CHAPTER I

INTRODUCTION

1.1 INTRODUCTION

Relevance of the project to MBA

Business research is a systematic inquiry with the objective of providing information to solve managerial problems. The project work provides an opportunity for the student researcher to train in a disciplined process for conducting an inquiry of a problem or opportunity that requires a management decision. The purpose of this research is to find out the causes of absenteeism in FLAKT (INDIA) PRIVATE LIMITED Private Limited and to find out the attitude of the employees with regard to their job and management.

1.1 About the topic Absenteeism is the term generally used to refer to unscheduled employee absences

from the workplace. Many causes of absenteeism are legitimate. Personal illness or family issues, for examplebut absenteeism also can often be traced to other factors such as a poor work environment or workers who are not committed to their jobs. The levels of absenteeism and reasons for its occurrence are dependent on many variables in an organizational environment. Some factors are detailed as follows: Family circumstances Physical health of the worker Work Environment Degree of job stress Employer-employee relations Job dissatisfaction Lack of Motivation

Absenteeism in Indian Industries: Absenteeism in Indian industries is not a new phenomenon. It is the manifestation of a decision by employees not to present themselves at their place of work, at a time when it is planned by the management that they should be in attendance. a problem to organizational management particularly when The absenteeism becomes employees absent from their

work environment without giving sufficient notice and by justifying their stand by furnishing fake reasons. The reasons for absenteeism are many. The factors contributing to absenteeism from work includes individual and environmental factors. These consists of sickness, accidents, occupational diseases, poor production planning, bad working conditions and inadequate welfare conditions, insecurity employment, lack of interest. The individual

reasons may vary from organization to organization depending upon the organizational climate and employee's attitude. The problem: High rate of absenteeism is neither desirable to employers nor good for the employees. In majority of organizations, high rate of absenteeism has an adverse effect on quality and quantity of production, efficiency of workers and organization, organizational discipline and more importantly on the organization's intention to fulfill the new market demands. The absenteeism develops a considerable loss to organization because work schedules gets upset and delayed and management has to provide overtime wages to meet the delivery dates. Absenteeism has the potential to cause numerous impacts upon an organization; these include lost productivity, poorer quality of product or service, decreased customer satisfaction, and a negative effect on the performance of other employees. Other operational consequences of absenteeism include greater financial costs to the employer, as well as a greater employee workload. Impact on productivity: Absenteeism can have an enormous impact on productivity.

lost productivity of the absent employee overtime for other employees who fill in decreased overall productivity for those employees possible loss of business or dissatisfied customers

Absenteeism can defined as habitual absence from work, thought to reflect employee demoralization or dissatisfaction. Employee absenteeism is a problem for almost all employers, not to mention a costly one at that. The definition of absenteeism, its causes, its affects on productivity, and its costs in terms of finances and administrative effectiveness are quite clear, the challenge FLAKT (INDIA) private limited is in taking affirmative action to control it. People can be absent from work for a number or reasons, some of them for a very good reason, but whatever the reason, absence is costly and disruptive and needs to handled with skill, understanding and confidence. What causes the employee to skip work? Absenteeism is one of the most serious problem facing employers in todays workplace. Employers must be able to identify what is causing their employees to miss work in order for them to find a solution. The reasons for the absences can be divided amongst two categories, internal (within the individual) and external (within the company). Internal causes can include serious accidents and illnesses, transportation problems, stress, low morale, poor physical fitness, inadequate nutrition, and personal problems. External causes FLAKT (INDIA) private limited from poor working conditions, boredom on the job, low morale.

Conceptual framework:

CAUSES

FACTOR

COSEQUENCES

Poor working condition Job dissatisfaction Lack of motivation limited of machines Poor connection between Pay and performance Absenteeism

Low productivity Interruption of work flow Stop FLAKT (INDIA) private

Time taken for replacement Financial Loss

Job satisfaction: Absenteeism is characterized by job dissatisfaction. Job satisfaction can be defined as a pleasurable or positive emotional state resulting from the appraisal of ones job or job experience. Job satisfaction is a result of employees perception of what organizations provide. Employee satisfaction will increase production, improve organizational functioning, and develop the employees personal potential. Job satisfaction can be achieved by many factors- the job itself, the work environment, employee demographic variables, which include (age, gender, job classification, education, hourly wage, annual salary, tenure, and full-time vs. part-time). Job satisfaction is an emotional response to a job situation. It cannot be seen, only inferred. It is often determined by how well outcomes meet or exceed expectations. For example, if organizational members feel that they are working harder than others in the department but are receiving fewer rewards, they will probably have a negative attitude toward the work, the boss, and co-workers. They will be dissatisfied. On the other hand, if they feel they are being treated well and being paid well, they are likely to have a positive attitude towards the job. They will be satisfied. Job satisfaction represents several related attitudes. There are six job dimensions that represent the most important characteristics of a job about which people have effective responses. They are: The work itself Compensation Career growth Supervision Co-workers Work environment

Motivation: Motivation is the reason or reasons for engaging in a particular behavior, especially human behavior as studied in psychology. These reasons may include basic needs such as food or a desired object, hobbies, goal, state of being, or deal .Having a motivated workforce is vital for most businesses, since it can lead to higher rates of productivity, better quality output, and low rates of absenteeism and labor turnover. The main factors which affect the motivation of workers are

Pay levels Job security Promotional prospects Being given responsibilities Working conditions FLAKT (INDIA) private limited benefits and

Participation in decision-making.

Since motivation influences productivity, supervisors need to understand what motivates employees to reach peak performance. It is not an easy task to increase employee motivation because employees respond in different ways to their jobs and their organization's practices. Motivation is the set of processes that moves a person toward a goal. Thus, motivated behaviors are voluntary choices controlled by the individual employee. The supervisor (motivator) wants to influence the factors that motivate employees to higher levels of productivity. Factors that affect work motivation include individual differences, job characteristics, and organizational practices. Individual differences are the personal needs, values, and attitudes, interests and abilities that people bring to their jobs. Job characteristics are the aspects of the position that determine its limitations and challenges. Organizational practices are the rules, human resources policies, managerial practices, and rewards systems of an organization. Supervisors must consider how these factors interact to affect employee job performance. Definition and concepts: Absenteeism: Absenteeism can defined as habitual absence from work, thought to reflect employee demoralization or dissatisfaction. Employee absenteeism is a problem for almost all employers. Satisfaction: Job satisfaction can be defined as a pleasurable or positive emotional state resulting from the appraisal of ones job or job experience.

Motivation: Motivation represents the forces acting on or within a person that cause the person to behave in a specific, goal- directed manner. Because the work motives of employees affect their productivity, one of managements jobs is to channel employee motivation effectively toward achieving organizational goals. 1.1.1NEED OF THE IMPORTANCE:

A project titled A Study On Employee Absenteeism at FLAKT(INDIA) private limited with special reference to Poonamallee branch. Most of the studies conducted were based on the causes of absenteeism and its relation towards job satisfaction, economic conditions of the workers. It hence, the present study deals with important reasons for absenteeism. The necessary measures were taken to control absenteeism but there is no improvement in the organization. In continuation to the above, the researches were undertaken to bring significant change in the organization. 1.1.2 SCOPE OF THE STUDY: This study shows the employees causes for absenteeism in FLAKT (INDIA) PRIVATE LIMITED India Private Limited. This study implies that employees should be motivated at their workplace .Only when they are motivated they will have an interest in their work and will not absent from work unnecessarily. 1.1.3 PROBLEM DEFINITION: High rate of absenteeism is neither desirable to employers nor good for the employees. In majority of organizations, high rate of absenteeism has an adverse effect on quality and quantity of production, efficiency of workers and organization, organizational discipline and more importantly on the organization's intention to fulfill the new market demands. The absenteeism develops a considerable loss to organization because work schedules gets upset and delayed and management has to provide overtime wages to meet the delivery dates. Absenteeism has the potential to cause numerous impacts upon an organization; these include lost productivity, poorer quality of product or service, decreased customer satisfaction, and a negative effect on the performance of other employees. Other operational consequences of absenteeism include greater financial costs to the employer, as well as a greater employee workload.
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1.1.4 OBJECTIVES OF THE STUDY:

Primary objective:

To find out the causes for absenteeism.

Secondary objective: To find out the satisfaction level of the employees. To find out the ways and means to reduce absenteeism. To find out the motivate employee and reduce absenteeism To maintain the cordial relationship between management and employees. To find out the leave attendances policy. To find out the job responsibilities and production plan.

1.1.5 RESEARCH METHODOLOGY:

1 Statement of the problem:

The organization wants to study the causes which are responsible for absenteeism and also to find out the satisfaction level of the employees towards their job with regard to the working conditions, working hours, pay structure and their position in Samsung.

2 Research design:

A research design is an arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure.

Descriptive research studies are those studies which are concerned with describing the characteristics of a particular individual, or of a group. Since I have studied about a particular group of employees, it is a descriptive design. 3 Sampling: 3.1 Size: The sample size is taken as 100 for this study. 3.2 Unit: The unit for the research is Flakt(india)private limited. 3.3 Area: Sampling area refers to the extent of area to which the sampling unit belongs. The sampling area for the current research is poonamallee, chennai.

3.4 Method: The researcher has adopted convenience sampling. As its name implies convenience sampling refers to the collection of information from members of the population who are conveniently available to provide it. When the population elements are selected for inclusion in the sample based on the ease of access.

4. Data collection:

4.1 Primary data: The primary data are the first hand information, which are obtained by a study specifically designed to fulfill the data needs of the problem at hand. They are original in character. Source: Primary data were collected from the employees of Flakt woodsS Private Limited.

Method: The method of data collection was through questionnaire and direct interview.

4.2 Secondary data: Secondary data are those, which had been already available. They refer to the data which have already been collected and analyzed by someone else. Source: Organization records and website.

5.Questionnaire Construction Questionnaire was designed to find out the employees cause for absenteeism and also to find out their attitude towards their job, management, supervisor and co- workers. Questions were also designed to find out whether employees were motivated at their workplace. The construction of the Questionnaire is an important limiting criterion for
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collecting primary data. The Questionnaire was constructed for the purpose of evaluating the responses of the respondents. The Questionnaire was constructed in English. Most of the questions were closed ended Questions. Questions were included to find their satisfaction level with respect to working conditions, canteen facilities, connection between pay and pack a FLAKT (INDIA) private limited etc. One question was designed to find out their stress level.

6. Tools of analysis:

The study required simple analysis. The purview of this study does not include any advanced statistical analysis of the results. So, simple statistical tools like tabulation, percent a FLAKT (INDIA) private limited analysis, and Chi-square test were done.

6.1 Tabulation Tabulation was used for entering all results of the test conducted through questionnaire. The tabulated data was used for further analysis.

6.2 Percentage Percent a FLAKT (INDIA) private limited was used in one-way tables for analyzing criteria considered for analysis.

6.3 Chart Pie chart was used to represent statistical analysis

6.4 Chi-Square test

Chi-square is used to analyze the significance of association between the variables cross tabulated. 2 = (O E)2 / E Where, O= observed frequency E= Expected frequency Analysis of varaince:

Anova is a satistical procedure for testing the difference among different groups of data for homogenity .The essential of anova is that the total amount of variation ,in a set of data is broken into two types ,that amount which can be attributed to specific causes .Anova technique splits the variance for ananlytical purposes. It examines the variance to which a response is subject into its various components corresponding to various ,sources of variation. Correction factor = T2/N Where, T= Total number of respondents. N=Number of fields.

ANOVA ONE WAY:

In one way classification ,the data calssify according to only one criteria (i.e) different levels of the single is controlled in the experiment .

The Null Hypothesis is H0= U1 =U 2=U 3=U4....=UK. H1=U1 =U2 =U3 =U4....=UK .

The arithmetic means of population from which the k sample were randomly drawn are equal to one another.
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The variance ratio is F= Between column variance -------------------------------With in column variance Greater varince

or -------------------smaller variance

ANALYSIS OF VARIANCE

Sum Sources of variation Square

Degree of freedom

Mean square

Variane ratio

Between Samples

SSB

C-1

MSB=SSB/C-1

F=MSB/MSW

With in Samples

SSW

N-C

MSW=SSW/N-C

where, SSB= Sum square of between samples. SSW=Sum square of with in samples. MSB= Mean square of between samples. MSW=Mean square of with in samples.

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1.1.6 LIMITATIONS OF THE STUDY:

Temporal:

The period of the current research is limited from March to April 2013. Hence all data and their temporal content would be limited to the above mentioned period only.

Geographical: The study is limited to FLAKT (INDIA) PRIVATE LIMITED only.

Analytical: Since the purview of the current research are limited by the researcher in such a way that it requires only minimal analysis to be done, the results of the project are limited to these analytical limitations. Procedural: All the data collected are generally limited by the method adopted. In the research, the method of data collection being questionnaires, data is limited to the extent of data generation available through this method. Specific: False response expressed by the respondents may affect the quality of result obtained from the study. Due to time constraint an in-depth analysis was not possible.

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1.1.7 CHAPTERISATION:

Chapter I: Chapter I consists of Introduction about the project, Need of the study, Objective of the study, Research methodology, Research instruments

Chapter II Chapter II consists of Review of literature about the project. Chapter III Chapter III Consists of Analysis and interpretation of data that are collected from employees of Flakt(India) Industries using questionnaire, percentage analysis is done for the data, statistical analysis like anova test is done to compare the datas. Chapter IV Chapter IV Consists of Findings from the project and suggestion is given to the organization to improve their strategy to satisfy their dealers. Conclusion of the project is also given in this chapter

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1.2INDUSTRY PROFILE: India is the fifth largest economy in the world and has the second largest GDP among emerging economies. Owing to its large population, the potential consumer demand is almost unlimited and consequently under appropriate conditions, strong growth performance can be expected. In fact, the liberalization of the economy in 1991 has led to rapid growth. The electronics industry, in particular, is emerging as one of the most important industry in the Indian market. The electronics industry in India dates back to the early 1960s. Electronics was initially restricted to the development and maintenance of fundamental

communication systems including radio-broadcasting, telephonic and telegraphic communication, and augmentation of defense capabilities. Until 1984, the electronics sector was primarily government owned. The late 1980s witnessed a rapid growth of the electronics industry due to sweeping economic changes, resulting in the liberalization and globalization of the economy. The economic transformation was motivated by two compelling factors - the determination to boost economic growth, and to accelerate the development of export-oriented industries, like the electronics industry. The electronics industry has recorded very high growth in subsequent years. By 1991, private investments - both foreign and domestic - were encouraged. The easing of foreign investment norms, allowance of 100 percent foreign equity, reduction in custom tariffs, and delicensing of several consumer electronic products attracted remarkable amount of foreign collaboration and investment. The domestic industry also responded favorably to the politic policies of the government. The opening of the electronics field to private sector enabled entrepreneurs to establish industries to meet hitherto suppressed demand. Improvements in the electronics industry have not been limited to a particular segment, but encompass all its sectors. Strides have been made in the areas of commercial electronics, software, telecommunications, instrumentation, positioning and networking systems, and defense. The result has been a significant trade growth that began in the late 1990s.

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Despite commendable achievements in the sphere of electronics, considerable infrastructural improvements remain a priority. Water, power, telecommunications, and transportation sectors must still be augmented so that high economic growth can be sustained. The Indian Electronics Industry is a text for investors who are considering India as a potential investment opportunity. The book is designed to cover various segments of India's electronics industry, which include telecommunications, consumer electronics, computer hardware and software, and medical electronic systems. The authors have examined the roles of government, major companies in electronics including the multinationals, research organizations, and educational institutions in establishing the infrastructure.

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COMPANY PROFILE Name : FLAKT(INDIA)PRIVATE LIMITED

ADDRESS

: 147,Poonamallee High Road, Vill-numbal,chennai. DISTRICT - 600077 TELE FAX : + 91 (0) 44 - 26793500

Industry

: Electrical, Electronics

Company Type

: Industry Best

Phone No

: 26792606

Est. No. of Emp.

: 500

Website

:www.flaktwoods.com

Sector

: Private Sector

Type

:Public Company

Industry

:Electrical/Electronic Manufacturing

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At the chennai manufacturing units we product heavy duty industrial fans for the process industrial. our sales and marketing offices are located at kolkata, chennai, delhi ,mumbai, ahmedabad and pune.

There company was established in the year 1983, manufacturing company named 'FLAKT (INDIA) LIMITED' also called as "FLAKT WOODS". It is a Sweden based multinational (MNC) there are two manufacturing sector one is at Chennai and another is at Kolkata.

FLAKT INDIA LIMITED is the legal entity of FLAKT WOODS group in India, both 'FLAKT and WOODS' brands are famous in India for more than 50 years. FLAKT woods was created by bringing together these two world's leading playing in the air managerial business. FLAKT has broad technology base covering ventilation system; Industrial air movement and cooling applications. Woods is the world's largest leader in Axial fan technology. The group has operation in more than 50 countries and managers leading brand name including solyvent-ventee and American fan.

FLAKT (India) Ltd manufacturers a wide range of Axial fans and centrifugal fans at its two modern and well equipped plans at Kolkata for light and medium duty fans) & at Chennai (for heavy duty fans).

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HISTORY OF THE COMPANY:

The history of FLAKT woods has its root in a number of companies with old traditions including Svenska Flaktfabriken, Woods of Colchester, Bovent, Solyvent Ventec and Bahco, to mention a few. In the short history below the main milestones of Svenska Flakt and Woods fans are presented. 1 February 2002: The FLAKT woods group is formed. The new group brings together two of the world's leading names in the 'Air Movement and Treatment' industry, namely Flakt and Woods Air movement. The group also owns other important brands including, for example, Solyvent Ventec and American fan.

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1.4 PRODUCT PROFILE

Engineered Fans Solutions Centrifugal Fans, Axial Fans, Compressor & Turbo Fans, Mixed Flow Fans, Fans in motion, Fans for the Nuclear Industry, Composite Technology

Certified Products ATEX Products and High Temperature & Smoke Extraction

Cooling Systems Oil Coolers for Power Static Transformers, Oil Coolers for Mobile Power Stations and Diesel engines cooling solutions

Configured Light Fans For Industry Centrifugal fans and Axial fans

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Certified Products

ATEX Products Flkt Solyvent Ventec is the leader in the industrial ventilation field. We design and manufacture ATEX complying to the standard EN 14986 since its publication in May 2007. Our ISO 9001(2000 version certification ensures the entire compliance to this standard and to the Atex directive 94/9/CE.

High Temperature & Smoke Extraction From 315 mm to 2800 mm we provide axial flow fan solutions, certified for 300C / 1 hour or 400C / 2 hours against EN12101-3

Cooling Systems

Oil Coolers for Power Static Transformers Oil-Coolers for Static Power Transformers solutions are characterized by: Low noise levels Low energy consumption On-request dimensions Easy Maintenance Corrosion resistance Highly proven design

Oil Coolers for Mobile Power Stations Oil-Coolers for Mobile Power Stations are characterized by: Low noise levels Low energy consumption On-request dimensions Easy Maintenance Shocks Resistance Highly proven design

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CHAPTER II REVIEW OF LITERATURE

Review 1

Source: Josias(1992), The relationship between job satisfaction and absenteeism, Human Relations, Vol. 45, No. 2, FLAKT (INDIA) private limited no. 190

Absenteeism can be a major problem for organizations. As pressures increase on the budgets and competitiveness of companies, more attention is being given to reduce workplace absenteeism and its cost. Job satisfaction has been noted as one of the factors influencing an employee's motivation to attend. Studies on the relationship between absenteeism and job satisfaction seem to be inconsistent. Some research has found no correlation between these two variables whereas other studies indicate a weak to moderate relationship between these two variables.

Review 2

Source: Adrain Furnham (1994), Personality at work, Volume1, Part 9- Pages 250258.

Personality at work examines the increasingly controversial role of individual differences in predicting and determining behavior at work. It asks whether psychological tests measuring personality traits can predict behavior at work, such as job satisfaction, productivity, as well as absenteeism and turnover. Importantly, it is a critical and comprehensive review of that literature from psychology, sociology and management science which lies at the interface of .personality theory, occupational psychology and organizational behavior. Personality at Work is the only exhaustive and incisive multi-disciplinary work to assess the role of psychological testing in the management of the work place.
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Review 3

Source: Peter Bycio (2006), Job performance and absenteeism, Journal of Leadership & Organizational Studies, Vol. 13, No. 2, Pages 42-60 The relationship between individual employee performance and absenteeism revealed a modest but significant tendency for frequently absent employees to be poor performers on many rating and non-rating indices. Importantly though, the associated credibility intervals were wide, and statistical artifacts did not account for all the variance among the studies. Several alternative theoretical mechanisms were identified, e.g., supervisor annoyance with frequent absences, employee disposition toward delinquency, progressive withdrawal, and stress coping, that could account for the remaining variation.

Review 4

Source: David (2004), Motivation and absenteeism, Human Relations Vol. 13, No. 1, FLAKT (INDIA) private limitedno.33-46 Every organization, irrespective of size and composition, is plagued by the problem of absenteeism. Managers know that employees are not always genuinely sick when they fail to turn up for work, yet they cannot stop them from calling in sick or saying that they have to attend to some personal work. There could be hordes of reasons for absenteeism. Sometimes an employee may not simply turn up for work because his morale is low or he is just not motivated to work. It is observed that if employees were happy doing their work, they would be less inclined to take even a day off. Many employers think that paying their workers handsomely or providing better working conditions or improving job security can reduce absenteeism. But such benefits do not guarantee a reduction in employee absenteeism. The solution actually lies in understanding and meeting the emotional needs of workers and trying to find out what really motivates them to come to work and give their best. The most important step to counter absenteeism is for the manager to constantly give the employees feedback and motivate them to perform better. But most are woefully lacking in this ability, they simply are not comfortable telling their staff about their performance.

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