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On
ABSENTEEISM
AT:
FEDERAL MOGUL GOETZE (INDIA) LTD, BAHADURGARH, PATIALA.
SUBMITTED TO:
_______________________________
In the partial fulfillment of the requirement for the degree of MBA
Submitted By:
_____________________________
MBA ______. SEMESTER
ACKNOWLEDGEMENT
Concentration, dedication, hard-work & application are essential but not only the factors to
achieve the desired goal. All these are supplemented by guidance, assistance & co-operation of
people to make it success. Every complete successful assignment is the result of many hands join
together.
It is a matter of pride and privilege for me to adequately express my deep indebtedness, thanks
and guidance to my project guide _______________ ( Incharge , Training & Development) for
her valuable guidance, co-operation and constant inspiration.
I take the opportunity to express my gratitude to Mr. Sanjay who took pains to see that I get all
facilities required for my project work and enlightened me about real working of organization.
I gratefully acknowledge the overwhelming support of Mr.Sanjeev Nandas efforts, professional
experience proved bliss for me during this work I also acknowledge my thanks to all the other
staff members. who directly or indirectly helped me in completing this project
Lastly, how can I forget to owe my indebtedness to my parents who provided moral support as
well as adequate finances during the course of my studies.
DECLARATION
I, ________________ hereby declare that the project entitled EMPLOYEE
ABSENTEEISM, assigned to me by FEDERAL MOGUL GOETZE (INDIA)
LTD, during my six weeks training for the partial fulfillment of M.B.A, Degree
from RATTAN PROFESSIONAL EDUCATION COLLEGE, SOHANA is the
Original work done by me and the information provided in the study is authentic
to the best of my knowledge.
This study has not been submitted to any other institution or university for the award of
any other degree.
____________________
INTRODUCTION
To
The Company
History
1899 1940: Founded on Innovation
1941 1956: Diversifying for Success
1957 1974: Going Global
1975 2005: A Bright Future
Federal-Mogul Corporation is an innovative and diversified $6.3 billion global supplier
of quality products, trusted brands and creative solutions to the automotive, light
commercial, heavy-duty truck, off-highway, agricultural, marine, rail and industrial
markets. The 45,000 people of Federal-Mogul located in 35 countries drive excellence in
all they do.
Companys globally networked engineering and technical
centers in the
U.S., Europe and Asia enable to bring customers breakthrough in advanced
technology and innovation.
Federal Mogul is a premier supplier of products, services and solutions to original
equipment manufacturers that use quality components in their vehicles and automotive
systems, and to aftermarket customers who sell companys world-renowned brand-name
replacement parts through repair shops and retail outlets. As partner with a global
network of suppliers whose commitment to excellence and on-time delivery is crucial to
company
success.
For more than a century, Federal Mogul has developed the innovative products, which
customers need to produce the next generation of vehicles. Federal-Mogul has been
creating value through innovation and leading technology for more than 100 years.
Today, the company is a key player in the global marketplace, serving industries that
range from automotive and commercial vehicles to railroad and aerospace. Customers
know they can rely on Federal-Moguls quality excellence in products, trusted brands and
creative solutions.
This company started with a bold idea, with a global workforce thousands strong. The
Federal-Mogul team has celebrated countless victories and worked hard to overcome the
inevitable challenges.
The company utilizes its engineering and materials expertise, proprietary technology,
manufacturing skill, distribution flexibility and marketing power to deliver quality
products and services, and leading brands. Federal-Mogul is focused on driving global
profitable growth and creating value to satisfy customer, employee and stakeholder
expectations.
Headquartered in Southfield, Michigan, the Company, which reported sales of $6.3
billion in 2005, employs 42,000 people worldwide. Federal-Mogul was founded in
Detroit in 1899. The Companys principal customers include many of the worlds
foremost original equipment manufacturers of automotive, light commercial, heavy-duty
truck, agricultural, marine, rail and industrial vehicles and equipment as well as the
worldwide aftermarket.
Federal-Mogul employees throughout the organization create value for their stakeholders
and continuously strive to exceed their customers expectations by following these core
values:
We are a team first.
We respect, trust and help each other.
We act with integrity.
We are driven to be the best in all we do.
We create value through innovation.
(History)
Goetze (I) Ltd., Bahadurgarh, Patiala was set up in 1954 with the collaboration of M/s. Goetze
Werke, Germany which started its production of Piston Rings for automobile industry in 1957.
The plant is situated at Bahadurgarh, about 10 kms. from Patiala on the Patiala-Rajpura Road.
Considering the need of complete Piston assembly, Escorts Ltd. ventured into manufacturing of
Pistons in 1958 with the collaboration of M/s. Mahle GmbH, Germany, which delivered the
Indian
automobile
industry
its
Pistons
in
1960.
Escorts entered in collaboration with M/s. SUKO GmbH, Germany for Piston Rings in 1967 and
manufacturing started in 1968. To meet the increasing demand of market, in 1977, a parallel unit
for manufacturing Pistons and Piston Pins was set up in Bangalore.
From 1 October 1996, Escorts Ltd. entered into joint venture with M/s. Mahle GmbH, Germany
with the formation of the new company Escorts Mahle Ltd. in 1998, Goetze also became a part of
Federal Mogul, a well-known group of USA. In June 2000, both Escorts Mahle Ltd. and Goetze
have become QS-9000 certified companies.
The present capacity of the plant is 285.09 lacs nos. Piston Rings and 52.68 lac nos. Pistons (on
302 working days). The total capital employed as on 31 March 2004 is 134.46 crores in Ring
Activity and Piston Activity. The workforce including managers and supervisors is 1131 nos. in
Ring Activity and 1304 in Piston Activity as on 31 March 2004. The turnover of the Patiala Plants
is 159 crores excluding Excise (combined in Ring Activity and Piston Activity) as on 31 March
2004.
BRANDS
Production Capacity:
Piston rings
Pistons
Turnover:
Net Profit (after tax):
April 05 -March 06
April 05 -March 06
55 Million
13 Million
INR 5124 Million
INR (505) Million
MILESTONES
1954 Incorporated as a JV with Goetze Werke
1957 Ring & liner production
Patiala
1958 Piston production as escorts (Automotive Division) (Collaboration:Mahle)
Patiala
1960 Cast iron / Forged piston production started
Patiala
1968 Pins / ring carrier production started
Patiala
1977 Piston / ring production started
Bangalore
Bangalore
1985 Light alloy products
Patiala
1989 Auto thermic pistons production
Bangalore
1990 Moly coated / IKA / chrome oil rings
Patiala
1992 Large bore rings / pistons for battle tanks
Bangalore
1994 Composite pistons / new ring foundry
Bangalore
1996 Escorts (Automotive Division) hived off into joint venture with M/S Mahle, Germany
1997 Goetze TP (India) Ltd. - Manufacturer of steel rings
2001 Merger of Federal-Mogul sintered products Ltd. with Goetze (India) Ltd.
2003 Merger of Escorts pistons activities with Goetze (India) Ltd.
2004 Introduction of chrome-ceramic rings
2004 Technical collaboration for pistons with Federal-Mogul Corporation
2006 Majority stakeholding acquisition by Federal-Mogul Corporation
2006 Name changed "Goetze (India) Limited" to "Federal-Mogul Goetze (India) Limited"
Management
Board of directors
Name
Chairman
Directors
Corporate Leaders
Executive DirectorsSales & Marketing
Mr. Yogesh
c) Exports
a) Bangalore Plant
Mr. K. Saravana
b) Patiala Plant
c) Bhiwadi Plant
Mr. A. R. Ahuja
Quality Policy
Policy
We shall continue to manufacture all our products in conformity with accepted international
norms/ standards.
We shall also continue to retain our leadership in development of products through technical
know-how from our Collaborators and in-house developments. Consistent development of human
resources through training at all levels will be our major thrust area.
MR.CHARLES B.GRANT
(Chairman & Managing Director)
Steadily moving towards leadership with piston with vision strategy seeing it as the
best way to leaders in business
EXPORT DESTINATION
Dubai
Bangladesh
Singapore
Egypt
Mauritius
U.S.A
Germany
Nepal
Sri Lanka
Uganda
COLLABORATIONS
A. GERMANY
o
o
Faun
Class
B. JAPAN
o
o
o
Yamaha
Kayaka
Mikni
o
o
JCB (Goetze)
Ford
C. UK
D. USA
o
HUGHES
E. FRANCE
o
o
Bosch
Dynapal
PRODUCT RANGE
Federal Mogul Goetze (I) Limited manufactures wide range of Liners, Brackets, Shock Absorber,
Gudgeon Pins, Light Alloy casting & Sintered Products.
Piston, Piston rings, Piston Pins, Cylinder blocks, Cylinder Liners, Brackets, Shock Absorber,
Gudgeon Pins, Light Alloy casting & Sintered Products.
PISTONS
Federal-Mogul Goetze India has state-of-the-art test bed facilities, design facilities for products
and dies and tooling with CAD/PRO-E.
Production Capacity:
13 million pistons per annum
Product Range:
30 mm to 300 mm diameter
Applications
Bi-wheelers
Cars
SUVs
Tractors
Light commercial vehicles
Heavy commercial vehicles
Heavy output locomotive diesel engines
Stationary engine
Industrial
Piston Rings
Goetze piston rings of OEMs and Aftermarket in India has state-of-the-art design facilities for
products, tooling with CAD/PRO-E/GLIDE SOFT and test bed facilities.
Production Capacity:
55 million rings per annum
Product Range:
30mm to 300mm diameter
Cylinder Liners
Federal-Mogul Goetze India manufactures wet and dry cylinder liners with honnong and sleeves for biwheeler applications for its quality conscious customers.
Applications
Bi-wheelers
Cars
Tractors
Light commercial vehicles
Heavy commercial vehicles
Stationary engines
Production Capacity:
0.5 million liners per annum
Product Range:
50 mm to 120 mm internal diameter
Features
Thin-walled
Plateau honed
With and without flanges
Coating
Phosphating
Metal Castings
Federal-Mogul Goetze (India) Ltd. makes a wide variety of light metal castings, including cylinder blocks;
cylinder heads for single cylinder engines; and aluminum tube castings and aluminum crown handles for
motorcycles.
TIMINGS
The factory runs round the clock in three shifts, namely- Morning, Afternoon and Night.
TIMINGS SHIFTS
6.30 a.m. to 2.30 p.m.
Morning Shift
Afternoon Shift
Night Shift
BI-WHEELERS
Bajaj Auto Ltd.
Escorts Yamaha Ltd.
Kinetic Engineering Ltd.
TVS Suzuki Ltd.
Majestic Auto Ltd.
Scooters India Ltd.
Ideal Jawa (I) Ltd.
Lohia Machines Ltd.
TRACTORS
Eicher Tractors Ltd.
Mahindra & Mahindra Ltd.
Escorts Ltd. (TD)
DEFENCE
Vehicles Factory, Jabalpur
COMPRESSORS
Telco
STATIONERY ENGINES
Kirloskar Oil Engines Ltd.
LOCATION OF DEPOTS
Company Name
FMGI
36.5
Perfect Circle
12.0
IP Ring
16.5
Shriram Piston
22.5
SAMKRG Piston
9.0
Menon Piston
3.5
ORGANISATION
OF
FEDERAL MOGUL GOETZE (INDIA) LTD.
ORGANISATION GOALS
The company has laid down for itself goal of improving the value to the customers
through:
1. LEADERSHIP: To maintain leadership in following categories
Market share: to maintain its status as brand leaders in the country for Piston and
Piston Pins.
Product Development: To develop Piston and Piston Pins for all new applications
as identified.
Technology: modernization and up gradation of technology to the latest
improvements to meet customer requirements.
2. CUSTOMER SATISFACTION:
It shall strive to achieve customer satisfaction rating more than 90%.
3. TECHNICAL REQUIREMENT:
Products are manufactured as per specifications based on DIN / JIS / IS / MAHLE
NORMS / SUKO NORMS as also against customers specific requirements.
4. QUALITY:
To improve quality consistently through quality assurance and process control.
5. DELIVERY:
To strive to achieve 100% on time delivery as per customer requirements
6. ENVIRONMENT AND SAFETY :
FMGI is fully aware of its environment and social responsibilities. To keep the
environment healthy, several measures like smoke precipitators, effluent treatment
plant, plantation programs etc. have been adopted. Pollution control methods
adopted by the company have been approved by the Central Govt. Periodic
checks and regular training is conducted to ensure safety.
7. MEDICAL FACILITIES :
Company takes a lot of interest in the extra curricular activities like medical
programs and rural development programs etc. The company has its own medical
centre as well as a heart institute and research centre, where employees get
treatment on reimbursement basis.
ORGANISATION SET UP
The organizational set up of the following departments is studied in detail:
1.
2.
3.
4.
HR Department
Finance Department
Purchase and Store Department
Production Department
HR DEPARTMENT
HR department advises the management on all matters relating to HR administration. The
top management takes into account its advice before arriving at final decisions on human
resources and administrative matters. HR Policies in FEDERAL MOGUL GOETZE
(INDIA) LIMITED have been divided into three parts:
FINANCE DEPARTMENT
The realization of cash for the purpose of raw materials components and
spares to pay wages and salaries to incur day to day expenses and overhead
costs, to meet selling costs to provide credit facilities to customers and to
maintain inventories is also the function of this department.
The formulation of policies with regard to profitability risk and liquidity, decisions about
comparison and level of current assets and liabilities, formulation of production policy to
keep the production steady by accumulating inventories, formulation and execution of
credit policy is also the function of Finance Department.
This Department is responsible for handling transaction relating to purchase of raw
material as well as accounts relating to sales. It is also concerned with payment of all
expenses incurred by the company like purchase of raw material, electricity bills, repairs
etc. It is also concerned with valuation of various costs relating to inventories.
It deals with determination of monthly wages, salaries of employees, fringe benefits of
retirement, provident funds deduction, incentives, bonus and all the rewards, which the
employees get for rendering their services to the company
Purchase and Store are two Departments, which go hand in hand. It is very essential that there
should be proper synchronization between Purchase Department and Store Department.
In GOETZE (INDIA) LIMITED, the main responsibility of Purchase Department is to receive
orders from other Departments, do the market survey, list the potential sellers and the rates,
choose the best and go ahead with purchase. The purchase order is placed only with approved
contractors. The Purchase Department scrutinize the following aspects:
a. Quality and Technical specifications
b. Delivery
c. Prices
Once the purchase order has been placed, it is sent to stores where the store gets ready to receive
the incoming material. When the material is received, a notification is sent to the Finance
Department.
Stores deal with an array of material, which can be divided into :
a. Raw materials
b. Components
c. Standard items or patent items
PRODUCTION DEPARTMENT
The Department is responsible for production of various items fixed on basis of production
budget, which includes:
a. Raw material budget
b. Labor budget
c. Plant utilization budget
GOETZE (INDIA) LIMITED turns out a wide variety of Piston Rings for Bi-Wheelers, Heavy
Light Commercial Vehicles and Motor Cars etc. The Company has maintained steady growth in
Piston Rings in view of ready acceptability of its products. Form modes production of 22517
rings in 1957 it touched a figure of 24 million in 2003-04.
INTRODUCTION TO
PROJECT
ABSENTEEISM
An absence from the workplace refers to time a team member is not on the job during
scheduled working hours, except for a granted leave of absence or holiday time. Left
unchecked, high absenteeism can rapidly develop into serious business problems
including morale issues and high turnover.
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 them 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, maybe 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.
Causes of Absenteeism
The causes of absenteeism may include:
Most if not all of these causes can be prevented by taking a positive approach to things.
By showing the employees that you care, you can help lower absenteeism in the work
place.
ABSENTEEISM RATE
Normally, the rate of absenteeism is calculated by dividing the number of working days
lost through absence in any given period by the total number of available working days in
that same period, as follows:
Absenteeism Rate = Number of lost working days due to absence /(Number of team
members) x (Number of Workdays) x 100.
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).
ABSENTEEISM RATE
AT
FEDERAL MOGUL
Initial counselling(s)
Written counselling(s)
Reduction(s) of hours and/or job reclassification
Discharge
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.
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.
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.
1. Has the employee done everything possible to regain their health and return to
work?
2. Has the employer provided every assistance possible? (i.e. counselling, support,
time off.)
3. Has the employer informed the employee of the unworkable situation resulting
from their sickness?
4. Has the employer attempted to accommodate the employee by offering a more
suitable position (if available) or a reduction of hours?
5. Has enough time elapsed to allow for every possible chance of recovery?
6. 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.
1.
2.
3.
4.
Initial Warning(s)
Written Warning(s)
Suspension(s)
Discharge
Verbal Warning
Formally meet with the employee and explain that income protection is to be used only
when an employee is legitimately ill. Advise 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.
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 of the problem, the credibility of the
employee's explanations, the employee's general work performance and length of service.
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 advised that
he/she is to be suspended. The length of the suspension will depend 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.
Dismissal (only after consultation with the appropriate superiors)
Dismissals should only be considered when all of the above conditions and procedures
have been met. The employee, upon displaying no satisfactory improvement, would be
dismissed on the grounds of his/her unwillingness to correct his/her absence record.
four questions, which should help you further focus your ideas and put a plan into action.
1 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.
2 Where and when is excessive absenteeism occurring?
Numerous studies have concluded that under trained supervisors are one of the main
causes of absenteeism. Therefore, any company experiencing absenteeism 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 causes.
3 A 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 opinions on topics of mutual interest,
These confidential worker surveys commonly ask for employee opinion regarding higherthan-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.
The Bradford Factor is a Human Resources tool used by many organisations 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 staff 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
Five absence episodes of two days each is 250 points (i.e. 5 x 5 x
Ten absence episodes of one day each is 1,000 points (i.e. 10 x 10 x 10)
10)
10)
Setting these triggers is entirely dependent on the organisation 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 organisation led by
the Bradford Factor, an organisation 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 organisations with a two pronged method for tackling absence:
proactively deterring absence in the first place and utilising 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 organisation 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
organisation will need to ensure:
Absence reporting and monitoring is consistent, equal and accurate both over time
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.
Major Objectives:
To study the reasons of employee absenteeism.
To put forward the suggestions and to find those areas where it can be improved .
Minor Objectives:
To study the problems of workers faced during the work period.
To find out whether job satisfaction & motivation level are low. If yes, then what
are the reasons?
To find out whether the workers feel stress during the work.
The personal biases of the respondents might have entered into their response.
Time allotted for the survey was less.
Some of the respondents give no answer to the questions which may affect the
analysis.
Generally the respondents were busy in their work and were not interested in
responding rightly.
Respondents were reluctant to disclose complete and correct information.
RESEARCH METHODOLOGY
The methodology used for the collection of data has been divided into two groups:
Primary Data
This data is based upon personal discussion with managers, officers , employees &
workers working in various sections of HR Department, Piston Ring Foundry Shop and
Piston Ring Machine Shop.
Secondary Data
It is mainly based upon office records and other published documents of Goetze (India)
Ltd., Bahadurgarh, Patiala.
Sampling Technique
In this project the primary data was collected through questionnaire method. A structured
questionnaire was administered and workers were asked to fill it. The interview method
was also considered as in it the interviewer and the interviewee can interact face to face.
Questionnaire
Personal Information
Name
AgeSexJob status For how many years you are working with FMGI ?
0-1 yr
1-2 yr
2-5 yr
< 5 yr
How often you remain absent in a month ?
Nil
Once
Twice
< Twice
According to you what is the main reason for employees absent ?
Health problem / domestic reasons
Stress
Work dissatisfaction
Working environment
Your views regarding the working environment of FMGI & work place ?
Excellent
Good
Fair
Poor
Excellent
Good
Fair
Poor
Your superiors behaviour towards your problems ?
Excellent
Good
Fair
Poor
Your views regarding the fascilities provided to you by FMGI ?
Excellent
Good
Fair
Poor
Any suggestions / Comments- _____________________________________
ANALYSIS
&
INTERPRETATION
Interpretation it can be seen that 56% of the workers at FMGI are working for
more than 10 years whereas 36% are working for more than 5 yrs.
Interpretation- it can be seen that 96% of the workers do not remain absent.
Interpretation- according to 96% workers, personal problem is the reason for being
absent. 4% think that stress can also be the reason.
Interpretation- it can be seen that 76% workers rate the present absenteeism policy as
good whereas 22% rate it as excellent.
Interpretation- it can be seen that 94% of the workers at FMGI are clear regarding
their work responsibilities.
Interpretation- 82% of the workers are fully satisfied with their work whereas 16%
workers think their work as good.
Interpretation- 82% workers feel that the working environment at FMGI is good
& 14% feel it as excellent.
Interpretation- 76% workers have good relations with the superiors whereas 22%
have excellent relations with the superiors.
Interpretation- 42% workers think that their superiors behaviour toward their
problems is excellent & 56% workers consider it as good.
Interpretation 86% workers consider that fascilities provided to them are good
whereas 10% consider them as excellent.
Conclusion
Findings
Almost 56% of the workers at FMGI are working for more than 10 years whereas 36%
are working for more than 5 yrs.
Almost 96% of the workers do not remain absent.
According to 96% workers, personal problem is the reason for being absent. 4% think
that stress can also be the reason.
Almost 76% workers rate the present absenteeism policy as good whereas 22% rate it as
excellent.
Almost 94% of the workers at FMGI are clear regarding their work responsibilities.
82% of the workers are fully satisfied with their work whereas 16% workers think their
work as good.
76 % workers have good relations with the superiors whereas 22% have excellent
relations with the superiors.
42% workers think that their superiors behaviour towards their problems is excellent &
56% workers consider it as good.
Suggestions
BIBLIOGRAPHY
o
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o
o
o
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www.goetzeindia.com
www.benifits.org
www.employer-employee.com
www.citehr.com
www.management-issues.com
www.e-days.com
THANKS
TO
ALL