Research on Absenteeism Factors at Brandix Apparel Ltd - Aarayampathy

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This report investigates the factors contributing to high absenteeism among machine operators at Brandix Apparel Ltd - Aarayampathy, Sri Lanka. The research begins with an introduction to the study, outlining the background, problem identification, and research questions. It delves into the organization's background, specifically focusing on Brandix Apparel Ltd and the impact of absenteeism on production. The report presents attendance data and identifies excessive absenteeism. The study aims to identify factors affecting employee absenteeism, determine the most significant factors, and provide practical suggestions to reduce it. The literature review explores the meaning, types, causes, and control methods for absenteeism. The methodology includes conceptualization, operationalization, and data analysis methods. The findings, conclusions, and recommendations are presented, offering insights into organizational factors that contribute to employee absenteeism and strategies for improvement. This research provides a detailed analysis of absenteeism within the context of the apparel industry and offers practical solutions for management.
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CHAPTER 1
INTRODUCTION
1.1 Introduction to the Study
This research mainly focuses on the Factors contributing to the high absenteeism of Machine
Operators of Section-I at Brandix Apparel Ltd - Aarayampathy. This chapter provides
research background identification and formulation of objectives.
1.2 Background of the Study
Employee absenteeism is a costly yet poorly understood organizational phenomenon (e.g.
Johns and Nicholson, 1982; Martocchio and Harrison, 1993; Mowday, Porter and Steers,
1982; Rhodes and Steers, 1990; Gellatly, 1995) In this study the researcher will research
about the factor which contributes to the absenteeism of machine operators of Section – I at
Brandix apparel Ltd – Aarayampathy. As we all aware that, Absenteeism is a big obstacle in
the growth of any company. Organizations and people in the current business environment
face many challenges and opportunity evolves from increasing difficulty on changes facing in
the world. Absenteeism is a big difficulty in the growth of any company. This study helps to
find out the main causes of it and also to provide some solutions that can solve it.
1.2.1 Background of the Organization
Brandix Group is one of the leading manufactures in the south Asian region and largest
textile exporter in srilanka. It has over 41000 employees across 28 factories in Srilanka, 05 in
India and 1 in Bangladesh. Market places of Brandix products are gradually increased.
I have selected a branch which Brandix Ltd operates in the Eastern province of Srilanka –
Aarayampathy, Batticaloa. Brandix Apparel Ltd in Aaraympathy Batticaloa is located in the
Eastern Province, Batticaloa District. It is the massive factory which has the cadre of 1800
employees.
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The Factory is divided into 3 Section such as Section- I, Section- II and Section- III. Each
section is allocated the cadre of 600 employees including 200 machine operators. Machine
operators are considered as direct workers in garment industry.
They have the direct impact in the production. The absenteeism of machine operators is
affecting the production of this factory. Regular employee’s attendance is one of the most
important to industrialized society. High absenteeism mostly affects industries as a cost of
production, yet lost productivity also affects the whole economy and society directly and
indirectly. Human resources are one of the most valued resources of an organization and
indeed an organization is nothing without human resources.
1.2.2 Introduction to Absenteeism
Absenteeism is a habitual pattern of absence from duty or obligation. Traditionally,
absenteeism has been viewed as an indicator of poor individual performance, as well as a
breach of an implied contract between employees and employer; it was seen as a management
problem. Absenteeism as an indicator if psychological, medical or social adjustment to work.
Measuring absenteeism and expressing it in the single unit is not an easy task, because when
one calculates absenteeism, he has to take into consideration various factors with influence
absenteeism and also to trace the various types of absentees.
1.3 Problem Identification
Nowadays apparel industry business is increasing in Srilankan business environment even
though they are facing number of problem, when they running the business. Direct workers
(machine operators) are considering as key people in the organization. All the decisions and
policies are developing based on them because they are direct worker. Machine operator
absent is a main problem in the appare industry. It will directly affect total earning,
production and increasing the organization’s cost an also it would affect employer and
employees relationship. Likewise the Brandix Apparel solutions Ltd – Aarayampathy also
affecting higher level of absenteeism. Based on their system attendance register report
illustrate that, the absenteeism margin (approved absenteeism) is 4% but the actual
absenteeism is 5.6% - 7.0% when considering approval and actual absenteeism, there is big
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gaps in the negative point. Here below data received from the employee’s attendance system
of Brandix Apparel solutions Ltd- Aarayampathy. The study focus on absenteeism in Brandix
Apparel Ltd – Aarayampathy and how organizational factors influence on machine operator’s
absenteeism offer solutions to the problems arising from employee absenteeism.
1.3.1 Machine Operators Attendance Details – 2016/2017
Table 1.1: Machine Operators attendance
Year/Month JA
N
FE
B
MAR APR MAY JUN JUL AUG SEP OC
T
NO
V
DEC AV
G
2016 5
%
7.
%
7.6% 10.70
%
8.20
%
7.50
%
6.40
%
6.00
%
8.3
%
6.4
%
5.4
%
4.90
%
7.1
%
2017 6
%
5% 4.80
%
2.90% 4.00
%
4.50
%
4.30
%
5.30
%
4.0
%
5.1
%
4.4
%
4.9% 5.6
%
Both Year
AVG
6
%
5% 6.2% 6.8% 6.1% 6.0% 5.4% 5.7% 6.6
%
5.3
%
5.3
%
4.70
%
6.9
%
Source: Employee’s attendance system of Brandix – Aarayampathy, 2016 & 2017
1.3.2 Machine operators absent Details
Figure
1.1: Machine Operators attendance
Source: Employee’s attendance system of Brandix – Aarayampathy, 2016 & 2017
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JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
AVG
0%
2%
4%
6%
8%
10%
12%
2016
2017
Both Year AVG
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Figure 1.2: Machine Operators attendance
Source: Employee’s attendance system of Brandix – Aarayampathy, 2016 & 2017
According to Table 1.1, figure 1.1 and figure 1.2, the machine operator’s absenteeism is
higher than the approved absenteeism. Since the approved level of absenteeism is 4% but it is
higher than the approved percentage.
1.3.3 Identifying Excessive Absenteeism
Attendance records should be review regularly to be sure that employee leave days are
excessive compared to other employees. If a supervisor suspects that an employees is
excessively absent, this can be confirmed through reviewing the attendance records. If all
indication show that an employee is excessively absent, the next step is to gather as much
information as possible in order to get a clear picture of the situation.
The employees file should be reviewed and the employee’s immediate supervisor should
document all available information on the particular employee’s history.
1.4 Research Questions
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JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVG
0%
2%
4%
6%
8%
10%
12%
2016
2017
Both Year AVG
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What are the factors affecting employees absenteeism?
What is the most important factor which affect for employees absenteeism?
What is the current level of absenteeism?
1.5 Objectives of the Study
1.5.1 General objective
The General Objective of this research is to identify the main factors contributing of machine
operator’s absenteeism of Section –I at Brandix Apparel Ltd – Aarayampathy.
1.5.2 Specific Objectives
1.5.2.1 To identify the factors affecting employee absenteeism.
1.5.2.2 To determine the most important factor which effect for employee’s
absenteeism
1.5.2.3 To provide practical suggestions to reduce absenteeism
1.6 Significance of the Study
The relevance of this study was to establish to identify the factors contributes to the
absenteeism of machine operator’s absenteeism of Section –I at Brandix Apparel Ltd –
Aarayampathy. In order to identify the reasons for the absenteeism, the study will help the
management to formulate strategies. After completing this research researcher can provide
the final and main factors that contribute to the absenteeism in Brandix Apparel ltd -
Aarayampathy. So through this research Management and the organization can plan and
develop some plans to minimize the absenteeism and also I can suggest some practical
recommendations in order to minimize the absenteeism. Most of the factors contributes to the
employees absenteeism is from organizational factor, so that organization can take preventive
actions according to this research.
1.7 Chapterization
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The entire research work will run into five chapters.
1.7.1 Chapter 1 - The first chapter includes the contents of Introduction, background of the
study which includes background of the topic and background of the organization, problem
identification, Machine operator’s attendance details provided in figures and table, research
questions, objectives of the study and signification of the study.
1.7.2 Chapter 2 - Chapter two focuses on the literature review and absenteeism definitions
and describing the types of absenteeism according to the literature review.
1.7.3 Chapter 3 - Chapter three includes the conceptualization and operationalization which
describes about the researches conceptual frame work, dependent an independent variables
for the study, Hypothesis development, population and sampling methods, data collection and
data analysis methods which used in the research.
1.7.4 Chapter 4 - Analysis and Discussions is to be done in chapter 4. In this chapter we
mainly focus on Data presentation which includes two types of information 1- Personal
information and 2- Research information. In personal information we mainly focused on Age,
marital status, Gender, salary Details and work experience. In the research information we
have done analysis such as Reliability analysis, Descriptive analysis, correlation analysis,
Regression analysis and hypothesis testing.
1.7.5 Chapter 5 - In the last chapter which is chapter five includes the Findings, Conclusions
and practical recommendations and also this Chapter includes the References and annexures.
CHAPTER 2
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LITRETURE REVIEW
2.1 Introduction
Second chapter gives an overview of theoretical part and concept and which are relate to the
stated problem in chapter one. Literature review will launch the meaning of absenteeism,
absenteeism types, and main causes for absenteeism and recommendations for control
absenteeism. This chapter also helps the reader to have a clear idea about this research.
This research ensures that it will reveal clear good results for the high absence. Absenteeism
is commonly understood as an employee or a group of employees been absent to work either
continuously for a long period or for short period. Absence without prior approval/approval
of supervisor or manager referred as unauthorized absent. Organizational factors have been
reported likely to have an impact on absence behavior including ownership structure (Block
et al., 2014), organizational trust (Romero and Strom, 2011), transformational leadership, job
characteristics and psychological empowerment (Belhaj, 2012), peer group effect (Paola,
2003), and pay level (Keller, 2008; Langenhoff, 2011).
2.1.1 Introduction to Absenteeism
Absenteeism is a habitual pattern of absence from duty or obligation. Traditionally,
absenteeism has been viewed as an indicator of poor individual performance, as well as a
breach of an implicit contract between employees and employer. Various studies have
attempt to examine the relationship between absenteeism and job satisfaction as absence is
commonly viewed as one of the means of withdrawal from stressful. Work situations
according to luthans (1995), research have generally reviled a consistent inverse relationship
between job satisfaction and absenteeism.
i.e when satisfaction is high , absenteeism tensed to be low and when satisfaction is low ,
absenteeism tensed to be high . even though this correlation has been found to be rather
moderate , the underlying assumption is that absence is at least in part , the result of
dissatisfaction on the job(Anderson , 2004 ,Hardy ,Woods and Wall ,2003).
There is further suggestion that the effects of job satisfaction will be more evident from the
frequency of absences rather than from the total number of days absence ( Johns, 1996 ).
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However, even though it makes sense that dissatisfied employees are more likely to miss
work, absenteeism is a complex variable and is influenced by multiple factors and employee
might therefor be absent for various other reasons, than been dissatisfied with the job .
These reasons include organizational factors like supervision, working environment , salary
issues , coworkers support. ( Johns, 1996 ).
Most of the organizations are losing millions of rants a year due to high absenteeism in the
work place. Robins et al.(2003) indicate that south African managers consider absenteeism
their most serious discipline problem.
2.1.2 Definition of absenteeism
The labor bureau (1962) defines absenteeism as the total shifts lost because of absence as
percentage of the total number of man shifts scheduled to work. Likewise Hackett J.D (1929)
defines it as “the temporary cessation of work for not less than one whole working day
initiative of the worker when his presence is expected by the employer”.
If absenteeism becomes extreme it will affect major impact on business operations. Employee
absenteeism is an acknowledged problem in any organization which uses fixed work
schedules (Dalton & Mesch, 1991), and Cascio (2000, as cited by Mayfield &
Mayfield,2009) defines it as any failure to report for or stay at work as scheduled, regardless
of what the reason is. According to Avey and his colleagues, absenteeism can be involuntary
or it can be voluntary. Involuntary absenteeism is under normal circumstances unavoidable,
(Avey, Pater & West, 2006); this type of absenteeism is also called white absenteeism
(Sanders & Nauta, 2004). Absenteeism is define as the lack of presence of a worker for
planned work (Johns, 2002, Kristensen, Juhl,Eskilsen, Nielsen , Ferederiksen, Bisgaard,
2006) . Absenteeism refers to workers absence from his regular work when he is normaly
scheduled to work. ( Kavita Tiwari, 1995).
According to Webster’s dictionary “absenteeism is a practice or habit of being an absentee,
and absent is one who habitually stays away. Further it explains etymologically absenteeism
means condition that exists when a person fails to come to work when he is properly
scheduled to work.
It means that the employer has provided the work to the worker and he is aware of it but
certain reason what so ever the worker fails to come to work”. (Kavita Tiwari, 1995)K.N
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Vaid opined evolved a production oriented definition and designed the method of
measuring the average rate of absenteeism.
2.1.3 Types of absenteeism
Crous, 2005 states, according to Griffin et al. (1998) Absenteeism is any failure to report for,
or remain at, work as scheduled, regardless of the reason. Involuntary absence is caused by
factors beyond the control of the employee. Voluntary absence is the employee’s deliberate
choice which can be measured by the frequency index - the number of absences in a specific
period. Thus one must differentiate between two types of absence, i.e. involuntary and
voluntary absence.
Economists have classified the concept of absenteeism in many types according to their
philosophy and logic. Kerr classified absenteeism in the following categories, Total
absenteeism as 1) Excused absenteeism 2) Unexcused absenteeism) Vacation absenteeism.
Seligman (1993) refers two type of absenteeism as, Avoidable absenteeism and Unavoidable
absenteeism. There may be certain reasons which can be avoided by the workers such as
participation in functions or over stays at native places, in marriage their religious functions.
But may be certain major reasons of absence of workers on unavoidable reasons for these
reasons workers have to remain absence irrespective of the fact whether they get wages
during absence or not.
2.1.4 Factors of Absenteeism
According to Joo and Garman, (1998) some of the identified determinants of absenteeism are
employee satisfaction, employee participation in management systems health status, family
factors, job performance, age, organizational tenure, perceptions of interactional justice, and
worker perception of the absence norm. Studies also show one of the most significant reasons
for absenteeism is stress (Joo & Garman, 1998a; 1998b). They further stated, identifying the
relationship between financial wellness and absenteeism can help employers better
understand the determinants of employee absenteeism. In another study, Rogers and Herting
(1993) found a negative relationship between education and absenteeism, demonstrating that
those who had less education had more absences than those with a higher level of education.
They also found nix significant relationship between employee tenure and absenteeism.
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Absenteeism is also affected by employee satisfaction. Porter, & Steers (1982) found a
negative relationship between satisfaction with pay and absenteeism, suggesting that those
workers earning lower incomes had more absences than people making higher incomes. Job
performance is related to absenteeism, too (Bycio, 1992), as workers with low performance
ratings from their supervisors tend to have more absences than other workers.
Knowles (1979) says that although absence from work may be due to any of a large number
of factors, empirical evidence supporting the view that causal factors can be organizational in
nature is scant. Absence may be regarded as one facet of a wider behavioral problem
pervading entire organizational sub-units. The author suggests that absence could be used
along with other variables as a valuable personnel statistic indicating areas organizational
dysfunction. This means that if levels of absenteeism in such cases as these were to be
improved the solution should be looked for at the organizational level rather than at the
individual or job level. Also Fitzgibbons (1992) and Rhodes and Steers (1990) discussed that
the vast majority of absence research has focused on the effects of work attitudes like job
satisfaction and poor working conditions.
Thennakoon (2006) states, young female workers have a tendency to leave the apparel
industry after a short period of time largely due to long working hours, harsh working
conditions and schedules, uncomfortable and low quality working environment, Bias
supervision. Human Resource Management Journal 2010, Vol.01, No.01 poorer economic
times), organizational policies and rules regarding absenteeism, personal and organizational
factors (Kinnear, 2006).
In the model, Leigh (1991) included four major categories of independent variables:
demographic variables, health variables, aspects of the job, and economic incentives. The
significant determinants included health variables (e.g., being overweight, complaining of
insomnia, and hazardous working conditions and working environment), job characteristics
(e.g., inflexible hours), and personal variables (e.g., being a mother with small children).
Among the significant variables, dangerous working conditions had the strongest relationship
with absenteeism.
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The negative relation between Salary and absenteeism has been found by Lundquist (1958),
Fried, Wertman and Davis (1972), Beatty and Beatty (1975), Bernandin (1977), Drago and
Wooden (1992) and Barmby, Ercolani and Treble (2003).
According Crous (2005) causes or determinants of absenteeism are; job satisfaction, un met
expectations, job – person match, organizational culture, Supervision, ill health, less salary,
stress, social influence. Moreover, it was found that one of the most significant factors
affecting the competitiveness of the Sri Lankan garment industry is poor supervision. The
reasons for absenteeism according to Kelagama and Epaarachchi (2003) are as follows, Poor
Working Conditions, Poor wages for Workers, Inadequate Human Resource Development,
Supervision, Restrictive Labor Regulation, poor working conditions, Slow Turn-Around
Time, No Garment Factory. Furthermore, the average rate of monthly absenteeism amongst
labor in the garment industry is approximately 7.4 per cent (Garment Gazette, June 1999).
2.1.5 Cost and effect of absenteeism
The costs that are accrued when a worker leaves the job are the cost of
training/retraining/hiring a worker to fill the positioned the cost of production loss, if any.
These same cost components may apply if the worker is absent (B.D Steward, 1994). High
absenteeism is a direct loss for a company and it’s been revealed that South African
companies are losing millions of ranks a year due to absenteeism (Josias 2005).
According to Josias (2005), Loss of productivity, over employment costs, Recruitment
costs, Training costs are interrelated; training has an impact on productivity due to the
learning curve and most commonly overcome by over employment. Over employment
reduces individual productivity asset utilization.
2.1.6 Causes of Absenteeism
Bhatia,1995 divided the Organizational factors such as Degree of strain/ heaviness of work,
level rules, and procedures, unhelpful, non-cooperative work group, quality and style of
supervision, job satisfaction, an challenges, recruitment policy, induction and placement,
housing and transport were place by him in organizational factors.(Bhatia,1995) Cucchiella
and Gastaldi (2006) and Cucchiella et al. (2010) analyze the relation between workforce and
risks in supply chain management while Campisi and Gastaldi (1996) show the role of
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workforce in I-O analysis. An international comparison of the effects of sickness benefits on
individual absenteeism is provided by Frick and Malo (2008).
Employee absenteeism, being a serious financial burden for businesses which wish to
continue their struggle in tough competitive conditions of today, has become a very important
issue to be resolved, Senel & Senel, (2012). Researchers explored that absenteeism, low
performance level, severance and distrustful behaviors are the behaviors that sway the
productivity and competence of business enterprises. Such behaviors bring high costs to
companies and therefore are the issues that must be monitored and dealt with properly.
Worker absenteeism accounts for much lost work time, and therefore has important
implications for both firm income and productivity. Absence causes the significant costs for
businesses. Therefore understanding the factors that cause absenteeism may help managers to
better manage employees’ absences, resulting in increased productivity and profitability,
Bilgin Senel, (2012).
Absenteeism is also affected by employee satisfaction. Mowday, Porter, & Steers (1982)
found a negative relationship between satisfaction with pay and absenteeism, suggesting that
those workers earning lower incomes had more absences than people making higher incomes.
Job performance is related to absenteeism, too (Bycio, 1992), as workers with low
performance ratings from their supervisors tend to have more absences than other workers.
Bycio () also found that absenteeism is more likely to follow poor job performance than the
reverse situation.
Paul-Majumder’s (1996) research highlights work areas are often overcrowded with limited
workspaces, causing occupational hazards such as musculoskeletal disorders and contagious
diseases. Injuries, fatalities, disablement and death from fire and building collapses are
frequent in the RMG sector.(Paul Majumder’s,1996).
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