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SUBMITTED TO:
PUNJAB TECHNICAL UNIVERSITY JALANDHAR
SESSION 2008-10
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR AWARD OF MASTER OF BUSINESS
ADMINISTRATION (M.B.A).
Submitted By: Project Guide: Upasana Lect. Palki Sharma Roll No. 81310317050
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
1
ACKNOWLEDGEMENT
This project has been possible through the direct and indirect
cooperation of various persons to whom I wish to appreciate from
the core of my heart first and foremost my thanks go to ‘Mrs Palki
Sharma’ whose versatility of creativeness interest and enthusiasm
gave a new direction to my work with the motto to strive and not to
yield her unfailing guidance.
It is extremely difficult to find words which
can do justice to this sort of cooperation; I got in the planning and
execution of this study.
In addition to this I would like to thank all my
respondents who has spent there valuable time and help me getting
the required information for this project.
At last, I would like to thank the almighty and
my parents for the moral support that keeps me going.
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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CONTENTS
PARTICULARS PAGE NO.
CHAPTER-I : INTRODUCTION TO STUDY
Perception
Company Profile
4
CHAPTER-II : OBJECTIVES OF THE STUDY 23
CHAPTER-III : RESEARCH METHODOLOGY 50
CHAPTER-IV : DATA ANALYSIS AND ITS
INTERPRETATION
58
CHAPTER-V: FINDINGS OF THE STUDY 69
CHAPTER-VI : SUGGESTIONS 71
CHAPTER-VII :CONCLUSION 74
BIBLIOGRAPHY 76
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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Chapter-1
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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Established in 1969, Sonalika group from the very beginning has
tried to understand customer need so that they get better value for
their money, hard earned.
Sonalika has state of
manufacturing, spread in
acres, located at Hoshiarpur
and tax free zone at AMB in
Himachal Pradesh. Sonalika is
the one of the top 3 tractor manufacturing companies in India,
other products include of, Multi utility vehicles, engines and
various farm equipments.
Today the group stands tall with an approximate turnover of 3200
Core INR. An average growth of 30% makes it one of the fastest
growing corporate in India. Its is also one of the few debt free
companies. Group has strength of about 2000 employee &
technocrats.
History reveals that innovation is the key to continued progress and
when applied to technology that touches human life, it can unfold a
whole new economic phenomenon that has the power to change
the world.
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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With unique initiatives like the Thought leadership Forum,
Leadership Forum, we have been able to create a unique platform
for learning through success stories of industry leaders.
“No, doubt that the sonalika products has created a niche for
themselves not only in India but also in foreign market. To
maintain quality have any defect even at micro level is been taken
care of and rectified. The technology for Painting, which we use, is
of the high quality and we have paint shop with world-class quality
standards.”
The industry has gradually transformed itself into a world-class
player involved in building state-of-the-art products, solutions and
technologies. As an industry, we are very conscious of our
responsibility to society.
Sonalika Foundation intends to become a catalyst, encouraging our
members to do more, capturing best practices for quality and
harnessing a greater range of resources, from the industry and
beyond, to make a major impact on the development.
It has been our vision to cater to the needful agriculture and auto
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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industry with quality products through untiring dedication and
activities.
As we step in to our fifth decade of existence, we continue to lead
the development. Tractor and car plants work in 2 to 3 shifts
depending upon volume of work for maximum production.
We continue to march ahead on road to success and glory driven
by the force of initiative and determination to have a leading
position in the tractor industry in the days to come.
We have ventured in to automobile sector also with the launching
of Rhino –MUV- to write another success story.
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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The success saga of Sonalika Group a business conglomerate
having prime interest in agricultural & auto machinery goes back
to nearly 5 decades.
The corporate philosophy embedded in trust, quality and
commitment has helped the group to carve out a niche for itself in
the highly competitive world of Machinery.
Sonalika is the fastest growing tractor company registering growth
over growth since its inception has crossed 1.80 lac merely in 10
years & has attained one of the position in top three in India
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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International Tractors Limited was incorporate on October 17, 1995 for the manufacture of Tractors and has since then built a distinct position for itself in the Tractor industry. ITL is manufacturing various Tractors of Sonalika brand between 30 H.P to 90 H.P, and CLASS brand between 70 hp to 90hp. their maximum pulling power, minimum fuel consumption and low emission.
All this makes ITL one of the top five tractor selling companies in India. These tractors are also exported to various countries including South Africa, Australia, Zimbabwe, Sri Lanka, Canada, Bangladesh, Algeria,ambia, Senegal, Ghana etc.
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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WHAT DRIVES US
VISION STATEMENT
The Dream Project of Sonalika group is to cater the agricultural
and auto industry with quality abrasive products through untiring
dedication and leadership.
MISSION STATEMENT
We pay personal attention to our customers so that, we can build
products they need, and not merely sell the products we build.
CORE VALUES
To accomplish our mission, the ownership, staff, and management
go to great lengths to treat each customer like a member of the
family and provide them with the best choice of products and
highest quality of services.
ETHO STATEMENT OR LOGO RATIONALE
Red symbolizes the strength, power, determination, and desire of
company. Yellow surrounding the Sonalika produces a warming
effect, arouses cheerfulness, stimulates mental activity, and
generates the same. Green Leaf in the center symbolizes growth,
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
10
harmony, freshness, and fertility.
Black underlining the logo associates with power, elegance, and
formality. And Orange surroundings the complete logo represents
enthusiasm, fascination, happiness, creativity, encouragement, and
stimulation. All this permutation of persona represents the
Sonalika group as an asset in the industry.
Main Group Units of the company:
International Tractors Ltd. (ITL)
Sonalika Agro Industries Corporation
International Cars & Motors Ltd. (ICML)
International Autotrac Finance Ltd. (IAFL)
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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CHAIRMAN MESSAGE
In order to accomplish our mission, the ownership, staff, and
management have gone ahead to treat each customer like a
member of the family and provide them with the best choice of
products and highest quality of service in the industry.
Sonalika companies are manned tractor is manned by an
experienced, knowledgeable sales, parts, and service staff. Each
one of our staff members is committed to helping our customers
find the best solutions for their needs.
Companies are manned by cream of the industry and best of
technocrats and service staff. We are proud of our reputation as
service & solution provider and innovator in agro industries.
In a time marked by rapidly changing technology, we have
developed best of the best R & D team and have also developed
the excellent quality control system to deliver high quality result in
the industry.
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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Vice Chairman Message
It has been a passion for us to accept challenges and convert them
in to win-win situations; whether it involved taking a quantum
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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jump from agricultural implements to manufacturing world class
tractors or designing and developing an MUV that can compete
with the best in the world.
I wish to convey to all stakeholders particularly employees that
The Mission that we have been pursuing should be carried on with
utmost zeal, enthusiasm and honesty of purpose.
I wish all associates of Sonalika Group, a bright tomorrow and will
to touch new horizons.
Products
Some products of International Tractors Ltd
DI-750III
DI-730 III
DI-745III
DI-55
DI-730 II
DI340S
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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DI-75 2WD
DI-750II
DI-732III
DI-75 4WD
DI-750
DI-732III
HRM practices
Human Excellence
The Company has established an Excellency Centre with a view to
develop human excellence. The centre focuses on three types of
training and development activities.
Programme for New Entrants: Every new entrant is supposed
to induction/orientation training from two to four days. It
includes detailed plant visit and CD on manufacturing
processes.
Programme for old employees: Apart from functional
programs, old employees are exposed to program like:
Lead with the vision\
Leadership skills
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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Team Building
Communication and presentation skills
Self Development Programs: Employees are encouraged to
focus on their personal development through programs like:
Art of living (Basic course)
Art of living (Advance course)
Yoga course
Focus on self (As part of regular training programs)
Functions of HRD
Manpower Planning
Recruitment and selection of employees
Employee Motivation
Employee Evaluation
Industrial Relation
Provision of Employee Services
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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International Tractors Ltd, Certified as
Quality Management System- ISO 9001:2000
Std.
Quality Management System- ISO/TS
16949:2002 Std.
( ITL Auto Division )
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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ISO 14001:2004 Environment Management
System
Production
ITL has fully integrated and state of the art assembly facilitation
for producing world class tractors.
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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Several productivity improvements in assembly line over the years
have made it possible to manufacture nearly 37000 tractors per
Year.
Atomization of assembly line not only increased production
capacity, but also provided a quantum jump to the quality of
assembled tractors.
ITL assembly line producing tractors in broad range from 30HP to
90HP with effective planning of resources.
MILESTONES
2007
Joint Venture between ITL and MAGMA , August 2007.
2007
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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On Aug. 10 With a view to provide financing of tractors on less
stringent conditions, International Tractors Ltd has entered into a
joint venture to set up a new company with Magma Shrachi
Finance Ltd. The initial investment in the project would be Rs 25
crore.The joint venture company, to be known as Magma ITL
Finance Ltd, would have 74 per cent stake while ITL would have
the remaining 26 per cent.
2007
New variant of RHINO RX
New variant of RHINO Rx launched with more technologically
advanced engine and added features with utmost fuel efficiency
and luxurious comfort at affordable price.
2006
Market Launch of RHINO (MUV)
Market Launch of RHINO (MUV) and Dealer network is being
expanded through out the country. Our Chairman Has been Elected
as President of TMA, Appointed as Ambassador of Macedonia & a
member of National Council Confederation of Indian Ministry.
Successfully Developed Four Wheel Drive front axles and
Transmission of tractor for Yanmar. Became the third largest
tractor manufacturer in India.
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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2005
Achieved turnover of USD 235 Million For FY 2004-05.
Achieved turnover of USD 235 Million (Rs1000 Cr.)For FY 2004-
05. Become the fourth largest tractor manufacturer in India.
Rollout of first vehicle from ICML facility. Joint venture with
Yanmar Agriculture of Japan for manufacturing of Tractors in
India eived the ISO 9001/ ISO 14000 & TS 16949Certification for
ICML and ITL. Initiated Crankshaft & Cylinder Block Machining
Line and other components under Lean manufacturing System
Received orders from Yanmar for Manufacturing of Front Axles
and Transmission.
2004
Rollout—100000th Tractor in the year
2004
Opening of in Sonalika group ICML
2003
Started export of tractors to Africa & Asian subcontinents
2001
Started in house manufacturing of engine for tractor application
2000
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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Entered into Joint venture with Renault (Class,) from Germany agricultural
1997
Entered into Manufacturing of tractors
1969
Modest beginning into farm equipment and machinery manufacturing
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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Chapter-2
OBJECTIVES OF THE STUDY
OBJECTIVES OF PROJECT:
To keep abreast of industrial law and to advise managers
about their responsibilities in relation to discipline and
redundancy, and similarly to determine organizational
policies relevant to legal and moral requirement.
To conduct of either local negotiations (within the plant)
or similarly to act as the employer’s representatives in
national negotiations.
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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To ensure that agreements reached are interpreted so as to
make sense to those who must operate them at the
appropriate level within the organization.
To monitor the observance of agreement and to produce
policies that ensure that agreement are followed within
the organization.
To correct the situation which is wrong. ‘Face’ is of some
importance in most organizations and operating at a
‘remote’ staff level personnel manager can correct
industrial relations errors made at local level without
occasioning any loss of dignity (face) at the working
level.
To provide the impetus or introduction of joint
consultation and worker participation in decision-making
in the organization.
To provide statistics and information about workforce
numbers, costs, skills etc. as relevant to negotiations.
To maintain personnel records of training, experience,
achievements, qualifications, awards and other records; to
produce data of interest to management in respect of
personnel matters like absentee figures and costs,
statistics of sickness absence, costs of welfare and other
employee services, statements about development in
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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policies by other organizations, ideas for innovations; to
advise upon or operate directly, grievance, redundancy,
disciplinary and other procedures.
STUDY OF ABSENTEEISM
WHAT IS ABSENTEEISM? HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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Absenteeism is a habitual pattern of absence from a duty or
obligation. Absenteeism means the failure of a worker to report for
work when he is scheduled to work.
Absenteeism is unauthorized, avoidable & willful absence from
duty.
The rate of absenteeism is defined as %age of maydays lost due
to absence to the total no of maydays scheduled in a given time
period.
No of maydays lost due to absence
Absenteeism= _____________________________ * 100
No of maydays scheduled to work
Frequent absence from the workplace may be indicative of poor
morale or of sick building syndrome.
However, many employers have implemented draconian absence
policies which make no distinction between absences for genuine
illness and absence for inappropriate reasons.
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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As a result, many employees feel obliged to come to work while
ill, and transmit communicable diseases to their co-workers.
This leads to even greater absenteeism and reduced productivity
among other workers who try to work while ill.
WHAT IS TURNOVER?
In economics, turnover refers to the rate at which an employer
gains and loses staff. If an employer is said to have high turnover,
then it may hire people often.
There can be many different reasons for high turnover - employees
may be dismissed due to poor performance, or they may be
unhappy with the conditions of work. Unskilled positions often
have high turnover, and employees can generally be replaced
without the business incurring any loss of performance.
If skilled professionals are frequently leaving their jobs, the high
turnover can be a risk to the business due to lost skills and
knowledge.
If a position has low turnover, this can indicate that the employer
offers good benefits, or high pay. Such positions may be filled for
several years.
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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REASONS FOR HIGH RATE OF ABSENTEEISM & TURNOVER
How employees report absence
In managers' own opinion
1. Colds/flu 1. Colds/flu2. Stomach upset/food poisoning
2. Stress/emotional problems/personal problems
3. Headaches/migraines 3. Monday morning blues/extending the weekend
4. Back problems 4. Low morale/boring job5. Stress/emotional problems/personal problems
5. Childcare problems/family sickness
REASONS FOR ABSENCES AS REPORTED BY
WORKERS
Among six reasons for absence from the job, the responding
workers rated personal or family illness last in order of importance.
The top five, in descending order of importance, were:
Unsafe Working Conditions
Excessive Rework
Travel Distance
Poor Craft Supervision
Poor Overall Management
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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Personal and Family Illness
Among seven reasons for quitting their jobs, workers put their
relationship with the boss at the top of the list, by a considerable
margin over the runner-up reason, overtime available on another
job.
The rankings did not differ between union and open-shop workers,
nor by geographical areas. Age differences did not affect the
results, except that distance from home did cause higher
absenteeism in age groups above 30.
REASONS FOR TURNOVER AS REPORTED BY WORKERS
Relationship with Boss
Overtime Available on
Another Job
Poor Craft Supervision
Poor Overall Job Management
Poor Planning
Inadequate Tools and Equipment
Excessive Surveillance by Owner
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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FACTORS AFFECTING WORKPLACE ATTENDANCE
1. Individual Factors
Illness, disease and workplace attendance.
Individual and Lifestyle Factors
Motivation
External responsibilities
Distance from work
2. Organizational and Workplace Factors
Nature of the work.
Job Person Fit
Work organization
Organizational climate
Job satisfaction
Work stress
Size and type of workplace
Absence culture
Work hours
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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3. Social and Societal Influences
4. Associated Workplace Climate Factors
Turnover
Productivity
stress claims
industrial climate
workers compensation claims rate
occupational health and safety performance
morale
ABSENTEEISM
Information regarding absenteeism among workers in an
industrial establishment on account of reasons other than strikes,
lockouts, lay-off, weekly rest or suspension, provide a sound
database for gauging the employee’s morale, commitment and
level of job satisfaction which have a direct bearing on
productivity of the establishment.
It is one of the indicators to monitor and evaluate various labor
welfare programmers and labor policies. With this aim in view,
statistics on absenteeism amongst the directly employed regular
workers are collected as a part of the Annual Survey of Industries.
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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Absenteeism rate among workers in an industry or a state is
worked out as percentages of maydays lost due to absence to the
maydays scheduled to work in the respective industry or state.
Statistics on factories reporting absenteeism, maydays scheduled to
work and maydays lost due to absence by States, industries and
Sectors during 2000 are presented.
1. Absenteeism in States
State-wise absenteeism rate amongst the directly employed
regular workers during the year 2000.It is observed that at the all
India level the rate of absenteeism during the year 2000 was 9.50
percent as against that of 9.85 percent during the year 1999.
Among States, the highest rate of absenteeism was witnessed in
Delhi (14.23 percent) followed by Kerala (12.70 percent) and
Maharashtra (12.09 percent).
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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On the other hand, the lowest rate of absenteeism was observed in
Dadra & Nagar Haveli (5.39 percent) followed by Andhra Pradesh
(5.79 percent) and Chhattisgarh (6.19 percent).
Out of 26 States, only 12 States reported higher absenteeism rates
than that at all India level during the year 2000. As compared to
1999, an increase in the rate of absenteeism was recorded in 8
States during the year 2000.
2. Absenteeism in Industries
Industry-wise absenteeism rate amongst directly employed
regular workers during the year 2000.
During the year 2000, the highest rate of absenteeism was
observed in Industry Group ‘323-Manufacture of television and
radio receivers, sound or video recording or reproducing apparatus
and associated goods’ (14 .45 percent) followed by industry group
‘315–Manufacture of electric lamps and lighting equipment’
(14.26 percent), whereas, the lowest rate of absenteeism was
reported in Industry Group ‘014-Agricultural and animal
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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husbandry service activities, except veterinary activities’ (5.78
percent) followed by industry group ‘153-Manufacture of grain
mill products, starches and starch products and prepared animal
feeds‘ (6.70 percent).
Out of a total of 62 industry groups, 35 industry groups recorded
higher absenteeism rate as compared to that at all India level. As
compared to 1999, an increase in absenteeism rate was recorded in
20 industries groups during the year 2000.
3. Absenteeism in Sectors by States
State-wise and Sector-wise data regarding absenteeism rates
amongst directly employed regular workers during the year 2000
are presented.
It is observed that amongst sectors, the highest rate of absenteeism
was observed in Joint Sector (9.55 percent) followed by Private
Sector (9.51 percent) and Public Sector (8.09 percent).
In Public Sector, the highest and the lowest rates of absenteeism
were observed in Chandigarh (11.92 percent) and Punjab (3.24
percent), respectively.
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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In Joint Sector, the highest rate of absenteeism was observed in
Karnataka (14.84 percent), whereas, the lowest rate of absenteeism
was observed in Andhra Pradesh (3.81 percent).
In Private Sector, the highest absenteeism rate was observed in
Delhi (14.24 percent) and the lowest rate was reported in Dadra &
Nagar Haveli (5.34 percent).
4. Absenteeism in Sectors by Industries
Industry-wise and Sector-wise data on absenteeism rate amongst
directly employed regular workers is presented. In Public Sector,
the highest and lowest rate of absenteeism were observed in the
industry groups ‘273–Casting of metals’ (20.62 percent) and ‘359-
Manufacture of transport equipment i.e.' (1.18 percent),
respectively.
In Joint Sector, the highest and lowest rate of absenteeism were
recorded in industry groups ‘171-Spinning, weaving and finishing
of textiles’ (15.46 percent) and ‘221-Publishing’ (2.98 percent).
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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In Private Sector, the highest and the lowest rate of absenteeism
were reported in industry groups ‘315–Manufacture of electric
lamps and lighting equipment’ (14.27 percent) and ‘014-
Agricultural and animal husbandry service activities, except
veterinary activities’ (5.90 percent), respectively.
COMBATING ABSENTEEISM
For Supervisors/Managers:
Four positive interventions versus taking a negative or punitive
approach.
Change Management Style: Management styles that are too
authoritarian tend to promote high levels of absenteeism
among employees. Authoritarian managers are managers who
have poor listening skills, set unreachable goals, have poor
communication skills, and are inflexible. In other words, they
yell too much, blame others for problems, and make others
feel that it must be their way or the "highway." Authoritarian
managers tend to produce high absenteeism rates. By
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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identifying managers who use an authoritarian style, and
providing them with management training, you will be taking
a positive step not only toward reducing absenteeism, but
also reducing turnover, job burnout, and employee health
problems such as backaches and headaches.
Change Working Conditions: The working conditions
relate to coworker relationships. Not only does relationship
stress occur between the employee and manager, but it also
exists between employees. Frequently Employees say they
did not go to work because they are fearful of or angry with
another employee. Companies that adopted policies and
values that promote employee respect and professionalism,
and promote an internal conflict resolution procedure, are
companies that reduce employee stress. A reduction in
employee stress reduces employee absenteeism.
Provide Incentives: An incentive provides an employee with
a boost to their motivation to avoid unnecessary absenteeism.
It simply helps the employee decide to go to work. The
duration of the incentive program is also very important.
Once again allow your employees to help guide you to
determine the length of time between incentives. Some
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
37
companies find that they can simply reward employees with
perfect attendance once a year, while others decide once a
month is best, and still others decide once a week works best.
The general rule of thumb is to reward workers more
frequently the younger they are and the more difficult the
work is to perform. Also, it is best to start with small
incentives and work up to larger ones if necessary.
Develop an Attendance Policy: Every company should have
an attendance policy. An attendance policy allows a manager
to intervene with an employee who is frequently absent.
Besides stress as a primary reason for employee absenteeism,
other causes relate to alcoholism, domestic violence, and
family problems.
For Employees Who Are Frequently Absent:
One of the most important steps you can take if you are
frequently absent is to keep your employer informed.
As an employee you are allowed to take up to 12 weeks of
unpaid leave under the federal Family and Medical Leave
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
38
Act (FMLA). The 12 weeks of leave may be taken
continuous or intermittently, thereby allowing the employee
to work on a less than full-time schedule.
FMLA can be used for the care of a child after birth, adoption,
or foster care placement.
FMLA is available to care for an immediate family member
(spouse, child, and parent) who has a serious health condition.
FMLA can be used for your own serious health concerns. It
does not cover for the common cold, flu, ear aches, upset
stomach, common headache, or routine dental care.
In order to be covered by FMLA you must be considered an
"eligible" employee. An eligible employee must have 12
months (1,250 hours) of employment, and your employer
must employ 50 or more employees within 75 miles of the
worksite. Employees must provide 30 days of advance notice
for foreseeable events. There are different exemptions
present for both school teachers and state/local government
employees.
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
39
If you are an eligible employee, your employer must
maintain your benefits, allow you to return to the same or
equivalent position, and not decrease your pay or benefits at
the conclusion of 12 weeks. If you believe you are eligible
for FMLA, inform your supervisor or HR department that
you are requesting FMLA coverage. Your employer is
required to provide you with written notice, within two
business days, informing you if you are eligible or not.
EFFECTS OF ABSENTEEISM
Increased Costs
Lower morale
Increased workloads
Frustrated managers and supervisors
Loss of productivity
Non achievement of objectives
Reduced provision of services
Decreased product quality
Increased training costs and loss of key skills and personnel
Increased supervisory and administrative costs
Adverse public perception and confidence
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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Adverse effects on consumers
Workers loss wages for unauthorized absence from duty
Regular flow of work in the factory is disturbed
Types of interventions to reduce workplace absenteeism
Three types of intervention to reduce workplace absenteeism were
differentiated, e.g. procedural measures, preventive measures and
reintegration measures. Both key persons representing the
employer and employees were asked about these three kinds of
measures.
PROCEDURAL
PREVENTIVE
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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RE-INTEGRATION
The model (derived from Veer man, 1990) is represented
schematically.
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
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Figure: The model used in this study of the process of
becoming ill, being absent from work, recovery and resuming
work.
Procedural measures. Procedural measures as
perceived by the employees were operational zed by asking the
respondents whether they were familiar with a procedure to report
HOSHIARPUR INSTITUTE OF MANAGEMENT AND TECHNOLOGY
43
oneself sick, whether someone contacted them if they call in sick
and whether someone contacted them during illness, and whether
they could go to the occupational health service if they have health
problems related to work.
The answers are 'no’ or ‘I do not know' (0) and 'yes'(1). The
answers to these four questions were combined in one scale with
scores between ‘no measures known’ (0) and ‘all four measures
known’ (1). The reliability of this scale is low.
Preventive measures can be work-oriented or
employee-oriented. The same kind of questions are asked about the
use of seven preventive activities (to improve physical working
conditions, mental working conditions, work stress/work pressure,
lifting courses etc. ). The answers are 'no’ or ‘I do not know' (0)
and 'yes'(1). The answers to these seven questions were combined
in one scale with scores between ‘no measures known’ (0) and ‘all
seven measures known’ (1). The reliability of this scale is
sufficient
Reintegration measures . are also operational zed by
asking the employees whether they were familiar with three
different kind of activities to supervise sick employees and to
promote swift return to work of sick employees. The answers are
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'no’ or ‘I do not know' (0) and 'yes'(1). The answers to these three
questions are combined in one scale with scores between ‘no
measures known’ (0) and ‘all three measures known’ (1). The
reliability of this scale is low.
PREVENTIVE MEASURES OF ABSENTEEISM
Leaving aside surveillance, interrogation and other more draconian
approaches, which no doubt some employers might favor, there are
preventative measures which employers could take. For example
family friendly policies, from flexible hours to workplace
crèches to help employees cope with childcare problems
providing more varied/interesting/responsible work to
combat "low morale/boring job" syndrome
compressed working week options to cater positively for
those who may need longer weekends
Mentoring, counseling, fitness programmers, on-site massage
etc to help people through stress, emotional problems or
personal problems, plus careful monitoring of workloads.
The Industrial Society suggests other steps organizations could
take:
having a clear policy on absence monitoring
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training managers to manage attendance
training employees to recognize and manage signs of stress
improving employee motivation through training and
development opportunities
Using return-to-work interviews after illness and informal
procedures to keep individuals informed and to resolve
problems by consensus.
Special bonus, cash prizes to regular employees encourage
workers to be regular in their attendance.
Proper housing & transport facilities will ensure regular
attendance of workers
These approaches tackle absenteeism by seeking to reduce the
number of absences.
INTRODUCING FLEXIBLE WORK
Flexible Work
Flexibility and Flexible Work are terms used to describe a wide
range of work styles and employment practices. Broadly speaking,
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they are used to describe all kinds of employment which differ
from the traditional 9-5 full time job with a permanent contract.
The "flexible" aspect of these type of jobs can in different
instances relate more to the employees, or to the employer, or to
both. That is, from the employees point of view, flexible work may
allow more freedom to organize their employment to fit in with
other parts of their life.
For an employer, the flexibility may come with the ability to
organize labor resources more in line with the varying needs of
customers, or with peaks and troughs of demand.
SIX CATEGORIES OF FLEXIBLE WORK
Flexible work in general - wide-ranging articles, or cutting
across more than one of the other topics
Flexible location -Flexible location includes:
1. working on the move
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2. working from home
3. working from telecasters/satellite offices
Variously described as location independent working,
teleporting, telecommuting, home working, remote working,
anywhere/anytime working. and many more
Flexible technologies - technologies to help you work
flexibly - explained simply but accurately, we hope!
Time flexibility - flexi-time, part-time working etc
Flexible contract - agency workers, etc
Flexible offices - what happens to the office when flexible
working is introduced, innovation in workplace design, etc
You can access these sections from the menu on the left of the
page. Each section has an introductory page and a list of articles.
CONTROL OF LABOUR TURNOVER
Use of proper tests & interviews in selection of employees.
Proper orientation & training of employees
Better pay & good working conditions
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Promotion from within & other career opportunities.
Security of service.
Introduction of incentive plans.
Employee welfare schemes.
Provision of retirement benefits.
Proper job design, & work scheduling to match skills with job
requirements.
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Chapter-3
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
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Research means a search for knowledge or gain some new
knowledge and methodology can properly refer to the theoretical
analysis of the methods appropriate to a field of study or to the
body of methods and principles particular to a branch of
knowledge.
A Research methodology has a specified framework for collecting
the data in an effective manner. Research methodology means a
"defining a problem, defining the research objectives, developing
the research plan, collecting the information, analyzing the
information and presentation of findings."
Such framework is called "Research Design". The research process
that was followed by me consisting following steps;
A) Defining the problem and research objectives
B) Developing the research plan
C) Collection of information
D) Analyzing the information
E) Presentation of findings
A) Defining the problem and research objectives
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The definition of problem includes the study of “ABSENTEEISM
& LABOUR TURNOVER .
B) Developing the Research Plan
The development of research plan has following steps:
1. Data source
2. Research approach
3. Research instrument
4. Sampling plan
i) Sample unit
ii) Sample size
iii) Contact methods
1. Data Source: The researcher can get two types of data:
a) Primary Data
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b) Secondary Data
a) Primary Data
Primary data is a data which did not exist earlier and is being
collected by the researcher first time for its specific objectives. In
other words, direct collection of data from the source of
information, technology including personal interview, telephonic
interviews, observation, Questionnaire and through schedules.
b) Secondary data
Any data which have been collected earlier for some purpose are
the secondary data. Indirect collection of data from sources
containing past or recent past information like bank's brochures,
annual publication, books etc. Secondary sources used are:
Text books
Internet sites
Newspaper articles
Brouchers
2. Research Approach
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Survey is best suited for descriptive and analytical research.
Survey are undertaken to learn about people's knowledge, beliefs,
preferences, satisfaction and so on and to measure these
magnitudes in the general public. Therefore, I have done this
survey for Descriptive and analytical research process.
Descriptive research includes surveys and fact finding enquiries of
different kinds. The main purpose is description of the state of
affairs is noted down and analytical research used to analyze the
material and facts.
3. Research Instrument
Questionnaire: Questionnaire is a type of statistical survey
handed out in paper form usually to a specific demographic to
gather information in order to provider better service or goods. A
document that contains a set of questions that has been specially
formulated as a means of collecting information and surveying
opinions, etc on a specified subject or theme, etc .
A questionnaire was constructed for my survey.
1. Sampling plan
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Sample is a group of few items which represents the population or
universe from where it has been taken. The sampling plan calls for
three decisions;
a) Sample unit
b) Sample size
c) Contact methods
a) Sample unit – who is to be surveyed?
The target population must be defined that has to be sampled. It is
necessary so as to develop a sample frame so that everyone in the
target population has an equal chance of being sampled. I have
completed my survey in ITL.
b) Sample size - how many people have to be surveyed?
Generally, large sample size gives more reliable results than small
samples. The sample consisted of 50 respondents. The selection of
the respondents was done on the basis of Simple Random
Sampling.
Simple random sampling is the technique in which every item in
the universe and population has an equal chance of being selected
in the sample. Researcher has no role to play or he cannot
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influence the selection process there is no possibility of biasness. It
can easily assess the accuracy of estimate.
c) Contact methods
Once the sampling plan has been determined the Questionnaire is
how the subject should be contracted i.e. by telephone interview,
personal interview, observation, mail etc. here, in my survey, I
have contacted the respondents through personal interviews.
C) Collecting the information
After this, I have collected the information from the respondents
with the help of Questionnaire.
D) Analyze the information
The next step is to extract the pertinent findings from the collected
data. I have tabulated the collected data and developed frequency
distributions. Thus, the whole data was grouped aspect wise and
was presented in tabular form. Thus, frequencies and percentages
were prepared to render impact of study.
LIMITATIONS OF THE STUDY
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Although I have done sincere efforts to collect authentic and
relevant information, the study may have the following limitations:
1) 1 It was very difficult for me to get fulfill the forms because
of respondent’s busy schedule and not providing me
sufficient time to fill the form seriously.
2) Scope of study is limited to ITL only because of limited time
and money. So results of study may not be generalized.
3) This study is based on the assumption that responses are true
and factual although at times that may not be the case.
4) Though every care has been taken to eliminate such biases,
but considering the human factor the possibility of small bias
having come up cannot be ruled out altogether.
5) Consumer behavior is dynamic in nature and thus over the
time, finding of today may become invalid tomorrow.
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Chapter-5
DATA ANALYSIS AND
INTERPRETION
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Q: State to which you belong?A:
Punjab Haryana Bihar Others68% 0% 20% 12%
Interpretation:Maximum workers(68%) workers belong to Punjab. 20%
belong to Bihar & 12 % belong to other states.
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Q:2 Reason for absence or leave?
Family Matters
Personal Health
Religious Activities
Fun & Frolic
Others
96% 4% 0% 0% 0%
Interpretation:
96% workers take leave or remain absent due to family matters &
4% workers take leave because of personal health.
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Q:3 Distance between place of stay & work place(Kms)?
0-10 10-2.5 25-40 More than 40
76% 16% 8% 0%
Interpretation:76% workers live at distance of 10 Kms from work place.
16% live at distance between 10-25 Kms. 8% workers between 25-
40 Kms.
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Q:4 Are you satisfied with working hours?
Satisfied Unsatisfied No Response100% 0% 0%
Interpretation:
All workers(100%) are satisfied with working hours.
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Q:5 Satisfaction with working conditions?
Interpretation:
All workers(100%) are satisfied with all working conditions like
Ventilation, Lights, Sanitation, Health & Safety, Drinking Water &
Rest & Shelter.
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Satisfied Unsatisfied No Response
Ventilation 100% 0% 0%Lights 100% 0% 0%
Sanitation 100% 0% 0%Health &
Safety100% 0% 0%
Drinking Water
100% 0% 0%
Rest & Shelter
100% 0% 0%
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Q:6 Nature of Job?
Interpretation:
36% workers are concerned with Mechanical job & 64 % are
related to Manual type of work.
Q:7 Attitude of Supervisors & Colleagues?
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Mechanical Manual36% 64%
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Co-operative
Non Co-operative No Response
Supervisors 100% 0% 0%Colleagues 100% 0% 0%
Interpretation:
All workers are satisfied with attitude of supervisors & colleagues.
Q:8 Do you get leave sanctioned?
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Interpretation:
88% workers say that they get leave very easily & 12% say it
normally.
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Very Easily
Normally Very Difficult
88% 12% 0%
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Q:9 Basis of incentives provided to workers those having high:
Attendance Special Bonus
Promotion And Others(Sale & Profit of Plant)
100% 100%
Interpretation :
100% workers respond that basis of incentive is high attendance &
sale & profit of plant.
Q:10 Extent of Job Satisfaction
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Highly Satisfied
Satisfied Dissatisfied Highly Dissatisfied
Salary 32% 68% 0% 0%Work Culture 32% 68% 0% 0%Openness of
System32% 68% 0% 0%
Participatory System
32% 68% 0% 0%
Grievance Handling
32% 68% 0% 0%
Interpretation:
32% workers are highly satisfied with salary, work culture,
openness of system, participatory system & grievance handling.
68% workers are satisfied with these.
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Chapter-5
FINDINGS OF THE
STUDY
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FINDINGSAfter doing analysis of collected data, findings that arrived are: -
From the analysis of questionnaire we found that main
reasons of absenteeism are:
Family Matters
Personal Health of employee.
Visit to native place.
Poor management System
Alcoholism & Gambling
Lack of Interest
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Chapter-6
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SUGGESTIONS
SUGGESTION
1) The programs that spice up employees work life such as
quarterly socialization event, foundation day, family day etc.
2) The programs such as employee of the year where in top
performing employees of the year are highly recognized
should be introduced different opportunities should de
provided to those who were chosen annually.
3) With passage of time companies should review policies in
accordance with changing environment of business.
4) The employees should be aware of various welfare programs
so as to make full use of them.
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5) Stress management programs should be introduced to check
the stress level of the employees.
6) The various measures to improve the physical and
psychological health of the employees should be considered
because that will enhance their efficiency and productivity.
7) Decrease Over Staffing: Company is having more staff than
it requires. There fore ,they should decrease in
overstaffing in order to earn profits because salary and wages
are important factors of cost.
8) Expand Coordination: Company should develop condition
among personnel's Working method and different
departments so that they can achieve then Objectives in the
lesser time.
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Chapter-7
CONCLUSION
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CONCLUSION
Finally, we can conclude that Indian labour market is
concerned with satisfying their basic needs of cloth, house
& food. The main reason of their leave from work is
Health of Family Matters & their own health. It reduces
producitivity & disrupts the flow of work. To control
absenteeism & labour turnover, org should provide:
Special Bonus & Incentive Schemes for Extra work.
Behaviour of management should be co-operative with
labour.
Management should provide Health & Safety programmes
to workers.
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BIBLIOGRAPHY BIBLIOGRAPHY
BOOKS
Malhotra, Naresh Kumar, “Marketing Research” (4th
edition,) Pearson Education (Singapore) Pvt Ltd., India branch, Delhi.2004.
WEBSITES
www.kapsonindustries.com www.google.com www.encarta.msn.com www.wikipedia.com www.altavista.com www.dogpile.com
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