narayana engineering college:: nellore

International Journal of Research in Engineering, IT and Social Science, ISSN 2250-0588, Impact Factor: 6.565,

Volume 09, Special Issue 4, May 2019, Page 643-659

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This work is licensed under a Creative Commons Attribution 4.0 International License

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





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.





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.





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





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


Volume 09, Special Issue 4, May 2019, 43-659



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.





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.





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.





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.





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.





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.





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





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





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





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





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





The Indian Management

Websites:

www.ling-tech.com

www.humanresouces.uce.edu

Search Engines:

www.google.com

www.dogpile.com

http://www.ling-tech.com/

http://www.humanresouces.uce.edu/

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http://www.dogpile.com/

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