Case Study on Absenteeism
Submitted To: Mr. Srinivas Rao
Associate Professor – Fashion Management Studies.
Submitted By: Mr. Sebastian James
1st Semester Student – Fashion Management Studies (2011-2013).
SUMMARY OF THE CASE STUDY
Unique Schweppes Ltd was multinational Public Limited Company with its head office in London. The company’s 51% shares were held by Unique and 49% by Government financial institution and shareholders. They had 6 primary manufacturing units located at Jammu, Nagpur, Agra, Pune, Gorakhpur and Hyderabad. The total manpower resource in these six units was 1900. Agra unit was registered in the name of Association Of Chemical Workers in the company. The unit was working in 3 shifts and for all seven days. Emphasis on financial relations among the employee to promote simplified working and better understanding. Unique gave all the welfare facilities to their employees like free canteen, free transportation, free uniform, medical re-imbursement, housing loan and all other benefits. In 1995,HR executive, received a complaint that production was suffering due to absenteeism in spite of that there were 52 weekly off,9casual and 22 earned leaves but still absenteeism rate was 18%.` The management decided decided to put efforts to reduce absenteeism by providing financial incentives to the employees to motivate them to work regularly. Similarly some workers who had not shown any improvement in their attendance then charge sheet would be issued. Ultimately management found some reasons which led to absenteeism were high salary, festive celebration, dual employment etc and all these led to another way of encouraging employees to reduce absenteeism by social recognition, tea party attendance awards. But by 1999, Unique had introduced all monetary as well as social benefits schemes yet employees has been issued charge sheet and has not shown any improvement. So the management finally decided to terminate them, and this action has showed a remarkable decline in the rate of absenteeism.
A Framework for Absenteeism
There are six areas where systems, policies and practices will have an impact on Absenteeism rates. They are: 1. Recruitment and selection
2. Relationships with managers
3. Position profiles
4. Workplace environment
5. Work-life balance
6. Company culture
Recruitment and Selection
Inadequate selection and screening processes can contribute to an absenteeism problem. This is simply because some people are more prone to the various circumstances, attitudes and conditions which lead some people to take excessive unscheduled leave. Establishing proactive screening and assessment processes combined with testing and hiring will help you employ the right people for the right roles from the outset. You should implement screening processes which seek to assess dependability, reliability and likelihood of tardiness. Relationships with Managers
Absenteeism is often connected to poor relationships with managers. Studies have found authoritarian management styles linked to higher rates of stress induced absenteeism. Authoritarian managers frequently display poor listening and communication skills, are inflexible and set unreachable goals. Good managers make people want to come to work in the morning. They do this by fostering healthy relationships with their staff. They are fair and meritocratic in particular when granting leave, promotions and pay rises. To identify managers whose management styles may be contributing to an Absenteeism problem consider these two steps: firstly analyse your patterns of Absenteeism data to see if it is localised by manager and conduct 360 degree staff reviews and anonymous staff...
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