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SUMMER TRAINING PROJECT REPORT 2012

A STUDY ON EMPLOYEE ABSENTEEISM

DEPARTMENT OF MANAGEMENT STUDIES

SRM UNIVERSITY
RAMAPURAM CHENNAI

DECLARATION
I the undersigned solemnly declare that the report of the summer training work on A STUDY ON EMPLOYEE ABSENTEEISM, is based on my own work carried out during the course of my study under the supervision of
Mr. THAMILARASAN (Asst. Manager Training in SPB).

I assert that the statements made and conclusions drawn are an outcome of the project work. I further declare that to the best of my knowledge and belief that the project report does not contain any part of any work which has been submitted for the award of any other degree/diploma/certificate in this University or any other University.

P. Anne Cynthiya 3511120006

ACKNOWLEDGEMENT

I am extremely thankful to our Chairman, SRM University, for his invaluable support. I wish to express my profound gratitude to my venerable Secretary and Pro Vice Chancellor, SRM for their kind permission to undergo project work successfully.

I express my heartfelt thanks to our Dean and Vice Principal, Faculty of Engineering and Technology, SRM University, Ramapuram Campus who provided all facilities for carrying out this project.

I immensely thank our Head of the department as well as my project guide, Dr. C. Sundar; M.B.A., M.Phil., Ph.D Asst.Prof (S.G) & Head, for his valuable suggestions and guidance for the completion of project work.

I would also thank my Institution and my faculty members without whom this project would have been a distant reality. I also extend my heartfelt thanks to my family and well wishers.

CONTENTS

CHAPTER NO 1 2 3 4 5

PARTICULARS Company Profile Introduction Aim of the project Research Methodology Data analysis & Interpretation

PAGE NO 7 13 15 17 20

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Findings, Suggestion & Conclusion Appendix

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List of tables

Table no 1 2 3 4 5 6 7 8 9 10 11

Title Age wise calculation Income wise calculation Experience level Working condition Relationship with supervisor Transport facility Grievance handling Welfare facility Pay package Decision making Leave facility

Page no 22 23 24 25 26 27 28 29 30 31 32

CHAPTER 1 COMPANY PROFILE

Seshasayee Paper and Boards Limited (SPB), the flagship company belonging to ESVIN GROUP, operates an integrated pulp, paper board Mill at Pallipalayam, Erode 638 007. Namakkal District. Tamil Nadu India. SPB, incorporated in June 1960, was promoted by Seshasayee Brothers (Pvt) Limited in association with a foreign collaborator M/s. Parsons & Whitemore, South East Asia Inc., USA. After commencement of commercial production, having fulfilled their performance guarantee obligations, the foreign collaborators withdrew in 1969. Main promoters of the Company as on data are a group of companies belonging to the ESVIN group headed by Mr. N. Gopalaratnam. SPB Commenced commercial production in December 1963, on commissioning a 20000 tons per annum integrated facility, comprising a Pulp Mill and two Paper Machines (PM 1 and PM 2), capable of producing, writing, printing, Kraft and poster varieties of paper. The Plant capacity was expanded to 35000 tons per annum in 1967 78, by modification of PM 2 and addition of a third paper Machine (PM-3). The cost of the expansion scheme, at Rs. 34 Millions, was part financed by All India Financial Institutions (Rs. 32 Millions). In the second stage of expansion, undertaken in 1976, capacity was enhanced to 55000 tons per annum, through addition of a 60 tons per annum new Paper Machine (PM 4). Cost of the project including cost of a chemical Recovery Boiler and other facilities for enhanced requirement or utilities, was estimated at Rs. 176 Millions. The same was part financed by term loans from Institutions and Banks to the extent of Rs. 145 Millions and the balance out of internal generation. SPB undertook various equipment balancing and modernization programmes, since then, for improving its operating efficiency, captive power generation capacity, etc., up to 1992 93.

Expansion / Modernization The company embarked on an Expansion / Modernization Project to enhance its production capacity from 60000 tones per annum, to 1,15,000 tons per annum and to upgrade some of the existing facilities, at an estimated cost of Rs. 1890 millions. The said Expansion / Modernization Project completed in December 2000. After successful trials, the Commercial Production out of the new Paper Machine Commenced on July 1, 2000. The current installed capacity of the Company stands at 1,15,000 tons per annum. Raw Materials The companys paper plant was originally designed for using bagasse, as the primary raw material mixed with 20% bamboo fibre. Bagasse was being obtained from nearby sugar mill on substitution basis using oil fired boilers. With sharp increase in oil prices in 1970 71, the Company shifted over to the use of hardwood, at the time of its expansion undertaken in n1978. Raw material mix underwent a substantial change, with bamboo and hardwood forming 60% and 40% respectively, of its raw material consumption. Soon Company started apprehending difficulties in procurement of bamboo. In 1981, it added one more digester, to increase the share of the hardwood in the furnish mix to 80% and restricting bamboo use to only 20%. With the commissioning of more wood based industries in Tamil Nadu, there was again an apprehension about availability of hardwood.

As a long term strategy, the Company at this time decided on restructuring use of bagasse which was seen to be the most reliable source of fibre for the entire Industry. In 1984, the Company promoted Ponni Sugars and Chemicals Limited, as the captive source for bagasse supply. It added bagasse handling systems and modernized PM-1 and PM-2, to shift over at the use of bagasse. The furnish mix for the existing Paper Machines of the Company is 55% bagasse and 45% hardwood. The Company has vast experience in handling bagasse and is expected to be one of the major strong points its competitors in India, as the Indian Paper Industry will continue to be bogged down by the problem of raw material availability. For the new Paper Machine, the furnish is imported. The waster paper and imported pulp which are sourced from Far East countries, Europe and USA. A small quantity is supplemented out of captive pulp production. Export Performance SPBs exports are nearly 20% of its production and are a significant exporter in the Indian Paper Industry. Due to its excellent export performance, SPB has been awarded Golden Export House status.

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Awards SPB in receipt of various Awards awarded by Government of India, Government of TamilNadu, and Industry Associations, etc. Some of the Awards received by SPB in the past include: Capacity Utilization Award Energy Conservation Award Environment Protection Award Safety Award Export Performance Award Good Industrial Relations Award TERI Corporate Environmental Award Environment Protection The company attaches paramount importance to the conservation and improvement of the environment. It is efforts to improve the environmental protection measures, the company has installed: Two Electro Statis Precipitators for its Boilers to control dust emissions These facilities will ensure sustained compliance by the Company of the pollution controls norms prescribed by the Pollution Control Authorities. ISO 9001 / ISO 14001 Accredition The Companys quality systems continue to be covered by the ISO 9001 Accredition awarded by Det Norske Veritas, the Netherlands. The Company has also been accredited with ISO 14001 certification by Det Norske Veritas, The Netherlands, for its Environmental Quality Systems.

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VARIETY OF PAPER White printing paper Blue wave paper Cream wave paper Offset printing paper Colour printing paper Duplicating paper Map litho paper Azure laid paper Kraft paper White poster paper Colour poster paper Pulp board Duplex board Cheque paper Dyeline printing paper Stamp base paper and Litho printing paper are various types of paper manufactured in SPB Ltd.

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CHAPTER 2 INTRODUCTION

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In a developing country like India, the key progress is done to increase the productivity. The country cannot progress unless the man and work have good relationship. The relationship has always attracted between scientists and novelists. The major part of mans life is spent in doing work. Work is a social reality and social expectation to which men seem to conform. It not only provides status to the individual but also binds him to society.

Basically industry is a combination of 6 Ms namely, men, money, machine, material, market and method. The first one is significant in the sense that it deals with uncontrollable human emotions and sentiments.

Materials can be purchased at most competitive rates; machines many be worked at their maximum speed but the output can be maximized only when the employees work willingly. If we motivate the employees somehow, the output can be raised still higher with the same type of materials and machines.

Peter F. Drucker says, the sources capable of enlargement can only be human resources. Other resource can be utilized of worse utilized, but they can never have an output greater than the sum of outputs.

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CHAPTER 3 AIM OF THE PROJECT

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3.1
1.

OBJECTIVES OF THE STUDY To find out the employees absenteeism level towards their job in Seshasayee Paper & Boards Limited for three major areas. 1. 2. 3. Related to work. Related to work place. Related to benefits availed.

2.

To study about the employees interaction, relationship with his co-worker and with supervisors in the work group. To study the employees expectation and their motivation practice of the management.

3.

3.2

LIMITATIONS The sample is selected from the staff of Seshasayee paper & Board Limited.

The satisfaction level of the employees of this organization may differ from those of other. In paper industry the over all absenteeism of employees may differ from company to company, from industry to industry. Hence the level of satisfaction of the staff at Seshasayee paper & Boards Limited cannot be generalized to other industries. Fear of the employer will have an effect on the results obtained. There are chances of biased response on the part of the respondents, as the researcher is viewed as the representative of the management. The survey purely based on opinion of staff, which may be biased at time The factory functions in shift system so all shift workers did not take part in the sample.

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CHAPTER 4 RESEARCH METHODOLOGY

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Research methodology explains the various steps that tare generally adopted by the research in studying research problem along with logic behind them. 4.1 RESEARCH DESIGN The research design adopted for the study is descriptive design. The researcher has to describe the present situation in order to know the job Satisfaction of the employees in order to reduce the employee absenteeism. Hence descriptive research study is used and includes survey and fact finding Enquirer. Descriptive research can only report what has happened and what is happening. 4.2 4.2.1 SAMPLING DESIGN Population The population of the study includes 1550 employees in Seshasayee Paper & Boards, Erode. 4.2.2 Sampling Technique The sampling technique used for selecting sample elements is convenience sampling. 4.2.3 Sample Size The sample size of 50 employees of different sections in the organization were interviewed. 4.2.4 Field work The field work is the actual data collection process and the respondents are the employees of the Seshasayee paper & Boards, Erode. The respondents were met and told about the objectives of the study and data were collected through questionnaire form.

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Data collection method The collection of data is considered to be one of the important aspects in the research methodology. There are two types of data that exists one is primary data and the other is secondary data. Primary data Well structured questionnaire has been used for the collection of primary data from the respondents. For the purpose of knowing the absenteeism of employees. Secondary data Secondary data has been collected from the company record, various magazines, journal and various web sites. 4.2.5 Questionnaire Design A well structured questionnaire was used for this study. The types of questions used in the questionnaire were closed-ended, multiple-choice and Dichotomous question,

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CHAPTER 5 DATA ANALYSIS AND INTERPRETATION

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The data collected are properly tabulated and summarized. AGE WISE CLASSIFICATION
Age of the employee is an important demographic factor influencing job satisfaction.

TABLE NO. 5.1 AGE WISE CLASSIFICATION

Age 20 to 30 30 to 40 40 to 50 >= 50 Total

No. of Respondents 10 10 15 15 50

Percentage 20 20 30 30 100

35 30 25 20 15 10 5 0 No. of Respondents Percentage 20 to 30 30 to 40 40 to 50 >= 50

Inference From the above table, we infer that, out of 50 respondents, 20% of the respondents are having age 20 to 30 years, 20% of the respondents are having age between 30 to 40 years and 30% belong to 40 to 50 years of age. 30% of the respondents are belonging to the age group of greater than 50 years.

TABLE NO. 5.2.

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INCOME WISE CLASSIFICATION Man works to earn. Every employee in the organization will expect a reasonable pay for the job done by him. This reasonable pay may help to increase the job satisfaction to a certain extent. Income 7000 to 12000 12000 to 18000 18000 to 20000 Above 20000 Total
45 40 35 30 25 20 15 10 5 0 No. of Respondents Percentage

No. of Respondents 7 20 20 3 50

Percentage 14 40 40 6 100

7000 to 12000 12000 to 18000 18000 to 20000 Above 20000

Inference Table 5.2 shows that, out of 50 respondents, 14% of the respondents are getting their salary between Rs. 7000 to 12000. 40% of the respondents are getting their salary between Rs.12000-18000 and 40% of the respondents are getting their salary between Rs.18000 to 20000 and 6% of the respondents are getting their salary above 20000.

TABLE NO. 5.3 EXPERIENCE WISE CLASSIFICATION

Experience is the major factor considered in the job. The experienced

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Person may expect a reasonable salary for the work done. Experience in Year Below 5 years 5 to 10 years 10 to 20 years Above 20 years Total 40 35 30 25 20 15 10 5 0 No. of Respondents Inference Table 5.3 shows that,

No. of Respondents 5 17 13 15 50

Percentage 10 34 26 30 100

Below 5 years 5 to 10 years 10 to 20 years Above 20 years

Percentage

10% of the respondents have their experience below 5 years. 34% of the respondents have their experience between 5 and 10 years. 26% of the respondents have their experience between 10 and 20 years. 30% of the respondents have their experience above 20 years. WORKING CONDITION

The place at which the work is undertaken will give some psychological satisfaction to the worker. This will indirectly motivate the worker towards his job and as a result, they will be satisfied to work for the organization. TABLE NO. 5.4

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OPINION ABOUT WORKING CONDITION Description Yes No Total No. of Respondents 20 30 50 Percentage 40 60 100

70 60 50 40 30 20 10 0 No. of Respondents Percentage Yes No

Inference From the above table, we infer that

40% of the respondents have good opinion about the working condition. 60% of the respondents have bad opinion about the working condition.

TABLE NO. 5.5 RELATIONSHIP WITH SUPERVISOR Effectiveness of the organization basically depends upon the supervisors. They should have considerations for the needs of the worker. This may increase the morale and motivation of the worker to a great extent.

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Description Average good Not good Total

No. of Respondents 17 30 3 50

Percentage 34 60 6 100

70 60 50 40 30 20 10 0 No. of Respondents Inference From the above table

Average good Not good

Percentage

34% of the respondents are Average with their supervisors. 60% of the respondents have good relationships with their supervisors. 6% of the respondents are not good with their supervisor. TABLE NO. 5.6 OPINION ABOUT TRANSPORT FACILITY

Description Very Good Good Average Poor Total

No. Of Respondents 5 15 10 20 50

Percentage 10 30 20 40 100

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45 40 35 30 25 20 15 10 5 0 No. Of Respondents Percentage Very Good Good Average Poor

Inference From the above table, it is inferred that

10% of the respondents have very good opinion about promotional 30% of the respondents have good opinion about promotional 20% of the respondents have average opinion about promotional

opportunities in the organization.

opportunities.

opportunities.
40% of the respondents have poor opinion about promotional opportunities.

TABLE NO 5.7 GRIEVANCE HANDLING SYSTEM Grievance is the factor, which has to be handled in a proper way to find proper solution.

Description Yes No Total

No. Of Respondents 15 35 50

Percentage 30 70 100

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80 70 60 50 40 30 20 10 0 No. Of Respondents Percentage Yes No

Inference Table 5.6 shows that out of 50 respondents 30% of the respondents feel that the grievance handling system existing in the organisation is good and 70% of the respondents feel that their grievance are not solved immediately.

WELFARE MEASURES Welfare measures to the employees like providing uniform, quarters, medical facilities, community halls, and schools also have an effect on the job satisfaction. TABLE NO 5.8 AVAILABILITY OF WELFARE MEASURES Description Good Very good Average Bad Total No. of Respondents 3 2 35 10 50 Percentage 6 4 70 20 100

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80 70 60 50 40 30 20 10 0 No. of Respondents Percentage Good Very good Average Bad

Inference Table 5.7 shows that

70% of the respondents are satisfied with average on welfare measures.

TABLE NO 5.9 SATISFACTION LEVEL WITH PAY PACKAGE

Equitable compensation to the work done is a very essential for the employee in order to make them involved and increase their contribution towards the work. This study brings out the satisfaction level of compensation, which may be helpful to the management to take further decision to increase employees involvement towards their job. Description Good Satisfactory Adequate Not adequate Total No. of Respondents 35 10 3 2 50 Percentage 70 20 6 4 100

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80 70 60 50 40 30 20 10 0 No. of Respondents Percentage Good Satisfactory Adequate Not adequate

Inference

70% of the respondents are feeling good about their salary provided by 20% of the respondents are satisfied with their salary provided by the 6% of the respondents are adequate with their salary provided by the 2% of the respondents feel that not adequate salary is not provided. TABLE NO. 5.10 PARTICIPATION IN DECISION MAKING

the organisation.

organisation.

organization.

Employees participation in decision making will increase employer employee relationships and the employee morale. It motivates the employees and increases their integrity with the organization. Description Yes No Total No .of Respondents 23 27 50 Percentage 47 53 100

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60 50 40 30 20 10 0 No .of Respondents Percentage Yes No

Inference It is inferred from table No.5.17 that 53% of the respondents feel that they are not participating in the decision making process in the organization and the table denoted below reveals that 47% of the respondents feel that their decisions are being considered and also implemented some times. TABLE NO 5.11 AVAILABILITY OF LEAVE FACILITY

Leave facility are the essence of the employee. So the management has to provide proper leave facility. Description Yes No Total No .of Respondents 25 25 50 Percentage 50 50 100

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60 50 40 30 20 10 0 No .of Respondents Percentage Yes No

Inference From the above table, we infer that 50% of the respondents feel that the management provides proper leave for the employee.

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CHAPTER 6 FINDINGS, SUGGESTIONS AND CONCLUSION

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6.1

FINDINGS The followings the findings that could enlighten the Seshasayee Paper & Boards

workers levels and quantity and quality of job satisfaction level in order to reduce employee absenteeism.

From the analysis we found that 40% of the respondents are getting their salary between Rs.12000-20000 The study reveals that 70% of the respondents are not satisfied with the Grievance handling to workers. From the analysis we found that 40% of the employees are not satisfied with their transport facility. While analyzing we found that 34% of the respondents have their experience between 5 to 10 years. The study reveals that 60% of the respondents do not have good opinion about the working condition. From the analysis we found that 60% of the respondents are having good relationship with their supervisor. The study reveals that 70% of the respondents are satisfied with their incentives. While analyzing equal percentage for leave facility provided in the company. From the analysis we found that 70% of the respondents are satisfied with welfare measures. The study reveals that 53% of the respondents are not satisfied with their participation on decision making.

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6.2

SUGGESTIONS As employees are dissatisfied with the following factors, the management may

have to improve upon these factors. Nearly most of the respondents are not satisfied with their salary package, transport, Grievance, welfare facility etc, therefore the

management has improved in these following areas in order to reduce the absenteeism of employee.
6.3 CONCLUSION Employee absenteeism has a direct bearing with the mental health of the employee. When the job satisfaction in an organization is in higher level, it will increase the production if company whereas when the job satisfaction is low it will adversely affect the production of the company. The study on employees absenteeism level revealed that employees were dissatisfied on majority of factors. Suitable suggestions are provided to sort their problems. The findings and suggestions provided by this analysis will help to reduce the employees absenteeism and motivate them to do suitably in their job.

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CHAPTER 7 APPENDIX

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A STUDY ON EMPLOYEE ABSENTEEISM

1) Name (Optional) 2) Age 3) Marital Status 4) Monthly Income : : : a) 20-30 b) 30-40 c) 40-50 d) above 50 unmarried b) 12000-18000 d) above 20000 b) manufacturing d) admin b) 5-10yrs d) above 20yrs married a) 7000-12000 c) 18000-20000 5) Departments : a) engineering c) Service 6) Experience : a) below 5yrs c) 10-20yrs 7) Are you satisfied with the mode of transport? a) Highly satisfied b) satisfied c) neutral d) dissatisfied

8) What is your opinion regarding the pay? a) Highly satisfied b) satisfied c) neutral d) dissatisfied

9) What is your opinion regarding welfare facilities? Very good good average bad

10) Are you satisfied with working condition? Yes No If Yes, Reason If No, Reason

11) Are you satisfied towards grievance handling procedure? Yes No

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12) How do you rate your relationship with your superior? a) Average b) Good c) Very good

13) For what reason you take leave? A) Sickness B) Lack of interest in job C) Poor working condition D) Long working hours E) Personal reason 14) Employee absence on personal reason? a) Attending on family function b) Visiting places c) Domestic problem d) Lack of co-ordination among colleagues 15) Employees are happy with the health and safety measures of the company? a) Yes b) No If No, in what way

16) Are you satisfied with the leave facility? a) Yes b) No

17) Do you need any improvements in working condition? a) Yes b) No If Yes, in what way

18) Do you agree value of benefits offered to you? a) Strongly agree b) agree c) no comments

19) Does company regularly exchange ideas with employee? a) Yes b) No

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20) In your opinion, how absenteeism can be controlled? a) Change in management style b) Change in work condition c) Incentive/ wage hike d) Develop attendance policy e) Better transportation facility f) Individual attention g) Encouragement and appreciation