’s standard of living, this single factor is important
for him than any other. The management should, therefore, pay
reasonable wages and allowances, taking into account the capacity
of the industry to pay, the level of wages prevailing in different units
of the same industry in the same area in neighboring industries. The
allowances that may be paid to workers should include old age
allowances, length_of_service allowances, position allowances,
special job allowances, good attendance allowances, transportation
allowances, position allowances and housing allowances, so that the
worker may have and know security of employment.
MOTIVATION OF WORKERS: WELFARE AND SOCIAL
MEASURES:
The management should recognize the needs of workers
and offer them adequate and cheap housing facilities, free or
subsidized food, free medical aid and transportation facilities to and
from their residence, free educational facilities for their children,
and other monetary and nonmonetary benefit.
IMPROVED COMMUNICATION AND PROMPT REDRESSAL OF
GRIEVANCES:
Since a majority of workers are illiterate, bulletins and
written notices, journals and booklets are not understood by them.
Therefore, timely illustrations and instructions, meetings and
counseling, are called for. Written communication becomes
meaningful only when workers can read and understand. As regards
notice boards, too many notices should be avoided; only the
essential one should be put on the board, which should be placed
near the entrance, inside the canteen and in areas which are
frequently visited.
As for the grievances settlement, the management
should recognize that a delayed grievances may become a
complicated case. A procedure for fair and prompt redressal of
grievances is, therefore, essential. It would be better if the various
units adopt the model grievances procedure. Supervisors should be
trained to handle a worker’s grievance in an informal and humane
manner.
LIBERAL GRANT OR LEAVE:
The management’s strict attitude in granting leave and
holidays, even when the need for them is genuine, tempts workers
to go on E.S.I. leave for under the scheme, they can have 56 days
in a year on half pay. An effective way of dealing with absenteeism
is to liberalize leave rules.
DEVELOPMENT OF WORKER’S ENDUCATION:
The system of workers’ education should be so designed
as to take into account their educational needs as individuals for
their personal evaluation: as operatives for their efficiency and
advancement; as citizens for a happy integrated life in the
community; as members of a trade union for the protection of their
interests. This educational programme, according to the national
commission on labor, should be to make a worker:
A responsible, committed and disciplined operative;
Understand the basic economic and technical aspects of the
industry and the plant where he is employed so that he may
take an intelligent interest in its affairs;
Aware of his rights and obligations;
A responsible and alert citizen;
OTHER MEASURES:
There should be clear and definite rules and regulation on
authorized and unauthorized leave.
The rules and regulations relating to attendance must be
explained to workers.
A proper records of each worker’s attendance should be
maintained on a special daily attendance card.
The employer, employee and the state have a definite
role to play. If each performs it properly harmoniously, the problems
of inefficiency, undesired conflict, low productivity, dissatisfaction
on the part of workers and their low morale resulting in frequent
absenteeism can be largely eliminated. Industrial relations in a
democracy should be based on an integrated approach aiming at
individual satisfaction and group satisfaction, and achievements of
the goals of the community and of the nation as a whole.
CHAPTER – IV DATA ANALYSIS
& INTERPRETATION
A sample of 90 respondents we selected at random
from Technicians only in ITC, ILTD Division, Chirala, A survey was
conducted by way of questionnaire to find out why the employees
are absenting for scheduled work .
The questionnaires are analyzed in both Table format
and graphically.
Table – 1
Sl. No Age Group No of
Respondents
Percentage
%
1. Below 25 10 11.2
2. 30 – 35 40 44.5
3. 35 – 40 25 27.8
4. Above 40 15 16.7
Total 90 100
INTERPRETATION:-
From the above table it is found that 11.2% respondents
are belongs to below 25 years age,44.5% respondents are belongs to
30-35 years age, 27.8% respondents are belongs to 35-40 years age,
16.7% respondents are belongs to above 40.
Table – 2
Sl. No FAMILY BACK
GROUNDS
No of
respondents
Percentage %
1. Agriculture 35 38.9
2. Business 10 11.2
3. Employee 40 44.5
4. Others 5 5.6
Total 90 100
INTERPRETATION:-
From the above table it is found that 38.9% respondents
are belongs to Agriculture, 11.2% respondents are belongs to
Business, 44.5% respondents are belongs to Employee, 5.6%
respondents are belongs to Other back grounds.
Table – 3
Sl. No Category No of
respondents
Percentage
1. YES 60 66.7%
2. NO 30 33.3%
Total 90 100%
INTERPRETATION:-
From the above table it is found that 66.7% respondents
are Alone source of Income to their family.
Table – 4
Sl. No Category No of
respondents
Percentage
1. Yes 45 50%
2. No 25 27.8%
3. Trying 20 22.3%
Total 90 100%
INTERPRETATION:-
From the above table it is found that 50% respondents
are Regular For Work, 27.8% respondents are Not Regular For
Work, & remaining 22.3% respondents are Trying To Regular For
Work.
Table -5
Sl. No Category No of
respondents
Percentage
1. Yes 20 22.3%
2. No 70 77.7%
Total 90 100%
INTERPRETATION:-
From the above table it is found that 22.3% Employees
are ready to leave their present job & remaining 77.7% employees
are not ready.
Table – 6
Sl. No Category No of
respondents
Percentage
1. HS 5 5.6%
2. Satisfied 30 33.4%
3. Normal 40 44.4%
4. NS 15 16.6%
Total 90 100%
INTERPRETATION:-
From the above table it is found that 5.6% respondents
are Highly Satisfied (HS), 33.4% respondents are Satisfied, 44.4%
respondents are Normal Satisfied & remaining 16.6% respondents
are Not Satisfied (NS).
Table – 7
Sl. No Category No of
respondents
Percentage
1. Family 25 27.7%
2. Habits 5 5.6%
3. Health 10 11.2%
4. Activities 50 55.6%
Total 90 100%
INTERPRETATION:-
From the above table it is found that reasons for
absenteeism 27.7% respondents are absenting from their Family
Problems, 5.6% respondents are absenting form their Bad Habits,
11.2% respondents are absenting form their Health Problems &
remaining 55.6% respondents are absenting from their other
Activities.
Table -8
Sl. No Category No of
respondents
Percentage
1. Regular 20 22.3%
2. Often 30 33.3%
3. Not at all 40 44.4%
Total 90 100%
INTERPRETATION:-
From the above table it is found that 22.3% respondents
are take Alcohol Regularly, 33.3% respondents are take alcohol
Often, & remaining 44.4% respondents are Not Take Alcohol .
Table – 9
Sl. No Category No of
respondents
Percentage
1. Full 80 88.9%
2. Part 10 11.1%
3. Not aware 0 0%
4. No need 0 0%
Total 90 100%
INTERPRETATION:-
From the above table it is found that 88.9% respondents
are fully aware of the consequences of absenteeism, and remaining
11.1%respondents are partly aware of the consequences of
absenteeism.
Table – 11
Sl. No Category No of
respondents
Percentage
1. Full Salary 5 5.6%
2. Welfare Facilities 5 5.6%
3. Work Practices 15 16.7%
4. All The Above 65 72.2%
Total 90 100%
INTERPRETATION:-
From the above table it is found that 72.2% respondents
are says that Fully Salary, Welfare Facilities, Work Practices make
them work regular, 16.7% respondents says that Work Practices
make them work regular, 5.6% says that Welfare Facilities make
them work regular & remaining are says that Fully Salary make
them work regular .
Table – 12
Sl. No Category No of Percentage
respondents
1. Yes 30 33.4%
2. No 60 66.6%
Total 90 100%
INTERPRETATION:-
From the above table it is found that 66.6% respondents
says that organization didn’t punish them due to absenteeism &
remaining 33.4% respondents are punished by organization due to
absenteeism.
CHAPTER-VFINDINGS
&SUGGESTIONS
FINDINGS
It is found that 50% respondents are Regular For Work, 27.8% respondents are Not Regular For Work, & remaining 22.3% respondents are Trying To Regular For Work.
It is found that 22.3% respondents are take Alcohol
Regularly, 33.3% respondents are take alcohol Often, &
remaining 44.4% respondents are Not Take Alcohol .
It is found that 72.2% respondents are says that Fully
Salary, Welfare Facilities, Work Practices make them work
regular, 16.7% respondents says that Work Practices make
them work regular, 5.6% says that Welfare Facilities make
them work regular & remaining are says that Fully Salary
make them work regular.
It is found that 66.6% respondents say that organization didn’t punish them due to absenteeism & remaining 33.4% respondents are punished by organization due to absenteeism.
It is found that reasons for absenteeism 27.7%
respondents are absenting from their Family Problems, 5.6%
respondents are absenting form their Bad Habits, 11.2%
respondents are absenting form their Health Problems &
remaining 55.6% respondents are absenting from their other
Activities.
It is found that 38.9% respondents are belongs to
Agriculture, 11.2% respondents are belongs to Business,
44.5% respondents are belongs to Employee, 5.6%
respondents are belongs to Other back grounds.
SUGGESTIONS
From the analytical observation the following alternatives are suggestions in the organizations to control absenteeism.
It is recommended to link the compensation with attendance of employees to work.
It is suggested for penalty style of punishment in case of alcoholic employees.
The interpersonal relationships & work environment should be employees favor in order to control absenteeism.
The process of leave sanctioning should be streamline in the organization in order to control absenteeism.
To award the best employee in terms of absenteeism. either financial or non financial style of motivation to control absenteeism.
The seasonal service computations are to be linked with absenteeism.
QUESTIONAIR
ITC LIMITED – AGRI BUSINESS DIVISION-ILTD, CHIRALA
QUESTIONNAIR
NAME : DEPARTMENT :
CATEGORY : Technicians / Non – Seasonal Class A / Seasonal Class A /
Non – Seasonal Class B / Seasonal Class B
(Tick mark the relevant category & strike off others)
1) You fall under the age group of :(a) Below 25 (b) 20-35 (c) 35-40 (d) 40-45 (e) Above 45
2) How many members are there in your family (including you)(a) (4 members) small (b) (5 members) medium (c) large (above 6)
3) Can you specify your family background
(a) Agricultural (b) Business (c) Employee (d) other
4) Are you alone the earning income in your family? (a) Yes (b) No
5) What is your contribution to your family (a) Fully (b) Partially (c) Need fully
6) Do you have any additional source of income? (a) No (b) Yes (What is the source?)
7) Are you regular to work (a) Yes (b) No (c) Trying to be regular
8) Are you satisfied with your job? (a) Yes / highly (b) Normal (c) Not satisfied
9) Planning to leave the present job? (a) No (b) Yes (why?)
10) How do you feel your working conditions are?
(a) Very good (b) Satisfactory (c) Not good
11) What is your favorite pass time (a) Being at home (b) With friends outside (c) Alone (d) Peers
12) What is your Financial position (a) Satisfactory (b) Borrowing (c) leadings (d) more than sufficient
13) How did you spend your wage
(a) Pre-planed (b) Luxuries (c) Expensive (d) unplanned
14) Are you satisfied with your salary?(a) Highly satisfied (b) Satisfied (c) Normal (d) Not satisfied
15) Dose the relationship with other employees motivate to attend regularly(a) yes (b) no
16) Do you have debts(a) Yes (b) Not at all (c) Planning for it
17) What makes you to absent?(a) Family problems (b) Bad habits (c) Ill health (d) Extra activities
18) Do you take Alcohol(a) Regularly (b) Often (c) Not at all
19) Do you know that Alcohol causes ill health(a) Fully aware (b) Partially aware (c) not aware (d) no need of awareness
20) If you are an Alcoholic, do you really wants to quit Alcohol (a) Yes (b) No
21) Are you aware of the consequences of absenteeism?(a) Fully aware (b) Partially aware (c) not aware (d) no need of awareness
22) How do you feel about this organization (a) Great (b) Safe (c) very strict (d) friendly
23) Do you know the Factory Standing Orders(a) All of them (b) Some of them (c) None of them
24) Which shift do you like to work(a) ES (b) LS (c) MS (d) FH
25) Are you happy with shifts Rotations (a) Yes (b) No
26) Every time when you apply for leave, leave is sanctioned?(a) some times (b) every time (c) need fully (d) never
27) What makes you to work Regular?(a)Full salary (b)Welfare facilities (c)Safe & Healthy work practices (d) All the above
28) How long you have been associated with the organization?(a) 0 to 5 years (b) 6 to 10 years (c) 11 to 15 years (d) above 16 years
29) Were you suspended from the organization due to absenteeism?(a) Yes (b) No.
30) Specify the reason for absenteeism
ANNEXURE