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NARAYANA ENGINEERING COLLEGE:: NELLORE
Muthukur Road, Nellore-524004
DEPARTMENT OF MANAGEMENT STUDIES
FIELD PROJECT REPORT
Academic Year: 2018-2019
Title of the Project : A Study on EMPLOYEE ABSENTEEISM
Company Name : COASTAL LABORATORIES PVT. , LTD.
Roll Number : 17711E0013
Student Name : B YASASWINI
Guide name : DR.T.SREELATHA
ABSTRACT
The project report entitle a study on employee’s absenteeism is intended to determine the
employees condition, salary, facility, attendance program, training program, motivation
techniques and promotions. The purpose of this paper is to review on problems of employee.
Absenteeism as a form of withdrawal behavior apart from turnover. Employees not showing up
for work when scheduled can be a major problem for organizations. This study aims to identify
the most common cause of employee absences on employer cost. Employee Absence is a serious
problem for management because it involves heavy burden. The job satisfaction is the primary
cause of absenteeism. Absenteeism is one of the most wide spread obstacles to productivity,
profitability and competitiveness. Employee harassed by co-workers or management is one of
the reason for absenteeism. The responses may be influenced by personal bias. It contributes
toward the improvement of performance and productivity, improving wellbeing of workforce
and their families. Employees not showing up for work when schedule can be a major problem
of the organization. Employee absenteeism is a worldwide phenomenon which, due to the
financial impact on a nation’s economy, is an important subject on the international agenda. The
article consists of objectives, limitations, company profile, research methodology, findings,
suggestions and conclusion. The information needed for the research has been gathered from
primary and secondary data.
Keywords: Absenteeism, Health Characteristics, Measures To Control Absenteeism, Causes
And Costs Of Absenteeism
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INTRODUCTION
Human Resource Management function concerned with hiring, motivating and maintaining
people in an organization. It focuses on people in organizations. Human Resource views people
as an important source or asset to be used for the benefit of organizations, employees and the
society. It is emerging as a distinct philosophy of management aiming at policies that promote
mutuality - mutual goals, mutual respects, mutual rewards and mutual responsibilities. The belief
is that policies of mutuality will elicit commitment which in turn will yield both better economic
performance and greater human resource development.
Modem organizational setting is characterized by constant changes relating to
environment factors and human resources. As regards environmental factors, we find changes in
the operating organizational structure, the networking procedures, customs or norms and the
economic, political and social patterns in which organizations exist. Moreover, there is constant
change in resources. New individuals are being employed with their new ideas and expectations
while the existing workforce is constantly changing vis-a-vis ideas, attitudes and values.
Although the changes may provide solution to some problems, it may create several new ones.
There is an urgent need to understand these problems, anticipate them and to the solutions to
them. The responsibility to find out solutions to these problems lies with every manager who has
to be prepared to deal with different changes effectively through educational and developmental
programs. Obviously, every manager is responsible for management of human resources of
course with the advice and help of personnel department. Management of human resources is the
essence of being a manager has to get things done through others. Specifically, his task relates to
leading, mobilizing and directing the efforts of people without which he can be a technician but
not a manager. Thus, every manager has to develop and maintain his competence in managing
INDUSTRY PROFILE
THE HISTORY OF PHARMACEUTICAL COMPOUNDING
The History of the Pharmacy and Pharmacology dates back to the medieval times with
priests, both men and women, who ministered to the sick with religious rites as well. Many
peoples of the world continue the close association of drugs, medicine, and religion or faith.
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Specialization first occurred early in the 9th century in the civilized world around Baghdad. It
gradually spread to Europe as alchemy, eventually evolving into chemistry as physicians began
to abandon beliefs that were not demonstrable in the physical world. Physicians often both
prepared and prescribed medicines; individual pharmacists not only compounded prescriptions
but manufactured medicaments in bulk lots for general sale. Not until well into the 19th century
was the distinction between the pharmacist as a compounder of medicines and the physician as a
therapist generally accepted.
Overview of the Industry:
The pharmaceutical industry has enjoyed great prosperity as nineteen-ninety-eight
marked another stellar year for the industry. Profits stayed in a sharp up-trend as 28 of the 37
stocks in the industry beat the Standard & Poor's 500 Index, which rose by 26.7%. The
pharmaceutical industry includes establishments primarily engaged in manufacturing,
fabricating, and processing medicinal substances into finished pharmaceuticals for human and
veterinary use. Ethical brand name drugs, generic products, and nonprescription or over-the-
counter medication constitute the pharmaceutical industry sub-sector.
INDIAN PHARMACEUTICAL INDUSTRY OVERVIEW
Pharmaceutical is one of the most intense “Knowledge Driven” industries, which is
continuously in a state of dynamic transition. Defined as a complex matrix of processes,
operations and organizations involved in the discovery, development and manufacture of drugs
and medications, the pharmaceutical industry is a life line industry, which plays a very crucial
role in building a strong human capital of a country, and is very essential for economic growth
and development.
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Indian pharmaceutical industry is mounting up the value chain. From being a pure
reverse engineering industry focused on the domestic market, the industry is moving towards
basic research-driven, export-oriented global presence, providing wide range of value added
quality products and services.
Currently, the pharma industry in India is a $ 10 billion industry, growing at a rate of 8-
9% annually. The output of Indian pharmaceutical industry ranks 4th in terms of volume and
13th in terms of value and around 8% of the world’s drugs are manufactured in India.
India has 300 pharma companies of large and moderate size and another 10,000 small
and tiny firms. But 70% of the production is by the top 100 larger companies. The industry is
highly fragmented, with the largest formulation players having a market share of less than 6%.
The industry manufactures about 400 bulk drugs and almost the entire range of formulations.
About a third of India’s production – close to US $ 3.5. Billion – is exported and exports are
growing at 25% per annum. Half a billion dollars worth of exports is to the US alone, while
Germany, Russia, the UK, Canada, Italy and Japan are among others. Large quantities of
medicines are also exported from India to China, Brazil, Nigeria and Mexico.
COMPANY PROFILE
Coastal Laboratories Pvt. Ltd., was born of a vision. Founded in 1986 by
Mr.P.V.Ramaprasad Reddy, Mr. K. Nityananda Reddy and a small, highly committed group of
professionals, the company became a public venture in 1992. It commenced operations in 1988-
89 with a single unit manufacturing semi synthetic penicillin’s at Pondicherry.
Coastal Laboratories Pvt. Ltd., had gone public in 1995 by listing its shares in various
stock exchanges in the country. The company is the market leader in semi-synthetic penicillin
drugs. It has a presence in key therapeutic segments like SSPs, cephalosporins, antiviral, CNS,
cardio-vascular, gastroenterology, etc.
Over the years, the Coastal Laboratories Pvt. Ltd., has evolved into a knowledge driven
company. It is R&D focused, has a multi-product portfolio with multi-country manufacturing
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facilities, and is becoming a marketing conglomerate across the world. Coastal Laboratories Pvt.
Ltd.,created a name for itself in the manufacture of bulk actives, its area of core competence.
After ensuring a firm foundation of cost effective production capabilities and a clutch of loyal
customers, the company has entered the high margin specialty generic formulations segment,
with a global marketing network.
The formulation business is systematically organized with a divisional structure, and
has a focused team for each key international market. Coastal Laboratories Pvt. Ltd., believes in
gaining volume and market share in every business/segment it enters.
Vision
“To become Asia's leading and one among the top 15 generic Pharma companies in the
world, by 2015"
MISSION
Coastal Laboratories Pvt. Ltd., mission is to become the most valued Pharma partner for
the World Pharma fraternity by continuously researching, developing and manufacturing a wide
range of pharmaceutical products complying to the highest regulatory standards.
Organizational Strengths
The Coastal Laboratories Pvt. Ltd., has consciously built on its inherent strengths.
COASTAL LABS Team works to consolidate them further.
Some of the identified corporate strengths are
The Company remains customer centric; This focus ensures that product changes are
made to changing requirements. Updating is a regular/continuous process. The Company
works for customer retention, and gains from repeat orders.
A strong R&D led Organization, Coastal Laboratories Pvt. Ltd., is innovative in its
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manufacturing processes. It has adopted the latest in technology, which has additionally
improved on productivity and product quality.
Possess a strong manufacturing infrastructure. This is being put up for international
regulatory approval.
There is a broad product portfolio. Brands are being established, and are gaining
significant strengths in the chosen market.
Produce the quality that the customers and industry want. More important, the
Company endeavors to produce the best that good health needs.
Coastal Laboratories Pvt. Ltd., delivers on time. This is true of supplies to customers,
project completion, financial commitments or any of the routine transactions. Coastal
Laboratories Pvt. Ltd., delivers on time. This is true of supplies to customers, project
completion, financial commitments or any of the routine transactions.
The Company is professionally run, with a competent and highly motivated team.
The Company sees the business as part of the larger picture that improves health, adds to
quality of life, and in the process creates wealth for all its stakeholders.
Research & Development
The Company's R & D strengths are in developing intellectual property in the area of
non-infringing processes and resolving complex chemistry challenges. In the process, Coastal
Laboratories Pvt. Ltd., is developing new drug delivery systems, new dosage formulations,
applying new technology for better processes.
The instrumentation and analytical knowledge base at the Centre facilitate,
1. Process development life cycles of less than three months, even if it involves complex multi
step synthesis with multiple hilarity.
2. Complete impurity profiling in all products developed.
3. Development of analytical methods and specifications from raw materials, to non-compendia
finished products.
4. In-house synthesis of reagents for analyzing oregano lithium’s and noble metals.
5. Accelerated and real-time stability studies.
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This reflects the Company’s commitment towards developing innovative technologies and
creating a knowledge base in chemical synthesis, high quality generic formulation and
development of drug delivery systems.
PRODUCT PROFILE
Active Pharmaceutical Ingredients (API)
One of the largest Active Pharmaceutical Ingredients (API OR Bulk Actives)
manufacturers in Asia, Coastal Laboratories Pvt. Ltd., has commercialized over 100 APIs*.
Mammoth capabilities and uncompromising product quality underline the core competence of
the company.
Total Quality Management is the very essence of Coastal Laboratory Pvt. Ltd. Every
detail is subjected to scrutiny – be it GMP compliance, validation, stability studies,
documentation, safety, health or environmental issues. This steadfast adherence to TQM has
been highly rewarding and ensures that all products are truly world class.
OBJECTIVES OF THE STUDY
To analyze the reasons for absenteeism in coastal laboratories Pvt. Ltd.
To measure the employees absenteeism level.
To analyze the steps required to decrease the absenteeism.
To study employees working condition.
To analyze factor that motivates the employees which minimize absenteeism?
LIMITATIONS OF THE STUDY The present study on the employee absenteeism is confirmed to a single study unit.
Hence the conclusions derived from the study may not be applicable to similar firms and
to other areas.
The sample employees selected for the present day IS limited to 50 workers, because of
constraints in terms of limited time.
Time factor was one of the main limitations of the study. In a short span of 45 days it was
difficult to collect all needed information.
The process of filling up of questionnaire has taken up so much time as most of the
workers were not aware of the concepts and terms.
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The respondents were reluctant to express their views frankly. So the response was biased
at an extent. This may affect the findings to certain level.
RESEARCH METHODOLOGY
There are 3 types, they are
1. Explorative
2. Descriptive
3. Experimental
Descriptive methodology is used in the present study.
Data Sources
Primary Data:
The Primary data was collected from the respondents by administering a structured questionnaire
and also through observations, interviews & discussion with Management team.
Secondary Data
Apart from Primary data. The secondary data is being collected through Text books, records of
A1 Exporter Pvt. Limited, Journals from Library, Academic Reports, and Internet, used for this
study.
Sampling: Sample Population
There are total 500 employees working in the organization.
Sample Size:
Out of the total population, the sample taken among respondents from the quality department is
50.
Sampling Area:
The research was conducted at quality department of A1 Exporter Pvt. Limited Hassan.
Sample Method:
The research was made by the survey in accordance to the convenience of the employees. So the
sample type is convenience sampling.
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TOOLS USED FOR ANALYSIS
Instrument:
A structured Questionnaire is used and the type of questionnaire is target questions.
Method:
The research was conducted by using contact methods through Questionnaire. Interview and
Observation. The information was collected from the employees of quality department only.
Data Analysis Techniques
The data is analyzed with*1 Simple analysis technique". The data tool is percentage method.
Percentage method is used in making comparison between two or more criteria. This method is
used to describe relationship.
Percentage of Respondents = No. of Respondents/ Total no of Respondents X 100
THEORETICAL FRAME WORK
Absenteeism has been recognized as a vital issue affecting deplane and production in a organized
industry today. it is major psychology problem in industries. Absenteeism in India history is not
a phenomenon. The royal commission of labor reported.”High absenteeism prevails among
industrial labor mainly due to their rural orientation” ,Absenteeism is a serial problem for a
management because it seriously involves heavy expenditure and loss of production. The main
objective of organization is to maximize profit by maximum utilization men, materials and there
is a problem of absenteeism, the three said sources are not fairly utilized.
Absenteeism is one of the common factors, which effects both the production and
growth of organization. No company afford to allow to high incidence of absenteeism to eat up
hard-earned corporate profits. in general the absent rate indicates the relative cost to a given
company because production simply cannot produce as much annually when absent rates are
high as they can when absent rates is low. when the employees are away from the work. it is
difficult for the employer is to maintain production schedule.
Reduction is absenteeism is beneficial is not only to the industry but also to the
nation as a whole. The treatment of dismissed by the employer would never ultimately to be help
to reduce absenteeism.
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Labour force is an integral and important component of wealth of nations, as other
factors like land, capital and machine. measured by what labour contributes to output, productive
capacity of human beings is now vastly larger than all other forms of wealth taken together
which as chiefly contributed to economic growth of countries.
Absenteeism is an Indian organized is not a phenomenon. The royal commission
of labour observed “High absenteeism prevails among industrial among mainly due to their rural
orientation”.
Human Resource Management function concerned with hiring, motivating and
maintaining people in an organization. It focuses on people in organizations. Human Resource
views people as an important source or asset to be used for the benefit of organizations,
employees and the society. It is emerging as a distinct philosophy of management aiming at
policies that promote mutuality - mutual goals, mutual respects, mutual rewards and mutual
responsibilities. The belief is that policies of mutuality will elicit commitment which in turn will
yield both better economic performance and greater human resource development.
Specifically Reactivates included are HR. planning Job analysis and design, recommitment and
selection, orientation and placement, training and development , performance appraisal and job
evaluation , employee remuneration , motivation communication , welfare, safety and health,
industrial relations and the like. For the sake of convenience all these functions into seven
sections as shown in the figure.
Absenteeism:
Employee’s presence at work place during the scheduled time is highly essential for the
smooth running of the production process in particular and the organization in general. Despite
the significance of their presence, employees sometime fail to report at the work place during the
scheduled time. Absenteeism refers to the failure on the part of employees to report to work
though they are scheduled to work. In other words, unauthorized absences constitute
Absenteeism.
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Absenteeism costs money to the organization, besides reflecting employee dissatisfaction
with the company. Like employee turnover, there is avoidable and unavoidable absenteeism.
Absenteeism is unavoidable when the employee himself or herself fell sick, his or her
dependence at home suddenly become unwell or there is an accident inside the plant.
Unavoidable absenteeism is accepted by managers and is even sanctioned by labor laws. Foe
instance, one days* leave with wages for every 20 days of service is allowed by the factories Act
1948.
Avoidable absenteeism arises because of night shifts, opportunities for moonlighting and
earning extra income, indebtedness, lack of job security, job dissatisfaction and unfriendly
supervision. This needs intervention by the management.
Labor Bureau, Simla, defined the term * Absentee ism* as the failure of a worker to
report for work when he is scheduled to work’s Labor bureau also states that the Absenteeism is
the total man-shifts lost because of absence as a percentage of the total number of man-shifts
scheduled to work." According to Webster’s Dictionary, the Absenteeism is the practice or habit
of being an "absence* and an absentee is one who habitually stays away
Types of Absenteeism:
Absenteeism is of 4 types:
Authorized Absenteeism: If an employee absents himself from work by taking permission from
his superior and applying for leave, such absenteeism is called as Authorized Absenteeism.
Unauthorized Absenteeism: If an employee absents himself from work without informing or
taking permission and without applying for leave, such absenteeism is called as Unauthorized
Absenteeism.
Willful Absenteeism: If employee absents himself from duty willfully such absenteeism is
called Willful Absenteeism.
Absenteeism caused by circumstances beyond once control: If an employee absents him from
duty owing to circumstances beyond his/her control like involvement in accidents or sudden
sickness, such Absenteeism is called Absenteeism caused by circumstances beyond once control.
Feature of Absenteeism:
Research studies undertaken by different authors reveal the following features of absenteeism.
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The rate of absenteeism is the lowest on pay day; it increases considerably on the days following
the payment of wages and bonus.
Absenteeism generally high among the workers below 25 years of age and those of above 40
years of age.
The rate of absenteeism varies from department to department within an organization.
Generally it is high in production department.
Calculation of Absenteeism Rate.
Absenteeism is computed and is expressed in terms of percentages.
Absenteeism can be calculated with the help of following formula.
Absenteeism Rate = (Number of Man days lost / Number of Man days scheduled to work)
x 100
Absenteeism rate can be calculated for different employees and for different lime periods
like month and year.
The frequency rate reflects the incidence of absence and is usually expressed as the
number of separate absence in a given period, irrespective of length of absences. The
frequency rate represents the average number of absences per worker in a given period.
Frequency rate = (total no. of times in which the leave was availed / total no. of Man days
scheduled to work ) *100
Severity Rate: severity is the average length of time lost per absence and is calculated by
using the formula.
Severity rate = (Total no. of absent during a period / Total no. of times absent during that
period) x l00
A high severity rate indicates that the employee is absent for longer durations each time.
High frequency and severity rates indicate that the employee is absent more frequently
and for longer durations each time resulting in high absenteeism even in absolute terms.
Recent Trends:
Recent studies have revealed that workers* link with the village as a cause of instability in the
labom1 force has become more or less a matter of history .Now the workers do have their link
with the village; but they do not go there for any economic pursuit. They go mainly for
relaxation or attending social ceremonies and spending long holidays. As observed by the
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investigation committee The factory workers retained their contacts with the villages more for
rest and recuperation than for attending to cultivation. The workers have almost lost their
economic interest in land and have adhered to their way of life or occupation they have chosen.
Measure to minimize absenteeism:
Absenteeism affects the organization from multiple angles. It severely affects the production
process and the business process. The effect of unauthorized Absenteeism is more compared to
other type of Absenteeism. However it would be difficult to completely avoid Absenteeism.
Managers stood take steps to remove causes of absenteeism. On the positive side managers must
create work environment which will make the employees realize that it make sense to the work
in the factory rather than staying at home and waste their time.
4. DATA ANALYSIS AND INTERPRETATION
sone of the examples are given below: 1. What is your opinion on work – overtime?
Table showing work – overtime
Chart showing work – overtime
INTERPRETATION:
Table shows workers wants to work over time. 30% of the employees agree to work over time
that means yes and 70% of the employees not agree to work over time that means no.
2 .What is your opinion on average work over time?
0
20
40
60
80
100
120
Yes No
Percentage
Number of
Responded
Work
overtime
Number of
Responded Percentage
Yes 15 30
No 35 70
Total 50 100
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Table showing employee average work over time
Chart showing employee average work over time
INTERPRETATION:
Table shows employees average work over time. 58% of employees are satisfied to work over
time for 1 hour. 32% of employees are satisfied to work over time for 2 hours. 8% of employees
are satisfied to work overtime for 3 hours and only 2% of employees are satisfied to work over
time for more than 3 hours.
3. What is your opinion on adequately welfare facilities provided?
Table showing adequately welfare facilities provided
0
20
40
60
80
100
1 hours 2 hours 3 hours more
than 3
hours
Percentage
Number of
Responded
Average
work
over
time
Number of
Responded
Percentage
1 hours 29 58
2 hours 16 32
3 hours 4 8
more
than 3
hours 1 2
Total 50 100
Adequately
welfare
facilities
provided
Number of
Responded
Percentage
Strongly
agree 10 20
Agree 18 36
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Chart showing adequately welfare
facilities provided
INTERPRETATION:
The table shows adequate welfare facilities provided to employees here. 20% of the employees
strongly agree, 36% of the employees agrees and 44% of the employees have dissatisfaction
about the facilities provided by the organization.
FINDINGS:
1. 48% no. of employees of the age are between 20- 25 years. It means most of employees
of these ages are attracted towards work, compared to the age between 25-35.
2. 36% of the married employees are committed to Absenteeism.
3. 23% are under the salary ranging from 2600-2800.
4. 76% of the employees feel that working environment provided are good.
5. 56% of the employees take leave on health grounds, poor transportation facilities and
lack of time management also constitute reasonable portion of employees leave.
6. 26% of employees apply leave for personal reasons like social activities and visiting
places h constitute major portion of their leave.
7. 8% of the employees are having good relationship with their superiors. Any attempt to
improve this, improves the quality of production performance.
8. Good coordination compliments better work atmosphere. Need to ensure it.
0
10
20
30
40
50
60
70
Strongly agree Agree Disagree
Percentage
Number of
Responded
Disagree 22 44
Total 50 100
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9. Developmental activity implies to both employer and employees, need to be
strengthened.
CONCLUSION
The employees of Coastal Laboratories Pvt. Ltd. are taking leaves for various personal and
family reasons. They are aware of the impact of their absence on the production. Most of the
employees admit that they are trying to avoid leaves, but many a times things are beyond their
control. Some of the employees feel that the management should provide holiday trip or family
get together as recreation so that they will be relaxed after the hectic job schedule. They also add
that they are availing all the welfare facilities provided by the company. One will never forget to
say that little of empathy towards employees will definitely yield better industrial relations and
minimize Absenteeism.
The study concluded that providing positive incentives to workers in the form of those
motivational factors that nominally influence workers to be absent is better than imposing
penalties for discouraging absenteeism. The best reward for workers with lower absenteeism is to
grant additional time off for personal matters. Workers are influenced to a lesser extent by
deterrents, loss of pay and benefits and loss of promotion opportunities and discharge, imposed
for frequent absenteeism. Finally a combination of incentives (additional time off) and penalties
(loss of benefits or job) with the primary emphasis on motivational incentives is the most
effective approach to reducing absenteeism.
REFERENCES
Books:
Decenzo & Robbins – Human Resource Management, Johnwilley 1998
Biswajeeet Pattanaya, Human Resource Management, PHI-2201
Mirza S Saiyadain - Human Resource Management, TMH-2001
P.Subba rao - Personnel & Human resource management ,HPH-2003
K Ashwanthappa - Personnel & Human resource management ,HPH-2003
Journals:
ICFAI Journal of Management
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The Indian Management
Websites:
www.ling-tech.com
www.humanresouces.uce.edu
Search Engines:
www.google.com
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