CHAPTER 1

INTRODUCTION

Background of the study

SM Prime Holdings, Inc. was incorporated in the Philippines in 1994. They started as a
mall developer and operator and grew to be the biggest retail shopping center developer
and operator in the Philippines. SM Prime started its mall development business in 1985 with the
opening of SM North EDSA. However, it was in the early 90’s when the “malling phenomenon”
became apparent with the opening of SM City Sta. Mesa in 1990 and SM Megamall in 1991.
Malling has become a way of life for millions of Filipinos as more SM Malls were opened in Metro
Manila and provincial areas. The management of the malls is now handled by subsidiary Shopping
Center and Management Corporation (SCMC). Today, SM Prime has become one of the biggest
mall operators in Southeast Asia. Combined, the company has 60 malls in and outside Metro
Manila and 7 shopping malls in China, totaling 9.1 million square meters of Gross Floor Area
(GFA). In the Philippines, they have a total of 17,309 tenants and 1,472 tenants in China SM Prime
goes beyond mall development and management through its units and subsidiaries.
SM City Prime holdings Inc. is one of the biggest chain stores in the country. It has 60 plus
stores nationwide and 7 in China with plans for more expansion within and outside the country.
The organization maintains thousands of merchants as the main retailers of various goods
and services to consumers nationwide. The huge number of its units and subsidiaries is housed
with thousands of its employees both contractual and permanent workers. The ever-growing
number of chain stores is also tantamount to ever growing a number of workers. One of the
challenges that SM is facing with regards to a vast number of talents is how to manage 100%
commitment to attend to work daily to sustain its daily operation. Employee absenteeism
has been a concern by most organizations but should be considered especially a threat to overall
human talent management of SM considering their huge workforce. This is due to the fact that it
has severe repercussions in the entire operation especially in terms of productivity and
profitability.
 CHAPTER 2
THE PROBLEM
Case Incident:
Case Incident 1: Bullying and Harassment
Bullying and harassment is not really good in the workplace. It is a major problem
that affects the well- being and productivity of employees. Workplace bullying can include
verbal abuse, alarming, humiliation and sabotage. While workplace harassment
encompasses a broad range of issues, it can be summarized as any act of discrimination or
abuse (emotional or physical) based on race, color, religion, gender, nationality or physical
attributes. These mistreatments are typically not one-time occurrences; they happen over a
significant length of time and cause the victim to suffer a loss of self-esteem and possibly
even long-term physical or mental health issues. Aside from the damages to the victims of
bullying and harassment, organizations are finding them costs money as well.
Case Incident 2: stress and low morale
Heavy workloads, stressful meetings/presentations, and feelings of being unappreciated
can cause employees to avoid going into work. Personal stress (outside of work) can lead
to absenteeism.
Statement of the Problem:
Employee absenteeism
Absenteeism is the unscheduled disruption of the work process due to days lost as
a result of sickness or any other non-statutory leave. The issue has been identified which
is the high turnover of work absence of SM employees. Absenteeism, as related by SM,
is not attributed to a single factor. Multiple factors cause an employee to leave or stay
away from work. Companies are not generally concerned about short-term leaves. Properly
scheduled short term and one and two sick leaves are okay with SM company according to
them. However, long-term absenteeism becomes a liability in the long run if not properly
managed. So, the impact of absenteeism on the company’s productivity, the first step
should be to calculate said turnover through this strategy is come from a human resource
book.
Statement of Sub - Problem
Controllable/ Voluntary - job satisfaction, organizational commitment, management or
employee relations, job stress
Uncontrollable/ Involuntary: sickness, emergency, maternity, domestic/family
relations, accident.
There is no single factor that can be attributed to absenteeism
 Chapter 3:
Time context:
The absenteeism started when the modernization arrived.
View Point:
HR Department is the one who responsible for the employee absenteeism
It is the responsibility of the Human Resource Department to communicate the
attendance policy clearly to the employees.

Areas Consideration
Threats:
 Possible loss or dissatisfied customer
Opportunity:
 Offsite training
Weakness:
 Loss productivity
 Problems with employee morale
Strength:
 Management development program

Alternative course of Action

ACA 1
 Improved Communications
Advantage:
 Excellent communication skills prevents misunderstanding

 Good communication promotes understanding

Effective communication removes the guesswork from any message, when
information or ideas are effectively communicated, costumer don't question the
meaning or reasoning then you communicate clearly, it's easier to get your message
and make sure you and the costumer understand each other.
 Disadvantages:
 Lack of sensitivity

 Miscommunication
ACA 2
 Employee Commitment
If the individual is aware of what the organization is striving to achieve and can
identify where they fit in, then they are going to be more committed to the
organization and thus more likely to attend in order to make their contribution.
Advantages:
 Give more and Better Ideas
 Increase Productivity
Disadvantage:
 Manager- employee boundary
 Communication disturbance
ACA 3
 Job Satisfaction in the Workplace
The application of job satisfaction in the workplace is
Advantages:
 Decreased turnover, and improve attendance
High job satisfaction may lead to decreased turnover, and improve attendance. If
someone is happy with their job they will perform better, but in order to be satisfied,
they have to perform in their job to get that satisfaction.

 Willing to give extra effort to work for the benefit of the whole organization.
If employees feel that their jobs are fun and interesting, they will be more willing
to give extra effort to work for the benefit of the whole organization.
Disadvantages:
 The workload
However this having been stated, the workload is too much, not only will the
passion fade, but the job satisfaction of employees will also decrease. The amount
of load you have directly affects your job satisfaction.
 The sense of belonging and being heard
Companies, where everyone works as separate institution, are never able to become very
successful simply because there is no sense of belonging and being heard. All the
employees will only do the work which is assigned to them and not a bit more. It is only
 when the employees feel like they are an important part of the company that they will be
having some job satisfaction.

Conclusion:
We the writers therefore conclude that Absenteeism is a challenging issue and important
problem. The organizations like SM is challenged to look for new strategies, structures and control
systems. Their policies and methods should be reviewed daily, monthly or on annual basis.
It is the duty of the SM HR together with the supervisors especially the front-line managers to
implement the policies and communicate these policies clearly to employees. SM Human Resource
Department is working on this as part of their programs or policies that serve their employee’s
needs. Employee engagement and employees behavior it shows of how successful the HR
implements its policies. However, managing attendance and immediate attention for minor
absences is to avoid employee’s absenteeism. After going through the points it is clear that those
who are satisfied with their jobs not only give up a better quality of work, but are also more content
and happy. What many people do not realize is that when choosing your career path or job, you
need not make your decision based on what others tell you to do.
Recommendation:
We strongly recommend ACA3 job satisfaction in the workplace because it is important to
remember that high job satisfaction will result in low absenteeism, low satisfaction is the same to
bring high absenteeism. Decreased turnover, and improve attendance. Willing to give extra effort
to work for the benefit of the whole organization. However, the saying that “A happy worker is a
productive worker”.
Chapter 4:
Plan of Action
ACTIVITIES RESPONSIBLE TIME FRAME BUDGET EXPECTED
PERSON OUTPUT
1. Plan a meeting HR Department 1hr. to 2hrs P 1,500.00 Regarding in
how to control
and avoid
absenteeism
2. Seminar HR Department 1 day to 2 days P 30, 000.00 Educate
on employees Supervisors employees on
attendance and Managers the impact of
training attendance on
productivity
3. Certification HR Department 1 hr. P 10, 000.00 Employee
for recognition recognition,
achievement,
and
advancement
 EMPLOYEE ABSENTEEISM
Of
SM SUPERMALLS
(A CASE STUDY)

Submitted by:
Joy B. Del Rosario
Jackielyn R. Salibio
Rejane T. Hailar
Irene Lutchavez
 Mary Queen Sanola

Submitted to:
Instructor Yvette Kristine Abina