A PROJECT REPORT ON

ABSENTEEISM
AT

ABSTRACT
Absenteeism can be a major personnel problem for organizations. As pressure
increases on the budgets and competitiveness of companies, more attention is being given
to reduce workplace absenteeism and its cost. It is the failure of a worker to report for
work when he is scheduled to work. Trained and skilled human resources are considered
as an asset to the organization whose absence could cause considerable loss in revenue of
the organization.
The main aim of this survey is to find the causes for absenteeism among the
workers in the Networth. with the aim of making recommendations on ways to reducing
it.
The survey result revealed that the main factors behind employee absenteeism are
inadequate leave and welfare facilities, unmet expectations and Job dissatisfaction.
The result indicated that about half of the employees have abided the leave policies.
Absenteeism was highest among lower level executives.
The conclusion is that the management may take an action to improve the health and
welfare measures in the organization and provide flexibility in work schedule.

TABLE OF CONTENTS
CONTENTS

PARTICULARS

List of tables
List of figure
Introduction

PAGE NUMBERS

(i)
(ii)

Chapter 1

Review of literature

Chapter 2

Research Methodology

3.1 Objectives of study

3
Chapter 3

3.2 Need for study

3.3 Scope of the study
3.4 Research Design

Sources of data

Analysis and Interpretation

Sample size

3.5 Limitations of the study

Company profile
Data analysis and interpretation
Chapter 4

Findings, conclusions and suggestions

Chapter 5

Bibliography

Chapter 6

Annexure

Questionnaire

LIST OF TABLES
PAGE No.
S.NO TABLE
NO.

PARTICULARS

5.1

Leaves availed by various age groups

5.2

Leaves availed by employees of various designations

5.3

Leaves availed

5.4

Reasons for absence

5.5

Designation and Reasons for absence

5.6

Age and Reasons for absence

5.7

Action taken for unauthorized leave

5.8

Double shifts /Night shifts influences absenteeism

5.9

Flexible time schedules reduces absenteeism

10

5.10

Rewarded for regularity

11

5.11

Impact on your overall performance

12

5.12

Opinions on main reasons for absenteeism

13

5.13

Suggestions to reduce absenteeism

LIST OF FIGURES
S.NO FIGURES
NO.

PARTICULARS

5.1

Leaves availed by various age groups

5.2

Leaves availed by employees of various designations

5.3

Leaves availed

5.4

Reasons for absence

5.5

Designation and Reasons for absence

5.6

Age and Reasons for absence

5.7

Action taken for unauthorized leave

5.8

Double shifts /Night shifts influences absenteeism

5.9

Flexible time schedules reduces absenteeism

10

5.10

Rewarded for regularity

11

5.11

Impact on your overall performance

12

5.12

Opinions on main reasons for absenteeism

13

5.13

Suggestions to reduce absenteeism

PAGE
No.

CHAPTER -1
INTRODUCTION

INTRODUCTION
Absenteeism does not appear to be recent phenomenon arising out of and peculiar
to modern industrial life, but most have been prevalent from the time man involved
himself in some sort of collective activity.
Though excusable to some extent as a normal incident of working life, what
transforms absenteeism into a serious problem, is the height to which it rises and the
erratic behavior it displays thus adversely effecting the smooth working of modern
industry. According to modern managers, absenteeism is a major problem in any
enterprise. It is said that this peculiar incidence of today's industrial life has simulated the
form of a chronic disease is so rampant that it has tended to plague every industry, big
and small organized. It is also said that absenteeism is not a problem exceptional to
Indian industry it is universally omnipresent.
At the macro level absenteeism has often been attributed to lack off
"commitment" on the part of the workforce and a relationship of direct variance has been
hypothesized the two variables. As Kerr says "the workers in process of the early stages
of industrialization is more prone to absenteeism, prolonged sporadic withdrawal from
industrial work naked violence and destruction of machines and property". Logically, '
therefore all these factors that influence workers commitment should also be related to
absenteeism.

A popular of absenteeism analysis according to the social norms of the company

group, which exercise a coercive influence upon a worker's behavior. Such norms may
require him to be either regular or irregular in attendance at work. The work milieu is
very important since a large position of a worker's daily life is spent there, the
atmosphere obtaining in the plant effects his attitude towards his work, and either
persuades him to attend regularly or keeps him away.
Irritating uncertainty, irregularly and confusion in the factory are likely to be
imports causes of condition to any of these negative factors, it can also be influenced by
a lament policy, which grants leave, condones or regularizes unauthorized leave.
DEFINITION:
The term absenteeism was defined in the report of Labor Investigation
Committee (1946) as Total man shifts lost because of absences as a percentage
of the total number of man shifts scheduled to work.
According to Websters Dictionary Absenteeism is the practice or habit of being
an absence and an absentee is one who habitually stays away.
According to Labor bureau, Simla defined the term Absenteeism as the failure
of a worker to report for work who he is scheduled to work.
According to Medical dictionary Absenteeism is the frequent absence from work
or other duty without good reason.

FEATURES OF ABSENTEEISM:
Research studies under taken by different authors reveal the following features of
absenteeism
It is comparatively lowest on the payday and later on absenteeism will arise
because of the desire of fulfilling social, family obligations.
The incidents of absenteeism are higher in the night shifts than in the day shifts,
obviously because the employees in the night perceives greater discomfort and
uneasiness.
The rate of absenteeism varies from department to department within an
organization. Generally, it is high production department.
The extent of absenteeism is greater among the older employees and among
young employees. The young men are generally found to be absent for a variety
of reasons, including restlessness and a sense of irresponsibility while the older
employees are not able to withstand the strenuous nature of work.
Absenteeism in India is seasonal in character. It is the highest during MarchApril-May, when the land has to be prepares for monsoon sowing, and also in the
harvest season (September October ), when the rate goes as high as 40 percent.

CAUSES FOR ABSENTEEISM:

1. Job dissatisfaction : The idea that attitudes towards the job might affect attendance
perhaps constitutes the older scientific model of absence causation, and it is still
dominant among industrial organization .Job satisfaction is considered to be influenced
by situational factors such as compensation, job design and human relations practices
,unfavorable attitudes towards the job and especially towards the content of the work are
predictive of absenteeism. However, there is growing evidence that issues of work, such
as fairness and support may be especially critical determinants of attendance patterns.
Beyond job satisfaction there is growing evidence that moods at work, indexed by
affectivity, are associated with absenteeism. Studies report that lower absence among
those react positively in the workplace.
2. Social and Religious Ceremonies: Social and Religious functions divert the worker's
attention from the work. In a large number of cases, the proportion of absenteeism is due
to sickness, accident or maternity .In all the plants, absenteeism in high during local
festivals, irrespective of whether the workers are from areas or not.
3. Unsatisfactory housing Conditions: Unsatisfactory housing conditions at the work
place leading to consequent ill health due to unsanitary and unhealthy surroundings make
frequent visits to their villages homes.

4. Industrial fatigue: Low wages compel a worker to seek some part time job earn some
side income. But there is often results in constant fatigue, which compels them to remain
absent for the next day.
5. Unhealthy working conditions: The poor and intolerable working conditions in the
factories irritate the workers. Excess heat, noise either too much or too low lighting, poor
ventilation, dust, smoke, etc. cause poor health of the workers. These factors cause the
workers to be absent.
6. Poor welfare facilities: Through a number of legislation's concerning welfare
facilities are enacted, many organizations fail to provide welfare facilities. This is either
due to poor financial position of the companies of due to the exploitative attitude of the,
employer. The poor welfare facilities include poor sanitation, washing, bathing, first aid
appliances, ambulances, rest rooms, drinking water, canteen, shelter creches etc. the
dissatisfied workers with these facilities prefer to be away from the place.
7. Alcoholism: The habit of alcoholism among workers is a significant cause of
absenteeism, which is higher in the first week of each month, when the workers receive
their wages. They rush to liquor shops and drink to forget their immediate worries. Once
indulged to drink, the habit continues. Hangover the next day leads to absenteeism.
8. Indebtedness: The low level wages and unplanned expenditure of the workers force
them to borrow heavily. The research studies indicate that workers borrow more than 10
time of their net pay. Consequently, the workers fail to repay the money. Then they try to
escape from the order to avoid the money lenders. This leads to absenteeism.

9. Maladjustment with job demand: The fast changing technology demand higher level
skills from the workers. Some workers fail to meet these demands due to their lower
levels of education and absence of training.
10. Unsound personnel policies: In most cases, unskilled, untrained, illiterate and
inexperience workers are recruited who fail to cope with and adapt themselves to their
jobs and to their industrial environment. Favoritism and nepotism are rampant. These
factors generate a frustration in the minds of workers, which results in low frequency, low
productivity and unfavorable employee- employer relationships which, in turn lead to
long period of absenteeism.
11. Inadequate leave facilities: The inadequate leave facilities provided by the employer
forces to depend on ESI leave, which allows the workers to be away from the work for 56
days in a year on half pay.
12. Low level of wages: Wages in some organizations are very poor and they are quite
inadequate to meet the basic needs of the employees. Therefore, employees go for other
employment during their business season and earn more money. Further, some employees
take up part time jobs.

TYPES OF ABSENTEEISM:
Absenteeism can be categorized into three types:
1. Physical absence : Physical absence is when employee is not present at work when
they are scheduled to be there. This is divided into voluntary or involuntary absenteeism.
Voluntary absence is employees deliberate choice and is under the control of
employee.
Involuntary absence is viewed to be beyond the employees immediate control
like accident or sudden sickness.
2. Authorized absenteeism: It is when an employee is absent himself from work by
taking permission from his superior and applying for leave. Employees should be
encouraged to seek permission before hand if the situation allows for it
3. Unauthorized absenteeism: If an employee is absent himself from work without
informing or taking permission and without applying for leave such absenteeism is called
unauthorized absenteeism. This is considered as unacceptable and should not be tolerated
by the company management. Disciplinary procedures are usually used to handle this
problem.

MEASURES TO MINIMIZE ABSENTEEISM:

Organizations use different ways of resolving absenteeism in the workplace.
Organizations, however should at least implement an absenteeism monitoring system
where appropriate. It allows the employer to effectively monitor and record attendance
and late arrivals. They should adopt a consistent approach when dealing with individual
employees in keeping with company policy, alternatively organization may reward
employees for attendance. Policies implemented must be effectively communicated to all
employees and should be consistent. The health and safety executives (HSE) have issued
a guide for employers and managers for dealing with sickness and absenteeism ,long term
sickness absenteeism defined as four weeks or more is a burden to employers as the
absence san lead to mounting sick pay, high recruitment costs and high work load for
colleagues .The HSE guide explains how employers and employees can work to hasten a
successful return to work. The guide suggests that more could be done to minimize the
effect of illness caused, or made worse by, work activities but that absence management
is a critically important issue for many business .The following measures are useful in
controlling or minimizing absenteeism.
Selecting the employee by testing them thoroughly regarding their aspiration,
value system, responsibility and sensitiveness.
Adopting humanistic approach in dealing with the personal problems of
employees.
Following a proactive approach in identifying and redressing employee
grievances.

 Providing hygienic working conditions.

Providing welfare measures and fringe benefits balancing the need for the
employee and the ability of the organization.
Providing high wages and allowances based on the organizational financial
position.
Improving the communication network, particularly the upward communication.
Providing leave facility based on the needs of the employee and organization
requirement.
Providing safety and healthy measures.
Providing cordial human relation and industrial relations.
Educating the workers.
Counseling the worker about their careers, income and expenditure, habits and
culture.
Free flow of information, exchanging of ideas, problems etc. between subordinate
and superior.
Granting leave in case of sickness of employee and his family members.
Offering attendance bonus and inducements.

 Providing extensive training, encouraged, special

allowances

in

case

of

technological advancements
Adoption of Employee state Insurance (E.S.I) scheme- Under provision of the ESI
scheme, besides various other benefits, workers are entitled to 56 days leave in a
year on half pay.
ABSENTEEISM RATE:
How frequently employees are absent from their work the absenteeism rate is also
directly related to human resource planning and recruitment. When employees miss
work, the organization incurs direct costs of lost wages and decreased productivity .It is
not uncommon for organizations to hire extra workers just to make up for the number of
absence totaled across all employees. In addition to these direct costs, indirect cost may
underlie excessive absenteeism. A certain amount of absenteeism is, of course
unavoidable.
CALCULATION OF ABSENTEEISM RATE:
To calculate the rate of absenteeism, we require the number of persons schedule
to work and the members actually present. When the employee has no reason to expect,
well in advance that the employee will to be available for work at specified time.
Absenteeism rate=
Number of worker-days lost through job absence during period * 100
Average number of employees * number of work days

OR

Absenteeism rate = Number of mandays lost__

100

Number of mandays scheduled to work

For calculating absenteeism, proper records should be maintained in every department for
various causes by such divisions as age, sex, and days of the week and categories of job.
The department of labor defines job absence as the failure of employees to report to work
when their schedules require it, whether or not such failure to report is excused.
Scheduled vacations, holidays and prearranged leaves of absence are not counted as job
absence
IMPACT OF ABSENTEEISM:
Decrease in productivity: Those employees who are at work may have to carry
an extra load. This may well impact on their own overall productivity and outputs.
Employees at work may be required to spend extra time or take time out of their
own work schedules to train and orientate new temporary replacement. As a result
of these extra work loads (overtime) and demands on time staff morale and
employee service deliveries may suffer.
Increase in financial cost : There might also be the additional costs associated
with the payment of overtime to those task to undertake the absent workers work
and cost for re training or induction of the replacement workers in that particular
post. In addition, there would be the cost of semi insured income protection plans
which the company will also have to bear plus the wage costs of any replacement
employees.

 Increase in Administrative cost: Loss of productive time spent by the managers

to secure replacement employees and /or reassigning employees. Additional
management is required to maintain administrative systems dealing with any
control measures for absenteeism.

CHAPTER -2
LITERATURE REVIEW

REVIEW OF LITERATURE
Albert Weiss conducted a study on Absenteeism which was carried out
in 1994 at Eastern Cape Manufacturing sector. According to the author, a
committee was formed consisting a combination of management and employees
representative who generally meet formally on a monthly basis to review absence
statistics and then informally to counsel those with poor attendance records when
necessary. These committee members were responsible for highlighting, investigating
and counseling any employees who were potential abusers of sick leave. He
concluded that organizations that used disciplinary action as a method to control
absenteeism failed because organizations ended up dismissing the employees.
Incentives were used to motivate and reward employees, as unused sick leave
allowance days were paid out to employees in the form of attendance rewards. The
result was that absenteeism dropped by 40%.
John M. Ivancevich (University of Houston) has published an article
Predicting absenteeism from Prior Absence and Work Attitudes. According
to the author, absenteeism is a costly and disruptive withdrawal behavior that is
difficult to control (Fitzgibbons and Moch,1980 : Mirvis and Lawler,1977 :
Mirvis and Macy,1976). One conservative estimate indicates that the total annual

cost of absenteeism in the United states is between $8.5 to $26 billion ( Steers
and Rhodes 1978 ). Given such a staggering cost, it is not surprising that
researchers and practicing managers continue to search for clues to help them
better understand and predict employees absenteeism.
Dr Hoverstad, Kjolstad and Neil Torgeir conducted research on Absenteeism
due to illness. The study was conducted in the year 1991. The companies
selected had largest computers and insurance business in Norway.The data was
obtained through focus group. Ten focus groups were randomly organized from
different work areas of two companies with similar work assignments.The
discussions in the groups produced the following information:
a) A feeling of well being was one of the most important factors in absenteeism.
b) Good organization produced greater productivity and better attendance, and poor
organization yielded higher absenteeism.
c) The size of the department or work group and employee recognition was also
important contributors.

Dr.Robert L. Bertera conducted a survey on the Behavioral risk factors

associated with Absenteeism. The study was carried out between 1984

1988.

According to the author,the behavioral risk factors related to absenteeism are heavy
alcohol consumption, smoking, high blood pressure, obesity, high blood cholesterol.
Employees with these behaviors missed more work days than employees did not have
any of these risk factors. The total annual company cost of absenteeism related to these
risk factors was estimated to be $ 70.8 million. It is concluded that company related

health promotion activities should address these risk factor in an attempt to reduce health
care cost.

Ian Firns, Anthony Travaglione and Grant O'Neill, (2006), conducted a

research on Absenteeism in times of rapid organizational change, has suggested that
Unscheduled absenteeism is a costly and disruptive phenomenon that remains
problematic for organizations. This study aims to shed light on the issue by analyzing the
absence trends in a large public sector organization undergoing modernization and
downsizing. It is argued that employer assumptions about the legitimacy of individual
absenteeism will guide decision making with regard to appropriate absence management
strategies. This study highlights the danger of falsely attributing individual-level causes
of absenteeism to what may be better understood as a group-level phenomenon. This
phenomenon represents a predictable response in the context of major organizational
change.This research has implications for human resource management strategies in
organizations experiencing rapid change.

CHAPTER -3
RESEARCH
METHODOLOGY

OBJECTIVES OF THE STUDY:

The main aim of research at NETWORTH is to study absenteeism.
To study the rate of absenteeism and the factors influencing absenteeism.
To study the economic benefit of the employees in organization.
To study the various causes of absenteeism in NETWORTH.
To suggest feasible measures to reduce the rate of absenteeism

NEED FOR THE STUDY:

Human Resources play a crucial role in the development process of modern
economies. It is in fact, said that all development comes from human mind. Absenteeism
is a common factor prevailing in the Indian industries. The main objective of absenteeism
is to maximize the profit by employing minimum number of men, material and money.
The study aims at causes of absenteeism of employees in NETWORTH Private limited.
At present organizations in India take real interest in controlling absenteeism. Measures
to prevent strikes and lock outs have received far and greater attention. One reason for
this situation may be that strikes and lockouts are more noisy and visible while
absenteeism is silent and unnoticeable.
For an organization to give better services, its employees should be dedicated and
punctual. This can be achieved only if absenteeism is checked and controlled on a
regular basis.
This study aims to find the causes for absenteeism and suggest possible measures
to control absenteeism.

SCOPE OF THE STUDY:

The study has been carried out taking into consideration the employees of the
organization.
The study includes the assessment of absenteeism in employees and steps
taken by management to control absenteeism in their organization.
The study also provides the necessary actions and alternatives to be
considered in the form of suggestions.

RESEARCH METHODOLOGY:
Research design is the specification of methods and procedures for acquiring the
information needed to the structure or solve problems technique.
a) Sources of data:
The information regarding the survey was obtained through primary and secondary
sources.
Primary data: The main source of primary data is collected through structured
questionnaires followed by personnel interview from employee at various levels.
Secondary data: The sources of secondary data pertaining to the study are
attendance register of NETWORTH, synopsis from various sections of personnel
department, annual/monthly reports of NETWORTH, Journals, books, Internet
websites.
b) Analysis and Interpretation :
Questionnaire consists of 22 questions which include open ended and multiple choice
questions. Overall 50 employees responded to these questions. Simple percentage method
is followed for analyzing the data pertaining to different dimensions of employees. The
collected data is tabulated and systematically presented in tables and graphs.

c) Sample size :A population of 100 employees is taken for administering random

questionnaire. Out of it 50 employees responded. So the sample size taken is 50
employee.
LIMITATIONS OF THE STUDY:
The study is limited by the fact that it could not cover the entire organization and
only samples of employees are taken for purpose study.
The accuracy of the information is not guaranteed although care has been taken
to cross check information though separate questions.
Some employees were not able to share their opinions and feelings freely while
interviewing them. So it was the disadvantage to gather correct information.
The time period of the project work is one and half month and is not sufficient to
clearly analyze the exact reasons of absenteeism.

INDUSTRY PROFILE

History of Stock Broking

The history of stock brokers can be traced back to the origins of the first stock exchange
in 1602 at Amsterdam. Even before that brokers are said to have existed in France dealing
with government securities. The Amsterdam Stock Exchange was involved in buying and
selling of shares for the Dutch East India Company. However, the first real stock
exchange came up in Philadelphia in the United States during the late 18th century. Later
it was the New York stock exchange which saw a rise in its popularity. Wall Street, as it
was called, became the hub of brokerage activities. Earlier stock brokers were largely
unorganized, but later most of them joined hands to form institutes and organizations.
Till the 1980's stock broking services were used only by the wealthy class who could
afford them. Later with the advent of the Internet, stock broking became very easy. Thus,
the price tag on stock brokers lowered considerably and their services became available
even to the common man.

The stock broking duties are now mostly taken up by major

organizations with the smaller companies being absorbed by them. In India, too with
increasing globalization the major corporations are penetrating deeper into the society.
History of Stock Exchanges in India:
Stock markets refer to a market place where investors can buy and sell stocks. The price
at which each buying and selling transaction takes is determined by the market forces (i.e.
demand and supply for a particular stock).

Let us take an example for a better

understanding of how market forces determine stock prices. ABC Co. Ltd. enjoys high
investor confidence and there is an anticipation of an upward movement in its stock price.
More and more people would want to buy this stock (i.e. high demand) and very few

people will want to sell this stock at current market price (i.e. less supply). Therefore,
buyers will have to bid a higher price for this stock to match the ask price from the seller
which will increase the stock price of ABC Co. Ltd. On the contrary, if there are more
sellers than buyers (i.e. high supply and low demand) for the stock of ABC Co. Ltd. in
the market, its price will fall down. In earlier times, buyers and sellers used to assemble
at stock exchanges to make a transaction but now with the dawn of IT, most of the
operations are done electronically and the stock markets have become almost paperless.
Now investors dont have to gather at the
Exchanges, and can trade freely from their home or office over the phone or through
internet
Stock Broking Services:
Terminals providing retail stock broking facilities.
Our services have increasingly offered customer oriented convenience, which we provide
to a spectrum of investors, high-Networthor otherwise, with equal dedication and It is
an undisputed fact that the stock market is unpredictable and yet enjoys a high
success rate as a wealth management and wealth accumulation option. The difference
between unpredictability and a safety anchor in the market is provided by in-depth
knowledge of market functioning and changing trends, planning with foresight and
choosinone’s options with care. This is what we provide in our Stock Broking
services. We offer services that are beyond just a medium for buying and selling stocks
and shares. Instead we provide services which are multi dimensional and multi-focused in
their scope. There are several advantages in utilizing our Stock Broking services, which
are the reasons why it is one of the best in the country. We offer trading on a vast
platform

National

Stock

Exchange

and

Bombay

Stock Exchange.

More

importantly, we make trading safe to the maximum possible extent, by accounting

for several risk factors and planning accordingly. We are assisted in this task by our indepth research, constant feedback and sound advisory facilities. Our highly skilled
research team, comprising of technical analysts as well as fundamental specialists, secure
result-oriented information on market trends, market analysis and market predictions.
This crucial information is given as a constant feedback to our customers, through daily

reports delivered thrice daily ; The Pre-session Report, where market scenario for the
day is predicted, The Mid-session Report, timed to arrive during lunch break , where the
market forecast for the rest of the day is given and The Post-session Report, the final
report for the day, where the market and the report itself is reviewed. To add to this
repository of information, we publish a monthly magazine “Karvy ; The
Finapolis”, which analyzes the latest stock market trends and takes a close look
at the various investment options, and products available in the market, while a
weekly report, called “ Karvy Bazaar Baatein”, keeps you more informed
on the immediate trends in the stock market. In addition, our specific industry
reports give comprehensive information on various industries. Besides this, we also
offer special portfolio analysis packages that provide daily technical advice on
scrips for successful portfolio management and provide customized advisory
services to help you make the right financial moves that are specifically suited to your
portfolio.
Our Stock Broking services are widely networked across India, with the number of out
trading competence.But true to our spirit, this success is not our final destination, but just
a platform to launch further enhanced quality services to provide you the latest in
convenient, customer-friendly stock management.Over the years we have ensured that
the trust of our customers is our biggest returns. Factors such as our success in the
Electronic custody business has helped build on our tradition of trust even more.
Consequentially our retail client base expanded very fast.To empower the investor further
we have made serious efforts to ensure that our research calls are disseminated
systematically to all our stock broking clients through various delivery channels like
email, chat, SMS, phone calls etc. Our foray into commodities broking has been path
breaking and we are in the process of converting existing traders in commodities into
the more organized mainstream of trading in commodity futures, both as a trading
and risk hedging mechanism.

In the future, our focus will be on the emerging

businesses and to meet this objective, we have enhanced out manpower and revitalized
our knowledge base with enhances focus on Futures and Options as well as the
commodities business.

History of the Indian Stock Market

One of the oldest stock markets in Asia, the Indian Stock Markets has a 200 years
old history.
Year 1800 : East India Company was the dominant institution and by end of the
century, business in its loan securities gained full momentum. Year 1830 : Business on
corporate stocks and shares in Bank and Cotton presses started in Bombay. Trading list
by the end of 1839 got broader Year 1840 : Recognition from banks and merchants to
about half a dozen brokers Year 1850 : Rapid development of commercial enterprise
saw brokerage business attracting more people into the business Year 1860 : The
number of brokers increased to 60 Year 1860-61 : The American Civil War broke out
which caused a stoppage of cotton supply from United States of America; marking the
beginning of the "Share Mania" in India Year 1862-63 :

The number of brokers

increased to about 200 to 250 Year 1865 : A disastrous slump began at the end of the
American Civil War (as an example, Bank of Bombay Share which had touched Rs. 2850
could only be sold at Rs. 87)
Pre-Independence Scenario - Establishment of Different Stock Exchanges
Year 1874 : With the rapidly developing share trading business, brokers used to gather at
astreet (now well known as "Dalal Street") for the purpose of transacting business.

Year

1875 : "The Native Share and Stock Brokers' Association" (also known as "The
Bombay Stock Exchange") was established in Bombay Year 1880 : Development of
cotton mills industry and set up of many others Year 1894 : Establishment of "The
Ahmedabad Share and Stock Brokers' Association"
6. Pooling of group resources: Karvy group consists of eight subsidiaries, so it can easily
pool up its resources for accomplishment of its goals, whenever needed. The groups
can help each other whenever there are peaks and lows, and even in the case when they
have huge targets just as we saw few years back, Tata group pooling its resources to
acquire Corus.

Objective:
Share in the market offer a high capital appreciation but the movement of the share price
is always like a wave and tide motion of the sea. Volatility in the stock return is an
integral part of stock market with the alternating bull and bear phases. In the bullish
market, the share prices soar high and in the bearish market share prices fall down and
these ups and downs determine the return and volatility of the stock market. Volatility is a
symptom of a highly liquid stock market. Pricing of securities depends on volatility of
each asset. It has an impact on business investment spending and economic growth
through a number of channels. Changes in local or global economic and political
environment influence the share price movements and show the state of stock market to
the general public. The issues of return and volatility have become increasingly important
in recent times to the Indian investors, regulators, brokers, policy makers, dealers and
researchers with the increase in the FIIs investment. Hence an analysis has been made to
know the volatility trend in the Indian stock market and the reasons for the bear and bull
trend in the market. Nifty and Sensex are taken as representative of Indian markets.
This project gave me opportunity to have an idea about volatility in stock market. This
gave me idea about and fundamental analysis in stock market and how trading is being
done in stock market.
The objectives of the project can be mentioned as below:
To study volatility in Indian stock market while taking SENSEX of Bombay stock
exchange as a source of secondary data which broadly represent Indian stock
market along with NIFTY of National Stock Exchange.
Build understanding of central ideas of stock market.
Develop familiarity with the analysis of stock market.
Furnish institutional material relevant for understanding the environment in which
trading decisions are taken.
Understanding of Bull Market and Bear Market.

This project will be helpful to know volatility in Indian Stock Market and reasons for
such high volatility and would be able to take decisions for investment in volatile stock
market

Recent trends in Financial Market in India

India has a diversified financial sector, which is undergoing rapid expansion. The sector
comprises commercial banks, insurance companies, non-banking financial companies,
co-operatives, pension funds, mutual funds and other smaller financial entities. The
financial sector in India is predominantly a banking sector with commercial banks
accounting for more than 60 per cent of the total assets held by the financial system.
India's services sector has always served the countrys economy well, accounting for
about 57 per cent of the gross domestic product (GDP). In this regard, the financial
services sector has been an important contributor.
The Government of India has introduced reforms to liberalise, regulate and enhance this
industry. At present, India is undoubtedly one of the world's most vibrant capital markets.
Challenges remain, but the future of the sector looks good. The advent of technology has
also aided the growth of the industry. About 75 per cent of the insurance policies sold by
2020 would, in one way or another, be influenced by digital channels during the prepurchase, purchase or renewal stages, as per a report by Boston Consulting Group (BCG)
and Google India.

Market Size
The size of banking assets in India reached US$ 1.8 trillion in FY13 and is expected to
touch US$ 28.5 trillion by FY25. Information technology (IT) services, the largest
spending segment of India's insurance industry at Rs 4,000 crore (US$ 649.31 million) in
2014, is projected to continue strong growth at 16 per cent.
The total market size of the insurance sector in India was US$ 66.4 billion in FY13 and is
expected to breach the US$ 350400 billion mark by 2020.

Investment corpus in India's pension sector could cross US$ 1 trillion by 2025, following
the passage of the Pension Fund Regulatory and Development Authority (PFRDA) Act
2013, according to a joint report by CIIEY on Pensions Business in India.
Indias foreign exchange (Forex) reserves touched US$ 320.56 billion on July 25, 2014,
which was just US$ 23 million less than the all-time high of US$ 320.79 billion achieved
on September 2, 2011.
Investments
Corporate law firms in India are benefiting from an increase in the value of mergers and
acquisitions (M&As) and share acquisitions during the course of the year. The enterprise
value of deals on which law firms have advised has shot up to US$ 35.7 billion this year
till December, a 22 per cent increase over the US$ 29.3 billion in deals seen in the whole
of 2013, according to Thomson Reuters data.

Financial services provider Reliance Capital Ltd, a part of Anil Ambanis Reliance
Group, has formed a long-term strategic alliance with Japans Sumitomo Mitsui
Trust Bank Ltd, offering the Japanese lender a small equity stake in the company.
As part of the agreement, Sumitomo Mitsui Trust Bank will pick up an initial 2.77
per cent stake in Reliance Capital for Rs 371 crore (US$ 60.22 million) through a
preferential allotment of shares.

GIC, Singapore's sovereign wealth fund, is buying about 70 per cent stake in
BSE-listed Nirlon for Rs 1,392.6 crore (US$ 226.07 million). Nirlon owns an
information technology park in the western suburbs of Mumbai. GIC said it had
signed agreements to buy 39.2 per cent in Nirlon from its promoters, including the
Sagar family, for Rs 784.3 crore (US$ 127.32 million). It will make an open offer
for 28.4 per cent stake from public shareholders at the same price.

Canada pension plan investment board, which manages assets worth CAD 234.4
billion (US$ 193.92 billion), has through a subsidiary invested Rs 1,000 crore
(US$ 162.34 million) in L&T Infrastructure Development Projects Ltd, a unit of
Larsen and Toubro Ltd, Indias largest engineering and construction company.
The investment is made by way of subscribing compulsory convertible preference
shares, L&T said in a statement. In June, L&T and Canada Pension Plan had
signed a definitive investment agreement.

Nearly three years after the BSE launched a separate platform for small and
medium enterprises (SMEs), the market capitalisation of the segment crossed Rs
10,000 crore (US$ 1.62 billion) recently. The market capitalization of the 82 listed
SMEs was Rs 10,118.90 crore (US$ 1.64 billion).

The Government of India signed an agreement with Asian Development Bank

(ADB) for a US$ 75 million loan and a US$ 1.8 million grant that will help
improve water resource management in three (3) towns of Karnataka in the Upper
Tungabhadra sub-basin. This loan from the ADBs Ordinary Capital Resources
has a 25-year term including a grace period of five years.

Government Initiatives
Several measures have been outlined in the Union Budget 2014-15 that aim at reviving
and accelerating investment which, inter alia, include fiscal consolidation with emphasis
on expenditure reforms and continuation of fiscal reforms with rationalization of tax
structure; fillip to industry and infrastructure, fiscal incentives and concrete measures for
transport, power, and other urban and rural infrastructure; measures for promotion of
Foreign Direct Investment (FDI) in selected sectors, including defence manufacturing
and insurance; and, steps to augment low cost long-term foreign borrowings by Indian
companies. Fiscal reforms have been bolstered further by the recent deregulation of
diesel prices. The launch of Make in India global initiative is intended to invite both
domestic and foreign investors to invest in India. The aim of the programme is to project
India as an investment destination and develop, promote and market India as a leading
manufacturing destination and as a hub for design and information. The programme
further aims to radically improve the Ease of Doing Business, open FDI regime, improve
the quality of infrastructure and make India a globally competitive manufacturing
destination.
The Reserve Bank of India (RBI) has eased norms for mortgage guarantee companies
(MGC) enabling these firms to use contingency reserves to cover for the losses suffered
by the mortgage guarantee holders, without having to take approval of the apex bank.
However, such a measure can only be initiated if there is no single option left to recoup
the losses.
Financial inclusion is among the topmost priorities of the Indian government. Exclusion
of a large number of people from access to financial services affects the growth of the
country. Prime Minister Mr Narendra Modi launched the Pradhan Mantri Jan DhanYojana
in August 2014. He said that that the objective to cover 75,000,000 households with at
least one account under the Yojana will be achieved by January 26, 2015.
Retirement fund manager EPFO will launch its project to provide portable universal PF
account numbers (UAN) to its subscribers on October 16, 2014. Also, the government
will launch unified web portal LIN (Labour Identification Number) to simplify business

regulations and bring in transparency and accountability in labour inspections by

agencies and bodies under the control of the labour ministry.
The RBI has simplified the rules for credit to exporters. Now, exporters can get long-term
advance credit from banks for up to 10 years to service their contracts. The requirement is
that they have a satisfactory record of three years in order to get payments from the
banks, which can adjust the payments against future exports.
Road Ahead
India is today one of the most vibrant global economies, on the back of robust banking
and insurance sectors. The country is projected to become the fifth largest banking sector
globally by 2020, as per a joint report by KPMG-CII. The report also expects bank credit
to grow at a compound annual growth rate (CAGR) of 17 per cent in the medium term
leading to better credit penetration. Life Insurance Council, the industry body of life
insurers in the country also projects a CAGR of 1215 per cent over the next few years
for the financial services segment.
Exchange Rate Used: INR 1 = US$ 0.0162 as on January 21, 2015
References:Media Reports, Press Releases, RBI Document, KPMG-CII Report

COMPANY PROFILE

A world of intelligent investing

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THE NETWORTHSTORY
Ever since its inception in 1993, Networth Stock Broking Limited (NSBL)
has sought to provide premium financial services and information, so
that the power of investment is vested with the client. We equip those
who invest with us to make intelligent investment decisions, providing
them with the flexibility to either tap into our extensive knowledge and
expertise, or make their own decisions.
NSBL made its debut into the financial world by servicing Institutional
clients, and proved its high scalability of operations by growing
exponentially over a short period of time. Now, powered by a top-notch
research team and a network of experts, we provide an array of retail
broking services spanning entire India.
Our strong support, technology-driven operations and business units of
research, distribution and advisory coalesce to provide you with a onestop solution to cater to all your broking and investment needs.
NSBL is a member of the National Stock Exchange of India Ltd (NSE)
and the Bombay Stock Exchange Ltd (BSE) in the Capital Market and
Derivatives (Futures & Options) segment. We are Depository
participants with Central Depository Services India (CDSL) and National
Securities Depository (India) Limited (NSDL).
Our customers have been participating in the booming commodities
market with our membership at the Multi Commodity Exchange of India
(MCX) and National Commodity & Derivatives Exchange (NCDEX)
through NetworthStock.Com Ltd.
NSBL is listed on the BSE since 1994.

PRODUCTS & SERVICES

With greater choices comes greater value. Networthoffers you more
choices by providing a wide array of products and personalized
services, so you can take charge of your financial future with
confidence.
So whether you are a new investor or a seasoned one, we have the
resources and advice you would need to make smart, well-researched
investments. You have the option to choose the level support you
would like from us:
Invest Independently If you are an independent investor and prefer
calling your own shots, you can access our extensive Market
Research section for relevant, in-depth resources and support.

SERVICES

Take our advice If you are new to the world of investing, or are
unable to do your own research due to time constraints, our highly
experienced team of advisors will help you
get started and meet your financial goals.

Day Trading If you thrive on the thrill of riding the market wave
on a daily basis, we offer our Day Traders the resources you would
need to strategize, buy and sell conveniently.

Networths products and services are geared towards meeting your

individual financial requirements. To find out more about a product /
service, click on it from the menu on the left.

DEPOSITORY SERVICES :
We offer Depository facilities to facilitate a seamless transaction
platform as a part of our value-added services for our clients. Networth
is a depository participant with the Central Depository Services (India)
Ltd. (CDSL) and National Securities Depository Ltd. (NSDL) for trading
and settlement of dematerialized shares

WEALTH MANAGEMENT SERVICES

It is our aim to empower clients by helping them to diversify their
investments. To this end, Networthhas added a range of products such
as Mutual Funds, Insurance and online facilities to its offerings.
We meet our clients on an individual basis and analyse important
factors such as your risk appetite, investment horizon and your
existing investments before making our recommendations as to what
clients should invest in. The fund and scheme selection is then done
after conducting in- depth research on parameters like risk adjusted
returns, rolling returns, volatility and portfolio churn. We are also in
close contact with fund houses as well as insurance agencies and are
therefore always cognisant with new offerings and occurrences in the
market and like to keep our clients updated on the same.
Our clients can pick from Mutual Funds, IPOs, and Insurance
products.
Our Wealth Management Services include Portfolio Management
Services (PMS)

PRODUCTS
EQUITIES :
Our experienced trading consultants and advanced trading tools will
provide the support you need to achieve your long-term goals via the
stock markets. We trade on the BSE, NSE and CN and our website has
facilities such as live stock tickers, news updates, and more, to help
our clients stay in the know. We also provide NRI specific services to
meet the needs of our clients who live abroad
COMMODITIES*
Indian markets have recently thrown open a new avenue for investors
and traders to participate: COMMODITY DERIVATIVES. For those who
want to diversify their portfolios beyond shares, bonds and real estate,
commodities are the best option.
Commodities actually offer immense potential to become a separate
asset class for market-savvy investors, arbitrageurs and speculators.
They are also easy to understand as far as fundamentals of demand
and supply are concerned. Historically, pricing in commodities futures
has been less volatile compared with equity and bonds, thus providing
an efficient portfolio diversification option.
Networth now offers to investors a platform to trade in COMMODITY
FUTURES. As a member of the Multi Commodity Exchange of India Ltd.
and of the National Commodity and Derivative Exchange, we offer
futures trading in 10 commodities (gold, silver, castor, soya,
canola/mustard oil, crude palm oil, RBD palmolein and cotton) NCDEX
and in gold, silver and castor seed, rubber through MCX.

MARKET RESEARCH
Information is power. At Networth, it is also at your fingertips!
Networth is powered by a top-notch research team that penetrates and
investigates the market to provide you with reliable, relevant
information that helps you make intelligent investment decisions. Our
commitment to keeping you updated on the latest market conditions
stems from our desire to give you the option to invest in ways that are
the most suitable to you.
To explore our research reports in the category of your interest, please
select it from the list on your right.

Market Musing
Company Reports
Theme Based Reports
Weekly Notes
IPOs / FPO
Sector Reports
Stock Stance
Pre-quarter/Updates
Commodity
Research Recommendation Card
Pivot Points

INVESTOR HANDBOOK:
Registrars and Transfer Agent

(Share transfers and communications regarding share certificates,

dividends and change of address)
Purva Sharegistry (India) Pvt. Ltd.

9, Shiv Shakti Industrial Estate,

Ground Floor, Sitaram Miill Compound,
J R Boricha Marg, Lower Parel,
Mumbai - 400 011.
Tel No.: 23016761,
Fax No.: 22626407
E-Mail: busicomp@vsnl.com
Listing of Equity Shares on Stock Exchange at:

Bombay Stock Exchange Limited,

Mumbai (BSE) Phiroze Jeejeebhoy Towers,
Dalal Street, Mumbai 400 001

PORTFOLIO MANAGEMENT SERVICES

NETWORTHPMS will help you achieve your objective of preserving and
growing capital by conducting a thorough analysis of your investment
needs, returns expected and risk taking ability. Our focus is to craft a
basket of Stocks, Bonds, and Mutual Funds through strong research
and corporate interface, keeping in mind your risk-profile in specific
relation with the ever-changing marketing dynamic.
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MERGEFORMATINET

Investment Philosophy
We focus on a Bottom Up approach to stock picking. The stock
selection process starts with fundamental analysis of companies and
includes management meeting and plant visits to get a first hand feel
of the company, rather than depending solely on quantitative analysis.
The investment process is fairly rigorous and includes qualitative as
well as quantitative criteria and builds upon the decade long
experience of Networth in Indian equity markets.

Who is it for?
Our offering is ideal for high net-worth customers

Who are investing in Indian equities

Who desire to create wealth over longer period

Who appreciate a high level of personalized service

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Benefits of being with Networth PMS

Portfolio Management with a difference Every investor, whether
individual or corporate, has unique needs based on their objectives
and risk profiles. We recognize the difference and design tailored
investment advice to achieve specific investment objectives.

Professional
ManagementWe
offer
professional
management of your equity portfolio with an aim to deliver
consistent returns while controlling risk.

Continuous Monitoring- We recognize that portfolios need to

be constantly monitored and periodically churned to optimize the
results.

Risk Control- The portfolios are managed through a strong

research driven investment process with complete transparency
and highest standards of service.

Transparency- You will get regular account statements and

performance reports on a monthly basis/ That's not all; webenabled access ensure that you are just a click away from all
information relating to your investment.

Hassle Free Operation- Our Portfolio Management Service

relieves you from all the administrative hassles of your
investments. We provide periodic reporting on the performance
and other aspects of your portfolio.
Dedicated Relationship Manager- Our Relationship Managers
specialize in providing personal investment management
services to achieve your investment objective.

Infrastructure
A corporate office and 3 divisional offices in CBD of Mumbai
which houses state-of-the-art dealing room, research wing &
management and back offices.
All of 107 branches and franchisees are fully wired and
connected to hub at Corporate office at Mumbai. Add on
branches also will be wired and connected to central hub
Web enabled connectivity and software in place for net trading.
60 operative IDs for dealing room
State of the Art accounting and billing system, on line risk
management system in place with 100% redundancy back up.
In house technology back up team to ensure un-interrupted
connectivity

Services

CHAPTER -5
DATA ANALYSIS AND
INTERPRETATION

ANALYSIS AND INTERPRETATION

A Structured Questionnaire consisting of 22 questions of open-ended and multiple choice
nature on the topic Absenteeism were administered to 60 employees belonging to
different departments out of which only 50 of them responded. The questions were based
on the reasons for absence, its impact on employee performance and suggestions from
respondents. The collected data is tabulated and systematically presented in tables and
graphs. Analysis is done by taking simple percentage method.

1. Age :
An analysis is carried out between the age of the respondents. The following responses
were made which are tabulated below.

Table No. 5.1 : Leaves availed by various age groups.

Options
20-25
26-30
31-45
46-60
Total

No. of respondents
12
15
13
10
50

Percentage
25
34
28
13
100

Figure 5.1- Leave availed by various age groups.

Interpretation :
34% of the respondents participated in the survey are of age group between 26-30.
28% of the respondents participated in the survey are of age group between 31-45.
25% of the respondents participated in the survey are of group between 20- 25.
13 % of the respondents participated in the survey are of age group between 46-60

Inference :
From the above table, we can conclude that respondents who are under age group 26-30
have participated more, when compared to others,

2. Designation :
An analysis is carried out between the designations of the respondents. The following
responses were made which are tabulated below.
Table No 5.2 : Leaves availed by employees of various designations.
Designation
Top level executive
Middle level executive
Lower level executive
Total

No of respondents
18
12
20
50

Percentage
30
20
40
100

Figure 5.2 : Leaves availed by employees of various designations

Interpretation :
40 % of the respondents being lower level executives were found to be absent.
30% of the respondents being top level executives were found to be absent.

 20% of the respondents being middle level executives were found to be absent.
Inference:
From the above table, we can conclude that majority of the lower level executives tend
to remain absent when compared to top and middle level executives.

3. Leaves availed :

The respondents were asked about how many leaves they have availed during the last
year. The data was collected and tabulated in the following table.
Table No. 5.3: Leaves availed

Leaves availed
10 days
15 days
20 days
25 days
Total

No of respondents
2
11
25
12
50

Figure 5.3 - Leaves availed

Interpretation:
50% of the respondents availed 20 days leave per year
4% of the respondents availed 10 days leave per year

Percentage
4
22
50
24
100

 22 % of the respondents availed 15 days leave per year

24 % of the respondents availed 25 days leave per year

Inference :
From the above figure, we can conclude that majority of the employees i.e 50% availed
20 days leave within a year.

4. Reasons for absence :

The respondents were asked about the reasons for being absent. Options like health
grounds, boredom / repetitive work , problems with superior, festivals/rituals,

tour/marriage/death were given. The data was collected and tabulated in the following
table.
Table No 5.4- Reasons for absence
Reasons for absence

No of responses

Percentage

Health grounds

28

56%

Boredom / Repetitive work

8%

Problems with superior

2%

Festivals/ rituals

12

24%

Tour/Marriage /Death

10 %

50

100

Total

Figure 5.4 Reasons for absence

Interpretation :

56% of the respondents reasons for being absent is due to Health reasons

 8% of the respondents reasons for being absent is due to Boredom/ repetitive

work.
2% of the respondents reasons for being absent is due to Problems with superior.
24 % of the respondents reasons for being absent is due to festivals/Rituals.
10% of the respondents reasons for being absent is due to Tour / Marriage /
Death.

Inference :
From the above figure, it is found that most respondents reasons for absence are
Health issues, Festivals/ Rituals .

5. Designation and Reasons for absence :

An analysis is carried out between the designations of the respondents and the
reasons for their absence, the following responses were made which are tabulated below.

Table No 5.5-Designation and Reasons for absence

Reasons for absence

Designation

Health

Boredom/

Problems

grounds Repetitive with

Top level executive

13

work
1

Middle level executive

13

Festivals / Tour/
Rituals

superior
1
-

Total

Marriage/
Death
-

15

15

Lower level executive

12

Total

Interpretation :
Out of 30 top level and middle level executives,26 of them responded to health
grounds as the reasons for their absence
About 12 lower level executives pointed to festivals/rituals as the reasons for
absence.

Inference :
Most of the top level and middle level executives were being absent due to health
problems while Lower level executives were absent due to festivals and rituals.

20
50

6. Age and Reasons for absence :

An analysis is carried out between the age of the respondents and the reasons for
their absence, the following responses were made which are tabulated below.
Table No 5.6-Age and Reasons for absence
Reasons for absence
Age

Health

Boredom/

Problems

Festivals / Tour/

grounds

Repetitive

with

Rituals

superior
1

Total

Marriage/

2030

10

work
1

Death
-

12

3040

13

19

4050

15

50--above

Total

50

Interpretation :
Respondents under 20-30 and 30-40 years of age were being absent due to health
problems.
Respondents under 40-50 years of age were absent due to festivals and rituals.
Inference :
Respondents who are under 20-40 years of age opted for health grounds as their reasons
foe absence while under 40-50 yrs of age claimed festivals and rituals.
7. Action taken for unauthorized leave :
The respondents were asked regarding the action taken by management when they take
authorized leave through a multiple choice. Options like issuing memo, termination, extra
working hours, fine/ salary cut were given. The data was collected and tabulated in the
following table .
Table No 5.7- Action taken for unauthorized leave
Actions

taken

for

No of responses

Percentage

unauthorized leave
Issuing memo

19

38

Termination

Extra working hours

21

42

Fine / salary cut

10

20

Total

50

100

Figure 5.7-Action taken for unauthorized leave

Interpretation :
42% of the respondents said that they were asked to work extra for unauthorized
leave.

38 % of respondents said that the management issued a memo for taking

unauthorized leave .

20% of the respondents said that management implemented fine when they took
unauthorized leave .
Inference :
From the above figure, it has been found that the management either issued a memo or

asked the employees to work extra hours. No employees responded to termination .

8. Double shifts /Night shifts influences absenteeism :

When the respondents were asked about their opinions regarding whether the double
shifts/nigh shifts influences absenteeism. Options like to a great extent, to a moderate
extent, not all were given and the following responses were made which are tabulated in
the following data .
Table No 5.8- Double/ Night shifts influences absenteeism
Double shifts/night shifts
influences absenteeism
To a great extent
To some extent
Not at all
Total

No of responses

Percentage

13
26
11
50

26
52
22
100

Figure 5.8-Double/ Night shifts influences absenteeism

Interpretation :
52% of the respondents said that to some extent double shifts /night shifts
influences absenteeism.
26% of the respondents said that the double shifts/ night shifts influences
absenteeism to a great extent.
22% of the respondents said that double shifts and night shifts will not affect
absenteeism.

Inference :
From the above figures, most of the respondents said that to some extent double
shifts/night shifts affected absenteeism.

9. Flexible time schedules reduces absenteeism :

When the respondents were asked regarding whether the flexible time schedules
reduces absenteeism, the following responses were made.
Table No 5.9- Flexible schedule reduces absenteeism

Flexible

time

schedules

reduces absenteeism
Yes
No
Total

No of responses

Percentage

39
11
50

78
22
100

Figure 5.9 Flexible time schedules reduces absenteeism

Interpretation :

 78% of the respondents said that flexible time schedules can decrease absenteeism
22% of the respondents said that flexible time schedules cannot decrease
absenteeism.

Inference :
From the above figure, most of the respondents said that flexible time schedules can
reduce absenteeism.

10. Rewarded for regularity :

The respondents were asked regarding whether they were rewarded for regularity or
maintaining perfect attendance, the following responses were made.
Table No 5.10- Rewarded for regularity

Rewarded for regularity

Yes
No
Total

No of responses
26
24
50

Figure 5.10 Rewarded for regularity

Interpretation :

Percentage
52
48
100

 52% of the respondents said that they were rewarded for maintaining perfect
attendance.
48% of the respondents said that they were not awarded for regularity.

Inference :

Half of the respondents said that they were rewarded for regularity whereas other half
said that they were not rewarded for regularity.

11. Impact on your overall performance :

The respondents were asked whether they have any impact on their overall performance,

Options like to a great extent , not at all were mentioned. The following responses were
made.
Table No 5.11Impact on overall performance

Impact on your overall

performance
To a great extent
To some extent
Not at all
Total

No of responses

Percentage

5
40
5
50

10
80
10
100

Figure 5.11-Impact on overall performance

Interpretation :
80% of the respondents felt that to some extent absenteeism affect their overall

performance.

10% of the respondents felt that absenteeism had a great impact on their overall
performance.

10 % of the respondents felt that absenteeism do not affect their overall

performance.

Inference :
From the above figure, it is clear that most of the respondents feel that their overall
performance gets affected due to absenteeism.

12. Opinions on main reasons for absenteeism :

When the respondents were asked about their opinion regarding the reasons for
absenteeism in their organizations, the following responses were made.

Table No 5.12- Opinions on main reasons for absenteeism in their organization

Opinions on main reasons

for absence
Health problems

No of responses

Percentage

25

50

Work load
Low salary
Total

13
12
50

26
24
100

Figure 5.12 Opinions on main reasons for absence in their organization.

Interpretation :
50% of the respondents gave opinion that the absenteeism is due to health
reasons.
26% of the respondents gave opinion that the absenteeism is due to heavy work
load.
24% of the respondents gave opinion that the absenteeism is due to low salary.

Inference :
Half of the respondents opined that the main reason for absenteeism in their organization
is health issues. Some of them pointed to heavy work load while other mentioned low
salary as the main reasons for absenteeism in their organization .

13. Suggestions to reduce absenteeism :

The respondents were asked to give suggestions on how to reduce absenteeism in their
organizations, the following responses were made.
Table No 5.13- Suggestion to reduce absenteeism in their organization

Suggestions

to

reduce

No of responses

Percentage

absenteeism
Attractive attendance Bonus
Adequate leave facilities
Strict leave rules
Reduced work load
Total

22
15
3
10
50

44
30
6
20
100

Figure 5.13 Suggestions to reduce absenteeism in their organization

Interpretation :

44% of the respondents suggested that attractive attendance bonus can reduce
absenteeism in their organization.

30% of the respondents suggestion that adequate leave facilities can reduce
absenteeism in their organization.
6% of the respondents suggested that by implementing strict rules absenteeism
can be reduced.

 10% of the respondents suggested that by reducing work load absenteeism can be
reduced.

Inference :
Almost half of the respondents suggested that attractive attendance bonus can reduce
absenteeism in their organization. Some of them suggested for adequate leave facilities.
While others suggested reduced work load to reduce absenteeism in their organization.

CHAPTER -6

FINDINGS,
CONCLUSIONS AND
SUGGESTIONS

FINDINGS

Majority of the respondents i.e 34% who are under age group 26-30 have
participated more, when compared to others.
Majority of the lower level executives i.e 40% tend to remain absent when
compared to top and middle level executives.
Majority of the employees i.e 50% availed 20 days leave within a year.
Most of the respondents i.e 56% reasons for absence are Health issues, Festivals/
Rituals .

 Majority of the respondents i.e 46 % said that they were asked to work extra for
unauthorized leave .No employees responded to termination
Most of the respondents i.e 52 % said that to some extent double shifts/night
shifts affected absenteeism.
Most of the respondents i.e 78% said that flexible time schedules can reduce
absenteeism and the remaining 22% of the respondents said that flexible time
schedules cannot decrease absenteeism.
Majority of respondents i.e 52 % said that they were rewarded for regularity
whereas other remaining 48% said that they were not rewarded for regularity.
Most of the respondents i.e 52% of the respondents said that they were rewarded
for maintaining perfect attendance and the remaining 48% of the respondents said
that they were not awarded for regularity.
Most of the respondents i.e 80% feel that their overall performance gets affected
due to absenteeism.
Half of the respondents i.e 50% gave opinion that the absenteeism is due to health
reasons.
Most of the respondents i.e 44% suggested that attractive attendance bonus can
reduce absenteeism in their organization.

CONCLUSIONS

A survey is conducted on the topic Absenteeism in NETWORTH Pvt ltd during 5th
Dec 2011 10th Jan 2012. Based on the analysis and interpretation, the following
conclusions are made which are as follows:

 Majority of the employees agreed that their performance is getting affected by

absenteeism.
The employees at NETWORTH IT Pvt ltd are well aware of the rules and try to
abide them.
During the period of the survey, 76% of the employees have abided to the leave
rules and the remaining 24% did not. This may affect the overall performance of
the employees.
Most of the employees cited health problems, festivals and rituals and the reasons
for their absence.
In NETWORTH IT Pvt ltd, the management is trying to control absenteeism by
issuing memo.
Employees feel that double shifts and night shifts also affect their work to some
extent.
The management is trying to motivate the employees by rewarding them for
regularity.

SUGGESTIONS

The following ideas have been suggested to reduce the problems of absenteeism in
NETWORTH Pvt ltd.

 Most of the employees are being absent due to health problems, the management
may take an action to improve the health measures in the organization and
conduct health camps frequently.
Absenteeism is relatively high among low level executives as compared other
employees. Its remedy can be that the management makes sure that the work load
is divided equally among the employees of same category so that they feel less
stressed out in double and night shifts.
The management may adopt flexible time work schedules which may reduce
absenteeism rate to some extent.
The management may take an effort to be fair while rewarding the employees,
irrespective of their designation.
The management may provide adequate leave facilities so that employees can
fulfill their obligation during festivals and rituals.

BIBLIOGRAPHY

BIBILIOGRAPHY

Text books :
Desler Gary , 2006, Human Resource Management, 10th Edition, Pearson/
Prentice Hall of India, pp, 86-88.

 Dr P Subba Rao , 2006, Essentials of Human Resource Management and

Industrial Relations, 2nd Edition reprint ,Himalaya Publishing House, Mumbai,
pp 339-343.
Noe A Raymond, John Hollenbeck, Barry Gerhart and Patrick Wright, 2008
Human Resource Management, 5th Edition, Tata Mc Graw Hill, p436.
K.N

Vaid

,Papers

on

absenteeism,

Asian

Publishing

House,

Newdelhi,1967,p.2
Indian Labour Statistics, Bureau of Labour, Simla 1962,p.16.
Websites:

The Business round table report c-6, 1989,Absenteeism and Turnover

Available from Url : www.curt.org/pdf/149.pdf.

Ipsos Reid and Warren Shepell survey ,Human Resources Professionals

Association (HRPA),2004,Causes of Absenteeism and Health care
Benefit costs, Available at : www.hrpa.ca/hrresourcecenter/absenteeism.

ANNEXURE

QUESTIONNAIRE
IDENTIFICATION DATA:
1. Name:
2. Age:

(a)15-25 years (b) 26-30 years (c) 31-45 (d) 46-60

3. Gender :
(a) Male (b) Female
4. Designation:
5. Department :
6. Education Qualification :
(a) SSC (b) Under Graduation (c) Graduation (d) Post Graduation
7. Salary (per month ):
(a) Less than 5,000 (b) 5001 to 10,000 (c) 10,001 to 15000 (d) 15001 to 20,000
8. Have you availed any leaves in the last year (Yes/ No). If Yes, then how many leaves
have you availed last year ?
(a) 10 days

(b) 15 days

(c) 20 days (d) 25 days and above

9. Give reasons for applying leave on some of the following categories?

No of leaves taken (days)

1- 3
(a) Health grounds
(b) Boredom / Repetitive work
(c) Problems with superior

3-5

5-7

7-9

Above

(d) Festivals / Rituals

(e) Tour / Marriage / Death

(f) If any other, Please specify _______________________________________________

10. Do you inform your superior before you take leave?
(a) Always (b) Sometimes (c) Never
11. If an employee takes unauthorized leave then what is the action management takes?
(a) Issuing memo (b) Termination (c) Extra working hours (d) Fine / Salary cut
12. Have you ever felt work load has been increased because of your absence ?
(a) To a great extent (b) To some extent (c) Not at all
13. In your absence, does anyone in the department takes changes in completing your
work ?
(a) Yes

(b) No

14. If Yes , then work is taken by?

(a) Yourself (b) Boss (c) Friendship / relationship
15. Do you think that the job dissatisfaction influencing absenteeism ?
(a) To a great extent (b) To some extent (c) Not at all
16. Do you think that double shift or Night shift influencing absenteeism?
(a) To a great extent (b) To some extent (c) Not at all
17. Do you feel flexible time schedules can reduce absenteeism?
(a) Yes (b) No
18. Are the employees rewarded for the regularity or 100% attendance in your
organization?

(a) Yes (b) No

19. Does the absenteeism have an impact on your overall performance?
(a) To a great extent (b) To some extent (c) Not at all
20. According to your opinion, what are the main reasons for absenteeism in your
organization ?

21. Please give your suggestions to reduce absenteeism in your organization?