Managing Absenteeism - Carrots or Stick

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Managing Absenteeism - Carrots or Stick?

* Theories to Measure, Cover and Manage absenteeism
* Organisational behaviour and everyday practice

Presented to: Mr. Junaid Shaikh

Presented by:
Muhammad Ali
Student ID# F1002522
Module: Organisational Behaviour
Programme: MBA – UOW
Submission Date: 6th of May, 2010
TABLE OF CONTENTS

1. Introduction4
2. Effect of Absenteeism on Business4
3. Comparison of Absenteeism between EU Countries5
4. Most common reason of Absence6
5. Relevant Theories about Absenteeism7
* Motivation Theory7
* Herzberg’s Two Factor Theory7
* Hygiene Factors8
* Motivator Factors8
* Attribution Theory (Weiner 1935)9
* Equity Theory (Adams 1965)10
* Theory X and Theory Y (Douglas McGregor 1960)10
* Theory X10
* Theory Y11
6. Calculation of Absenteeism 12
* Lost Time Rate13
* Frequency Rate13
* Bradford Factor14
7. Absenteeism Control Policies14
* Adopt a proactive approach to absence14
* Put a clear absence policy in place14
* Tackle absence from the first day15
* Support line managers to manage the problem15
* Work as a team to Manage Absence15
* Encourage the team to support absent colleagues15
* Talk about your experiences15
* Don’t rush into outsourcing your problem15
8. Top tips to cope with Absenteeism16
9. Managing Short-Term Absence16
10. Managing Long-Term Absence17
11. Organizational Behaviour Theory relates to everyday practice17 * Motivation17
* Communication, Decision making and Negotiation18 * Conflict and Politics18
* Personality (Individual Difference)19

12. Reference 19

Introduction
Absenteeism is a consistent pattern of absence from a duty or responsibility. Normally absenteeism has been viewed as an indicator of poor individual performance, as well as a breach of a contract between employee and employer. It was seen as a management problem, and framed in economic terms. More recent scholarship seeks to understand absenteeism as an indicator of medical, psychological, or social adjustment to work. People often tend to have different concepts or attach different meanings when viewing the topic of employee absenteeism. Absenteeism occurs when the employees of a company do not turn up to work due to any scheduled time off, any illness, any injury, or any other reason.

Before the start on 20th century, there was no concept of absenteeism in the organizations. As businesses were running on small scales with the limited number of people, so No attendance, No pay concept was adopted by the owners. Later on with the passage of time and with the development in businesses, labour union forced the companies to start absenteeism policy. Companies therefore agreed to start offering paid holidays, sick leave, time off from work and paid sick holidays. Although this change was to facilitate the employees but companies have realized that it costs them a lot. Companies therefore have adopted different policies which we shall discuss below regarding managing absenteeism. A report says that company who has effective employee absence strategies can reduce their overall payroll costs by minimum 10 percent.

Sometimes going to work is not a pleasant thought

Effect of Absenteeism on Business
According to the employee’s point of view, one person’s absence doesn’t effect at the business, as business can be managed with the help of other colleagues. However, in real it is not true. According to a business report of BBC, Taking a one-off sickie may not seem too much of a crime, but they all add up to a major headache for UK industry.

So much so that according to a report by...
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