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Company profile

SHAHI - WHERE AESTHETICS MEETS PROFESSIONALISM

Shahi - started in 1974 at Delhi, Bangalore operations began on 1st July 1988 with

250 associates and 104 machines. Expansion by 60 times by last 30 years. We

manufacture 3 million pc of high quality woven & knit per month and catering to all

segments in the apparel industry. A whooping over 2 million square feet for

woven/knits and we manufacture 1 million pc of per month of knits & 2 million pc per

month of wovens. The manufacturing units are located in Delhi, Bangalore, Tirupura

and Salem.

Moto

We believe in corporate leadership, the success is responsibility with freedom to work

is transferred to every individual with a collective teamwork.

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History

Shahi - started in 1974 at Delhi. Bangalore operations began on 1st July 1988 with

250 associates and 104 machines. Expansion by 60 times by last 30 years.

Infrastructure

The entire Shahi organization works on a single ERP system, which unifies all the

departments working. This not only makes us one of a kind but also gives us the

superiority of efficient functioning.

This allows us to typically handle the manufacturing, logistics, distribution, inventory,

shipping, invoicing, and accounting for a company. This also sychronises our business

activities like sales, delivery, billing, production, inventory management, quality

management, and human resources management.

Our today's structure is in complete contrast to our yesteryears' departments, which

have given way to modules like CRM, SRM, SCM and EPM, to not only give efficient

services to our customers but also to deal effectively with suppliers.

Our ERP functioning is cross-functional and enterprise wide. All functional

departments that are involved in operations or production are integrated in one

system. In addition to manufacturing, warehousing, logistics, and Information

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Technology, this also includes accounting, human resources, marketing, and strategic

management.

The automisation level that we have in Shahi is at par with the best of the best in

garment industry.

The technological advantage with Shahi is what makes unique, with an improved

business performance.

Through Our Enterprise Resource Planning, we have amalgamated our company's

information systems & have designed it to bind more closely, all our company

functions including human resources, inventories and financials while simultaneously

linking the company to customers and vendors.

Manufacturing

An innovative team under mature infrastructure is the pride of Shahi in fashion

industry. We got 21 state-of-the-art manufacturing facilities spread across Delhi,

Bangalore, Tirupur with whooping 15,000 machines installed. It is supported by the

latest automatic spreaders & CAD/CAM cutting and the best of the micro-process

controlled sewing machines with under-bed trimmers.

The start-of-the-art sewing facilities with online checking at critical points coupled with

stringent quality controls at finishing section meeting the standards of our buyers.

The facilities are of most modern with a total buildup area over 4 million sq. ft. spread

across India to support to manufacturing.

Embroidery

We are one of the largest installation of Barudan over 90 machines each of 20 heads

capable of producing 9 colors, producing 1 billion stitches per day. Also new

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embroidery addition can support sequencing and special operations in the machine,

with the above capacity we can turn-around time of an order can be shorter.

Washing

We have state-of-the art front loaded micro-process controlled washing facilities with a

expertise of washing for various brands like Abercrombie, Replay etc., we can do the

following washes in fabric & garment form

• Enzyme wash

• Acid wash

• Potassium permanganate wash

• Aged water

• Vintage wash

• Rubber ball wash

• Tea stain wash

Garment Dyeing

Garment pigment dyed

Sulpher dyed

Garment dyed over print

Tie & Dye

Dip Dye

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Fabric Processing

Sarla Fabrics, the processing plant rates as one of India's foremost wet processing

plant. All kinds of woven fabrics like poplin, twill, canvas, gauze etc., and made of

cotton, linen, rayon and lycra blends are processed to international standards. Prints

like reactive, vat color discharge on reactive grounds & pigments apart from some

special printing techniques like burnt out effects on polyester-cotton blends are

achieved here. In all, the unit whips out 100,000 meters of processed fabric per day.

The pre-treatment section houses an Osthoff Gas Singe & Desize machine, Benninger

Continuous Bleaching Range, Ben Dimensa Chainless Merceriser.

The Dyeing Section has a host of machinery like a Kusters Colt Pad Batch &

Benninger Wash Range, Continuous Dyeing Range, Jet Dyeing, Benninger Pad-Dry

(with Kuster Padder) and Benninger Pad Steam Range.

12 Color Rotary Printing Machines, with after-treatment machines like Continuous

Ager, Loop Ager, Star Agers; Polymerisers & Washing Ranges find pride of place. The

designing department is computerised with small yardages tackled on a Baby-Pilot

Rotary Machine.

In the Finishing Section one finds Stenters, a Relax Dryer cum baker, Emerising

(Peach) Machine & Preshrinking Range. Speciality finishes (apart from normal silicon

or soft finishes) like easy care (Self Smoothening Rating -3-3.5), Permanent

hydrophilic, Stain repellant - Teflon, Water repellent, Anti microbe or Permanent fresh

& Permanent Perfume can be applied.

Sarla Fabrics is equipped with an ultra-modern laboratory, with globally acclaimed

equipment. The laboratory has a Datacolour Computer Colour Matching System,

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coupled with a Datacolour Automatic Dispenser, to eliminate any human error. There

is a Mathis Padder with Dryer & Steamer and a replica pilot plant of bulk dyeing

machines. Lab to Bulk co-relation is perfectly documented and remains above 95% at

every time.

Future Expansion - Knit Processing - We are setting-up most modern processing

unit in Bangalore - Fabric processing of 10 Tons per day, 6 Tons of Yarn dyeing and

garment dyeing of 3 Tons per day with a latest color kitchen with reverse osmosis

plant & expected to commence production by 2007.

Having Brand new Maria Costa Italian sueding machine with a capacity of 3 Tons/day.

Sampling

Shahi always concentrates n spends manpower/money in sampling, we have

dedicated sampling units all over 300 machines for knits, woven-Men & woven-women

and turning around 15,000 samples every month. The sampling units are equipped

with the latest technology machines and well-experienced tailors to handle all kinds of

samples with a short lead-time.

We have a huge library for wovens / knits which can support the latest trends in the

market and the buyers can select the fabric and make the samples with a quick turn

around time. Added to that we got a huge library of trims/accessories to support the

sampling.

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Printing

We have the latest printing facilities, which can produce over 12 color 90,000 meters a

day. We are also equipped with digital laboratory printing to turn-around the samples

faster.

Training

Our most valuable asset is our Human Resource. It is imperative to develop people to

take on the challenges of future. We believe that this can be achieved only by

continuously honing competencies and developing individuals to take on higher roles

and greater responsibilities.

Businesses today have to be ready to compete. Improved transportation and

communication has shrunk the world. The talk is now of "global pressures", and "world

market requirements". Improving productivity is the name of the game.

Shahi provides focused learning experiences to the Associates, which stimulate,

support and develop their potential into work related competencies.

Multi Skill training, Seminars and Workshops on relevant topics groom the Associates

on required competencies.

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Manufactures

Shahi manufacture 3 million pc of high quality wovens & knits per month and catering

to all segments in the apparel industry. A whooping over 2 million square feet for

wovens/knits and manufacture 1 million pc of per month of knits & 2 million pc per

month of wovens. The manufacturing units are located in Delhi, Bangalore, Tirupur

and Salem.

Woven

Shahi Woven's is traditionally recognized for its excellence in quality, product range,

service & reliability. A whooping of over a million square feet is dedicated to produce

the finest garments covers a vast spectrum of the woven line - men's and boy's shirts -

casuals, men's shirts - formals, ladies & girls blouses, ladies & girls dresses and men's

& ladies bottoms, among others.

Our core strength is being Product Development & Design Inputs supported by in-

house studio and our offices in US. Our success being we bring the latest trends in the

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markets coupled with our in-depth study and shopping and create line for a particular

brand 'n' to bring the newness in the ever changing fashion world.

We manufacture 2 million high quality woven garments per month and we are in the

processing expanding 0.5 million pieces by the year 2007.

We have the world-class garment washing coupled with dry process to cater the

fashion trends.

We have the state-of-the-art continuous fabric processing & handles all kinds of

woven fabrics like poplin, twill, canvas and gauze etc., which are made of cotton,

linen, rayon and lycra blends. The modern fabric processing delivers over 100,000

meters a day.

We have a structured quality system right from the inspection of all in-ward materials

and the on-line checking of the garments in assembly line & inspection of the finished

garments.

Knits

We craft the finest knit garments in India supported by world class sewing facilities at

par with international standards.

Our core strength being Product Development & Design Inputs backed by our in-

house design departments as well as our design offices in US & Europe.

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Shahi - Knits Division is vertically integrated and manufacturing most of its fabrics

starting from yarn. Our success in fabrication being we start selecting the right fiber

coupled with dedicated spinning mills to cater to our specific requirements.

Our stringent quality controls starting from 100% fabric inspection at 4 Point system to

on-line inspection in garmenting, end-line inspection and supported by independent

TQA team ensures the best of its quality of the product we manufacture.

Shahi has implemented the latest ERP System "MOVEX" which connects all the

supply chain starting from yarn till the shipment and facilitates to monitor & adhere the

TNA to meet the delivery schedules.

We manufacture 1 million knit garments every month 'n' we are in the process of

expanding to an additional of 0.5 million pieces by year 2007.

We are equipped to handle big & small orders looking into the market requirements,

thanks to our market share in US & Europe.

We manufacture all kinds of Men/Women/Boys/Girls and Kids knit-ware catering to all

seasons namely Spring/Summer/Autumn/Winter.

Our diligent merchants are always on their toes to serve our clients.

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Home furnishing

Shahi, the most successful export company in India, started its new Home furnishings

division in 2004.

This division is currently providing complete "top of the bed" solutions to some of the

most demanding names in this business by integrating traditional craftsmanship and

modern technology with decades of experience in apparel, uncompromising quality

control & consistency for covering a wide spectrum of furnishing fabrics and home

textiles.

With dedicated design & merchandising teams supported by state of the art facilities

and latest CAD software, we are able to develop fashion ideas for the biggest home

brands, globally.

A separate new fabric development cell is continuously experimenting with new

avenues in rich jacquards, exclusive Indian fabrics -like silks, velvets, chenille, voiles

denims and organza along with coordinating development activities with our sourcing

offices in far east for linens and synthetic fabrics.

Today on an average, our monthly capacities include 50000 drapes, 100,000 cushion

covers, 20000 coverlets & quilts and 15000 duvets and bedcovers.

Quality policy of the division starts from the design stage. The Design Team is

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responsible to see that the product offered is amenable to quality production at

economical prices with optimum utilization of available materials.

All this is backed by an impeccable track record in manufacturing consistency and

quality management with many of the biggest and the best names in the business

worldwide.

Design and product development

The core strength is being Product Development & Design Inputs supported by in-

house studio and our offices in US & Europe. Our success being we bring the latest

trends in the markets coupled with our in-depth study and shopping and create line for

a particular brand 'n' to bring the newness in the ever changing fashion world.

They have a dedicated knowledgeable product design team, travels worldwide to take

the best of the trends and transforming to design creation with mood boards, samples

and given added advantage to the customers. We believe to become partners in the

progress of our customers, we have to understand the needs and deliver the latest

design & product development inputs to make the journey a success.

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H R policy

We never overlook the fact that it is our people who deliver what our clients need. We

are of the conviction that our success is based on their skills, commitment and

motivation. We accept as true that our people are distinctive in the work they perform.

We all find ourselves devoted to our clients to develop and sustain long-term

relationships.

At Shahi, we recognize the fact that it is our collective talent that drives our progress

and always helps us to stay on the rise of the curve. We take pride in accepting and

taking on new challenges at every stage of our business growth.

It is Shahi's dream to become the number one in the Apparel Business. With a rapid

business growth, we are forging ahead in the global market. To achieve our dream,

we are always looking out for talented, learnable individuals who are ambitious, who

love challenges and who have a passion to excel!

Towards this objective, Shahi participates in campus hiring programs and also

conducts a number of off-campus initiatives throughout the year. Apart from campus

recruitment, we also hire experienced professionals from the industry at various

positions.

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Training and Development

Our most valuable asset is our Human Resource. It is imperative to develop people to

take on the challenges of future. We believe that this can be achieved only by

continuously honing competencies and developing individuals to take on higher roles

and greater responsibilities.

Businesses today have to be ready to compete. Improved transportation and

communication has shrunk the world. The talk is now of "global pressures", and "world

market requirements". Improving productivity is the name of the game.

Shahi provides focused learning experiences to the Associates, which stimulate,

support and develop their potential into work related competencies.

Multi Skill training, Seminars and Workshops on relevant topics groom the Associates

on required competencies.

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Awards

• Best exporters Award from AEPC.

• Best Vendor of the year rated by Wal-Mart/JC Penney/ Target.

• Best Manufacturing facilities rated by NIFT.

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OBJECTIVE OF THE STUDY

The analysis of the past trends points out towards Absenteeism. As such a clear

understanding of reasons for absenteeism can be profitable and contribute to growth

of organization

Specifically, the objective of the study to Reduce absenteeism by

• Identifying the possible causes of absenteeism

• Proposing solutions to the problem

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INTRODUCTION

Absenteeism

Absenteeism is referred to as failure of employees to report for work when they are

scheduled to work.

Peculiar features of absenteeism

On the basis of studies undertaken certain observations may be made:

a) The rate of absenteeism is lowest on payday; it increases considerably on the days

following the payment of wages and bonus. The level of absenteeism is comparatively

high immediately after payday. When worker either feel like having a good time or in

some other cases return home to their villages family and after a holiday, has also

been found to be higher than that on normal days.

b) Absenteeism is generally high workers below 25 years of age and those above 40.

“The younger employees are not regular and punctual”. Presumably because of the

employment of a large no. of new comers among the younger age groups, while the

older people are not able to withstand the strenuous nature of the work.

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c) The percentage of absenteeism is higher in the night shift than in the day shift. This

is so because workers in the night shift experience great discomfort and uneasiness in

the course of their work than they do during day time.

d) Absenteeism in India is seasonal in character. It is the highest during

March-April-May, when land has to be prepared for monsoon, sowing and also in

harvest season (Sept-Oct) when the rate goes as high as 40%.

Measurement of absenteeism

For calculating the rate of absenteeism we require the number of people scheduled to

work and number of people actually present. Absenteeism can be find out of absence

rate method.

Total Number of persons – days lost x 100

Average number of persons x number of working days

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%

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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).

Employees who are away from work on recognized holidays, vacations, approved

leaves of absence, or leaves of absence allowed for under the collective agreement

provisions would not be included. Unavoidable absenteeism is accepted by managers

and is even sanctioned by law.

Trends in Absenteeism

Surveys indicate the following generalities in absenteeism:

• The higher the rate of pay and the greater the length of service of the

employee, the fewer the absences.

• As an organization grows, there is a tendency towards higher rates of

absenteeism.

• Women are absent more frequently than men.

• Single employees are absent more frequently than married employees.

• Younger employees are absent more frequently than older employees.

• Older employees are absent for longer periods of time than younger

employees.

• Unionized organizations have higher absenteeism rates than non-unionized

organizations.

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Types of absenteeism

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

approach.

1. Innocent Absenteeism

Innocent absenteeism refers to employees who are absent for reasons beyond their

control; like sickness and injury. Innocent absenteeism is not culpable which means

that it is blameless. In a labour relations context this means that it cannot be remedied

or treated by disciplinary measures.

2. Culpable Absenteeism

Culpable absenteeism refers to employees who are absent without authorization for

reasons which are within their control. For instance, an employee who is on sick leave

even though he/she is not sick, and it can be proven that the employee was not sick,

is guilty of culpable absenteeism. To be culpable is to be blameworthy. In a labour

relations context this means that progressive discipline can be applied.

For the large majority of employees, absenteeism is legitimate, innocent absenteeism,

which occurs infrequently. Procedures for disciplinary action apply only to culpable

absenteeism. Many organizations take the view that through the process of individual

absentee counselling and treatment, the majority of employees will overcome their

problems and return to an acceptable level of regular attendance.

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Counselling Innocent Absenteeism

Innocent absenteeism is not blameworthy and therefore disciplinary action is not

justified. It is obviously unfair to punish someone for conduct which is beyond his/her

control. Absenteeism, no matter what the cause, imposes losses on the employer who

is also not at fault. The damage suffered by the employer must be weighed against the

employee's right to be sick. There is a point at which the employer's right to expect the

employee to attend regularly and fulfill the employment contract will outweigh the

employee's right to be sick. At such a point the termination of the employee may be

justified, as will be discussed.

The procedure an employer may take for innocent absenteeism is as follows:

1. Initial counselling(s)

2. Written counselling(s)

3. Reduction(s) of hours and/or job reclassification

4. Discharge

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.

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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.

Reduction(s) of hours and or job reclassification

In between the first and second letters the employee may be given the option to

reduce his/her hours to better fit his/her personal circumstances. This option must be

voluntarily accepted by the employee and cannot be offered as an ultimatum, as a

reduction in hours is a reduction in pay and therefore can be looked upon as

discipline.

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If the nature of the illness or injury is such that the employee is unable to fulfill the

requirements of his/her job, but could for example benefit from modified work, counsel

the employee to bid on jobs of such type if they become available. (N.B. It is

inadvisable to "build" a job around an employee's incapacitates particularly in a

unionized environment. The onus should be on the employee to apply for an existing

position within his/her capabilities.)

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.

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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.

Corrective Action for Culpable Absenteeism

As already indicated, culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve his/her

attendance.

Presuming you have communicated attendance expectations generally, have

identified the employee as a problem, have met with him/her as part of your

attendance program, made your concerns on his specific absenteeism known and

have offered counselling as appropriate, with no improvement despite your positive

efforts, disciplinary procedures may be appropriate.

The procedures for corrective/progressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems. The discipline should

not be prejudicial in any way. The general procedure is as follows: [Utilizing

counselling memorandum]

1. Initial Warning(s)

2. Written Warning(s)

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3. Suspension(s)

4. 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

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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.

Causes of Absenteeism

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The general cause of absenteeism may be summarised as below:-

1) MALADJUSTMENT WITH FACTORY

In factory the worker finds caught within factory walls, he is bewildered by heavy

traffic, by strangers speaking different and subjected to strict discipline and is ordered

by complete strangers to do things which he cannot understand. As a result he is

under constant strain, which cause him serious distress and impairs his efficiency. All

these factors tend to persuade him to maintain his contacts with village.

2) SOCIAL AND RELIGIOUS CEREMONIES

Social and religious ceremonies divert workers from workers to social activities. In

large number of cases incidence of absenteeism due to religious ceremonies is more

than due to any other reason.

3) HOUSING CONDITIONS

Workers also experience housing difficulties. Around 95% of housing occupied by

industrial workers in India is unsatisfactory for healthful habitations. This leads to loss

the interest in work.

4) INDUSTRIAL FATIGUE

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Low wages compel a worker to seek some part time job to earn some side income.

This often result inconstant fatigue, which compels to remain absent for next day.

5) UNHEALTY WORKING CONDITION

Irritating and intolerable working conditions exist in a factory. Heat, moisture, noise,

vibration, bad lighting, dust fumes and overcrowding all these affect the workers health

causing him to remain absent from work a long time.

6) ABSENCE OF ADEQUATE WELFARE ACTIVITIES

High rate absenteeism is also due to lack of adequate welfare facilities Welfare

activities include clean drinking water, canteen, room shelter, rest rooms, washing and

bathing facilities, first aid appliances etc.

7) ALCOHOLISM

Some of the habitual drunkards spend whole of their salary during first week of each

month for drinking purpose. Therefore 2 or 3 weeks after getting their salary absent

themselves from their work.

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8) INDEBTNESS

All those workers who undergo financial hardships usually borrow money lenders at

interest rate which are very high, which often cumulates to more than 11 – 12 times

their actual salaries. To avoid the moneylenders they usually absent themselves from

work because they are unable to return the money in stipulated time.

9) IMPROPER & UNREALISTIC PERSONNEL POLICIES

Due to favouritism and nepotism which are in the industry the workers generally

become frustrated. This also results in low efficiency, low productivity, unfavourable

relationship between employee and superior, which in turn leads to long period of

absenteeism.

10) INADEQUATE LEAVE FACILITIES

Negligence on part of the employee to provide leave facility compel the worker to fall

back on ESI leave. They are entitled to 50 days leave on half on pay. Instead of going

without pay the worker avail themselves of ESI facility.

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The Cost of Absenteeism

Decrease in Productivity

• Employees may be carrying an extra workload or supporting new or

replacement staff

• Employees may be required to train and orientate new or replacement workers

• Staff morale and employee service may suffer

Financial Costs

• Payment of overtime may result

• Cost of self-insured income protection plans must be borne plus the wage costs

of replacement employees

• Premium costs may rise for insured plans

Administrative Costs

• staff time is required to secure replacement employees or to re-assign the

remaining employees

• staff time is required to maintain and control absenteeism

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EFFECTS OF ABSENTEEISM ON

INDUSTRIAL PROGRESS

It is quite evident from the above figures that absenteeism is a common feature

of industrial labour in India. It hinders industrial growth and its effect in two fold.

1) LOSS TO WORKER

Firstly due to the habit of being absenting frequently worker’s income is reduced

to a large extent. It is because there is a general principle of “no work – no pay”. Thus

the time lost in terms of absenteeism is a loss of income to workers

2) LOSS TO EMPLOYERS

On other hand, the employer has to suffer a greater loss due to absentees. It

disturbs the efficiency and discipline of industries consequently, industrial production

is reduced. In order to meet the emergency and strikes, an additional labour force is

also maintain by the industries. On certain occasions, those workers are employed

who present themselves at factory gates. During strikes they are adjusted in place of

absent workers. Their adjustment brings serious complications because such workers

do not generally prove themselves up to work. Higher absenteeism is an evil both for

workers and the employers and ultimately it adversely affects the production of

industries

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Measures to control absenteeism

1) ADOPTION OF A WELL DEFINED RECRUITMENT

PROCEDURE

The selection of employees on the basis of command, linguistic and family

consideration should be avoided. The management should look for aptitude and ability

in the prospective employees and should not easily yield or pressure of personal likes

and dislikes. Application blanks should invariably be used for a preliminary selection

and tools for interviews. The personal officer should play more effective role as

coordinator of information, provided that he has acquired job knowledge in the

function of selection. Employers should also take into account the fact that selection

should be for employee’s development, their reliance. They should as far as possible

rely on employment exchange.

2) PROVISION OF HEALTHFUL AND HYGENIC WORKING CONDITION

In India, where the climate is warm and most of the work involves manual labour, it is

essential that the workers should be provided with proper and healthy working

conditions. The facilities of drinking water, canteens, lavatories, rest rooms, lighting

and ventilation, need to be improved. Where any one of these facilities is not

available, it should be provided and all these help in keeping the employee cheerful

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

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3) PROVISION OF REASONABLE WAGES AND ALLOWANCE AND JOB

SECURITY TO WOTRKERS

The wages of an employee determine his as well as his family standard of living. This

single factor is important for him than other. The management should, therefore pay

reasonable wages and allowances, taking into account the capacity of the industry to

pay

4) MOTIVATORS WELFARE AND SOCIAL MEASURES

The management should consider the needs of workers and offer them adequate and

cheap housing facilities, free of subsidised food, free medical and transport facilities,

free education facilities for their children and other monetary benefits. As for social

security is concern, the provision of Provident Fund, SBI facilities, Gratuity and

Pension, all those need to be improved.

5) IMPROVED COMMUNICATION AND PROMPT REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them. Meetings and

concealing are called for written communication becomes meaningful only when

workers can readied understood them, too many notices should be avoided only the

essential ones should be put on the boards, which should be placed near the entrance

33
inside the canteen and in areas which are frequently visited by the workers so that

they are aware of the policies of the company and any sort changes being made.

6) LIBERAL GRANT OF LEAVE

The management’s strict attitude in granting leave and holidays even when the need

for them is genuine, tempts workers to go on E.S.I. leave for under this scheme, they

can have 56 days leaves in years on half pay. An effective way of dealing with

absenteeism is to liberalise leave rules.

7) SAFETY AND ACCIDENT PREVENTION

Safety at work can be maintained and accidents can be prevented if the management

tries to eliminate such personal factors as negligence, overconfidence, carelessness,

vanity, etc and such material factorizes unguarded machinery and explosives,

defective equipment and hand tools. Safe methods of operation should be taught. In

addition consistent and timely safely instruction, written instructions (manual) in the

regional language of the area should be given to the work force.

8) CORDIAL RELATIONS BETWEEN SUPERIORS AND WORKERS

The superior should be recognise that industrial work is a groups task and cannot be

properly done unless discipline is enforced and maintained. Cordial relations between

the superiors and these workers are therefore essential for without them, discipline

34
cannot be increased. One of the consequences of unhealthy relations between

superiors and subordinates is absenteeism.

9) DEVELOPMENT OF WORKERS BY TRAINING

The system of worker’s education should be so designed as to take into account their

educational needs as individuals for their personal evaluation, as operatives for their

efficiency and advancement, as citizens for happy integrated life in the community, as

members of a trade union for the protection of their interests. The educational

programs according to their national commission on Labour should be to make a

worker:-

a) A responsible, committed and disciplines operative.

b) Aware of his rights and obligations.

c) Lead a calm, clean and health life, based on a firm ethical

foundation.

d) A responsible and alter citizen.

Absenteeism policy

Definition: A policy that provides guidance within an organization about how to

manage the state of chronic absence from work. Absenteeism is usually addressed

through progressively stricter disciplinary measures that can result in the termination

of the individual's employment. This is generally governed by the organization’s

attendance policy.

35
Purpose

The purpose of attendance management is to develop a willingness on the part of all

employees to attend work regularly, and to assist them in motivating their co-workers

to attend work regularly. This can be done through;

• addressing the physical and emotional needs of employees

• communicating the attendance goals of the organization so employees can

understand and identify with them

• dealing with cases of excessive absenteeism effectively and fairly to produce

deterrence.

Successful administration of an attendance management program requires managers

and supervisors to be aware of, and to create work environments in which the

following can be actualized;

• The greater the extent to which individuals identify with the goals of the

organization and care what happens to it, the greater their motivation to be

regular in attendance.

• The more that people find their jobs meaningful to them, the greater their

motivation to be regular in attendance.

• As employees’ workloads increase due to the absence of a co-worker, peer

pressure is exerted on the absent co-worker to attend work on a regular basis.

36
• The more people like working for the organization, the higher their motivation to

attend regularly. Recognition of good employee attendance helps improve

attendance.

• Employees will have a lower absence ratio if they feel free to discuss their on-

the-job problems with their immediate supervisor.

• Employees with a low absence ratio feel confidence and have supportive

relationships in their workplace. Low absence ratio employees are found to be

more satisfied with their opportunity for promotion and upgrading.

Advantages

* Reduces absence levels.

* Minimises disruption to workflow and production.

* Saves costs associated with absenteeism.

* Achieves a better-motivated workforce.

* Prevents unnecessary extra pressures and stress being placed on co-workers.

* Ensures that absence is tackled in a fair and consistent manner throughout the

organisation.

* Removes managerial subjectivity by indicating what are unacceptable levels of

absence and the procedures to deal with them.

37
* Reduces expectations of staff to what might be regarded as extra annual leave.

Disadvantages

There are no real disadvantages of an absenteeism policy, but it is important to

ensure that staff who are genuinely ill are not penalised, and that sick people are not

encouraged to work when they are not fit. Overly stringent policies run the danger of

disaffecting staff by giving them the feeling that they are not trusted.

38
RESEARCH METHODOLOGY

The research reveals that one of the major problems is absenteeism in our industry.

Absenteeism hinders planning, production, efficiency and functioning of the

organisation. In fact high rates of absenteeism affect an organisation state of health

and also superiory and managerial effectiveness.

1) OBJECTIVES OF RESEARCH

i. To identify the rate of absenteeism of “worker”.

ii. To identify the causes of absenteeism.

iii. To suggest any measures to reduce the rate of absenteeism

2) SAMPLE SELECTION AND SIZE

The population for the study comprised of absentees for current

year, the total sample 50 workers.

3) DATE COLLECTION AND STATISTICAL TOOLS

The sources of data for the purpose of study were both primary and secondary.

39
Primary data was collected through questionnaire which was mainly close-ended

questionnaire and discussion with workers

Secondary data was collected from records maintained by personal department and

time office.

Percentage method is used for the analysis of data and bar graphs are used to

present that data.

40
LIMITATION OF THE STUDY

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

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

could not be judged.

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

for the interview.

c) The personal biases of the respondents might have entered into their response.

d) Some of the respondents give no answer to the questions which may affect the

analysis.

e) Respondents were reluctant to disclose complete and correct information Because

of a small period of time only small sample had to be considered which doesn’t

actually reflect and accurate and intact picture.

41
Analysis and interpretation

Q For how many years you are working with shahi exports pvt.ltd.?

duration of work

4%
12%

0-2 years
2-5 years
56% 5-10 years
28%
More than 10 years

Max. number of employees (56%) is those who have been working with company for

more than 10 years. So we may expect that this study gives more reliable results.

Q How often you remain absent in a month?

absenteeism

4%
8%

8%
Nil
Once
Twice
More than twice

80%

80% employees are regular at their work. Only 4% employees are those who with

some reason take more than 2 leaves in a month.

42
Q 3 According to you what are main reasons for your absence?

reason of absenteeism

4%

Personal
Professional

96%

Main reason of employees’ absenteeism is personal. Company provides a good

working environment which enables and motivates employees to perform their best.

Q 4 What are your views regarding the Absenteeism policy of company?

absenteeism policy

50

40

30

20

10

0
Excellent Good Fair Poor

The company maintains a good absenteeism policy that is appreciated by 92%

employees. Nobody feels any need of change in this policy.

43
Q 5 How is your work environment?

work environment

50
45
40
35
30
25
20
15
10
5
0
a) Good b)Satisfactory c)Bad

This above graph shows that majority of employees are happy with the work

environment, it shows that they are willingly do their work.

Q 6 Have you been adequate training to do your job?

0%

a)Yes
b)No

100%

Employees have got adequate training to perform their duties and it is proved by the

fact that not even a single employee was not in the favour that he/she has not got

adequate training to perform their duties it shows that organization is serious about

the growth of its company as well of its people.

44
Q 7 Do you work overtime?

over time

20%

a)Yes
b)No

80%

80% of the employees said that they do overtime. Only 20 % said it is once in a week

and that wont effect much to them but still majority said overtime is there. So

somewhere is increasing working pressure on them.

Q 8 If yes, how many hours you overtime?

hours of overtime

40

20

S1 Series1
0
a) 1 hr b) 2 hr c)3 hr d) more
than 3hr

Employees have to work over time and it is near around 2 hours and that is said by

76% employees and the minimum over time is 1 hour that shows that the work

pressure on them is more they do over time and that somewhere is affecting their

performance as well as their dedication towards work.

45
Q 9 Are you happy/satisfied with your work?

work satisfaction

12%

a)Yes
b)No

88%

Majority of the employees are happily doing their work they are satisfied with their job

and it is proved by the above chart. Employees said they are satisfied with their work

only six weren’t satisfied and that might be due to their own attitude towards the work.

Q How do you rate your relation with your superior?

relationship with supervisor

a)Satisfied

4% 8% 8%
b)highly Satisfied

c)Neither satisfied
or Dissatisfied
80%
d)dissatisfied

In relation to the superior to most of the employees have good relations it means that

the relation with the superiors are very good and they can share easily their problems

with their superiors and can ask question to perform their duty well this can be clearly

depicted from the survey that only 8% employees responded poor relation with their

46
superiors. This may be due to their attitudes and 80% employees have responded that

they are highly satisfied and 8% has responded they are satisfied and only 4% was

neutral about the question they were neither satisfied or dissatisfied. It is most

important for the employees and for their sound working in the organisation.

Q Does your superior support you in work?

supervisors support

40
35
30
25
20
15
10
5
0
excellent good fair poor

The superiors are dedicated towards their work. They help their employees in anyway

so that they can share easily their problems with them and can ask question to

perform their duty well this can be clearly depicted from the survey that only 8%

employees responded poor relation with their superiors (from the above question) and

also they said that they are not helpful in nature. This may be due to their attitudes

and 80% employees have agreed very much that their superiors are have good

behaviour and they are helpful in nature and only 8% were disagree and only 4% were

neutral about the answer but overall analysis shows superiors perform their duties

very well.

47
Q Are all employees treated equally?

equal treatm ent of em ployees

4%
0%
16%
ex c ellent
good
f air
poor
80%

All superiors treat their employees equally This can be clearly depicted from the

survey that only 8% employees have responded poor relation with their superiors. This

may be due to their attitudes and 80% employees have responded that their superiors

treat them equally they are not biased. This analysis regarding superiors behaviour is

very important as it put a great impact towards the working environment and also

dedication towards work.

48
Q Which factor motivates you to attend office regularly?

a)Good employer
motivation to work relations

b)Work
Environment
12%
20%

c)Future
20% Prospects

28% d)Recognition of
work
20%

e)Incentives and
bonus provided
based on
performance

Factors like work environment, good employer relation, recognition of work, future

prospects are the motivation factors for the employee to attend regularly out of which

working environment contribute a lot in this whereas incentives and bonus provided

based on performance contributes least. But overall analysis shows that organization

do everything to motivate their employee.

49
CONCLUSION

Finding and analysis reveals the following conclusion

1) 56% of the workers at shahi exports Pvt. Ltd. are working for more than 10 years

whereas 28% are working for more than 5 yrs.

2) 80% of the workers do not remain absent.

3) According to 96% workers, personal problem is the reason for being absent. 4%

think that stress can also be the reason.

4) Almost 92% workers rate the present absenteeism policy as good whereas 8% rate

it as excellent.

5) Almost 96% of the workers at shahi exports Pvt. Ltd. are clear regarding their work

responsibilities.

6) 88% of the workers are fully satisfied with their work whereas 12% workers think

their work as good.

7) 80 % workers have excellent relations with the superiors whereas 8% have good

relations with the superiors.

8) 80% workers think that their superior’s behaviour towards their problems is

excellent & 8% workers consider it as good.

50
SUGGESTIONS AND

RECOMMENDATIONS

Shahi export pvt. ltd. though has less absenteeism, still looks forward for no

absenteeism at all.the survey conducted induced the following conclusion.

The management should take the following measures to reduce the rate of

absenteeism:-

Increase employee motivation.

This is easier said than done, but it can be accomplished by enhancing the intrinsic

motivation employees receive from their job by making production goals more realistic,

increasing desirable job responsibilities, and improving working conditions. An

employer can also increase extrinsic motivation by implementing a type of recognition

or reward program. Research by Gallup Consulting indicates that people who are not

using their strengths at work:

• tend to dread going to work;

• have more negative than positive interactions with co-workers;

• treat customers poorly;

• tell friends they work for a miserable organisation;

• achieve less on a daily basis;

• have fewer positive and creative moments

Enhance job satisfaction.

Job satisfaction is influenced by many employment factors. However, the best way to

improve employee satisfaction is to reduce workplace stressors to make working

51
conditions more enjoyable and consistently provide honest and meaningful feedback

and praise.

Implement a job rotation or job enlargement strategy.

One of the reasons employees are frequently absent is lack of challenging work due to

repetition, boredom, and burnout. A way that employers can improve an employee’s

perspective of his or her position is to provide opportunities to rotate among jobs and

to gain more skills and knowledge in an area of personal and professional interest

Reward and discipline employees for increased or decreased absenteeism.

Although this may seem elementary, the reward/punishment motive is still an effective

way to influence absenteeism rates in organizations. If a financial or recognition-based

reward is attached to instances of decreased absenteeism, employees that are

motivated to receive the reward will have fewer instances of absenteeism and strive to

achieve attendance goals. Furthermore, employees that are motivated to avoid

consequences positively react to this type of strategy.

Allow employees to utilize a modified work schedule.

Since some absenteeism is a result of personal-related matters, providing employees

the opportunity to be flexible in their schedules, occasionally or permanently, helps

employees feel more able to balance their work and personal life. Flex time, or

modified work schedules, can range in degrees of formality and type, so the flexibility

can be easily controlled by an employer.

52
Develop key leadership skills for owners and directors

Strong leadership and a sense of direction are the hallmarks of businesses where the

employees are committed. Good leaders offer direction to people, get them to share

vision for the business, and aim to create the positive conditions that foster

commitment through:

• involving them in decision-making;

• providing personal encouragement;

• recognising and rewarding good performance;

• helping to build their confidence to use their own initiative;

• inspiring them with a vision for success;

• ensuring good two-way communication.

In this project while identifying the reasons of absenteeism of the employees of Shahi

exports pvt. ltd., Faridabad I got an opportunity to interact with employees to observe

their behaviour and attitude.

In the end I would once again like to thank the people of shahi exports Pvt. Ltd. who

helped me in accomplishing this project and boosting my morale by appreciating and

recognizing my efforts.

53
ANNEXURES

QUESTIONNAIRE

Personal Information

Name… … … … … … … … … … … … … … … … … … … … … … … … … … …..

Age………………………….

Sex………………………..……

Job status…………………………………………………………………….

1) For how many years you are working with shahi exports Pvt. Ltd.?

(a) 0-1 yr

(b) 1-2 yr

(c) 2-5 yr

(d) < 5 yr

2) How often you remain absent in a month?

(a) Nil

(b) Once

(c)Twice

(d) < Twice

54
3) According to you what is the main reason for employees absent?

(a) Personal

(b) Professional

4) Your views regarding the present Absenteeism Policy of shahi exports Pvt. Ltd.?

(a) Excellent

(b) Good

(c) Fair

(d) Poor

5) Your views regarding the working environment of shahi exports Pvt. Ltd. & work

place?

(a) Good

(b) Satisfactory

(c) Bad

6) Have you been given adequate training to do job?

(a) Yes

(b) No

7) Do you work over time?

(a) Yes

(b) No

55
8) If yes, how many hours on an average you work over time?

(a) 1 hr

(b) 2hr

(c) 3hr

(d) more than 3hr

9) Are you satisfied with your work?

(a) Yes

(b) No

10) How are your relations with your superiors / co-workers?

(a) Excellent

(b) Good

(c) Fair

(d) Poor

11) Your superior’s behaviour towards your problems?

(a) Excellent

(b) Good

(c) Fair

(d) Poor

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12) Does your superior treat all employees equally?

(a) Totally agree

(b) Agree

(c) Neutral

(d) Disagree

13) Which factor will motivate you to attend regularly?

(a) Good employer relations

(b) Work environment

(c) Future prospects

(d) Recognition of work

(e) Incentives and bonus provided based on performance

Any suggestions / Comments

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

57
BIBLIOGRAPHY

• www.google.com

• www.msn.com

• www.citehr.com

• www.wikipedia.com

• www.employer-employee.com

• www.shahi exports pvt. Ltd.

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