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PROJECT REPORT

ON
A STUDY ON
EMPLOYEE ABSENTEEISM
AT
PRO-ACE INFOTECH
(Submitted for the partial fulfilment of requirement for the degree of
Bachelor of Business Administration)

LOGO
S.D. COLLEGE
(2014-2015)
Submitted To:

Submitted By:

Ms. Pardeep Kaur


BBA/6TH SEM

Ms. Simrat Kaur


(Head, Dept of Management)

DECLARATION
I, hereby declare that the research project report titled A study on
Employee Absenteeism is my own original research work and this
report has not been submitted to any University/ Institute for the
award of any professional degree or diploma.

Pardeep kaur
BBA,6th sem
Roll no.23507

ACKNOWLGEMENT
Acknowlgement is an art; one can write glib stanza without
meaning a word on the other hand one can make a single expression of
gratitude.
It gives me a great pleasure to submit this project to
Punjabi University Patiala. I take this opportunity with great pleasure to
present before this project on THE STUDY ON EMPLOYEE
ABSENTEEISM which is result of co-operation, hard work & good wishes of
many people. The most pleasant part of any project is to express the
gratitude towards all those who have contributed to the success of my
project.
I would like to thanks Mrs. Vartika Sharma who has been my
mentor for this project. It was only through her excellence assistance & good
suggestions that I have been able to complete this project.
I am deeply grateful to Prof. Miss. Simrat Kaur (Head of
department) S.D. college , Barnala for their everlasting support or
guidance on the ground of which I have acquired a new field of knowledge
the course structure created for curriculum has benefited with inclusion of
recent development in an organisational & management aspects.
I am thankful to all the members of Pro-Ace Infotech
who have given me valuable information in the part of my project. Above all,
I would like to thank all contacted persons of firm who took out their valuable
times to answer my queries & give me full information related to my project.
I extent my sincere gratitude towards my parents who have
always encouraged me & give suggestion as how to work on project .they
always stand by me in solving all my enquiries. Their support has always
motivated me.

CERTIFICATE
Certified that Pardeep Kaur, a BBA student, Department of HR as a specialization, S.D.
COLLEGE ,Barnala was placed in this organization : PRO-ACE INFOTECH for Course
training for a period of six months during January-May, 2015, in partial fulfillment of the
requirement of a BBA degree of the university. She has been assigned the project entitled:
To Study Employee Absenteeism at PRO-ACE INFOTECH
In our opinion her work has been satisfactory.

Signature

Name and Designation of Training Coordinator

PREFACE
In todays era of cut-throat competition Bachelor of Business Administration (B.B.A) is sure to
have an edge over their counter parts.BBA education brings its students in direct contact with the
real corporate world through Industrial training. The BBA programme provides its students with
an in depth study of various managerial activities conducted in various departments like
production, marketing, finance, human resource, export-import, credit department etc, gives the
student a conceptual idea of what they are expected to manage, how to manage & how to obtain
the maximum output through minimum inputs & how to minimize the wastage of resources. I
have undergone my comprehensive training at Pro-Ace InfoTech it is one of the leading IT
educational company in the country. I feel great pleasure to present this report work after my
training at Pro-Ace InfoTech that produced to be golden opportunity for me by enriching my
knowledge, by comparing my theatrical knowledge with the managerial skills & applications.

INDEX
CHAPTER-1 ABOUT COMPANY........................................................................1
1.1 COMPANY PROFILE...................................................................................... 2
1.2 RESEARCH & DEVELOPMENT.................................................................... 4
1.3 OTHER INFORMATION...................................................................................6
CHAPTER -2: INTRODUCTION OF HRM
2.1 MEANING OF HRM...................................................................... 8
2.2 DEFINITION OF HRM
2.3 OBJECTIVES OF HRM
2.4 NATURE OF HRM
2.5 NEED OF HRM
2.6 IMPORTANCE OF HRM
2.7 ENVIRONMENT FACTORS OF
HRM...............................................................................................................
CHAPTER- 3: INTRODUCTION............................................................................11
3.1 REASONS TO CHOOSE THE PROJECT........................................................12
3.2 ABSENTEEISM.CONCEPT.............................................................................13
3.3 MEASUREMENT OF ABSENTEEISM......................................................... 16
3.4 PECULIAR FEATURES OF ABSENTEEISM............................................... 17
3.5 CAUSES OF ABSENTEEISM....................................................................... 18
3.6 EFFECTS OF ABSENTEEISM ON INDUSTRIAL PROGRESS.................. 20
3.7 ANALYSIS OF CAUSES................................................................................ 21
3.8 ABSENTEEISM - TYPES & THEIR CONTROL .......................................... 22
3.9 GUIDELINES & MEASURES FOR CONTROL OF ABSNTEEISM........... 28
3.10 THE BRADFORD FACTOR & ABSENTEEISM ........................................ 33
CHAPTER-4:- RESEARCH METHODLOGY
4.1 RESEARCH METHODLOGY
4.2 REVIEW LITERATURE
CHAPTER-5: ANALYSIS &INTERPRETATION................................................37

CHAPTER-6 CONCLUSION, SUGGESTIONS & LIMITATIONS ......................43


BIBLIOGRAPHY ....................................................................................................47
ANNEXURE ............................................................................................................48

CHAPTER
COMPANY &
INDUSTRY
PROFILE

COMPANY PROFILE

ABOUT PRO-ACE INFOTECH


PRO-ACE INFOTECH is a 5 year young organization who is actively involved in the IT field,
Embedded Systems and has been providing its clients with exceptional quality in Web
Designing, Web Developing and SEO services. Our clients range from small, medium to large
scale Business houses & individuals.
PRO-ACE is an organization which is established in the field of Web Development (PHP &
.NET), JAVA (Core as well as Advance), Iphone & Android Applications, Embedded systems
(AVR,PIC & ARM), and Networking (MCSE,CCNA & RHSE). We have a team of enthusiastic
IT professionals and they are experts in their respective field. We focus on delivering smooth
Business solution with technological usage to meet the strategic objective of our client.
TECHNOLOGY EXPERTISE
Java Technologies

J2EE, EJB, JSP, J2ME, Servlet, SOAP, Web Services, XML, STRUTS, Spring, Hibernate,
Tapestry
Microsoft Technologies
.NET Framework, ASP.NET, VB.NET, C#.NET, Web Services, SQL Services, Dot NET Nuke
(DNN)

Databases
Oracle 10g, Microsoft SQL Server, Db2, MySQL
PHP Technologies
PHP, JavaScript, Joomla, CakePHP, Drupal, Magneto, Ruby on Rails, MySQL
Data Warehousing / Business Intelligence
Business objects, Cognos, Informatica, Data Stage, Decision Support System (DSS)
Operating System
Window 7, Window 8, XP, Red Hat Linux, Solaris
Mobile Technologies
MS Window Mobile, J2ME, Windows CE, Symbian, iPhone, Google Android
Finance Management
Marketing Management
Human Resource Management

DEVELOPMENT DIVISION

PRO-ACE INFOTECH is a 5 years young organization with an ISO Certificate which has been
working in the field of IT, Embedded System Engineering and has been providing its clients with
exceptional quality in web designing, Web Development and SEO services. We also provide the
offshore companies of Australia, US and UK. It is an association which is functioning in the
field of Android Application Development, Embedded Systems, Web Design, Web
Development (PHP & .NET), SEO, and JAVA.

LEARNING DIVISION
Learning Division of PRO-ACE INFOTECH is a renowned Engineer Training Division, well
known for providing technical and professional skill training to individuals, organizations and
educational institutions in advance fields such as .NET, PHP, J2EE, EMBEDDED SYSTEMS,
AutoCAD, PRO-E, CATIA, SOLID WORKS, REVIT, ANSYS. Currently these are the largest
job- providing sectors. We provide high end training with comprehensive programs that integrate
all aspects required to excel at the corporate level. With a combination of vast industry
experience, cutting-edge infrastructure, evolving technology tools and a thorough corporate
culture, we function to transform an individual into a success story.
SE DIVISION (VERTEX SOFT SOLUTIONS)
SE Division of the company is running under the name Vertex Soft Solutions. Vertex Soft
Solutions is a unit of PRO-ACE INFOTECH, committed to provide grooming ground to the
budding professionals to grab key positions in the esteemed organizations. Our solutions are
aligned with the clients requirements keeping in focus the demands of the organizations. Our
team is highly qualified; specialists facilitate the learning and development of new and existing
skills in order to enhance the growth potential of students with respect to English Language and
Soft Skills Training. We partner with you to create and realize your visions and add tangible
value to the students.
Most employees these days want to hire retain and remote people who are dependable,
resourceful, ethical, and self-directed, have effective communication, are willing to work and
learn and have a positive attitude. The Indian market is also becoming global, so the attributes of

soft skills become imperative to be imbibed by the youth to show their real potential at intra and
international levels.
Vertex Soft Solutions has designed Skill Enhancement Program for addressing these needs of
the students who are pursuing technical and professional courses. We have divided the Skill
Enhancement Program under three main heads according to the requirement of the clients.

PRO-ACE mission is to bridge the gap between dreams and reality. The amin motive is to enable
the students to achieve what they have been aspiring since they understood their ambitions.
To impart internationally Certified and advanced High-End IT training to Engineers,
Professionals, College students in the field of Software, Hardware, Networking & Database
Administration.
OUR TRAINING STRENGTHS:

Extensive Industry expertise


Latest and evolving program offerings
Practical work based training modules
On the job corporate environment
Overall Development

OUR CORE COMPANY


At PRO-ACE INFOTECH, our core competence and industry experience has allowed us to
expand our service domain to offer a wide array services across multiple verticals. We believe in
working closely with the industry and the same is reflected in our tie-ups with some of the most
prestigious industries, institutions and experts from across the world for offering practical &
professional hands on trainings in IT, Electronics & Communication and Management Sector. In
a market that is saturated by IT training providers, PRO-ACE INFOTECH brings fresh verve,
energy, innovation and a commitment to quality education that is unparalleled. Our objective to
venture into training and education stems from our years of industry experience coupled with
extensive research and analysis of various trends which are and were affecting IT training quality
in the country.

Our research & survey has emphasized & dictated the need to create specialists in the
fields like Information Technology Electronics & Management. This is what has led to the
development of first ever skill set specialization based program which enables a student to follow
his/her domain of interest. This will not only help students perform better but they will strive for
perfection.

OTHER INFORMATION

Type

Privately Held

Company Size

15-25 Employees

Website

http://www.proaceinfotech.org

Industry Type

IT Development and Professional


Training Company
Year of Inception

2010
Opposite ICICI Bank,
Leela Bhawan Market,

Corporate Office

Patiala-147001,
Punjab

SALIENT FEATURES @ PRO-ACE INFOTECH

PRO-ACE INFOTECH has been the prime institution in the field of Training & Education in
Patiala. With over 1000 students undergoing training every year in field of IT, Electronics and
Management fields, we have proven our worth. Only quality can withstand the test of time in
todays highly demanding market and with professionals hired to provide training to the student,
we aim to give the real industry environment to the student so that they get ready for it.

INDUSTRIAL TRAINING IN PATIALA

Industrial Training is very important in Career shaping of Students in Engineering and


Management Stream (Either in B.Tech, Diploma, MCA, MBA and BBA). PRO-ACE
INFOTECH is providing both six weeks and six months Industrial Training. Placement
companies mostly look for the latest technologies used in market. Industrial training is best place
to master skills as needed by companies. Depending on students personal interest or according
to his/her strength. Students from various Engineering and Management colleges and universities
undergo Training with us. During this period students have to decide field & technology that
would help them find right path for their career and get them great job & placement.

TRAINING MODULES @ PRO-ACE INFOTECH


6 WEEK/ 6 MONTHS INDUSTRIAL TRAINING IS AVAILABLE IN

SOFTWARE DEVOLPMENT : C#, JAVA, ASP.NET, PHP, ANDROID

NETWORK ADMINSTRATION: CISCO, CCNA, LINUX

ELECTRONICS & EMBEDDED SYSTEM : 8051, PIC, AVR, ARM OR CAD

MANAGEMENT : HUMAN RESOURCE, FINANCE, MARKETING

TRAINING LEVELS

LEVEL 1

CONCEPTUAL TRAINING

LEVEL 2

ADVANCED TRAINING

LEVEL 3

PROJECT WORK

LEVEL 4

REPORT WRITING

COURSES AVAILABLE IN MANAGEMENT

HUMAN RESOURCE MANAGEMENT

Human resource management (HRM or simply HR) is the

management process of an

organizations workforce or human resources. It is responsible for the attraction, selection,


training, assessment, and
leadership and

rewarding of employees, while also overseeing organizational

culture and ensuring compliance with

employment and labour

laws. In

circumstances where employees desire and are legally authorized to hold a collective bargaining
agreement, HR will also serve as the company's primary liaison with the employees'
representatives (usually a trades union).

HR is a product of the human relations movement of the early 20th century, when researchers began
documenting ways of creating business value through the strategic management of the workforce.The
function was initially dominated by transactional work, such as payroll and benefits administration,
workforce.

The function was initially

as payroll and benefits administration,

dominated by

transactional

due to globalization, company

technological advancement, and further research,

work, such
consolidation,

HR now focuses on strategic initiatives

like mergers and acquisitions, talent management, succession


relations, diversity and inclusion.

planning, industrial and labor

FINANCIAL MANAGEMENT

Financial Management means the efficient and effective management of money (funds) in such a
manner as to accomplish the objectives of the organization. It is the specialized functions directly
associated with the top management. The significance of this function is not only seen in the 'Line'
but also in the capacity of 'Staff' in overall administration of a company. It has been defined
differently by different experts in the field.
It includes how to raise the capital, how to allocate it i.e. capital budgeting. Not only about long term
budgeting but also how to allocate the short term resources like current assets. It also deals with the
dividend policies of the share holders.
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FINANCIAL MANAGEMENT TOOLS:

Planning (strategic plans, cash flow forecast, etc.)

Organizing (org charts, job descriptions, etc)

Controlling (budgets, procedures manual, etc)

Monitoring (evaluation reports, financial reports, etc)


MARKETING MANAGEMENT

Marketing is the process of communicating the value of a product or service to customers, for
the purpose of selling that product or service.
From a societal point of view, marketing is the link between a societys material requirements
and its economic patterns of response. Marketing satisfies these needs and wants through
exchange processes and building long term relationships. Marketing can be looked at as an

organizational function and a set of processes for creating, delivering and communicating value
to customers, and managing customer relationships in ways that also benefit the organization and
its shareholders. Marketing is the science of choosing target markets through market analysis
and market segmentation, as well as understanding consumer buying behavior and providing
superior customer value.

There are six competing concepts under which organizations can choose to operate their
business: the production concept, the product concept, the selling concept, the marketing
concept, the societal marketing concept and the holistic marketing concept. The four components
of holistic marketing are relationship marketing, internal marketing, integrated marketing, and
socially responsive marketing. The set of engagements necessary for successful marketing
management includes capturing marketing insights, connecting with customers, building strong

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brands, shaping the market offerings, delivering and communicating value, creating long-term
growth, and developing marketing strategies and plans.
MARKETING TRAINING GOALS
Understand the four components of marketing: Product, Price, Distribution and
Promotion

Evaluate how well the product or service meets the needs of customers

Determine the best price for the product or service

Select the best way to distribute the product

Create new ways to promote the business

Identify ways to expand the business

Solve the specific marketing problems that arise

COURSES AVAILABLE IN COMPUTER SCIENCE


PRO-ACE INFOTECH provides six weeks and six months Industrial training to the students of
B. Tech, MCA, BE, and Diploma in the areas of Software Development, Networking, Embedded
Systems and Mobile App Development (Android). The training program is highly job oriented
and is based on professional training courses offered by PRO-ACE INFOTECH, the professional
industrial training leader of the country since 2010.

More than 2,000 students have already been benefited by the professional training provided by
PRO-ACE INFOTECH, Patiala during the last three years as the company has tie ups with a
large number of reputed colleges and universities of Punjab. After completing their training from
PRO- ACE INFOTECH, the students have been placed in prestigious IT, Software and Hardware
development companies of India and many other counties.

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NETWORKING
PRO-ACE INFOTECH provides the course of CCNA in networking. Networking is the practice
of linking two or more computing devices together for the purpose of sharing data. Networks are
built with a mix of computer hardware and computer software.

CCNA
CCNA (Cisco Certified Network Associate) is the Cisco Academy

Computer Networking

Course with a curriculum designed to prepare computer networking students to pass the CCNA
exam, or the ICND 1 and 2 certification exams. Here is an overview of CCNA and where it fits
among the Cisco career certifications.

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SOFTWARE
Software is a general term for the various kinds of programs used to operate computers and
related devices. We provide two courses in software such as PHP and JAVA (core and advance)
.NET and ANDROID.
PHP TRAINING
PHP stands for PHP: Hypertext Preprocessor, with that PHP standing for Personal Homepage.
PHP is an open-source language, used primarily for dynamic web content and server-side
applications.
PHP: Hypertext Preprocessor is a widely used, general-purpose scripting language that was
originally designed for web development to produce dynamic web pages. For this purpose, PHP
code is embedded into the HTML source document and interpreted by a web server with a PHP
processor module, which generates the web page document. As a general-purpose programming
language, PHP code is processed by an interpreter application in command-line mode performing
desired operating system operations and producing program output on its standard output
channel. It may also function as a graphical application. PHP is available as a processor for most
modern web servers and as standalone interpreter on most operating systems and computing
platforms.

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JAVA TRAINING
When it comes to comparison of various languages, Java proves to be most effective language
due to its versatility, efficiency, platform portability, and security. Due to this more than 6.5
million software developers have learned this platform.
Java can be used to develop Web Applications, Desktop Applications, Mobile Applications. Java
is used develop programs for various embedded systems and even Gaming consoles. Also
android developers have selected Java as standard for developing Android Applications.
Java is used in every major industry segment and has a presence in a wide range of devices,
computers, and networks. Java platform is available in laptops to datacenters, game consoles to
scientific supercomputers, cell phones to the Internet.

ASP.NET
ASP .NET is a set of Web development tools provided by Microsoft . PRO-ACE INFOTECH
Provides Industrial training in ASP .Net. Web Applications are becoming most popular now-adays . Now we can edit photos online, Manage records in database, Create Docs without
installing Word processors etc. ASP.NET is a web framework that help us to create such
applications. The main advantage of framework is that it can use features of operating system .
PRO-ACE INFOTECH is providing Industrial training in .Net technologies since 2010, it has
trained more than 2,000 B.Tech. (CSE and IT professionals) in .Net framework.

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ANDROID
Few years back we had to write mobile application that hardly work on 6 7 devices mostly and
now there are more than 250 android devices from various manufacturers. With 4 million
android device activation each day this platform has already become the biggest implemented
mobile operating system platform. Success of applications like Angry Birds, Paper Toss, Fruit
Ninja and other Apps has drawn attention of many software development companies towards
mobile development and particularly Android.
We are first in region to launch Android training in Patiala. In this course you will learn to create
application, Implement basic UI, 2D graphics,
Databases, Sensors, 3D and multi-touch etc. You will also learn to create game loops which is
one of most skill demanding applications

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EMBEDDED SYSTEM

An Embedded system can be defined as a control system or computer system designed to


perform a specific task. Common examples of embedded systems include MP3 players,
navigation systems on aircraft and intruder alarm systems. An embedded system can also be
defined as a single purpose computer. Pro-Ace provide the course in embedded system such as
8051, PIC, ARV, ARM, and REBOTICS.
Pro-Ace InfoTech takes care of IT support, Embedded systems, Research & Development &
Implementation services; Pro-Ace InfoTech is a company that takes care of Software
development & web service solutions.
Our expertise covers several microcontroller architectures and their development tool chains. In
addition we focus on topics such as time-to-market, quality improvement, complete PCB
Designing and embedded applications using Atmel mcs51, Atmel AVR, Microchip PIC
controller, NXP ARM. Our training and consulting services include prototyping and customized
software and hardware developments.

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Training, consulting or prototyping services include applications on technologies from Atmel,


microchip, NXP, Maxim etc

AUTOMATION
Automation is used to control systems to control processes, reducing the human intervention.
Automation is having technology to do things for you so that you dont have to.
If you talking about Automation. It is all around us. E.g. When you are at traffic lights, there isnt
a traffic light operator that decides when to change the light from red to green or green to
yellow .Everything is done automatically. The street lights come on automatically. There are no
lamplighters turning each light on anymore. We can apply the same idea to our own life. Most of
us cant create complex control systems, but we can do our best with what is available.

17

Automation is controlled by Programmable Logic Controller (PLC) and Overseen by


Supervisory Control and Data Acquisition (SCADA). This helps you to control the circuit
Instantaneously without changing any hardware.

VLSI
Digital IC Designing with HDL

Introduction to ASIC design.

Introduction to Hardware description Languages :VHDL, VERILOG

Architectural features of FPGA and CPLD.

Introduction to Xilinxs XC2C64A CPLD chip & Alteras 5M570ZF256C5N CPLD


Chip.

Working with Xilinxs ISE 8.1 & Alteras Quarteus II 12.1 HDL design Platform.

Study of Combinational and Sequential Digital system design.

SKILL ENHANCEMENT PROGRAM


Technical and job-related skills are a must, but they are not sufficient when it comes to
progressing up the ladder. Research in many fields such as Sales and Marketing, Software
development, Engineering and law, has shown that to be successful in the workplace, knowledge
alone is not enough. Soft skills are needed to deal with the external world and to work in a

collaborative manner with ones colleagues. Good soft skills ensure that the companies are able to
capitalize on the wealth of technical knowledge, experience and efficiency to rule markets. To
Cater this need PRO-ACE InfoTech has designed an extensive Personality and Image Building
Program. In which we prepare people for the Interviews and other Behavioural skills required
for the Industry and outer world.

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Brief description of the Skill Enhancement Program

LEVEL 1

LEVEL 2

ASPIRING HIGH

NURTURING DREAMS

Initial Learning Module

Advanced Learning Module

On

On

Skill Enhancement Program

Skill Enhancement Program

ASPIRING HIGH

Be better equipped to set the sails right in the direction of the opportune wind! We all
aspire high to reach our goals which we have set in for ourselves. We all have dreams and
want to achieve our goals. So, what are you waiting for set your seat belts tight and set in
on a journey with us where all your dreams will come true. Lets collectively work to
bridge the gap between your aspirations and reality. We at PRO-ACE, render our services
to develop corporate solutions that work towards strengthening the brand value and
identity.
NURTURING DREAMS

The world is turning into a global village and competition is increasing manifolds. There
are many pre-requisites which have to be analysed and given due consideration to become
successful and reach the goals. We, at Pro Ace offer a solution to all the problems which
the students encounter. Pro Ace has explored all the major issues which become a
hindrance in the students career. We have designed our program NUTURING

DREAMS which covers all the essential aspects which are required for cracking the
placement process of any company.

19

OBJECTIVES OF THE PROGRAM

Help students understand the benefits of Personality enhancement and Image Building.

To improve the communication of the students and guide them to organize and express
their ideas effectively.

To comprehend the Pronunciation and understand the standard English

To confidently speak in front of all and remove the fear of judgment

To acquaint the students with business and professional writing

To build the aptitude skills of students

Enhance logical reasoning

COURSE OUTCOMES

Students will be able to handle situations confidently

They will not feel hesitant while using the International language i.e. English

It will boost the morale of the students

Students will become good communicators, self motivated and ambitious

See things in different perspectives

Have a clear vision and overcome obstacles

METHODOLOGY

Open Discussions Individually and in groups

Group activities

Games and relevant activities

Power point presentations

Perceptional tasks

TRAINING PROTOCOL

PRO-ACE INFOTECH offers the perfect mix of academic excellence, top reputation for
research, a supportive environment for learning and skill exposure. Beyond academic
Excellencies, the vibrancy of PRO-ACE INFOTECH lies in great practical exposure of
20
the corporate world. We are entrusted with the responsibility to provide grooming ground for
budding professionals to grab key positions in the esteemed organizations. We provide
exclusive training program called Skill Enhancement Program which covers six main areas
in which students require focus and grooming.

CHAPTER-2
INTRODUCTION
OF
HUMAN
RESOURCE
MANAGEMENT
2.1 INTRODUCION

Human resource is a paramount importance for the success of any organisation. It is a source of
strength and aid. Human resource management is concerned with the human beings in an
organisation. Human resource is the total knowledge, abilities, skills, talents and aptitudes of an
organisations workforce. The values, ethics, beliefs of the individuals working in an
organisation also form a part of human resource. Human resource is a resource like any other
natural resource. It means that management can get and use the skill, knowledge, ability, etc.
through the development of skills, tapping and utilising them again and again. Human resource
management is that process of management which develops and manages the elements of an
enterprise. It is not only the management of skills but also the attitudes and aspirations of
people. When individuals come to a work place, they come with not only technical skills,
knowledge, experience etc., but also with their personal feelings, perceptions, desires, motives,
attitude, values etc. So, we can say human resource management means management of various
aspects of human resources. An important element of human resource management is humane
approach while managing the people. This approach focuses on human resource development.
It emphasises the human aspect o individual workers and their aspirations and needs. Human
resource is a product of the human relations movement of the early 20th century. Human
resource is also concerned with industrials, that is, the balancing of organisational practices
with regulations arising from collective bargaining and governmental laws. Human resource is
primarily concerned with how people are managed within organizations are typically
responsible for a number of activities, including employee recruitment, training and
development, performance appraisal and rewarding (e.g., managing pay and benefit systems).

2.2DEFINITION
OF
HUMAN RESOURCE MANAGEMENT

According to Invancevich & Glueek, Human resource management is concerned


with the most effective views of people to achieve organisational and individual goals.
According to W. L. French, The HRM refers to the philosophy, policy, procedure and
practice related to the management of people within the organisation.

According to Gary Dessler, Human resource management refers to the policies &
practices one needs to carry out the people or human resource aspects of management position
including recruiting, scanning, training, rewarding and appraising.

According to Buchanan & Huczynski, Human resource management is a managerial


prospective which argues the need to establish an integrated series of personnel policies to
support organisational strategy.

According to Milkovich, Human resource management is a series of integrated decisions


that form the employment relationship their quality contributes to the ability of the
organisations and the employees to achieve their objectives.

2.3OBJECTIVES
OF
HUMAN RESOURCE MANAGEMENT

The primary objective of human resource management is to ensure a satisfactory


accomplishment of the objectives of an organisation and of its employees. The objectives of the
human resource management are as follows:

Societal Objectives

Organisational Objectives

Objective of
Human
Resource
Management
Functional Objectives

Personnel Objectives

(1) Societal Objectives: The basic objective of human resource management towards
the society should be to ensure that their organisation manages human resource in an
ethical and socially responsible manner through ensuring compliance with legal and
ethical standards. This objective includes:
To manage human resources in an ethical and socially responsible manner.
To ensure compliance with legal and ethical standards.
(2) Organisational Objectives: It includes the following:
Human resource department should focus on achieving the goals of the organisation
first. If it does not meet this purpose, the Human resource department cannot exist
in long run.
Human resource department should recognise its role in bringing about
organisational effectiveness.
(3) Functional Objectives: It includes the following:
Human resource management should aim at providing the organisation with well
trained and well motivated employees.
The departments level of service must be tailored to fit the organisation it serves.

To maintain the human resource management departments contribution at a level

appropriate to the organisations needs.


(4) Personnel objectives: Personnel objectives of employees must be met if
employees are to be maintained, retained and motivated. The objectives are as follows:

Human resource management should increase employees job satisfaction to the


fullest extent.
Human resource management should assist the employees in achieving their
personal goals.
The human resource management should also communicate HR policies to all
employees. It will help the HRM in tapping the ideas, opinions, feelings, and the
views of the employees.

2.4 NATURE
OF
HUMAN RESOURCE MANAGEMENT
The nature of human resource management has been highlighted in the following features:

Continuous
Process

Science as
well as Art

Interdiscipl
ina-ry

Basic to all
Functional
Areas

(1) Continuous Process: Human resource management is a continuous process. It is


not a shot function; rather it is a never ending exercise. Personnel management requires
a constant alertness and awareness of human relations.
(2) Science as well as Art: Human resource management is a science as it contains an
organised body of knowledge consisting of principles and techniques. It is also an art.
Handling people is one of the most creative arts. It involves the applications of
theoretical knowledge to the problems of human resources. So, we can say it is a
science as well as art.

(3) Interdisciplinary: Human resource management has become a highly specialised


job. Moreover, it is not an isolated subject, it is interdisciplinary. It involves application
of knowledge drawn from several disciplines like sociology, anthropology, economics
etc.
(4) Basic to all Functional Areas: Human resource management is basic to all
functional areas of the management such as production management, financial
management, marketing management etc. Every manager working in any department
has to perform the personnel functions. The function of human resource or personnel
manager is advisory in nature. HRM does not confine itself to the selection of right type
of persons for right jobs, it helps to build team spirit where employees satisfy their
aspirations by developing themselves and contribute to the accomplishment of
organisational goals. T. V. Rao suggests the following essential elements of human
resource management:
Employees enjoy their work.

Employees have a sense of accomplishment in and through their work.


Employees have a high sense of belonging to their organisation and their workplace.
Employees feel that they are respected as individuals and their contributions are
valued.
Employees have a feeling to enhance their competence and perform more
challenging and satisfying tasks.
Human resource management helps to develop humanised work environment,
organisational climate and culture. Human resource management is basically employer
oriented. But it does not mean that employees have not any benefit. Its only means that
employees feel satisfied after meeting their needs and aspirations.

2.5 NEED
FOR
HUMAN RESOURCE MANAGEMENT

Human Resource Management helps in creating a better understanding between employees and
management. It helps workers in accomplishing individual and organisational goals. It includes
the following:

Better
Industrial
Relations

Increased
Pressure on
Employees

Coping with
Changing
Environment

Develop
Organisation
-al
Commitment

(1) Better Industrial Relations: There is widespread unrest, strained workermanagement relations, lack of confidence, rising expectations of workers, emergence of
militancy in trade unions etc. These factors have created a gap among workers and
management. Both sides are talking exploitation by either side.
(2) Increased Pressure on Employees: The technological changes have necessitated
the use of sophisticated machines. The installation, monitoring of machines,
maintenance and controlling of operations need trained and skilful people. Human
resource development has become essential for every organisation. Research and fresh
initiatives in industry require new policy of human resource management.
(3) Coping with Changing Environment: The business environment is rapidly
changing. Technological improvements have revolutionised production procedures.
Automation has been introduced in office operations. There is a need to cope with new
and changing situation. The operational efficiency of employees must improve to face
the new situation. There is a need for new approach to manpower.
(4) Develop Organisational Commitment: There is a humanisation of work
environment in industrialised countries like Japan, U. S. A., Germany etc. and other
countries. Globalisation of economy has exposed Indian industries to international
competition. An improvement in efficiency and quality of work can come only when
workers develop organisational commitment.

2.6 IMPORTANCE

OF
HUMAN RESOURCE MANAGEMENT
Human resource management is important to the organisation in a number of ways, as follows:

Importance
Importance
for
for
the
the
Organisation
Employees
Importance
for the society

(1) Importance for the organisation: Human resource management is very


important for the organisation. Good human resource practices help in attracting and
retaining the best people in the organisation. In order to make use of latest technology
the appointment of right type of persons is essential. The right people can be fitted into
new jobs properly only if the management performs its HR functions properly. Human
resource planning alerts the organisation to the types of people it will need in the short,
medium and long run.
(2) Importance for the Employees: The human aspect of the organisations has
become very important over the years. Human resource management stresses on the
motivation of employees by providing them various financial and non-financial
incentives. Right organisational climate is also stressed upon so that the employees can
contribute their maximum to the achievement of the organisational objectives. Effective
management of human resources promotes team work and team spirit among
employees. It offers excellent growth opportunities to people who have the potential to
rise. It also encourages people to work with diligence and commitment.
(3) Importance for the society: Society as a whole is the main beneficiary of good
human resource practices. Good HR efforts lead to productivity gains to the society,
since it enables the managers to reduce costs, save scarce resources, enhance profits and
offer better pay, benefits and working conditions to employees.

2.6 ENVIRONMENTAL FACTORS


OF
HUMAN RESOURCE MANAGEMENT
Environment is a very important variable in the human resource management. The environment
of a business refers to the aggregate of conditions, events, and influences that surround and
affect it. In todays environment, there are a number of factors affecting the employment
equations and relationships that affect on the work of the HR manager to achieve their goals.
There are two types of factors that affected the human resource environment:

2.6.1EXTERNAL ENVIRONMENT
The external environment of consists of those factors affect an organisations HR resources
from outside the organisation. The major external factors are explained with the help of the
following figure:

m
T
c
e
rs
to
a
F
lP
n
h
i-E
g
S
C
u
A
d
U

(1) Economic Factors: Economic factors include all those economic forces which
affect the HR function. Highly relevant economic factors are as following:
Suppliers: Suppliers are those who provide human resources to the organisation. It
includes universities, colleges, training institutes, consultancy firms etc.
Customers: Customers are considered the kings. They want high quality products
at reasonable prices.
Competitors: Competition plays an important role in every industry. If several
companies make job offers to one individual, the organisation with more attractive

terms and conditions will win. The number of competitors increases the importance
of staffing function and compensation practices also increases.
Globalisation: Due to globalisation, The HR managers are required to play
challenging roles and create competitive advantage for their concern. Today the
business environment has become highly volatile in nature. Global firms have to
continually reorganise their operations and refocus their energies around their
crucial areas of competence.
(2) Political-legal Factors: The political-legal environment covers the impact of
political institutions on the HR department. All Activities of HRM are in one way or the
other affected by these factors. The HRM cannot manage the personnel unilaterally
because it has to abide by the rules and regulations imposed by the Government from
time to time. HR managers have to be aware about the legislations enacted by the
governments at the centre and the states. The important legislations affecting HRM in
India are:
Factories Act, 1948

Trade Unions Act, 1926


The Payment of wages Act, 1936
The Minimum Wages Act, 1948
The Maternity Benefit Act,1961
The Payment of Bonus Act, 1965
Workmens Compensation Act, 1923
(3) Social and Cultural Factors: Now-a-days the society at large has become more
demanding. Firms cannot operate in isolation; they are stuck with the society. Social
impacts have to be evaluated before taking any action programme. It includes
employees, friends, relatives and neighbours.
(4) Technological Factors: In the present competitive world, technological
developments can dramatically influence an organisations environment. It creates new
competitive advantages that are more powerful than the existing ones. It affects the HR
functions in the following factors:
New technologies, generally, compel people to learn a new set of skills altogether or
upgrade their existing skills and knowledge.
New technologies advancements also lead to downsizing of workers.
(5) Unions: Trade unions constitute one of the major power blocks in many countries.
With the formation and recognition of unions, the issues relating to employee interests
are no longer determined by the unilateral actions of the management. These have to be
discussed with union representatives.

2.6.2 INTERNAL ENVIRONMENT


OF

HUMAN RESOURCE MANAGEMENT


Internal environment comprises of the factors which affect an organisations human resources
from inside the organisations boundaries. Prominent internal factors are as follows:

HR
Systems
Organisa
-tional
Structure

Organisa
-tional
Culture

Mission

Policies

(1) HR Systems: The survival, development and performance of an organisation depend


heavily upon the quality of its personnel. In the view of importance of HR,
organisations today are creating HRD departments, introducing participative
management and quality circles, providing free flow of upward communication and
enhancing the status of the employees. These changes are not the end of the HR
function.
(2) Mission: Mission is very purpose and justification for the existence of a firm. An
organisations mission statement tells-what it is, why it exists and the unique
contribution it can make. At various levels, people must carry out assigned tasks
keeping the overall mission of the firm in the mind. The HRM functions are also
affected by the mission of the organisation.
(3) Policies: Policies are the guide maps in the organisation. Policies tell people what they
may or may not do. These direct the manner in which the objectives of the organisation
are to be achieved. Some of the important policies are as follows:
To provide safe working conditions for employees.

To encourage the employees to achieve as much of their potential as possible.


To provide promotional avenues to employees.
To provide such compensation to employees that encourages high level of
performance.

(4) Organisational Structure: Organisational culture is the sum total of shared


values, beliefs and habits within an organisation. It depicts the personality of the
organisation. The HR Managers have to adjust positively to the culture of the
organisation. HR managers have to choose the paths that best reflect the culture of the
firm and the attitudes of the people.
(5) Organisational Structure: Basically, There are two types of organisational
structures- tall and flat. Tall or Pyramid type of organisational structures are suitable to
companies that are labour oriented. Here the authority is vested at the top and the
pyramid shows the hierarchy of positions. Flat organisations are suitable to technology
oriented companies. Flat organisational structures indicate decentralisation of authority.
In modern organisations, the job of HR managers is a very challenging and significant
one.

CHAPTER-4

RESEARCH
METHODOLOGY

4.1 RESEARCH METHODOLOGY


The research reveals that one of the major problems is absenteeism in our industry.
Absenteeism hinders planning, production, efficiency and functioning of the
Organisation. In fact high rates of absenteeism affect an organisation state of health
And also supervisory and managerial effectiveness.

4.1.1. OBJECTIVES OF RESEARCH


i. To identify the rate of absenteeism of worker.
ii. To identify the causes of absenteeism.
iii. To suggest any measures to reduce the rate of absenteeism

4.1.2. Sample Selection and Size


The population for the study comprised of absentees for current year, the total
Sample 50 workers.

4.1.3. Data Collection and Statistical Tools


The sources of data for the purpose of study were both primary and secondary.
Primary data was collected through questionnaire which was mainly close -ended
Questionnaire and discussion with workers whereas secondary data was collected
from records maintained by personal department and time office. Percentage method
is used for the analysis of data and bar graphs are used to present that data.

4.2 REVIEW LITERATURE


(1) Ernest B. Akyeampong has written a research paper Trends and seasonality in
Absenteeism. In this paper the author focus on that at which time period the
Employees are more absent.
The high incidence in winter is likely related to the prevalence of
Communicable diseases at that time, especially colds and influenza. The low incidence
During the summer may be partly because many employees take their vacation during
these months. Because of survey design, those who fall ill during vacation will likely
report vacation rather than sickness or disability as the main reason for being away
from work.
Compared with the annual average, part-week absences are roughly 30% more
Prevalent in the winter months and almost 20% less so during the summer months.
Seasonality is much less evident in full-week absences.

(2) Mariajos Romero and Young-Sun Lee has written a research paper A National
Portrait of Chronic Absenteeism in the Early Grades. In this paper he focused on
the following points:
(i) How widespread is the Problem of Early Absenteeism?
(ii) Does Family Incomes Impact Early Absenteeism?
(iii) What is the Impact of Early Absenteeism on Academic Achievement?
(3) Morten Nordberg and Knut Red has written a research paper Absenteeism,
Health Insurance and Business Cycles. In this he wants to evaluate how the
economic environment affects worker absenteeism and he also isolates the causal
effects of business cycle developments on work-resumption prospects for ongoing
absence spells, by conditioning on the state of the business cycle at the moment of

entry into sickness absence.


The author finds that:
(i) That business cycle improvements yield lower work-resumption rates for
persons who are absent and higher relapse rates for persons who have already
resumed work.
(ii) That absence sometimes represents a health investment, in the sense that
longer absence now reduces the subsequent relapse propensity.
(iii) That the work-resumption rate increases when sickness benefits are exhausted,
But those work-resumptions at this point tend to be short-lived.

CHAPTER-3
INTRODUCTION
OF
EMPLOYEE
ABSENTEEISM

3.1 REASONS TO CHOOSE THE PROJECT


In my PGDM I had studied a subject Industrial Relation. In this subject I studied
about Absenteeism. After studying this topic I want to gain some practical
knowledge on this and try to find out the causes of Absenteeism. Initially it appeared
to me quite a simple project, but as I started working on it only then I understood its
real significance.
It is often easier for the organizations to make arrangement to cover staffs, which are
going to be off for long periods. However, employees taking odd days off here and

this become more problematic, can have an immediate impact.


If remain unchecked, this type of absence can send out the wrong signals to
Colleagues who, in some jobs, are likely to have to cover for those absent. If
employers fail to take action, a, buggins turn mentality may emerge. Frequent
absence may have serious repercussions where staff are employed in customer- facing roles or
employed on production lines. The impact of absence may be most
directly felt and the need to arrange cover at short notice may be paramount.

3.2 ABSENTEEISM
CONCEPT OF ABSENTEEISM
It refers to workers absence from their regular task when he is normally schedule to
work. The according to Websters dictionary
Absenteeism is the practice or habit of being an absentee and an absentee is one
who habitually stays away from work?
According to Labour Bureau of Shimla, Absenteeism is defined as the total man
shifts lost because of absence as percentage of total number of man shifts scheduled
to work.
In other words, it signifies the absence of an employee from work when he is
scheduled to be at work. Any employee may stay away from work if he has taken
leave to which he is entitled or on ground of sickness or some accident or without
any previous sanction of leave. Thus absence may be authorised or unauthorised,
wilful or caused by circumstances beyond ones control.
Maybe even worse than absenteeism, it is obvious that people such as malingerers
and those unwilling to play their part in the workplace can also have a decidedly
negative impact.
Such team members need individual attention from frontline supervisors and
management.
Indeed, as prevention is better than cure, where such a problem occurs, it is always
Important to review recruitment procedures to identify how such individuals came to
be employed in the first place.
For any business owner or manager, to cure excessive absenteeism, it is essential to
find and then eliminate the causes of discontent among team members.
If they find their supervisor or job unpleasant - really unpleasant - they look for
legitimate excuses to stay home and find them with things such as upset stomachs or
splitting headaches.
Any effective absentee control program has to locate the causes of discontent and

modify those causes or eliminate them entirely. In other words, if we deal with the
real reasons team members stay home it can become unnecessary for t hem to stay
away.
Any investigation into absenteeism needs to look at the real reasons for it.
Sometimes team members call in sick when they really do not want to go to work.
They would not call you up and say, Im not coming in today because my
supervisor abuses me.
Or, Im not coming in today because my chair is uncomfortable. Or, Im not
coming in today because the bathrooms are so filthy; it makes me sick to walk into
them.
There are a few essential questions to consider at the outset if you want to make a
measurable improvement to your absenteeism figures.
Why is your present absenteeism policy ineffective?
Where and when is excessive absenteeism occurring? In many cases, under- trained
supervisors could be a contributing factor.
What are the real causes for absences?
It is commonly expected that low pay, poor benefits and high workloads will be the
major causes.
However, in numerous employee surveys absenteeism generally has been identified
As a symptom of low job satisfaction, sub-standard working conditions and
consistent negative and unfair treatment received by first-line supervisors.
How much formal training have your supervisors received on absenteeism?
containment and reduction? If your answer is none or very little, may be you have
found the solution.
As with every other element within your organization, you cannot ask a person to
do a job he or she has never been trained to do.
Many human resources specialists have found that repetitive, boring jobs coupled
with uncaring supervisors and/or physically unpleasant workplaces are likely to
lead workers to make up excuses for not coming to work.
If your team members perceive that your company is indifferent to their needs, they
are less likely to be motivated, or even to clock on at all.
One way to determine the causes of absenteeism is to question your supervisors
about excessive absenteeism, including what causes it and how to reduce it.
Of course, if your supervisors have made no efforts to get to know the team
members in their respective departments, they may not be able to provide reasons.
However, just the act of questioning may get the ball rolling and signal to your

supervisors that their involvement is important.


Once a manager finds the real reasons for absenteeism there is another important
step. Through open communication, you need to change the team members way of
reacting and responding to discontent.
Other problems will no doubt arise in the future. If the way of responding has not
been reviewed, then the same cycle is likely to start all over again.
So, often absenteeism problems can be sheeted back to the supervisor level and to
unsatisfactory working conditions. Without improvement in these areas, you can
expect your high rate of absenteeism to continue.

3.3 MEASUREMENT OF ABSENTEEISM


For calculating the rate of absenteeism we require the number of people scheduled
to work and number of people actually present. Absenteeism can be find out of
absence rate method.
For Example:
a) Average number of employees in work force: 100
b) Number of available workdays during period: 20
c) Total number of available workdays (a x b): 2,000
d) Total number of lost days due to absences during the period: 93
e) Absenteeism percent (d [divided by] c) x 100: 4.65%
Since absenteeism is a major barometer of employee morale, absenteeism above 5
Percent has to be considered as very serious (across most industries 3 percent is
considered standard).

3.4 PECULIAR FEATURES OF ABSENTEEISM


On the basis of studies undertaken certain observations may be made:
a) The rate of absenteeism is lowest on payday; it increases considerably on the
days following the payment of wages and bonus. The level of absenteeism is
comparatively high immediately after payday. When worker either feel like
having a good time or in some other cases return home to their villages family
and after a holiday, has also been found to be higher than that on normal days.

b) Absenteeism is generally high workers below 25 years of age and those above
40. The younger employees are not regular and punctual. Presumably
because of the employment of a large no. of new comers among the younger
age groups, while the older people are not able to withstand the strenuous
nature of the work.
c)

The percentage of absenteeism is higher in the night shift than in the day shift.
This is so because workers in the night shift experience great discomfort and
unless in the course of their work than they do during day time.

d) Absenteeism in India is seasonal in character. It is the highest during March- AprilMay, when land has to be prepared for monsoon, sowing and also in
harvest season (Sept-Oct) when the rate goes as high as 40%.

3.5 CAUSES OF ABSENTEEISM


The Royal Commission Labour observed that high absenteeism among Indian
labour is due to rural orientation and their frequent urge for rural exodus.
According to Acharaya In modern industrial establishment the incidence of
Industrial fatigue, mal nutrition and bad working conditions aggravate that feeling
home for change among industrial worker and some time impel them to visit their village
frequently for rest and relaxation.
The general cause of absenteeism may be summarised as below:-

1) MALADJUSTMENT WITH FACTORY


In factory the worker finds caught within factory walls, he is bewildered by heavy
traffic, by strangers speaking different and subjected to strict discipline and is
ordered by complete strangers to do things which he cannot understand. As a result
he is under constant strain, which cause him serious distress and impairs his
efficiency. All these factors tend to persuade him to maintain his contacts with
village.

2) SOCIAL AND RELIGIOUS CEREMONIES


Social and religious ceremonies divert workers from workers to social activities. In
large number of cases incidence of absenteeism due to religious ceremonies is
more than due to any other reason.

3) HOUSING CONDITIONS
Workers also experience housing difficulties. Around 95% of housing occupied by
Industrial workers in India is unsatisfactory for healthful habitations. This leads to

loss the interest in work.

4) INDUSTRIAL FATIGUE
Low wages compel a worker to seek some part time job to earn some side income.
This often result inconstant fatigue, which compels to remain absent for next day.

5) UNHEALTY WORKING CONDITION


Irritating and intolerable working conditions exist in a factory. Heat, moisture,
noise, vibration, bad lighting, dust fumes and overcrowding all these affect the
workers health causing him to remain absent from work a long time.

6) ABSENCE OF ADEQUATE WELFARE ACTIVITIES


High rate absenteeism is also due to lack of adequate welfare facilities Welfare
activities include clean drinking water, canteen, room shelter, rest rooms, washing
and bathing facilities, first aid appliances etc.

7) ALCOHOLISM
Some of the habitual drunkards spend whole of the ir salary during first week of
each month for drinking purpose. Therefore 2 or 3 weeks after getting their salary
absent themselves from their work.

8) INDEBTNESS
All those workers who undergo financial hardships usually borrow money lenders
at interest rate which is very high, which often cumulates to more than 11 12?
times their actual salaries. To avoid the moneylenders they usually absent
themselves from work because they are unable to return the money in stipulated
time.

9) IMPROPER & UNREALISTIC PERSONNEL POLICIES


Due to favouritism and nepotism which are in the industry the workers generally
become frustrated. This also results in low efficiency, low productivity,
unfavourable relationship between employee and supervisor, which in turn leads to
long period of absenteeism

10) INADEQUATE LEAVE FACILITIES


Negligence on part of the employee to provide leave facility compel the worker
to fall back on ESI leave. They are entitled to 50 days leave on half on pay.
Instead of going without pay the worker avail them of ESI facility.

3.6 EFFECTS OF ABSENTEEISM ON INDUSTRIAL


PROGRESS
It is quite evident that absenteeism is a common feature of industrial labour in India.
It hinders industrial growth and its effect in two fold.

1) LOSS TO WORKERS
Firstly due to the habit of being absenting frequently workers income is reduced to
a large extent. It is because there is a general principle of no work no pay. Thus
the time lost in terms of absenteeism is a loss of income to workers

2)

LOSS TO EMPLOYERS
On other hand, the employer has to suffer a greater loss due to absentees. It disturbs
the efficiency and discipline of industries consequently, industrial production is
reduced. In order to meet the emergency and strikes, an additional labour force is
also maintain by the industries. On certain occasions, those workers are employed
who present themselves at factory gates. During strikes they are adjusted in place of
absent workers. Their adjustment brings serious complications because such workers
do not generally prove themselves up to work. Higher absenteeism is an evil both for
workers and the employers and ultimately it adversely affects the production of
industries.

3.7 ANALYSIS OF CAUSES


1) FAMILY ORIENTED & RESPONSIBILITES
It was observed that about 40% case absenteeism is family oriented and more
responsibilities of workers. It increases in harvesting season.
2) SOCIAL CEREMONIES
In 20 % cases it was found that social and religious functions divert worker from
work.

3) HOUSING FACILITY
In about 30% cases, the workers remain absent because there is no housing
facilities and the workers stay alone and great distance from factory.

4) SICKNESS AND ACCIDENT


In 20% case the workers remain absent due to ill health and disease and in 15%
cases workers remain absent due to accident.

5) TRANSPORTATION
Most of the workers have to travel long distance to reach the work place. Most of
the workers are not satisfied with transport facilities.

6) WELFARE FACILITES
In 13% cases, the workers are not satisfied with welfare facilities.

7) WORKING CONDITIONS
In 21% cases, the workers feel that there is not good working condition, because
they work in standing position which causes to remain absence for relaxation.

8)

MANAGEMENT SYSTEM
Near about 34% people are dissatisfied with management system because they feel
that their work is not being recognised and promotions are biased.

3.8 ABSENTEEISM - TYPES & THEIR CONTROL


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

1. INNOCENT ABSENTEEISM
Innocent absenteeism refers to employees who are absent for reasons beyond their
control; like sickness and injury. Innocent absenteeism is not culpable which means
that it is blameless. In a labour relations context this means that it cannot be
remedied or treated by disciplinary measures.

COUNSELLING INNOCENT ABSENTEEISM


Innocent absenteeism is not blameworthy and therefore disciplinary action is not
justified. It is obviously unfair to punish someone for conduct which is beyond
his/her control. Absenteeism, no matter what the cause, imposes losses on the
weighed against the employee's right to be sick. There is a point at which the
employer's right to expect the employee to attend regularly and fulfill the
employment contract will outweigh the employee's right to be sick. At such a point
the termination of the employee may be justified, as will be discussed.
The procedure an employer may take for innocent absenteeism is as follows:
1. Initial counselling(s)
2. Written counselling(s)
3. Reduction(s) of hours and/or job reclassification
4. Discharge

1. Initial Counselling
Presuming you have communicated attendance expectations generally and have
already identified an employee as a problem, you will have met with him or her as
part of your attendance program and you should now continue to monitor the effect
of these efforts on his or her attendance.
If the absences are intermittent, meet with the employee each time he/she returns to
work. If absence is prolonged, keep in touch with the employee regularly and stay
updated on the status of his/her condition. (Indicate your willingness to assist.)
You may require the employee to provide you with regular medical assessments.
This will enable you to judge whether or not there is any likelihood of the employee
providing regular attendance in future. Regular medical assessments will also give
you an idea of what steps the employee is taking to seek medical or other assistance.
Formal meetings in which verbal warnings are given should be given as appropriate
and documented. If no improvement occurs written warning may be necessary.

2. Written Counselling
If the absences persist, you should meet with the employee formally and provide
him/her with a letter of concern. If the absenteeism still continues to persist then the
employee should be given a second letter of concern during another formal meeting.
This letter would be stronger worded in that it would warn the employee that unless
attendance improves, termination may be necessary.

3. Reduction(S) of Hours and or Job Reclassification


In between the first and second letters the employee may be given the option to
reduce his/her hours to better fit his/her personal circumstances. This option must be
voluntarily accepted by the employee and cannot be offered as an ultimatum, as a
reduction in hours is a reduction in pay and therefore can be looked upon as
discipline.
If the nature of the illness or injury is such that the employee is unable to fulfil the
requirements of his/her job, but could for example benefit from modified work,
counsel the employee to bid on jobs of such type if they become available. (N.B. It
is inadvisable to "build" a job around an employee's incapacitates particularly in a
unionized environment. The onus should be on the employee to apply for an existing
position within his/her capabilities.)

4. Discharge
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be
considered. An Arbitrator would consider the following in ruling on an innocent

absenteeism dismissal case.


a) Has the employee done everything?
b) Has the employer informed the employee of the unworkable situation
resulting from their sickness?
c) Has the employer attempted to accommodate the employee by offering a more
suitable position (if available) or a reduction of hours?
d) Has enough time elapsed to allow for every possible chance of recovery?
e) Has the employer treated the employee prejudicially in any way?
As is evident, a great deal of time and effort must elapse before dismissal can take
place.
These points would be used to substantiate or disprove the following two fold test.
1. The absences must be shown to be clearly excessive.
2. It must be proven that the employee will be unable to attend work on a regular
basis in the future.

2. CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization for
reasons which are within their control. For instance, an employee who is on sick
leave even though he/she is not sick, and it can be proven that the employee was not
sick, is guilty of culpable absenteeism. To be culpable is to be blameworthy. In a
labour relations context this means that progressive discipline can be applied.
For the large majority of employees, absenteeism is legitimate, innocent absenteeism
which occurs infrequently. Procedures for disciplinary action apply only to culpable
absenteeism. Many organizations take the view that through the process of
individual absentee counselling and treatment, the majority of employees will
overcome their problems and return to an acceptable level of regular attendance.

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM


As already indicated, culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve his/her
attendance.
Presuming you have communicated attendance expectations generally, have
identified the employee as a problem, have met with him/her as part of your
attendance program, made your concerns on his specific absenteeism known and
have offered counselling as appropriate, with no improvement despite your positive
efforts, disciplinary procedures may be appropriate.

The procedures for corrective/progressive discipline for culpable absenteeism are


generally the same as for other progressive discipline problems. The discipline
should not be prejudicial in any way. The general procedure is as follows:
1. Initial Warning(s)
2. Written Warning(s)
3. Suspension(s)
4. Discharge

1. Verbal Warning
Formally meet with the employee and explain that income protection is to be used
only when an employee is legitimately ill. Advice the employee that his/her
attendance record must improve and be maintained at an improved level or further
disciplinary action will result. Offer any counselling or guidance as is appropriate.
Give further verbal warnings as required. Review the employee's income protection
records at regular intervals. Where a marked improvement has been shown,
commend the employee. Where there is no improvement a written warning should be
issued.

2. Written Warning
Interview the employee again. Show him/her the statistics and point out that there
has been no noticeable (or sufficient) improvement. Listen to the employee to see if
there is a valid reason and offer any assistance you can. If no satisfactory
explanation is given, advise the employee that he/she will be given a written
warning. Be specific in your discussion with him/her and in the counselling
memorandum as to the type of action to be taken and when it will be taken if the
record does not improve. As soon as possible after this meeting provide the
employee personally with the written warning and place a copy of his/her file. The
written warning should identify any noticeable pattern
If the amount and/or pattern continues, the next step in progressive discipline may
be a second, stronger written warning. Your decision to provide a second written
warning as an alternative to proceeding to a higher level of discipline (i.e.
suspension) will depend on a number of factors. Such factors are, the severity o f the
problem, the credibility of the employee's explanations, the employee's general work
performance and length of service.

3. Suspension (only after consultation with the appropriate superiors)

If the problem of culpable absenteeism persists, following the next interview period
and immediately following an absence, the employee should be interviewed and
again on the severity of the problem, the credibility of the employee 's explanation,
the employee's general work performance and length of service. Subsequent
suspensions are optional depending on the above condition.

4. Dismissal (only after consultation with the appropriate superiors)


Dismissals should only be considered when all of the above conditions and
procedures have been met.

3.9 GUIDELINES & MEASURES FOR


CONTROL OF ABSNTEEISM
Absenteeism is a disease that appears whenever a company fails to inoculate itself
through the use of sound management practices. To cure excessive absenteeism, one
has to know the exact causes and then examine the available, workable and proven
solutions to apply against those causes.
To embark upon a successful absenteeism reduction program, you need to make sure
you have some basic information and facts about absenteeism in your company.
Consider the following four questions, which should help you further focus your
ideas and put a plan into action.
Q. Why is your present absenteeism policy ineffective?
Absenteeism policies vary in effectiveness. Most ineffective policies I have
reviewed have a common denominator: They allow "excused" absences, whereas
those that do work are "no fault" policies.
Q. Where and when is excessive absenteeism occurring?
Numerous studies have concluded that under trained supervisors is one of the main
causes of absenteeism. Therefore, any company experiencing absente eism of greater
than 3 percent should consider supervisors as a potential contributor to the problem.
Given that this may be the case, you first should check the percentage of employee
absenteeism by supervisor to see if it is concentrated around one or two supervisors.
If it is, you've begun to uncover the obvious--undertrained supervisors. If, however,
your research reveals that the rate of absenteeism is almost equally distributed
throughout your factory, you will need to investigate other possible cause .

Q. What are the real causes for absences?


People-oriented companies are very sensitive to employee opinions. They often

engage in formal mini-studies to solicit anonymous employee opinio ns on topics of


mutual interest. These confidential worker surveys commonly ask for employee
opinion regarding higher-than-normal absenteeism.
In other words, employees revealed that repetitive, boring jobs coupled with
uncaring supervisors and/or physically unpleasant workplaces led them to make up
excuses for not coming to work, such as claiming to be sick.
One way to determine the causes of absenteeism is to question your supervisors
about their employees' excessive absenteeism, including what causes it and how to
reduce it.
Q. How much formal training have your supervisors received on absenteeism
containment and reduction?
If you find that your supervisors hesitate to provide meaningful answers to your
questions, then you're on the right track toward a solution. Ask yourself, "How much
formal training have I given my supervisors in the areas of absenteeism reduction
and human resources skills?" If your answer is none or very little, your solution can't
be far behind. The fact of the matter is, you cannot ask a person to do a job he or she
has never been trained to do.
Following are the measures to control absenteeism:-

1) ADOPTION OF A WELL DEFINED RECRUITMENT


PROCEDURE
The selection of employees on the basis of command, linguistic and family
consideration should be avoided. The management should look for aptit ude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes. Application blanks should invariably be used for a
preliminary selection and tools for interviews. The personal officer should play more
effective role as coordinator of information, provided that he has acquired job
knowledge in the function of selection. Employers should also take into account the
fact that selection should be for employees development, their reliance. They
should as far as possible rely on employment exchange.

2) PROVISION OF HEALTHFUL AND HYGENIC WORKING


CONDITION
In India, where the climate is warm and most of the work involves manual labour, it
is essential that the workers should be provided with proper and healthy working
conditions. The facilities of drinking water, canteens, lavatories, rest rooms, lighting
and ventilation, need to be improved. Where any one of these facilities is not
available, it should be provided and all these help in keeping the employee cheerful

and increase productivity and the efficiency of operations throughout the plant .

3) PROVISION OF REASONABLE WAGES AND ALLOWANCE


AND JOB SECURITY TO WOTRKERS
The wages of an employee determine his as well as his family standard of living.
This single factor is important for him than other. The management should, therefore
pay reasonable wages and allowances, taking into account the capacity of the
industry to pay.

4) MOTIVATORS WELFARE AND SOCIAL MEASURES


The management should consider the needs of workers and offer them adequate and
cheap housing facilities, free of subsidised food, free medical and transport
facilities, free education facilities for their children and other monetary benefits. As
for social security is concern, the provision of Provident Fund, SBI facilities,
Gratuity and Pension, all those need to be improved.

5) IMPROVED COMMUNICATION AND PROMPT


REDRESSAL OF GRIEVANCES
Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them. Meetings
and concealing are called for written communication becomes meaningful only when
workers can readied understood them, too many notices should be avoided only the
essential ones should be put on the boards, which should be placed near the entrance
inside the canteen and in areas which are frequently visited by the workers so that
they are aware of the policies of the company and any sort changes being made.

6) LIBERAL GRANT OF LEAVE


The managements 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 this scheme, they
Can have 56 days leaves in years on half pay. An effective way of dealing with
Absenteeism is to liberalise leave rules.

7)

SAFETY AND ACCIDENT PREVENTION


Safety at work can be maintained and accidents can be prevented if the management
Tries to eliminate such personal factors as negligence, overconfidence, carelessness,
Vanity, etc and such material factorizes unguarded machinery and explosives,
Defective equipment and hand tools. Safe methods of operation should be taught. In
Addition consistent and timely safely instruction, written instructions (manual) in the
Regional language of the area should be given to the work force.

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS
The supervisor should be recognise that industrial work is a groups task and cannot
be properly done unless discipline is enforced and maintained. Cordial relations
Between the supervisors and these workers are therefore essential for without them,
Discipline cannot be increased. One of the consequences of unhealthy relations
Between supervisors and subordinates is absenteeism.

9) DEVELOPMENT OF WORKERS BY TRAINING


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 happy integrated life in the community,
As members of a trade union for the protection of their interests.
The educational programs according to their national commission on Labour should
be to make a worker:a). A responsible, committed and disciplines operative.
b). Aware of his rights and obligations.
c). Lead a calm, clean and health life, based on a firm ethical foundation.
d). A responsible and alter citizen.

3.10 THE BRADFORD FACTOR &


ABSENTEEISM
Bradford Factor is a Human Resources tool used by many organizations to measure and
identify areas of absenteeism. The theory is that short, frequent and unplanned absences
are more disruptive than longer absences.
It is based on the fact that it is normally easier to make arrangements to cover for staffs
who are going to be off for long periods, and which are more likely to be suffering from a
genuine illness.
However, employees taking odd unplanned days off here and there actually cause more
disruption to the business. If this pattern is repeated regularly, the employee will have a
high Bradford Factor score; which may raise questions about how genuine the illness
actually is
The formula for the Bradford Factor is:
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and D is the total number of days absent in a
rolling 52 week period.
So, for employees with a total of 10 days absence in one year, the Bradford Factor score
Can vary enormously, depending on the number of episodes of absence involved.
For example:

One absence episode of 10 days is 10 points (i.e. 1 x 1 x 10)


Five absence episodes of two days each is 250 points (i.e. 5 x 5 x 10)
Ten absence episodes of one day each is 1,000 points (i.e. 10 x 10 x 10)
How do organizations use the Bradford Factor?
There are no set rules for using the Bradford Factor; it is down to each organization to
determine the ways in which it uses the score.
However, used effectively, the Bradford Factor can reduce absenteeism dramatically,
Serving as a deterrent and a method for tackling persistent absenteeism.
Studies have shown that by educating staff about the Bradford Factor, and then showing
Them their score on a regular basis, absenteeism can be reduced by over 20%. This is
Largely down to staff understanding that taking the odd day off here and there will quickly
Multiply them Bradford Factor score. The Bradford Factor places a value on the absence
Which an employee can clearly see. Where the absence is not absolutely necessary, this can
Serve to deter absenteeism.
When this is used in conjunction with a points system the Bradford Factor can be
Effectively utilized to deter unnecessary absenteeism.
For example the Bradford Factor can be utilized by creating triggers whereby certain
actions are taken when an employees Bradford score reaches a certain point. For example,
the UK Prison Service has used the following triggers:
51 points verbal warning.
201 points written warning
401 points final warning
601 points dismissal
Setting these triggers is entirely dependent on the organization using the Bradford Factor. It
Is usually advisable to use the Bradford Factor as one of a number of absence policies.
However, setting these triggers and making staff aware of them, in addition to taking action,
resulted in the Prison Service reducing absenteeism by 18%.
By implementing mandatory procedures for tackling absenteeism across an organization led
by the Bradford Factor, an organization can remove the potential for differences across
teams and management and remove the difficulties and reluctance that line managers often
face when having to discipline a close staff member.
The Bradford Factor can provide organizations with a two pronged method for tackling
absence: proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism.
Implementing the Bradford Factor
Calculating the Bradford Factor for one member of staff over a given period is not a difficult

proposition. However, calculating the Bradford Factor over a rolling 52 week period, across
multiple teams and locations and considering different types of absence is a very difficult
task.
As a result of the exponential nature of the formula {E x E x D}, even the slightest mistakes
in calculation can result in a wide variance of an employees Bradford Factor score.
For example: For an employee who has had 10 days off in a year in total, on two separate
occasions:
2 X 2 X 10 = 40 {which does not trigger a warning fewer than 50}
However, if their absence is either not recorded correctly, or is calculated wrong by just one
day:
3 X 3 X 10= 90 {which does trigger a warning over 50}
You can see that their score is more than double, despite the small mistake. Getting the
formula the wrong way round can have even more significant results:
10 X 10 X 2 = 200 {which would trigger disciplinary proceedings over 200}
If an organization wants to tackle absenteeism effectively, using the Bradford Factor,
including using an employees Bradford Factor score in potential disciplinary proceedings,
then the process for calculating the Bradford Factor has to be full proof, consistent and equal.
To achieve this, an organization will need to ensure:
Absence reporting and monitoring is consistent, equal and accurate both over
time and across the whole organization.
The calculation of an employees Bradford Factor score is based on these
accurate, equal and updated absence records.
Management and staff have access to updated Bradford Factor scores.
Without these processes in place the calculation of the Bradford Factor is extremely difficult
and time consuming. In addition to this; unequal processes for reporting and calculating the
Bradford Factor could be discriminatory; everyones Bradford Factor score should be subject
to the same, indisputable criteria.

CHAPTER-4
ANALYSIS
&
INTERPRETATION

Q. For how many years you are working with Pro-Ace Infotech?
Interpretation It can be seen that 56% of the workers at Pro-Ace Infotech are working for
more than 10 years whereas 36% are working for more than 5 years.
Q. How often you remain absent in a month?
Interpretation- It can be seen that 96% of the workers do not remain absent.
0%
10%
20%
30%
40%
50%
60%
0-2 Years 2-5 Years 5-10 Years >10 Years
worker
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
nil once twice >twice
no of absents in a
month
Q. According to you what are the main reasons for employees absent?
Interpretation- According to 96% workers, personal problem is the reason for being
absent. 4% think that stress can also be the reason.
Q. Your views regarding present Absenteeism Policy of ProAce Infotech?
Interpretation- It can be seen that 76% workers rate the present absenteeism policy
as good whereas 22% rate it as excellent.
0%

10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
stress personal prob
reason for being
absent
0%
10%
20%
30%
40%
50%
60%
70%
80%
excellent good fair poor
views regarding
absenteeism policy
Q. Are you clear about your work / job responsibilities?
Interpretation- It can be seen that 94% of the workers at ProAce Infotech
are clear regarding their work responsibilities.
Q. Are you satisfied with your work?
Interpretation- 82% of the workers are fully satisfied with their work whereas 16%
workers think their work as good.
0%
20%
40%
60%
80%

100%
well
clear
good fairly
clear
don't
know
clarity regarding work
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
well
satisfied
good fair not
satisfied
satisfaction regarding
work
Q. Views regarding working environment of ProAce Infotech ?
Interpretation- 82% workers feel that the working environment at ProAce Infotech is good
& 14% feel it as excellent
Q. Your relations with your superiors?
Interpretation- 76% workers have good relations with the superiors whereas 22%
have excellent relations with the superiors.
0%
10%
20%
30%
40%
50%

60%
70%
80%
90%
excellent good fair poor
views regarding working
env.
0%
10%
20%
30%
40%
50%
60%
70%
80%
excellent good fair poor
relations with superiors
Q. Yours superiors behaviour towards your problem?
Interpretation- 42% workers think that their superiors behaviour toward their
problems is excellent & 56% workers consider it as good.
Q. Yours views regarding facilities provided ProAce Infotech ?
Interpretation 86% workers consider that facilities provided to them are good
whereas 10% consider them as excellent.
0%
10%
20%
30%
40%
50%
60%
excellent good fair poor
superiors behaviour
towards your problems
0%
10%

20%
30%
40%
50%
60%
70%
80%
90%
excellent good fair poor
facilities provided at
Company

CHAPTER-5
CONCLUSION,
SUGGESTIONS
&
LIMITATIONS

5.1 CONCLUSION
Finding and analysis reveals the following conclusion:
1) Almost 56% of the workers at ProAce Infotech are working for
more than 10 years whereas 36% are working for more than 5 yrs.
2) Almost 96% of the workers do not remain absent.
3) According to 96% workers, personal problem is the reason for being absent.
4% think that stress can also be the reason.
4) Almost 76% workers rate the present absenteeism policy as good whereas
22% rate it as excellent.
5) Almost 94% of the workers at ProAce Infotech are clear
regarding their work responsibilities.
6) 82% of the workers are fully satisfied with their work whereas 16% workers
think their work as good.
7) 76 % workers have good relations with the superiors whereas 22% have
excellent relations with the superiors.
8) 42% workers think that their superiors behaviour towards their problems is
excellent & 56% workers consider it as good.

5.2 SUGGESTIONS AND RECOMMENDATIONS


Absenteeism is a serious problem for management because it involves heavy
additional expenses. The management should take the following measures to reduce
the rate of absenteeism:1) Provide Incentives- An incentive provides an employee with a boost to their
motivation and avoid unnecessary absenteeism. Incentives like two hours of
bonus pay for every month of perfect attendance can improve a lot.

2) Employee Assistance Program- If you confront an employee about his or her


frequent absenteeism and you find out that it is due to personal problems refer
them to EAP.

3) Sickness Reporting Tell employees that they must phone in as early as


possible to advise why they are unable to make it to work and when they

expect to return.

4) Return to Work Interview- When an employee returns to work then ensure


that they have a return to work interview.

5) Bradford factor can also be used to identify and cure excessive absenteeism.
In the end to conclude this report I would like to specify that the project allotted to
me on ABSENTEEISM was of immense help to me in understanding the working
environment of an organization, thereby providing a firsthand practical experience.
In this project while identifying the reasons of absenteeism of the workers of PRO-ACE
INFOTECH, Patiala I got an opportunity to interact with workers to observe their
behaviour and attitude.
In the end I would once again like to thank the people of PRO-ACE INFOTECH who
helped me in accomplishing this project and boosting my morale by appreciating and
recognizing my efforts.

5.3 LIMITATIONS OF THE STUDY


There are some limitations for research which are as follows:-

a) As it was not possible to visit each department the true picture of working
condition could not be judged.

b) The workers were busy with their work therefore they could not give enough
time for the interview.

c) The personal biases of the respondents might have entered into their response.
d) Some of the respondents give no answer to the questions which may affect the
analysis.

e) Respondents were reluctant to disclose complete and correct information


Because of a small period of time only small sample had to be considered which
doesnt actually reflect and accurate and intact picture.

BIBLIOGRAPHY
1. Books
a. Industrial Relation-2007, Arun Monappa.
b. Industrial Relation, Trade Union and Labour Legislation-2009, P.R.N Sinha.
c. Industrial Relation and Labour Laws-2009, S.C Srivastava.
d. Dynamics of Industrial Relation-2008, C.B Mamoria.
e. Industrial Relation-2006, C.S VenkataRaman.

2. Web Sites
a. www.proaceinfotecho6@gmail.com
b. www.hrglossories.com
c. www.hr-guide.com

QUESTIONNAIRE
Personal Information
Name (Optional).....................................................................
Age............................... Sex...................................
1). For how many years you are working with PRO-ACE INFOTECH?
(a) 0-1 yr (b) 1-2 yr
(c) 2-5 yr (d) < 5 yr
2). How often you remain absent in a month?
(a) Nil (b) Once
(c)Twice (d) < Twice
3). According to you what is the main reason for employees absent?
(a) Health problem / domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
(e) Others (Please Specify).....................................................
4). Your views regarding the present Absenteeism Policy of PRO-ACE INFOTECH?
(a) Excellent (b) Good
(c) Fair (d) dont know
5). Are you clear about your work / job responsibilities?
(a) Well clear (b) Good
(c) Fairly clear (d) dont know
6).Are you satisfied with your work?
(a) Well satisfied (b) Good
(c) Fair (d) not satisfied
7) .Your views regarding the working environment of PRO-ACE INFOTECH & work place?
(a) Excellent (b) Good
(c) Fair (d) Poor
8). How are your relations with your superiors / co-workers?
(a) Excellent (b) Good

(c) Fair (d) Poor


9).Your superiors behaviour towards your problems?
(a) Excellent (b) Good
(c) Fair (d) Poor
10). Your views regarding the facilities provided to you by PRO-ACE INFOTECH?
(a) Excellent (b) Good
(c) Fair (d) Poor

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