In-Company Training Report

On
[HR] ABSENTEEISM
Completed in Escorts Ltd.
Submitted in partial fulfillment of the requirement of
Bachelor of Business Administration.(B.B.A.),Guru Jambheshwar University of
Science & Technology,Hissar.
(Session: 2008-2009)

Training Supervisor:
Submitted by:
Kamlesh Yadav

Jashvir Singh

(HR Manager)

B.B.A.(Final yr.)

Directorate of Distance Education

Guru Jambheshwar University of Science &
Technology,
Hissar

INDEX

Acknowledgement
Preface
Company Profile
Industry Profile
Introduction of Absenteeism
Magnitude of Absenteeism
Causes of Absenteeism
Objective of the Study
Research Methodology
Observation
Personal Functions
Limitations
Conclusions
Suggestions
Questionnaire
Bibliography

ACKNOWLEDGEMENT
A summer trainees life is never easy. Often viewed as an overtly inquisitive
outside, he/she is believed to be more of a hindrance than an asset by
many organizations. The industry guide who is often a middle level
manager finds little time to spend with the trainee amidst his / her heavy
schedule of tasks, deadlines to meet and BOSSES to please. However I
did not have any horrid time thanks to my college and industry guide.
Many people were instrumental in enabling me to complete and compile
this project on time and as I reflect on the most fulfilling times of my life, it
is a moment for me to extend my deed sense of gratitude, respect and
sincere thanks to all those who extended their help and gave guidance to
me at every stage of my project.
I would also like to thank the management of the Organization for providing
me with resources like internet, books, journals, etc to facilitate my
learning on this topic.
Last but not the least, my appreciation goes to my family and my friends
who believed in my capabilities and encouraged me during this report.

(Jashvir Singh)

PREFACE

For the deep inclination into the management concepts Practical Training
is an important aspect. Theoretical knowledge gives us the fundamental
concepts of management, and Practical training teaches us those tact and
skills, which are successfully employed to capture todays competitive
market. Theoretical lecture must be correlated with practical training to
make learning process more effective and to provide to judge and apply
ones theoretical knowledge. Thus Training plays an important role in
development and sharpening ones skills in the field of business
management and administration.
I have under gone 8 weeks summer training in ESCORT LTD. Faridabad,
Great deal of attention is paid towards strategic factors of culture, climate,
environment with respect to Sales System of Escorts Tractors, because it
goes a long way in developing and maintaining good labour & management
relationship, which is the hallmark of Escorts, Faridabad.
Being a student of Business Administration, this Training contributed a lot
in gaining knowledge about the actual business environment set up at
ESCORTS LTD.

COMPANY PROFILE

The Founding Philosophy

Over six decades back two young men set out on a journey together armed
with little beyond intelligence, business acumen and determination and
dreams aplenty. They believed that India could only achieve total freedom
with a breakthrough in the field of agriculture and mechanization would
have to rule the fields. Their youthful enthusiasm had kindled the hope that
one day they would make a mark of their own. They were in fact writing the
first chapter of what has come to be widely recognised as one of the
greatest

success

stories

in

Indian

industry.

Escorts came into being with a vision. A vision that eschewed easy paths
to profitability, and sought instead for ways to make a contribution. A
vision that led two young brothers, Yudi and Hari Nanda, to branch out of
their family's prospering transport business and institute ventures that
were to become the foundations of Escorts Limited. On 17th October 1944,
Escorts Agents Limited was born at Lahore (now in Pakistan) with Mr. Yudi
Nanda as Managing Director and Mr. Hari Nanda as Chairman. It was a
trendsetting marketing house driven by the same business philosophy,
which had given their family enterprise an unrivalled reputation: customer
concern. Not long afterwards, this driving ambition to go beyond the
expected led Hari Nanda to the first of his many successful business
insights - the discovery of the great business potential that lay in India's
villages. This led to the launch, in 1948, of Escorts (Agriculture and
Machines) Ltd., with Yudi Nanda as Director. Though separate business
entities then, both companies had two great strengths in common: the
dynamic Nanda brothers and the unifying force of the name they gave their
companies; Escorts, literally 'escorting' their products and services to the
customer

while

most

other

businessmen

were

just

selling.

Tragically, Mr. Yudi Nanda died in an accident in 1952 - but his spirit
remained embedded in the foundations of the company. Mr. H P Nanda then
took on the mantle to realise the dreams which he had always seen with his
brother.
Escorts (Agents) Ltd., and Escorts (Agriculture and Machines) Ltd. merged
in 1953 to create a single entity -Escorts Agents Pvt Ltd. Having initially
started with a franchise for Westinghouse domestic appliances, by this
time the Company had already expanded its marketing and service
operations, representing internationally known German and American
organisations such as MAN, AEG, Haniel & Leug, Knorr Bremse, MIAG and
BMA for sophisticated electrical and mechanical engineering equipment
and

Minneapolis

Moline

and

Wisconsin

for

agricultural

tractors,

implements and engines. Escorts made a major thrust into the agricultural
arena by taking on the marketing and service franchise for Massey
Ferguson tractors in Northern India, which soon comprised 75% of MF's allIndia sales - a signal tribute to Escorts' inherent strengths. Its first
industrial venture came up in 1954, in partnership with Goetzewerke of
Germany for the manufacture of piston rings and cylinder liners - followed
by production of pistons in collaboration with MAHLE, also of Germany, in
1960. The company's incorporation in its present name, Escorts Limited,
was effected on 18th January, 1960. Escorts' next major industrial activity
was the assembly of tractors in 1961 in technical cooperation with URSUS
of Poland. Subsequently this led to the manufacture of the country's first
indigenous tractors under Escorts' own brand name, which were to play a
pivotal role in the Green Revolution. This went on to lay the foundations
that even today are the Company's core strengths -relevant, world-standard
technology through strategic international alliances; a broadbased
marketing and service network yet unrivalled; powerful symbiotic
relationships with suppliers and dealers; and above all, the crusade to
make

difference.

Beyond the growth of the organisation, these principles have ensured that
Mr. H. P. Nanda's contribution to the cause of industry and the consumer
will endure. He pioneered the revolutionary concept of 'interdependence'
between

ancillary

and

large

industries,

institutionalising

vendor

development and in the process building Faridabad and the entire belt of
townships in the region. He introduced the discipline of service going
before marketing, reassuring the customer that Escorts would stay with
them, that they were here for the long run. He built lasting alliances with an
array of the world's most respected names in tractors, industrial
equipment,

two-wheelers,

construction

equipment

and

telecommunications. Going further, he created institutions devoted to value

engineering and training, not only as investments in the company's future
but also as catalysts for the enhancement of Indian industry as a whole the
Escorts

R&D

Centre

and

the

unique

Escorts

Institute

of

Farm

Mechanisation. His concern extended to the society in which he worked,

and he manifested it by establishing the Escorts Medical Centre at
Faridabad, Escorts Heart Institute and Research Centre at New Delhi, as
well as numerous village development programmes. And above all, he
imbued the corporation with his own pioneering, entrepreneurial spirit,
instilling

both

conscience

and

vision

of

leadership.

Escorts is testimony to the valour, vision and values of its Founder Mr. H P
Nanda. He remains the inspiration for our courage, spirit of adventure and
ability to Think Big. These qualities are his enduring legacy and have
inspired and encouraged us down the decades and will continue doing so
in all our endeavors.

The History Of Escort

The genesis of Escorts goes back to 1944 when two brothers, Mr. H. P.
Nanda and Mr. Yudi Nanda, launched a small agency house, Escorts Agents
Ltd. in Lahore. Over the years, Escorts has surged ahead and evolved into
one of India's largest conglomerates. In this journey of six decades,
Escorts has had the privilege of being associated with some of the world
leaders in the engineering manufacturing space like Minneapolis Moline,
Massey Ferguson, Goetze, Mahle, URSUS, CEKOP, Ford Motor Company, J
C Bamford Excavators, Yamaha, Claas, Carraro, Lucky Goldstar, First
Pacific Company, Hughes Communications, Jeumont Schneider, Dynapac .
These valued relationships be it technological or marketing, are our highly
cherished experiences treasures, which have helped us inculcate best in
class manufacturing practices and to emerge as a technologically
independent world class engineering organization.
1944 - Launch of Escorts (Agents) Ltd.
1948 - Pioneered farm mechanization in the country by launching Escorts
Agricultural Machines Limited, with a franchise from the U.S. based
Minneapolis Moline, for marketing tractors, implements, engines & other
farm equipment. Launch of Escorts (Agriculture and Machines) Ltd.
1949 - Franchise of Massey Ferguson tractors for northern India
1951 - Escorts established Indias first private Institute of Farm
Mechanisation at Delhi.

1953 -Escorts (Agents) Ltd. and Escorts (Agriculture and Machines) Ltd.

merged to form Escorts Agents Pvt. Ltd.

1954 - 1st industrial venture of Escorts to manufacture piston rings in
collaboration with Goetze of Germany, in an era when joint ventures of
Indian firms with foreign companies were virtually unheard of.
1958 - Started importing Massey Ferguson tractors from Yugoslavia for
marketing the same in India.
1959 - Collaboration with Mahle of Germany to manufacture pistons. Soon,
Escorts became the largest producer of piston assemblies in India.
1960 - Set up of Escorts Limited
1961- Setting up of manufacturing base at Faridabad for manufacture of
tractors in collaboration with URSUS of Poland and 50% indigenous
components. Launch of Escort brand of tractors. Collaboration with
CEKOP of Poland for manufacture of motorcycles and scooters. Escorts
moves into high gear by nurturing the two wheeler culture. The first
Rajdoot motorcycle rolls off the assembly line.
1969 - Escorts Tractors Limited was born. A technical and financial joint
venture with the global giant Ford Motor Company, USA, to manufacture
Ford tractors in India. The years ahead saw Escorts grow as the largest
tractor manufacturer in India.
Escorts Institute of Farm Mechanisation (EIFM) established at Bangalore.
Escorts Employees Ancillaries Ltd. (EEAL), a unique venture in industrial
democracy comes into being.
1971 - 1st February, the first tractor FORD 3000 rolled out of the factory.

Escorts Diversifies And Starts Manufacturing Construction

Equipment

1974

- Crossing national boundaries, Escorts exports for the first time. After

winning a global tender, 400 tractors were exported to Afghanistan, which

was perhaps the world's largest ever airlift of tractors.
1976

- FORD 3600, an advancement in Farm Mechanisation launched. Trial

production of in-plant manufacturing of engine parts (Block & Head).

1977

- Escorts enters the world of self-developed technology by setting up

its first independent R&D Center. Escorts Scientific Research Centre

marked its beginning at Faridabad by developing its own Engines for E-27
and E-37. Due to constant technology absorption, indigenisation level
touched 72% for FORD tractors. 2nd plant at Bangalore for manufacturing
piston assemblies was set up.
1979

- Collaboration with JCB Excavators Ltd., UK for manufacture of

excavators.
1980

- Foray into healthcare, Escorts Hospital and Research Center set up

in Faridabad.
1983

- Escorts Tractors Limited (ETL) established a state-of-the-art research

and development centre to spearhead newer breakthroughs in Farm

Mechanisation and to maintain industry leadership. Line concept
introduced for engine block machining. 11,000 ton floating dry-dock
Escorts I launched.

1984

- JV Escorts - Yamaha to manufacture motorcycles

1984

- Signing of agreement with the Japanese bike giant Yamaha to

manufacture motorcycles with Yamaha technology. Collaboration with

Jeumont Schneider of France to manufacture EPABX systems

Collaboration with Dynapac of Sweden to manufacture vibratory road
compactors
1985

- Escorts Tractors Limited (ETL) offered its first Bonus Issue (1:1).

1988

- Escorts Heart Institute and Research Centre (EHIRC), a world class

cardiac care facility launched in New Delhi.

1989

- Joint Venture with Claas of Germany to manufacture harvester

combines.
1990-91

- First Public Issue in February 1991, over-subscribed four times.

Shares listed on Delhi and Bombay Stock Exchanges.

1993

- FORD 3620 tractor launched.

1996

- Disengagement of joint venture collaboration with New Holland and

launch of FARMTRAC Tractor.

1997

- Joint Venture with Carraro of Italy for manufacturing and marketing

of transmission and axles.

Joint Venture with First Pacific Company of Hong Kong - Escotel Mobile
Communications.
1998

- POWERTRAC series of tractors launched.

MoU was signed with Long Manufacturing Company, USA for setting up a

Joint Venture in USA.

1999

- MoU for Joint Venture with a Polish Company POL-MOT was signed

for assembly, manufacturing and marketing of Farm Machinery.

2004

- Divested Escotel Mobile Telecommunications to Idea Cellular

TS16949 certification for Agri Machinery Group.

2005

Divested Escorts Heart Institute and Research Centre (EHIRC) to

Fortis Healthcare.
2006

- Divested in Carraro India Ltd.

Set up new manufacturing facility in Rudrapur for manufacture of new

range of railway.

Mr. Rajan Nanda

Chairman
An alumnus of Doon School, Dehradun, Mr. Rajan Nanda
took over as Chairman of Escorts Group in the year 1994.
That was the time when the Indian economy had begun to
burgeon as a result of liberalization. The task before him
was to prepare Escorts Group for the emerging competitive,
globalised business environment and steer it to greater heights. Displaying
vision and leadership qualities, Mr. Nanda undertook a major restructuring
programme to give sharper focus to the Group's businesses. Under his
stewardship the Escorts Group today is moving ahead in the high growth
areas of agri machinery, construction equipment, railway equipment and
auto components.
Mr. Nanda is an active member of several apex trade and industry bodies.
As member of the CII National Council he has served as Chairman of its
Agriculture Committee in the past years. He played a pivotal role in
promoting the cause of Indian agriculture and his endeavours resulted in
the Government announcing the long-awaited National Agriculture policy.

Mr. Nikhil Nanda

Joint Managing Director
Mr. Nikhil Nanda is an alumnus of Wharton Business School, Philadelphia.
Having graduated in Business Administration in 1995, he majored in
Management and Marketing, before undergoing professional training with
JC Bamford Excavators Ltd., U.K.

He is a member on the Board of most Group companies since 1997 and has
the overall responsibility for managing the Group's agri, construction and
engineering businesses. Combining contemporary management
techniques with real life practical approach, Mr. Nikhil Nanda has been
responsible for driving the business growth initiatives of the Group to
strategically position it in the global arena.
Mr. Nanda is also among the five Indians selected as the Global Leaders of
Tomorrow for the year 2001 by the World Economic Forum, Geneva.

Mr. Rohtash Mal

Executive Director and Chief Executive Officer - Agri Machinery Group
An alumnus of Indian Institute of Management Calcutta and Indian Institute
of Technology - Delhi, Mr. Mal has over 27 years of rich and varied
experience. In his last assignment as the Chief Executive he was
responsible for the entire operations of Bharti Fieldfresh Ltd. Having
started his career with Ballarpur Industries Ltd., in his stint of 17 years he
went on to become the Vice President (Sales & Marketing) of its paper
division. Later at Maruti Udyog Ltd. as its Chief General Manager (Sales &
Marketing) for 3 years, he was highly successful in sales and marketing of
its passenger cars. In addition, spread over 6 years and three assignments,
Mr. Mal had been with Bharti Airtel Ltd. in its mobility and broadband /
telecom services business verticals as the Chief Executive.
With rich experience in successfully driving business growth in sectors
like paper, automobiles, telecom and retail, Mr. Mal is now driving Escorts
to significantly improve its competitive advantage and attain an even
dominant position in the Agri Machinery sector.

Mr. K.S. Havaldar

Business Head - Engineering Division
An Engineer by profession, he has over 37 years experience. He is
responsible for driving the Engineering Division business which includes
Railway Equipment and Auto Components businesses. Earlier as Head of
the Railway Equipment business, he had successfully achieved the turned
around that business. He has already expanded this line of business by
Starting of a new plant in Rudrapur, in the State of Uttra Khand is part of
his ambitious expansion plans for the business.
Mr. Kamal Bali
CEO Escorts Construction Equipment Limited (ECEL)
A mechanical engineer from IIT Roorkee, Mr. Bali has over 25 years' of
experience. Having started his career with Eicher Limited, till recently he
was the Managing Director and CEO of the Italian tractor manufacturing
company Same Deutz-Fahr, India. Mr. Bali has also been associated with
the Escorts Group earlier and was looking after all India sales for the Agri
Machinery Group. With his strong business orientation and leadership
capabilities Mr. Kamal Bali is spearheading ECEL to that of a dominant
player in the Construction Equipment segment at a time when the
infrastructure Industry is witnessing spiraling growth.

Mr. G.B. Mathur

Vice President - Law & Company Secretary
Has considerable experience in Secretarial and Legal matters. Having
joined Escorts in 1993, Mr. Mathur is responsible for all Company law
related matters and is also the custodian of the shareholder related
matters. Prior to joining Escorts he was the Company Secretary at Chambal
Fertilizers & Chemicals Ltd.

Mr. Rakesh Kumar Budhiraja

Group Chief Financial Officer
A Chartered Accountant by profession and also an LLB, MBA (Finance) and
a Company Secretary. Has over of 27 years of rich and varied experience in
all facets of Finance, strategic planning, Restructuring of Businesses,
Treasury Management, and Secretarial functions. Prior to joining Escorts,
he worked for more than 5years as Vice President (Finance) with JK Tyres
& Industries Ltd. Earlier he was Chief Financial Officer & Company
Secretary with Kajaria Ceramics Ltd. He has worked for tyre, ceramics,
fertilizer & Chemicals, textiles and export house companies during his
tenure of service.
As the Group CFO he aims to substantially improve the economic
performance, shareholder value and enhance financial discipline within the
organization & bring high standards of Business focus.

Chairman Message

Dear Shareholder,
The Indian economy during the year has grown in all
sectors and there has been a supporting growth in
consumption that has given the country a GDP
growth of 8% in real terms. Ironically however, the
farm sector was confronted with many adversities that have
reduced its growth to mere 3% and was expected to decline
further.
Whilst the country had a normal monsoon and harvested a good
standing crop, the support price given by the Government to the
farmers was unattractive in fact it was lower than the cost at
which India was proposing to import wheat. This has upset the
agriculture market very extensively. The lapse of this crop income
limited the farmers from raising fresh loans for buying equipment
and for some farmers they had to repay old loans. There has been
higher NPA from farm loans and hence lower lending by banks.
The above vicious cycle is proposed to be corrected a year later
in the next wheat crop to be harvested in March-April 08. The
Food and Agriculture Ministry has already fixed the support price
and the standing crop is assessed to be good. The farmers cash
flow will thus become positive and business will begin to grow
again.

FUTURE PLANS

PROPER DIVERSIFICATION INTO NEWER MARKET.

OPTIMUM UTILISATION OF RESOURCES.

ENHANCED CORE SECTOR INVESTMENT.

POWER ALLIENCE.

GLOBAL TRUST.

COMPUTATION OF ALL OFFICES AND MARKETING

ESTABLISHING.

GROUP SALES TO CROSS 5000 CRORES BY 2005 AD.

INFRASTRUCTURAL RENEWAL.

REENGINEERING PLANTS PRODUCTION AND SUPPORT

SYSTEM FACILITIES.

SYNERGIC EFFORT TO DEVELOP HUMAN RESOURCE AND

MAKE IT MORE DYNAMIC.

Industry Profile
INDIAN TRACTOR INDUSTRY : INTRODUCTION
India is predominantly an agricultural country 70% of the population lives
in villages and villages depend upon agriculture for their bread and butter.
Since Indian valley civilization, agriculture is the main source of income but
at that time the agriculture was manual work. Before independence Indian
agriculture was in very bad situation. But since 1947, when Indian became
independent, the farmers also became independent. They had seen many
ups and downs in their income. After independent in five-years plans, first
priority was assigned to agriculture government tried best to improve the
industry but a systematic planned approach for development started in
1950, since then irrigation was recognized as key factor for agriculture.
Education and research were also taken as a major initiative.
All these developments made mechanization mandatory for agriculture and
imports of tractors began. Acceptance of mechanization was slow, in fiftys
the use of tractor was very low. Green Revolution was the result of tractor
was barely 10000 in 1970. The industry was producing around 25000 to
30000 tractors. Today, India is the largest tractor market estimating 2185000
tractors per annum with the annual growth of 12.3. Today the tractor
industry is of about 5000 crores.
With the 12% of arable land, today India has 4.7% of the worlds tractor.
India splits tractors largely into four categories i.e 20-30hp, 31-40hp, 4150hp, 51 & above. 21-30hp and 31-40hp ranges together are nearly 76%.

SEGMENT OF TRACTORS ACCORDING TO HP WISE

Tractor Range
20-30 HP
31-40 HP
41-50 HP
50 & above

1965-97
24%
51%
19%
6%

1997-2000
22%
50%
20%
8%

2000-2003
17%
54%
22%
7%

2003-2008
10%
55%
25%
10%

Demand for big up segment is increasing as per the table shown. In the
budget of 1995-96, the central government has given subsidy of Rs. 30000
per tractor. The subsidy was for the user of low up segment tractors (for
small farmers). The government wants to increase the usage of tractor for
higher agriculture production. In the budget of year 1998-99, the finance
minister Mr. Yashwant Sinha has levied 8% excise duty on the imports. This
was to save the Indian tractor industry form the slow down of economy and
the East Asian Crises. According to economic survey of 1997-98 the
production of agriculture has dropped by 205%. Until 1993-94 small tractor
(below 25hp) were exempted for the excise in bid to encourage small
farmers. Because in India, almost 65% farmers has less than 4 acres of
arable land.
According to business, due to the Mahindra & Mahindra and Swaraj
tractors would be benefited about Rs. 10000 to Rs. 12000 per tractor as
compared to others, which imports parts from abroad. The compound
average growth rate during last six years has been arpond 15%. The level
of tractorization is high in Punjab & Haryana at arpond 95&74 per thousand
hectares respectively. The tractor demand is driven by agriculture
Products, Interest Rates, Total Agriculture Credit, Total Irrigation Facilities
and Crop Pattern. Among them, credit is strongly correlated sale. Nearly
80% of the tractors sale is through credit.

Financial Pattern:
As stated above that 80% of the tractor is financed through credit rates
essentially through commercial banks, regional banks, regional banks,
rural banks and state level land development banks. The credit worthiness
of the farmer is ascertained to have minimum holding of 6 areas of
cultivated land to be eligible for loan. However bank can provide on smaller
landholding subject to farmer establishing his credit worthiness. The credit
inflow since financial year 1996 is increasing support from NSBARD. This
has already allocated 2000 crores from current year.

HISTORICAL BACKGROUND:
Indian agricultural in the fifties allowed age bound tradition and was
considered backward. The country did not produce enough food grain to
feed its 36 crores population and famines were recurrent features. Import
of food grains became necessary to meet the short fall in domestic
production, there by causing a drain on scare foreign exchange resources.
It therefore became imperative to high priority to the development of
agriculture.

ESCORTS MISSIONS
FOR AN ENTERPRISE BUSINESS
MISSION EMBODIES THE
SPIRIT OF ITS
ENDEAVOUR ACTS A GUIDING
LIGHT FOR CONSTANT DEVELOPMENT AND GROWTH.
THE MISSION OF ESCORTS IN
ENGINEERING CHANGE WITH CONTINUOUS IMPROVEMENT
ENGINEERING CHANGE THROUGH
CORE COMPETENCY FOR
GREATER SYNERGY REINFORCING
BONDS WITH CUSTOMERS
AND ESTABLISHING POWER
SYMBIOTIC RELATIONSHIP WITH
INTERNATIONAL ALLIES,
PREPARING GLOBAL MARKET.
IT WANTED TO MAKE
A LASTING DIFFERENCE,
TO ITS SHAREHOLDER,
ITS CUSTOMERS,
BUSINESS ASSOCIATES,
ITS EMPLOYEES AND COUNTRY
ON A WHOLE.

THE ESCORTS SYMBOL

The Escorts symbol means than a seen by the eye. It has been prepared with
certain objective in mind and is symbolic in more then one way.

The philosophy behind Escorts and the E in the Escorts is Enterprise. The
Hexagon is s symbol of productivity, precision when interposed as a nut. It
symbolizes

craftsmanship,

and

mending

productivity.

The

sprains

superimposed on the Hexagon represent the workers and the people of the
Escorts. This forms the letter E the first of Escorts a company even on the
more changing unveiling the future.

QUALITY POLICY
We shall strive to continuously
Improve to meet the ever rising
Expectations of our customers
At the lowest cost.
Each one of us must fulfill the
Need of our customers, both
Internal and external, with the
Highest degree of commitment,
Thereby creating a quality
Organization geared to ensure
Total customer satisfaction and
The sustained health and
Prosperity of our business.

QUALITY OBJECTIVES
Escorts Limited Construction Equipment Quality Objectives are derived for
the quality policy and are intended to provide quality direction to employees in
the day to day operation of the plant.
The quality objectives are applicable to Construction Equipment is approved by
Plant Head. The approved quality objectives are below:

Escorts Limited- Construction Equipment Quality Objectives are derived

from the Quality policy and are intended to provide Quality Director to
Employees in the day to day operations of the company.

We will attempt to give our Customers the best value for their money by
supplying products to match customer specifications / needs.

We will attempt full customer satisfaction by monitoring customer

perceptions and brand image of our product through market surveys and
periodic direct customer contact in the market place.

We will pursue continuing improvement in Product Quality and

Productivity by suitable indicators to measure the trends of improvement
resulting from our efforts.

We will strive to ensure full commitment and conformance to the Escorts

Limited Construction Equipment Quality Management System in all
areas of work and take prompt corrective action on any problem that may
occur.

We will work together as a team across departments and organizational

levels using Task Forces to develop a common focus and greater
effectiveness in solving problems.

Specific Corporate and Departmental Objectives form a particular year

will be derived from the above used to monitor and control company
operations.

Best value for money, customer satisfaction, continued improvement in product

quality, productivity conformance to quality management system in each area of
work, prompt corrective action and team building are the major focus areas of
quality objective of Construction Equipment.

ISO 9001

The international organizational organization for standardization (ISO) is a

specialized international agency for standardization, presently comprising the
national standard bodies of 91 countries including India.

The objective of ISO is a promote development of standardization with a view to

facilitate international exchange of goods, services and also develop a
cooperation in the sphere of intellectual scientific, technological and economic
activities.

The Escorts Tractors Ltd enjoys a formidable reputation in the market solely
because of its unrivaled quality. It is because of the companys entirely
uncompromising commitment to quality improvement and maintenance that in
the course of the year it became the first tractor company in the country to
receive the highly coveted and prestigious ISO-9001 certification under the
revised rules of 1994.

PROBLEM DEFINITION MEANING

Employees who is not available for duty is counted as absent from
duty. If he is on sanctioned leave it will be counted as Authorized
Absenteeism. In case he is not available to work without any or
pre-sanction it would be counted Unauthorized Absenteeism.
Different authorities have, variously defined absenteeism.
According to Labour Bureau, Simla Absenteeism is the total
man shifts lost because of absences as an percentage if the total
number of man shifts schedule to work. In other words, it
signifies the absence of an employee from work when he
scheduled to be at work; it is unauthorized, unexplained,
avoidable and willful absence from work.

Thus,
Number of man-daysabsent

*100

Absenteeism= Man days on available for the purpose of one

period
For calculating the rate of absenteeism, two facts are taken into
consideration-The number of persons scheduled to work and the
number actually present.

Absenteeism=Number of persons days lost *100

(avg. no of the person)*(no of work days)

An employee is considered scheduled to work when the
employer has work available and the employee is aware of it and
when the employer has no reason to expect, well in advance, that
the employee will not be available for work at the specialize time.
Any employee may stay away from work if he has taken leave, to
which he is entitled, or on the ground of sickness or some
accident, or without any previous sanction of leave. Thus absence
may be authorized or unauthorized, willful or caused by
circumstances beyond ones control.
The absenteeism problem is two folded. Firstly, there is
distinct loss to workers because the irregularity in attendance
reduces their income when no work, no pay is the general rule.
The loss of the employer is still greater as both discipline and
deficiency suffers.
Secondly either an additional employment has to be met
throughout the year to meet5 this emergency or the industry has
to depend solely on workers who present themselves at the gate
and who are not generally to the mark. This maximizes varopi8s
factors like:
1

Wastage of raw materials

Loss of man hours

Loss of man days

The maintenance of an extra complement if a worker leads

to serious complications and evils.

Absenteeism is a serious problem for the management because it

involves heavy additional expenses, reserves and understudies
are kept in readiness to take the place of the absentees, falling
which the overhead cost of idle equipment has to be faced.
Industrial employees do not usually ask for leave of absence in
advance or even give notice during their absence as to how long
they would be away. The management is generally uncertain
about the probable durations of an employees absence and
cannot take appropriate measures to fill the gap.

ABSENTEEISM IN ESCORTS
Absenteeism is the failure to report to work.
1. Its obviously difficult for an organization to operate
smoothly and to attain its objectives if employees fail to report
their jobs. The workflow is disrupted, and often-important
decisions are delayed. The organizations (like our ESCORTS) rely
heavily

upon

assembly

line

production

absenteeism

is

considerably more than a disruption; it can result in:1

A drastic reduction in quality of output.

Sometimes can bring a complete shutdown of the production

facility.

2. Absenteeism has a direct impact on the organizations;1

Effectiveness

Efficiency

3. Although most absences have a negative impact on the

organization, we can conceive of situations in which the
organization may benefit by an employees voluntarily choosing
not to come to work in jobs in which an employees needs to be
alert .If the employee is ill or is under stress it better not to report
to work but should take rest.

Even in management jobs where mistake are less

spectacular, performance may be improved when managers
absent themselves from work rather than make a poor decision
under stress.
4. Absenteeism is one of the most widespread obstacles to
productivity,

profitability

and

competitiveness.

It

causes

overtimes late deliveries, dissatisfied customers and decline in

morale amongst workers who are expected to cover for absent
colleagues.
5. Well the production of the company in a way depends
upon the presence of the workers.
Absenteeism effects adversely in smooth production.
Though absenteeism is related to efforts to reduce absenteeism,
in a planned manner.
6. It is not unusual for managers to find themselves
shutting down lines, scaling back services, or scheduling
weakened work because they struggle to fill positions left open
by absent employees. Employees absence usually fall in one or
more:1

Predictable

Unpredictable

Schedule

Unscheduled

Controlled

Uncontrollable

We can cover the absences in the following ways:1.

Use a shift schedule system that allows employees sufficient

scheduled time off. This allows them to deal with personal needs
such as doctors appointment, meetings and reduces problems
associated with many uncontrollable sources of absences.
2.

Provided incentives to the workforce to use their vacation time

when the workload is low. e.g give employees an extra day of

vacation for every week of vacation taken during your low
production season. From a financial Perspective, there are many
situations where this is the best way to cover vacation.
3.

Staff your operation above the minimum requirements. When

absence occurs, the openings are automatically filled with the

extra personnel on shift. Disadvantage is that these extra
personnel may be idle during seasons when absenteeism is low.
4.

Use overtime to cover vacancies as they occur .While this is a

very good use of overtime, it works best in an environment that

does not experience large fluctuations in workload from week to
week. In theses organization overtime is a scare resource that
can be easily absurd resulting in fatigue lower productivity and
increased costs.

5.

Cross training between work areas so that personnel from

one department can be used in other department if there is a

crisis. This is a good business practice as long the cost for cross
is not excessive.

6.

Use temporary personnel

In company that have some positions requiring little

training to perform; this can be the least expensive source of

absence coverage. The works best when full time employees
cover all full time positions. Some of the full time employees
must have the ability to Step-up to the next job if needed. When
an absence occurs, it is covered by a trained person in the next
lower position- Creating a chain of setups until the actual
vacancy is at the lowliest skill level position .A temporary
employee can then covers the vacancy.
7.

Reschedule work to be performed when resources are

available .This strategy usually requires the operation to carry

additional product inventory to smooth variations in production
capacity and product demand.
8.

Smooth out the variability of controllable absences using

predetermined limits. This places some of the burden on the

workforce to spread out their absences and is is easier to cover
absences with fewer resources.

MAGNITUDE OF ABSENTEEISM
It is observed that the phenomenon of absenteeism does not
exist only in Indian industry, it is a universal fact. The difference
is only in terms of magnitude. The rate of absenteeism varies
from 7% to nearly 30%. In some occupations. it has risen to
abnormal level of 40%.The extant of absenteeism may differ from
industry to industry, place to place and occupation to occupation.
It may also differ according to the make-up of the workforce
.Absenteeism may be extensive in a particular department of an
industry or a concern.

Absenteeism in Indian industry is not a new phenomenon. The

royal commission on labour reported. high absenteeism prevails
among industrial labour mainly due to their rural orientation.
Absenteeism means practice of being absent from the duty by
the employees. It disturbs the smooth functioning of the
company and effects on production/productivity of the plant.
The problem of absenteeism is being given a serious view and a
comprehensive study on absenteeism of the plant was carried
out in 1997.From the analysis and study the following facts
revealed that plant absenteeism is being affected by following
types of absenteeism:
1

Authorized leaves

Unauthorized leaves

Compensatory leaves

REASONS FOR ABSENTEEISM

Absenteeism is due to lack of Commitment on the part of the
work force. The worker in the process of the early stages of
industrialization is more prone to absenteeism, prolonged and
sporadic withdrawal from the industrial work, wildcat stoppages,
naked violence and destruction of machines and property.
Absenteeism is due to the factors that influence workers
commitment.
According to Hone Absenteeism is related to new values &
norms which are developing among the workforce as a result of
technological developments. Work and leisure are now cherished
by worker and these he want to enjoy along with the monetary
benefits he gets for his service. The economic considerations,
therefore, decides whether one would like to be absent from
work.
The attitude and practice of the management also contribute to
absenteeism. A traditional management treats workers as
hirelings, while an enlighten management treats them as human
beings. This difference in behavior leads in the former situation
to high absenteeism & in the latter situation to a close affinity
with the organization, the result being lower absenteeism.

The general causes of

absenteeism may be:BETTER QUALIFICATION
A worker who is educated has done 10 th or 12th or ITI generally
remain absent because they can use their education in some
other work also. If they are having some technical knowledge
also then they after being permanent in the company either starts
working somewhere else or they start the business of their own.
Whereas the workers who are uneducated are more regular in
their work as there is no other way opened for them except to
work here for his earnings?

INDEBTEDNESS
Most of the workers suffer from a high degree of indebtedness.
Workers are always worried about financial matter.

MALADJUSTMENT WITH FACTORY CONDITIONS

Workers usually with rural background finds himself caught
within great factory walls, he is bewildered by heavy traffic, by
jostling, by strangers speaking different languages and he is
weary of the misery of slums & of failing for long hours .He is
subject, to strict discipline. He is under constant strain.
Sick & old type remains absent from work by reason of ill health,
weak constitution, chronic disease or old age. The family oriented
become chronic absentees because of their over identification &
family affairs. The lack of balance between family involvement &
job is another cause of their deviant work behavior.

UNSATISFACTORY HOUSING CONDITIONS

The workers who come to towns usually find they not wanted &
they swell the number of unemployed & casual worker. They
experience housing difficulties. Not less than 95% of the houses
occupied by industrial workers in India are unsatisfactory for
healthful habitations. Health conditions are naturally bad, leading
to high morbidity and consequent ill health. They, therefore, make
frequent visits to their village home to get relief from such
unsanitary and unhealthy surroundings.

INDUSTRIAL FATIGUE
Low wages compel a worker to seek some part time job to earn
some side income. But this often results in constant fatigue,
which compels him to remains absent form the next day and if
fatigue affects him seriously, him absence may continue for quite
some time.

ABSENCE OF ADEQUATE WELFARE FACILITIES

Absenteeism is also due to inadequate welfare facilities available
to workers for a vast majority of industrialist in India still look
upon welfare work as a barren liability than a wise investment.

IMPROPER AND UNREALISTIC PERSONNEL POLICIES

In most cases unskilled, untrained, illiterate and inexperienced
are recruited who fail to cope with and adopt themselves to their
jobs and to their industrial environment.Favourism and nepotism
are rampant.

REASONS FOR ABSENTEEISM

Absenteeism is due to lack of commitment on the part of the
work force .The worker in the process of the early stages of
industrialization is more prone to absenteeism , prolonged and
sporadic withdrawal from the industrial work, wildcat stoppage,
naked violence and destruction of machines and property.
Absenteeism is due to the factors that influence workers
commitment.
According to hone absenteeism is related to new values and
norms which are developing among the workforce as a result of
technological developments. Workers and this he wants to enjoy
along with the monetary benefits he gets for his services now
cherish work and leisure. The economic consideration, therefore
decides whether one would like to be absent from work.

The attitude and practice of the management also contribute to

absenteeism. A traditional management treat workers as hirelings
while an enlighten management treats them.
We can cover the absence in the following ways:1

Use a shift schedule system that allows employees sufficient

scheduled time off. This allows them to deal with personal
needs such as doctors appointment, meeting and reduce
problem associated with many uncontrollable source of
absences.

Provide incentives to the workforce to use their vacation time

when the workload is low e.g. give employee an extra day of

vacation for every week of vacation taken during your low

production season. From a financial perfective, there are many
situation where this is the best way to cover vacation.
3

Staff your operation above the minimum requirements. When

absences occur, the opening the automatically filled with the

extra personnel may be ideal during seasons when absenteeism
is low.
4

Use overtime to cover vacancies as they occur .While this is a

very good use of overtime, it works best in an environment that

does not experience large fluctuation in workload from week to
week .In these organization overtime is a scare resource that can
be easily absurd resulting in fatigue. Lower productivity and
increased costs.
5

Use temporary personnel in company that have some position

requiring little training to perform; this can be the least expensive

source of absenc3e coverage. This works best when full time
employees cover all full time positions. Some of the full time
employees must have the ability to step-up to the next job if
needed when an absence occurs. It is covered by a trained
person in the next lower position creating a chain of setups until
the actual vacancy is at the lowest skill level positions temporary
employees can than cover the vacancy.
6

Reschedule work to be performed when resources are

available .This strategy usually requires the operation to carry

additional and product demand.
7.

Smooth out the variability of controllable absence using

predetermined limits. This places some of the burden on the

workforce to spread out their absence and is easier to cover
absence with fever resources.

OBJECTIVES OF THE STUDY

The objective of the study undertaken by me at farmtrac Division
of Escorts Limited was:

ABSENTEEISM
1.

To find the various reasons of erratic absenteeism among

employees.

2.

To prepare a platform to look over the problem of the

employees.

3.

To find out ways in order to reduce if not able to completely

remove the problem of the employees.

SCOPE
The scope of the study was limited to the category of the workers
only because in management cadre absenteeism is almost nil as
people of this cadre are punctual in coming to the organization
and therefore conducting this study in this cadre would had been
useless. Absenteeism of workman is a matter of concern before
shop managers, as it effects adversely in smooth production.
Though Absenteeism is related to personal reason of workman,
but it becomes necessary on the part of the mgmt to put efforts to
reduce absenteeism in a planned manner .So I also talked to the
supervisors to know their suggestions for the management.

SPECIAL LEAVE
It is a leave granted under exceptional circumstances and is

1.

discretionary subject to joint approval by the Business Head

and Corporate HR Head OR approval by the Chairman.
It may not be with pay, allowances and benefits.

2.

SHORT LEAVE
A maximum of two short leaves in a month can he taken

1.

either
at the beginning or at the end of the shift or between 10.00 am
and 12.00 noons.
2.

Illness leaves will be dedicated to the casual leave account

3.

In case short leave applied is for the third time e in the month,
it will result in debiting half day CL. In case no CL is due these
leaves will result in leave without pay.

LEAVE-WITHOUT-PAY
Leave-without-pay is the leave applied and granted but not

1.
due

as per rules and/ or leaves balance of the employees.

2.

Miscomputation of leaves violating the combination rules will

also result in leaves-without-pay.

EXECUTIVE SUMMARY
The project conducted in Powertrac Division of ESCORTS was
aimed at finding out the position of absenteeism, the reason for it
to give suggestion to improve the condition.
For the purpose of collection of the information the mode of
communication of survey adopted was the collection of primary
data through personal interview of the workers.

Under 10 major heads or reasons of absenteeism a broad view of

the basic reasons of absenteeism was tried to be found out. The
ten reasons chosen were:
1

Lack of proper transportation

Habitual intoxication

Better qualification

Sickness self

Side business

Seasonal farming

Bad working condition

More involvement in social works

Difference with co-workers/senior

RESEARCH METHODOLOGY
THE SCOPE OF THE STUDY
The study will be conduct at HR Department ESCORTS. All the
employees working at AMG plant will considered under the scope
of the survey work.
THE SIZE OF THE REPRESENTATIVE SAMPLE:The size of the sample is 50.
THE METHOD OF SELECTING THE SAMPLE:Random sampling is the method used.
METHODS OF DATA COLLECTION:The data for the survey will be collected from primary as well as
secondary data source.
THE PRIMARY SOURCE OF DATA COLLECTION:1

By administering the questionnaire to manager.

By inter-views of manager.

THE SECONDARY SOURCE OF DATA COLLECTION:1

The policy towards employees.

Job satisfaction policies.

To meet through the objectives of the Project and to know the

very basic reason that lead to habitual absenteeism the method

adopted was structured and undisguised persons interview .The
interview

was

structured

because

the

main

reasons

of

absenteeism were already sorted out and along that line only I
wished to conduct the interview. It was undisguised so as to

extract the best possible behavior from the respondent .This

feature was mainly incorporated to land some sort of flexibility to
the questionnaire. The list contained 60 workers. Before going for
the interview process a study was made about rate of
absenteeism in Powertrac division of ESCORTS of past 5 years
and the reasons for it were tried to be found out. Out of various
reasons 9 basic and important reasons were selected out on
which the interview was based.
Before calling the workers for the interview their past history
of absenteeism was studied, the reasons given by them for
absence, discipline, disciplinary action taken against them.
I personally went to the heads of various departments and
requested them to send the concerned workers. The workers
were called in the personnel Department and interviewed. While
talking to the workers care was taken to make them feel
comfortable and to create a friendly environment so that the talk
could be a friendly one .When I first contacted the people they
were suspicious but once they were told that I am not from the
management and was doing this study as an independent person
they became very open and helpful. They were told the purpose
of study that it was for academic purpose and was for the benefit
also for if the report is read by management they may get a
chance to peep into the root necessary steps may be taken to
improve the condition.
The sample size taken was 50.
After the interview an exhaustive study was done observation and
suggestions thereby made finally led to the completion of the
project.

PRIMARY DATA
Excessive absenteeism means the workers who have more than
25% of leaves without pay in a year. i.e in a year they have taken
more than 90 days of leaves without pay.
This habitual absence is generally defined in the standing
orders. According to standing order Habitual means an act of
omission or commission which is repeated three times within a
period of 12 months .The word habitual absence do not mean a
number of times absence spread over a reasonable period.
According to the rules company an employee can be sanctioned
without pay leave only unto a maximum of 30 days during a
calendar year.
In spite of the many measures taken like
--Home inquiries
--Warnings by the management
The problem has not been really taken care of but it does not
mean that the powertrac division management has been able to
do anything thy have been able to reduce the quantity.
Below is the data given:In 2003 the problem was with 87 workers. The mgt decide to
curtail the problem with counseling and monitoring followed by
home inquiries and warnings. The mgt was able to reduce it to
quite an extent.

In 2007 the problem was 74 employees which was further to 60 in

2008 the list of 2005 contains only 60 such workers which were
the target of study.
TARGET: 60 people
PERSON INTERVIEWED: 50 People
SAMPLING TECHNIQUE:
STAGE1-Choosing the employees for interview
SAMPLE TYPE: Stratified and random
STAGE11-Calling for interview
Sample type-Random/Convenience
Reasons taken for study11
DOMESTIC PROBLEM
-Sickness self
- Lack of proper transportation
-Habitual omtpxocation
-Any side business
-Seasonal farming
-Involvement in social activities
-Involvement in politics
-Fatigue
-Loan
JOB RELATED PROBLEMS
-Bad working conditions
-Difference with superior

LEAVES AND ARRENDANCES

GENERAL RULES:1. There are three of leaves which are given in a calendar year:
Earned leave
Casual leave
Sick leave
2. More than one type of leave cannot be combined in one day.
3. Employee joining during the course of the year can avail CL
and SL Pro-rata basis. EL accrues only in January of the next
year to the extent of prorate calculation of number of ELs in the
year of joining.
4.

Application an ailment of any leave more than due will result

in leave without-pay.
5.

Leave entitlement extent of accumulation and encashment for

m2 and above is as follows.

SICK LEAVE:
1.

A medical certificate issued by a registered doctor must

support application of sick leave for more than 2 day.

2.

Sick leave is credited to the employees leave account at the

beginning of the year.

EARNED LEAVE:1.

ELS can be availed subject to a minimum of three days at a

time and can be availed up to a maximum of three times in a year.

2.

EL can be taken for less than three days if SL & CL have

exhausted.
3.

For any period when you are on leave without pay, leave is not

earned, and hence proportionate education in the number of ELs

to be credited will be made.

4.

Minimum of 10 days has to he availed by an employee every

year, otherwise the same shall lapse at the end of the year.

5.

EL is credited at the beginning of the FOLLOWING year, Once

the accumulated EL in a clean day year will be restricted to 20

days in case the 10 days is not actually availed in that calendar
year.

6.

For encashment of EL, only basic salary and special

allowance
is taken into account. The amount is taxable as per rules.
ADVANCE EARNEAD LEAVES:1. Advance earned leave is granted in the following contingencies,
if sufficient number of ELS is not there in the leave balance of the
employees.
A. Hospitalization or death of any member in the family.
B. Accident leading to immobilization of sell
C. Riots, curfew, natural calamity: flood, fire, earthquake etc,
D. Marriage of self/daughter/son
2. Maximum advance EL sanctioned cannot be more than the
leave computed till the date of application for advance EL.
3. Request for advance EL must be supported with proof
justification and cannot be made more than once in an year.

4. Habitual absentees are not entitled for advance EL.

STUDY LEAVE:1. All confirmed employees below 50 years of age, who have
completed three years of regular service, are eligible.
2. Leave is granted up to a maximum of twelve months in the
entire service of the employees. It can be divided at the most
into two occasions subject to the maximum limit.
3. Leave is without pay, allowances and benefits. It can however,
be prefixed by earned leave lying to the credit of the employees.
4. Request for leave should be submitted to division department
head along with admission notification and other details of the
course to the pursued.
5. Sanctions of leave are discretionary. Leave will be allowed only
for professional courses beneficial to the company.
LONG SICKNESS LEAVE:1. Subject to SL and EL standing to the credit6 of the employee
being exhausted, management may, at its sole discretion, grant
this leave up to a maximum of 90 days in the event of long
sickness/hospital.
2. The leave is with pay, allowances and benefits.
Thus the personnel department manages the human in the
organization and creates the harmonious working relationships
among the employees and brings about their utmost individual
development.

OBSERVATION
1

It was observed that the rate of absenteeism was quite high in

case of workmen who have come from rural areas they have
agricultural land at their native places and have to go to look after
the cultivation, particularly in harvesting season. Many of such
workers come from joint families giving o there property. Such
workman often visit their native places to attend various types of
ceremonies an d work of their joint families.
2

The second category of the workmen, who often remain from

duty, is of those persons who take up industrial employment to

uphold their dignity in the society from which they hail.
3

The third category is of such ski9lled workman who can earn

more in a day by doing a outside the establishment then getting

one day wages by attending their duties in the establishment.
These workmen area generally those people are having a better
qualification and have some technical skills due to which they get
the job easily outside the premises.
4

The fourth category involves those workmen who are trade

union leaders or social workers their time there due to which they
remain absent from their duty.
5

As April is the season of marriages so large no of marriages

occur in this month and employees go on leaves to attend these

ceremonies.
6

Further the employees still have strong bonds of attachment

with their villages and they avail leaves during harvesting
season.

The rate of absenteeism is the lowest on the payday. It

increase considerably on the days following the wages and

bonus, when workers either feels like having a good time or in
some cases return home to their villages to make purchases for
the family.
8

The incident of absenteeism booth before and after a holiday,

has found to be higher than that on normal days.

9

The percentage of absenteeism is generally higher in the night

shifts than in the day shifts.

10 Another major reason for absenteeism was the side business,
which many of the workers were having. Though only few
accepted this directly but many others accepted it by pointing
indirectly.
11 Further the employees remained absent because of their habit
of intoxication, some of the workers agreed of their being
involved in bad habit of intoxication., They drink at night, which
causes them to sleep late in morning and thus keeping them
away from work.
12 One case was very peculiar in which both father and son were
working i9n powertrac division of ESCORTS and both were
habitual absentees main reason being that they both were
involved in drinking habit and nei9ther of them was sorry for their
attitude.
13 Yet another reason was bad working conditions like high
temperature inside, lack of proper ventilation, etc.

14 Availability of compensatory leave facility was rather misused.

Workers work day to night at a stretch for a week or two and then
avail the facility of compensatory leave.
15 Out of the sample interviewed hardly any worker was really
worried about being absent. They take it very casually. Many
workers said that they were absent just for fun, in their words.
1.

It was observed that sickness of the family or self were the

most common excuses. Other major a reason of the absenteeism

was the side business that many of the workers were having.
2.

Out of the sample interviewed hardly any worker was really

worried about being absent. They took it casually. The only

measures taken by management are warnings and suspensions.
3.

There is an urgent need to review the practice of overstay

through which employees earn compensatory leave and turn

cause absenteeism which further necessitates overstay of other
employees thus triggering a vicious cycle of overstay and
absenteeism.
4.

Improvement can be made through counseling. Employees

can be motivated through fringe benefits and financial benefits.

5.

Another measure, which shou8ld be taken to improve the

condition, should be rehabilitation of alcoholics. This problem

can be removed if the worker is motivated to leave it and also buy
providing aid to him if he decided to stop this habit.
Further acc. To decision of Supreme Court absentees is a
misconduct for which only punishment can give but the person
cannot be strucked off. Due to this decision management has not
much to do. Therefore the only measures taken by the
management is warning of suspensions and maximum that they
can do is the suspension of few days.

PERSONNEL FUNCTION IN THE COMPANY

This division takes pride in people who strive for excellencepeople who are not merely satisfied with what they have but are
looking for more and better for betterment of their products
their organizations and themselves. It provides therefore is to
provide with an environment where one can learn and grow.
This has its own objectives and strives to reach there. And for
this is required co-ordination among employees, their healthy
spirit, mind, good working environment, sound industrial relation
etc and here comes the role of personnel department which is to
hire the right people for various jobs, equip them to handle the
job and keep them motivated.
The key to success, it is said, is not just the state of the art of the
technology; it is the state of the art of the people. The company
recognizes that human resources are its most important assets.
While recruitment is done very carefully to ensure that only the
best get selected, the various system operating with in the
company be it the compensation and benefit package, the
evolution systems or the reward systems are all geared to attract
the

best

talent

available.

The

company

attaches

utmost

importance to human resources development for it realizes that

human resources need to be shaped to respond to business
needs and the imperatives of change. The endeavor is to
constantly underline the talent base with two basic objectives;
clarity of purpose and motivation for individual career growth
through self-improvement. Programmers are instituted at all
levels to improve productivity and to check individual potential
for growth. To keep managers in touch with the latest in
management techniques, ESCORTS has tied up with premier
management institute for programmers at all levels. At the worker

and staff levels, the company has also successfully implemented

the concept of incentive linked pay scales, to achieve greater
efficiency. Every blue-collar worker at ESCORTS is pension able,
a feat not many companies can boast of.
Thus the personnel department is responsible for many
functions. Some of these are:1

Manpower planning, recruitment & induction

Training & development of employees

Union negotiations

Appraisal, increments & promotions

Employee health, safety & welfare

Maintaining personnel needs

Industrial relations

Grievance handling

Employees benefits & services

10 Workers education & tours

11 Industrial safety
12 Fire presentation & fighting
13 Suggestion scheme
14 Health awareness and guidance
15 First aid facilities

LIMITATIONS
1

Availability of less time.

Busy schedule of the employees.

Lack of co-operation.

Biasness of the employees.

It is very lengthy project and large amount of data required,

which was not an easy work.

6

Shortage of secondary data.

CONCLUSION
EMPLOYEES ABSENTEEIS mean employee who is not available
for duty is counted as absent from duty. If he is on sanctioned
leave it will be counted as Authorized absenteeism. In case he
is not available to work without any leave or pre-sanction it would
be counted Unauthorized Absenteeism.
There are many conclusions:1

The study of ESCORTS LTD. enables us to conclude that

overall attitude of the system is quite promising but still there is

certain drawback present in the system in which need to be
corrected in order to make the system more acceptable and
beneficial for every employee of the organization.
2

Responses highlight that the employees are not fully satisfy

with facilities provide to them especially the long procedures

followed for sanctions the travel and bank loans.
3

There are various issues on which absenteeism levels of

employees are very high.

4

Company provides healthy facilities to the employees.

The various guidelines are properly state and followed in the

relation to the accidental prone areas.

6

There is due emphasis on cleanliness both in the plant and in

township.

SUGGESTIONS
After undergoing the study by taking personal interviews of the
workers, few drawbacks did came-up. Few steps can be taken to
do away with drawbacks, though some of the drawbacks are the
limitations, which are nearly impossible to done away with
though they can be toned down.
The workers should be explained the rules and regulations
relating to attendance.
Proper orientation of the induction program is very necessary. A
case was seen in which a worker met with an accident inside the
factory premises and got his left arm fractured. To the rules of the
of the company any accident should be reported within 24 hrs.
But the above person did not known about it and so could not get
the desired facilities. He was absent for days thinking that it
would be called leave. But because there was no registration it
was counted as absenteeism. He then had to go out for treatment
causing him again to be absent.
-There is an urgent need to review the practice of overstay
through which employees earn compensatory
- Leave and in turn cause absenteeism which further necessitates
overstay of other employees thus triggering a vicious cycle of
overstay and absenteeism.
-Counseling has always been the best way to any solution. Past
study also shows that counseling is an effective measure.
Counseling should be done at least once in two months.
-Most of the workers give reasons of sickness this may be
because of unhealthy working condition. Therefore management
should take measures to provide proper working condition.

-Proper fringe benefits and financial incentives should be given to

regular employees. This can motive other workers to be regular if
they come to know about the extra benefit which they could avail.
-Another basic reason found out for absenteeism was in sufficient
welfare schemes and housing facilities and frequent visit to
hometowns. To improve this following measures.
1.

Reincarnation centers for entertainment

Although it is a costly project bearing large expenses but

result will be decreased absenteeism and increased production.

Most of the good organizations have their own townships, which
is lacking in ESCORTS.
-A reason found out for absenteeism was side business of
workers why do workers go for it it means lack of proper wages
allowances and job security. Measures should be taken to
maintain a sufficient reasonable level of wages.
-Worker in need should be granted leaves liberally so that they are
at work when needed.
-Habitual absenteeism should be made aware of their absenteeism
the more the employees are kept informed about there absence
the greater is the chances of reduction in the rate of absenteeism.
Absentee is to be made aware of his absence to make him feel
that he is not only important but he is greatly needed.

As absenteeism of workman is a matter of concern before shop

managers, as it effects adversely in smooth production. Through
absenteeism is related to personal reasons of workman, but it
becomes necessary on the part of the management to put efforts
to reduce absenteeism in a planned manner. Thus I also talked to
the junior manager in order to assess their preparation about
worker absenteeism. The junior manager gave the following
suggestions:-In order to control the high rate of absenteeism, the management
should do home visits of the habitual absentee.
-The management should introduce some social recognition
programmers.
-The management should give them awards for being punctual.
Management can motivate them in this way .Also it can inspire
others to be punctual.
-The mgt should not be scared of the union and should take
disciplinary action against the absentee. Management position is
very pathetic because of the dominance of union.
-Inter personal relation should be improved, because if a worker
has good relation with his boss than only he will frankly tell his
problems or the reasons for taking leave, and the mgt can try to
work upon those reasons.
- List of absentees should be displayed on the notice board
Mgt should issue the show cause notice to the absentee

After joining the plant I hardly faced any problem. Everyone in

my department was very helpful and co-operation .I got good
guidance from my senior. Under their guidance I chose my
subject for the project. After I prepared my questionnaire on the
basis of selected problem. I was provided the list of the habitual
absent workers with my sample being 50 workers.
It was after I started the project that I faced problem. While
working on the project various limitation occurred. Various
limitations faced were:
-Shortage of secondary data. Secondary data needed for the study
was not easily available. The files given contained the data, which
was insufficient.
-Paucity of time due to wastage Sometime only one worker could
be contacted in a day because the man did not turn up. This led
to wastage of time and others led to paucity of time.
-Out of the target of 60 only 50 could be contacted because some
were still irregular staying away from work, which created lot of
problems.
-I was visualized as management people, so it was difficult for the
workers to open up.

RESEARCH DESIGN
The research design is descriptive as well exploratory in nature.
The interview of people is to descriptive nature to obtain
information to get better insight about the issue at hand.

2. SAMPLE DESIGN:The sampling design for the selection of

sample

is

based

on

convenience

sampling

because

of

respondent who participated in the sample was those who were

conveniently available & there were no specific criteria on which
they were selected.
3. AREA COVERED:The research design area was FARIDABAD.
4. SAMPLE UNIVERSE:Most of people in FARIDABAD.
5. SAMPLE SIZE:The entire people visit in the research area covered 60 people.
6. COLLECTION OF DATA:All the data collected was of primary in
nature. Primary data was collected through QUESTIONAIRE,
OBSERVATIONAL & INTERVIEW METHOD.
7. DATA INTERPRETATION:After the data collection was over
coding& editing of the data started. Any non-response and nonseriously filled questionnaire was not considered for analysis.

QUESTIONAIRE
WORKERS PROFILE
NAME
AGE
ADDRESS
QUALIFICATION
TRADE
MONTHLY INCOME
Q.1 WHAT IS YOUR EXPERIENCE IN THE COMPANY?
Q.2 DO YOU THINK WORKING ENVIRONMENT IS
SATISFACTORY?
1. YES
2 NO
Q.3 HOW MANY HORS DO YOU NORMALLY WORK?
Q.4 WHAT IS THE MODE OF TRANSPORT YOU USE?
1. PUBLIC TRANSPORT
2. COMPANY BUS
3. OWN CONVENIENCE
Q.5 DOES THE JOB INVOLVE ANY KIND OF RISKS?
1. YES
2. NO

Q.6 IS YOU ALCOHOLIC?

1. YES
2. NO
Q7. IF YES, THEN WHAT IS THE FREQUENCY?
Q8.DO YOU HAVE ANY MEDICAL HISTORY?
Q9. WHAT IS THE NUMBER OF SALARIED PERSONS IN
THE FAMILY?
Q10 HOW MANY MEMBERS ARE THERE IN YOUR
FAMILY?
Q11. IS ANY MEMBER HAVING ANY LONG MEDICAL
HISTORY?
Q12. IS ANY OTHER BUSINESS BEING PRACTICED IN
YOUR FAMILY?
Q13. ARE YOU ACTIVELY INVOLVED IN ANY SOCIAL
ACTIVITITY?
1. YES
2. NO

BIBLIOGRAPHY

1. KOTHARI, C.R: RESEARCH METHODOLOGY

2. GUPTA S.P: STATISTIC
3. PRASHAD L.M: ORGANISATIONAL BEHAVIOUR
4. KOTLER, PHILIP: MARKETING
5. INTERNET SITES:
A. WWW.ESCORTS.COM
B. WWW.INDIATIMES .COM
C.WWW.GOOGLE.COM
D. WWW.NAUKRY.COM