1.1 Need and Importance of The Study: Chapter-I
1.1 Need and Importance of The Study: Chapter-I
INTRODUCTION
Absenteeism is known as the temporary cessation of work, for not less than one
whole working day. Absenteeism is the hurdle that has to be overcomes for efficient
organization performance.
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1.2 OBJECTIVES OF THE STUDY
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1.3 Research methodology
The research methodology explains the systematic way of finding the objectives. It
provides the clear path to accomplish and achieve clear solutions. The following are the
stages through which research has passed to obtain the conclusion.
1. Research Design
2. Sample Technique
3. Sample Size
4. Data Collection
5. Data Analysis and Interpretation
Research Design is the conceptual structure with which research would be
conducted the function of the research design is to provide for the collection of relevant
evidence with minimal expenditure of efforts, time and money. The suitable design is the
one that minimizes bias and maximizes the reliability of the data collected and analyzed.
A sample size of 50 employees was taken which includes employees from various
departments of Mother Dairy.
The technique used to carry out the study is Random sampling technique.
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1.3(iv) Collection of Data:
For the purpose of the study the following sources of data are used.
They are:
a. Primary Data
b. Secondary Data
Primary Data:
Primary data is defined as the Data collected fresh for the first time, and thus
happens to be original in character.
o Questionnaire
o Interview
o Observation
QUESTIONNAIRE:
Questionnaire is prepared and circulated to the employees to know their opinion
on “Absenteeism” procedures in the organization.
The Questionnaire that is used for collection of data is close-ended Questionnaire
where employees are given options to give their opinion.
INTERVIEW:
While collecting the data, a personal interview was conducted to employees
about the functions of Human Resources activities implemented in the organization.
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OBSERVATION:
Observation was done during the visit to the organization.
Secondary Data:
Secondary Data is defined as the data which is already available i.e., they refer to
the data, which have already been collected and analyzed by someone else.
Books
Websites
After the data has been collected, tabulation method is followed. Tabulation is a
technical procedure where in data is classified and put in the form of tables.
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4. Scope of the study
The study was conducted at Mother Dairy, Hayathnagar. The study conducted
includes the analysis of absenteeism adopted by the organization with a sample of
50 employees from various departments covering.
o Personnel department
o Finance department
o Human resource department
o Marketing department
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1.5 Limitation of the study
1. This study is conducted in short period due to which the study may not be detailed in
all aspects.
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1.6 Organization of the study
Organization of the study deals with the arrangement of entire report. The entire
work is put according to chapter wise to facilitate easy identification of the topic.
First chapter:
Second chapter:
Deals with literatures survey and literature review definitions, Effects of absenteeism,
the cost of absenteeism, Causes of absenteeism other causes.
Third chapter:
Fourth chapter:
Deals with data analysis and interpretation, which expands how data is analyzed and
interpreted using tables and graphs.
Fifth chapter:
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CHAPTER-II
LITERATURE REVIEW
Literature Survey 1
2
Economics Department, Universidad Pública de Navarra, Spain and The World Bank,
Washington DC, USA
[email protected] , [email protected] .
The reduction of high levels of absenteeism among health care workers was one
the objectives of the reforms undertaken to improve public hospital performance
during the 1990s in Costa Rica. This paper attempts to assess the impact of
changes in reimbursement methods and organizational reform on absence rates
among health care personnel in Costa Rican public hospitals for the period 1995–
2001. Our results show the reforms to have had a negative impact on
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absenteeism, which increased throughout the considered period. Results further
indicate that the policy of not substituting absentee workers, which was introduced
through the reforms, did not work as expected in a permissive environment in
which peer pressure mechanisms were lacking. In addition, the explicit incentives
for workers included in the reforms were retained and used at facility level. There
is a pressing need in the future for control and disciplinary mechanisms for health
care personnel and for the introduction of absence rates as an explicit goal to be
monitored and evaluated.
What Is Absenteeism
To assess the productivity loss due to absenteeism the total absenteeism (authorized
and unauthorized) is taken into considering for the purpose of counseling and primitive
action only the unauthorized absence is relevant. Authorized absenteeism is the leave
permissible under the rules of the company. Medical Leave granted by E.S.I and leave
without pay either prior sanction or with subsequent regularization.
Unauthorized absence is the one, which does not fall into any of the above categories.
In other words this absence includes all the case where the work in available, workers
knows about it, he fails to report for duty and the employer has no prior information. It
also included the uncondensed absence, the over stayed of leave, which is not regularized
and absence proceeding discharge of dismissal. For the purpose this study, total
(authorized and unauthorized) into account. Also unauthorized absence has been studied
separately.
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Definitions:
The term absenteeism has been defined by Sri J.D. Hackett as the “Temporary
Cessation of work, for not less than one whole working day, on the initiative of the
worker, when his presence is expected”.
Prof. Ankalikr:
Defined as “The absenteeism rate is defined as the total man shifts lost because of
absences as a percentage of total number of man shifts scheduled. For calculation the rate
of absenteeism we require the number of persons scheduled to work and the number of
actually present. Thus we can estimate the rate of absenteeism in the following manner.
Thus for the purpose of calculation of rate of absenteeism absence has been defined
by the Ministry of Labour and Rehabilitation Government of India as “The failure of a
worker to report for work when he was scheduled to work”.
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A worker is considered to be scheduled to work when the employer has work
available for him and the worker is aware of it. Authorized absence is also treated as
absence while presence for a part of the days or working in it having his won role to play
for the achievement of the goals of the organization. The production department has to
get the personnel for doing the respective jobs for which it depends upon the personnel
department. Like-wise for maintenance services of the machinery, it depends upon the
Engineering Department and for getting the raw material it depends upon the
materials management department for production of Goods and Services.
Even in any of the department, the absenteeism is there then the production schedules
are being affected and the goals of the organization cannot be achieved.
If a skilled person in an important area absents, the affect will be much more. Like-
wise those in other areas who absents even though there will not be immediate loss but in
the long run it affects the production schedules of the organization.
Due to absenteeism not only the worker is losing his salary and other benefits, but
also the organization is loosing heaving since the planned production schedules cannot be
achieved.
Therefore, it is very essential to find out the reasons for the absenteeism and
management should take necessary steps to control absenteeism for the smooth
functioning of the organization and to avoid production losses in the organization.
A certain amount of absence from work is unavoidable. In fact they are built into the
system. The factories Act, 1948 make provision for Earned leave, which must be granted,
to workers when applied for unless there are strong reasons for refusal or postponement.
The standing orders provide for casual ‘leave’ sick leave privilege leave. The E.S.I. Act
proved for 91 days of sick leave in a continuous period of 365 days. In addition there
always remains situations when a worker stays away from work even if he does not get or
is unable to bet any leave under the above there categories.
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All the absenteeism cannot be avoidable, but certain percentage of it can be avoided
which is possible only after careful investigation. Thus the study of absenteeism enable
us to know the causes of absenteeism and help in solving the same to the maximum
extent.
Effects Of Absenteeism
When an employee becomes absent, he makes the machine idle or keeps the
workspace unoccupied and consequently, it directly or indirectly reduce the amount of
production. The loss in production is the loss of the community at large.
As early as in 1946, the Labour Investigation Committee pointed out that loss due to
absenteeism in two-fold.
This was happening income of the industrial centers. But, this has been resented by
the workers who feel that the employers maintain extra labour and force the worker to
take compulsory strike etc., on the other hand, employers argue that they have no option
but to maintain extra labour in view of high rate of absenteeism among the workers.
Thus, absenteeism adversely effects both employers and employees, and give ties to
many, industrial, labour and social problems. It also reflects the attitude of the workers
towards industrial life. Ti is an evil for both the employer and employee. It affects
industrial relations aversely.
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2.3 Causes Of Absenteeism
The workers remain absent for various reasons of which some may be genuine but
others are not so. The Labour investigation Committee (1946) pointed out the following
causes of absenteeism.
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2.5 GENERAL CAUSES FOR ABSENTEEISM:
As a worker continues to live in the city, urban life becomes distasteful to him
because of the in sanitary conditions prevailing there. He finds himself caught within
great walls, he is bewildered by heavy traffic, by strangers speaking different languages.
He is subject to strict discipline and is ordered to do the things, which he cannot
understand. As a result he is under constant strain, which causes him serious distress and
impairs his efficiency.
2. Rural Exodus:
Majority of the labour force is drawn from rural areas. The are not entirely leaving
agriculture but industrial work is simply a source of additional income. Therefore they
discontinue services at the time of harvesting of crops and sowing of crops. Further they
have to visit their villages for certain social and religious ceremonies, as they would
generally leave their families behind in their villages. Thus, this may cause a high rate of
absenteeism.
Irritating and intolerable working conditions exist in factories. Heat and moisture
(which rapidly exhaust the workers), noise and vibrations in the factory (which effects his
hearing, bad lighting conditions, which cause strain), dust, fumes and over crowding, all
of these effect the worker’s health causing him to remain absent for along time.
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rooms, Drinking Water, First-Aid appliances, washing and bathing facilities etc., the
worker often migrates to his rural home.
Some workers also remain absent on account of their drinking and gambling habits.
Consequently the degree of absenteeism is greater in the first week of each month when
workers receive their wages. Once indulged in drinks it continues. Hand over the next
day leads to absenteeism.
6. Indebtedness:
Most of the workers suffer from a high degree of indebtedness. Workers are always
worked about financial matters and borrow money more than their capacity to repay.
Such workers absent themselves to escape form the moneylenders. As a result
absenteeism is high.
7. Behaviour of supervisor:
8. Shift System:
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9. Sickness :
Sickness is one of the most important factors which is responsible for absenteeism to
a considerable extent. Because of bad housing and working conditions, poor diet and in
sanitary conditions of living workers suffer from various diseases and are forced to
remain absent.
Negligence on the part of the employer to provide adequate leave facilities compels
the workers to fall back on ESI leave. Under the ESI scheme, they are entitled to 91 days
leave in a year. Instead of going without pay, workers avail themselves of the ESI
facility. Supervisors with a work oriented rather than man-oriented approach is also a
factor which compels the workers to absent themselves on an ESI certificate rather than
avail of leave on bonafide grounds.
In this connection it may be pointed out that the ESI authorities are very liberal in
granting leaves and are thus contributing to the increase in absenteeism.
11. Attitudinal Factors:
Various attitudinal factors such as satisfaction with the Job, relationship with
superiors, opinion about efficiency of management and its attitude towards absenteeism
itself have influence on absenteeism.
Status perception based on ones position in the organization either in terms of skills of
status in the organization is found to be a cause of absenteeism. A supervisor being a
responsible person, having status in the organization and a skilled worked who is very
efficient in his job, the absenteeism is very low. Whereas unskilled employer due to lack
of status and job skill, absent themselves thinking their working has no significance in the
organization.
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Chronic absenteeism :
Chronic absentees are considered as very human beings whose work behavior arises
in an entirely different way form the regular workers. This may be due to various reason
like poverty and biological weaknesses, feeble mindedness, etc.,
Other causes:
2.6 Preventive measures
It should be appreciated that as against the above background the company has been
working totally without any provision of leave reserves in different trades and skills.
However the Company had taken various measures to curtail the high incidence of
absenteeism. In this process the Company has identified a number of chronic absentees
for disciplinary actions and when it is found that persons are incorrigible then services
have also been dispense with. In a member of other cases positive actions have been
taken by stopping increments and reducing their rank and also dismissal.
The Company had also liaison with ESIC authorities to advise the respective
Dispensaries not to resort issuing sick certification without proper ground. While this had
a distinct impact for a short prior the absenteeism on this account continued unabated.
The trend of absenteeism due unauthorized absence and leave refusal continues despite
severe disciplinary actions being initiated against erring employees. During the year 1999
as many as 25 disciplinary cases were initiated against chronic absentees and 10
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employees were punished with reduction stoppage of increments apart from 2 employees
dismissed / discharged. A part from counseling the chronic absentees through various
channels, the recognized union was also taken into confidence to check the absenteeism.
In order to control the absenteeism the following steps has also been taken by the
company.
1. Under the promotion rules the eligibility for consideration has been
linked with the member of attended days during the preceding 12 months
firing at 250 working days and only relaxed to 240 months firing at 250
working days and only relaxed to 240 for a s hort duration to fill the existing
vacancies on representation by the Union.
2. Leave encashment has been introduced to the employees to conserve
their privilege leave and get the benefit of encashment upto 75% of their
entitlement.
3. In the proposed individual scheme attendance is a important factor for
determining the incentive payments. It is hoped that this would moderated the
employee to be regular in their in their attendance.
4. In addition to the above, it is to continue the system of engaging
technical workmen on temporary basis and also causal labourers in service
groups to absenteeism in critical area depending upon production
agencies.
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CHAPTER – III
COMPANY PROFILE
The –co-operative milk producers union limited was registered on 25-2-1986 wide
registration no. 409 M.C. to Nalgonda and Ranga Reddy cater the needs of milk
producers of two districts Reddy. The union is having 14 and 3 milk chilling centers in
Nalgonda and Ranga Reddy District respectively. A feed mixing plant at a Bhongir was
established to supply cattle feed to farmers. The mother dairy was started in 1987 at
Hayathnagar with the capacity of 2 lakh liters per day. In 1989 an extra unit in mother
dairy was inaugurated by the honorable Chief Minister Shri N.Rama Rao to supply the
homogenized milk. At first this unit was started as automatic milk vending i.e. taking the
milk from the factory and sending it to the shops where they give this milk to the
consumers by putting coins.
In September 1992, Mother Dairy was merged with Nalgonda, Ranga Reddy Co-
operative milk producer’s union’s ltd and it has been named as “NARMUL” (MOTHER
DAIRY)” Nalgonda – Ranga Reddy mutual union ltd.” Subsequently it has been
converted in to the Mutually Aided Co-operative union on 15 th January 2003 and
renamed as NARMAC, and is paying highest procurement Price to its members when
compared to the Mother Dairy union in the state.
The mother dairy is designed to handle 2.00 Lakh liters of milk expandable to 4.00
lakh liters of milk per day. The scheme is financed by National dairy Development board
under operation flood programme. The total cost of the Project is Rs. 5.75 crores out of
which a some of Rs. 3.33 crores was spent towards mechanical works.
The main objectives of the union is to procure milk from milk producers in the
District at remuneration price and process the same at Mother Dairy and Marketing the
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Milk & Milk products to the consumer of Twin Cities at reasonable Rates and the surplus
milk & milk products in the National Market.
Milk is India’s No. 1 farm of commodity in terms of its contribution to the National
Economy. Every morning millions of Indians wakeup to find their daily requirements of
milk waiting at their door step.
A common man starts a day with routine work in general and he is associated with
dairy related products (Milk, ea, Coffee, Curd etc.). Empirical study reveals that dairy
sector was initially under the control of private sector (Milk Vendors) due to growth in
population which is resulted in demand for dairy products since the private sector was not
in a position to meet the growing demand, Public sector started milk producing units in
the country.
India is the second largest producer in the world. Milk has now emerged as the
second largest agriculture commodities next only to rice production. This shows e
importance of mil enterprises in India. The world milk production was nearly 531 million
tones and that of India 52million tones in 90’s accounting ofr about % of world
production. Today India is the oyster of global dairy industry. This aspect has been
focused and brand leaders have given a status symbol to this industry.
The milk production in India has been over 100 million tones in 2006-07. This
industry is largely depended on cattle population’ fortunately India is blessed of 50% of
world’s buffalo population over 20% of cattle population of the world. We have 134
million cows and 125 million buffalo India is second largest milk producer in the world
after the United states.
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I.MILK SALES
FAT% SNF%
NATURE OF MILK SOLD Rate
Homogenized Toned Milk 3.0 8.5 Rs.19/- per litter
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The details of milk procurement/sales during the last 7 years is as follows
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PROFIT& LOSS ACCOUNT FOR THE 8 YEARS 2000-2001TO 2008-
2009
(Y/N)
2001-2002 4618.42 120.07 97.82 217.89 YES
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The details milk chilling centers/bulk milk cooler are as
follows:
S.NO Name of the Year of Capacity Peak No of No. of
M.C.C commencement handling
In MPCS MPACs
Nalgonda Per day in
Liters
dist 2006-2007
per
In liters
day
1 Alair 1972 18,000 8,330 56 06
2 Bhongir 1967 20,000 24274 79 34
3 Chityala 1971 12,000 13197 60 29
4 Suryapet 1973 12,000 4140 16 39
5 Nalgonda 1974 12,000 8430 24 55
6 Mallepally 1979 6,000 7679 11 84
7 Miryalaguda Sep’98 10,000 4162 2 70
8 Mothkur Feb’99 7,500 8407 27 29
9 Kodad Sep’99 7,500 5094 06 72
10 BCU Chout Oct’99 5,000 4658 23 20
11 Rajapet Jan’00 2,500 4076 05 16
12 Chandour Oct’01 2,500 5074 04 58
13 Nakrekallu April’01 2,500 2503 12 35
14 Tubgatutthi Dec’00 2,500 3345 06 45
15 Parigi 1974 18,000 13786 32 98
16 Tandur 1984 6,000 - - --
17 BCU Mall 1999 5,000 6228 01 43
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YEAR White Butter Ghee Production
S.NO
Production (Qnty .in.M.T.s)
(Qnty .in.M.T.s)
1 1997-1998 546.78 225.868
III. S.M.P.PRODUCTION
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1 2000-2001 135.000
2 2001-2002 225.000
3 2002-2003 302.000
4 2003-2004 250.000
5 2004-2005 156.648
6 2005-2006 40.275
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B) Fodder Seeds : 50% Subsidy
MILK PROCESSING:
The milk received from the village society is processed and packed by the district
union before it reaches the consumer. The different stages of processing are:
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MILK PROCESSING SYSTEM:
1. COOLING
On arrival at the dairy /chilling centre, milk is immediately cooled to 4-6 0C and stored
in storage tanks I soils.
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2. CLARIFICATION
The chilled milk from the silos goes to the clarifier after preheating. The clarifier
spins the warm milk at a high speed, removing dust and dirt particles invisible to the
naked eye.
3. PATEURIZAITON
This involves heating the milk to 720C and holding at this temperature for 15 seconds.
Other equivalent time – temperature combinations may also be used. After hearing and
holding, the milk results in heat destruction of all the pathogenic (disease causing)
bacteria and about 90% reduction in the number of spoilage.
4. HOMOGENIZATION.
The milk then proceeds to a homogenized. This is where the large size fat globules
present in milk are broken down into tiny particles of less than 2-micron size. The
reduced size fat globules cannot rise to the top in the milk to form a cream layer. The
milk fat gets evenly distributed, thus also making the making the milk appear whiter and
thicker.
5. STANDARDIZATION
Milk from different of cows and buffaloes may vary in its composition. Hence, to
make milk of uniform composition for supply to market it is standardized by raising or
lowering, of the fact and /or solids –not-fat percentages of milk to a desired value, so ad
to conform to the legal or other requirements prescribed.
6. PACKAGING
Traditionally the co-operative used to pack milk in glass bottles. However, now all
co-operative changed the packaging system to pouches/ tetra packs/ bulk vending etc.
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BENEFITS OF PACKAGED MILK:
Packaging of milk has undergoes remarkable innovations in the past few decades. Milk
stored in bottles now belongs to a bygone era, Tamper proof, hygienic and labeled
pouches / packs have replaced the traditional bottle. These innovative methods of
packaging milk have rendered if free from adulteration and tampering. They have also
made it possible to provide consumers with different variants of milk and color coded to
their requirements. Aseptic packaging has given milk a shelf life of 120 days with
refrigeration – something unthinkable a few decades a few decades back} After
packaging and final quality clearance, the milk ready for transportation to retail shop
/vending machines, in insulated Trucks.
Making the right choice in order to cater to differing consumer needs, milk is
available in varying Fat and SNF contents.
SNF means milk solids other that fat content of milk that includes protein
carbohydrates, minerals etc. Thus, depending upon ones taste and requirements, he / she
choose the quality of milk.
Milk processing
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The milk received from the village society is processed and packed by the district union
before it reaches the consumer.
Organization Structure
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Chairman
Managing Director
Board of Directors
Managers
Sub-ordinates
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