Absenteeism within the Work Place - Essay Example

Absenteeism within the work place Introduction Work place absenteeism has been a major source of concern for employers for many years. Employers and companies have been struggling to find a lasting solution to the problem of unscheduled and unauthorised absenteeism since it has become a threat to productivity and profitability. Researchers as well as practitioners are also performing their part to find a remedy that can at least reduce employee absenteeism and thereby improve the productivity and savings in cost. It is known commonly that absenteeism results in cost and productivity problems, puts extra burden on other employees, and ultimately affects adversely customer satisfaction and the country's economy. It has been observed through many studies that lack of absenteeism results in better quality, lower costs, and greater productivity (Hazzard, 1990). Absenteeism is pervasive in all organization irrespective of size, type and nature. However, it is higher in manufacturing organizations. Research supports both reward and punitive mechanism of destructing absenteeism and helping organizations meet its demand to various stakeholders. The present study is an attempt to suggest some solutions to this mounting problem of workers absenteeism. The study basically aims to assess the reasons of absenteeism among the selected sample respondents from industrial background. It also attempts to understand the impact of unauthorized absenteeism on productivity and cost of production and ultimately on profit. The study takes a descriptive as well as explorative approach where in attempt is made by the researcher to describe the various factors responsible for employee absenteeism and to explore the relationship between variables (rate of absenteeism, rate of productivity, volume of profitability, rate of cost increase etc.). Literature Review Employee absenteeism is a much researched topic across the world by academicians as well as practitioners. Academicians are interested in the topic as they want to evolve new insights and theories on employee absenteeism and organisation performance. Practitioners deploy the theories and models developed by academicians to sole their problem absenteeism and lower productivity on account of absenteeism. The literature of the present area of study involves topics such as reasons for absenteeism, impacts on productivity, cost, and profitability. It also covers studies and publications on remedial measures of absenteeism adopted by employers and those suggested by researchers and practitioners. As already mentioned, absenteeism is a universal phenomenon. However, it is mostly seen in the manufacturing/industrial sectors. It has been observed that employee absenteeism is higher in manufacturing organisations than in any other areas (Hazzard, 1990). It has also been understood that it is higher in union settings than in nonunion settings. Another significant study concludes that absenteeism is more common among women than men as women are more sensitive to family needs (Dunn and Youngblood, 1986). Another interesting finding is that absenteeism is high among unmarried than among married workers. The reason for the same observed is that married employees find more financial pressure than single employees and as such there is less chance of employees taking unscheduled leaves (Drago and Wooden, 1992). The studies undertaken so far to explore the reasons for/ factors responsible for employee absenteeism vary one to another. However, one common conclusion among studies across industries and countries is that employee unscheduled absenteeism should be restricted and given due importance as it will serious repercussions on productivity and profitability. Steers and Rhodes (1984) claim that employee attendance is determined by two factors, basically, (a) employee's motivation to attend, and (b) the employee's ability to attend. The first factor is concerned with the organizational factors that stimulate employees to attend for the work. These factors include cordial working conditions, satisfied reward system, job satisfactions and so on. The ability of an employee to attend for the job is decided by the physical as well as mental capacity. Prior studies have consistent views as to why people are motivated to attend. The factors include organizational commitment, increased autonomy, job satisfaction and responsibility (Dalton and Mesch, 1990). One of the significant studies (Borofsky and Smith, 1993) suggests that organizational factors responsible for employee absenteeism include low employee morale, employment conflicts, low and unsatisfied compensation and benefit programs, poor training, unsatisfied workplace conditions. The author further suggests that personal factors that contribute to absenteeism are lack of reliability, alcohol use and addiction (Borofsky and Smith, 1993). It has also been observed that the need for child or parent care, looking after personal business during normal working hours are other personal reasons for employee taking unauthorized leaves. Studies undertaken to explore whether employee absenteeism is under flexible scheduling system or fixed system, observed that absenteeism is more under fixed schedule system where employees are allowed to take leaves under strict restrictions and under the policies of the organizations. For example, Dalton and Mesch (1990) concluded that absenteeism declines under flexible working system as it allows employees to work according to their choice and they are allowed more time look after personal businesses. Dalton and Mesch (1990) suggested that flexible scheduling may increase extrinsic motivation simply because basic working conditions are improved, i.e., the employee may be able to avoid rush hour, and the employee's relationship with a supervisor may improve if tardiness is minimized. They also argued that the employee's motivation may increase as the employee enjoys more autonomy and responsibility with regard to work hours. The impacts of increased absenteeism are diverse and may result in serious repercussions on the organization's workings. The most affected areas include productivity, profitability and cost of production. A U.S. based study remarks that for every 0.5% increase in absence rates in the country; the GDP tends to decline by $10 billion Steers and Rhodes (1984). Another study Markowich (1993) concluded after a sample survey of 5,000 firms undertaken by Commerce Clearing House, Inc., that unscheduled leave results in an average $62,636 a year in lost productivity, sick time, and replacement costs. Organisation can hinder the tendency of unscheduled absence of their employees by resorting to certain measures such as reward system or punitive system. However, it has been observed that reward system has been found more effective than punishment system to reduce absenteeism (Bunning, 1988; and Wallin and Johnson, 1976). This does not mean that absenteeism can be hindered by offering certain monetary benefits to employees. For example, Markowich (1993) remarked that monetary rewards complete attendance may not influence people who abuse sick time. Therefore, according to this study, rewarding good employees by offering monetary benefits was found ineffective. Objectives of the Study The ultimate objective the present study is to analyse the absenteeism problem faced by the selected industrial units in the U.K. with special reference to (please select an industrial area or region of your choice). Specifically, the research attempts to address the following objewctives: 1. To ascertain the reasons for employee absenteeism; 2. To examine the impact of absenteeism on productivity, profitability and cost; 3. To suggest some workable solutions to the problem of unauthorised and unscheduled absenteeism. Hypotheses In line with the objectives and research background of the present study, the following hypotheses have been developed, all of which are expected to be tested through some statistical tools H1. Employee Absenteeism is more among women workers; H2. Employee Absenteeism is high among single/unmarried workers; H3. Employee Absenteeism and productivity are negatively correlated; H4. Employee Absenteeism and profitability are negatively correlated; and H5. Employee Absenteeism result in increased cost of production Research Methodology Every research study has a unique way of exploring a solution to its problem. This distinct steps or way of doing a particular research is known as research methodology. The present study is both qualitative and quantitative in nature. A qualitative research is one which makes use of non-economic/financial data for the purpose of analysis and interpretation whereas a quantitative research makes use of economic data for decision making. This study is basically a survey research, which collects both primary and secondary data. Research Design The approach by which research is undertaken is known as research design. Descriptive research deals with the description of what has happened or happening about a particular phenomenon. In a descriptive study, the characteristics about the phenomenon under study are detailed. As opposite to this, an explanatory research finds the reasons for the phenomenon described earlier. Thus, descriptive research explains what is going on and explanatory study diagnose why it is happening (Vaus 2001). The present research is both a descriptive and an exploratory one as it deals with explanation of what has happened in the selected industries as to absenteeism and examining the interrelationship between various variables set. Population and Sample of the Study This study is basically a survey research. For the purpose of this study, some industries have been selected in the first stage of the sample selection. Data have been collected from the employees of all selected employees using well structured questionnaire. The entire employees who are working in a certain industrial estate constitute the population of the study. Sampling Procedure Sampling procedure is the process of drawing sample units from a population to infer about the population. The selection of sampling procedure is important because the one selected must be appropriate to the situation. As there are a number of sampling methods, the researcher has to select the apt one which ensures high accuracy, low personal bias and other considerations like time, cost etc. Random Sampling/ Probability Sampling method is the most commonly used method as it ensures the presence of above parameters. Here, simple random sampling was used to draw samples from populations to constitute the respondents for the study. Data Sources The study relies both on primary and secondary data. Primary source include an experience survey carried out among the employees from the selected industries. The primary data are collected by means of a survey by serving questionnaire. Therefore, questionnaire is the tool of data collection. The questionnaire is prepared by incorporating closed questions, which are arranged logically. The questionnaire was sent to the personal email address of the respondents with a covering letter requesting them to reply and send back the filled in questionnaire. The secondary sources include all data available from records and published reports that show cost of production, productivity, and profitability. The secondary data are extensively used here to test the hypotheses formulated by the researcher. Data Editing The data collected from primary source always need editing. Editing is the process of eliminating the errors and mistakes from the raw data so as to make them ready for further analysis. Editing is done for eliminating mistakes, completing an incomplete data, omitting errors etc. The secondary data need not be edited as they are in processed form and they have been collected by somebody for some other purpose. However some kind of arrangement may be necessary so as to make them ready for analysis. Data Coding The quantitative and non-quantitative data which have been edited are now converted in to another form called codes for easy and convenient analysis. Codes are used to convert data which are lengthy and cumbersome for analysis. Coding is made in the Microsoft Excel Spreadsheet Program. Analysis is performed using simple statistical methods like percentage and measures of central tendencies. Data Analysis The proposed analysis for the present study includes descriptive statistics such as frequency, mean, and median using SPSS. Correlation and regression analysis is also carried out to test the hypotheses. Limitations of the Study The study is basically a sample survey research. Therefore, sampling errors are the first and foremost problem of the study. However, maximum effort has been made by the researcher to minimize the sampling errors by properly selecting the sample method and sample units. Also, there are chances of biased opinion by employees on absenteeism system followed by their organisation as they are basically do not support any policy. References Borofsky, G. L. and Smith, M. (1993) 'Reductions in Turnover, Accidents and Absenteeism: The Contribution of a Pre-Employment Screening Inventory', Journal of Clinical Psychology, 109-116 Bunning, Richard L. (1988) 'Personnel World: A Comprehensive Approach to Improving Attendance', Personnel Journal, 44-49 Dalton, Dan R., and Mesch, Debra J. (1990) 'The Impact of Flexible Scheduling on Employee Attendance and Turnover', Administrative Science Quarterly, 35, 370-387 Drago, R. and Wooden, M. (1992) 'The Determinants of Labor Absence: Economic Factors and Workgroup Norms Across Countries', Industrial and Labor Relations Review, 45, 764-776 Dunn, L. F., and Youngblood, S. A. (1986) 'Absenteeism as a Mechanism for Approaching and Optimal Labor Market Equilibrium: An Empirical Study', Review of Economics and Statistics, 68, 668-674 Hazzard, L. E. (1990) 'A Union Says Yes to Attendance', Personnel Journal, November, 47-49 Markowich, M. Michael (1993) 'Attendance Required', Small Business Reports, 13-16. Steer, R. M. and Rhodes, S. R. (1984) 'Knowledge and Speculation about Absenteeism in Goodman', P.S. and Atkins, R.S. (Eds.) Absenteeism. San Francisco. Jossey Bass, 229-275 Wallin, J. A. and Johnson, R. D. (1976) 'The Positive Approach to Controlling Absenteeism', Personal Journal, 390-392 Bibliography Stinson, Jeff (1991) 'Company Policy Attends to Chronic Absentees', Personnel Journal, 82-85. Majchrzak, A. (1987) 'Effects of Management Policies on Unauthorized Absence Behavior', Journal of Applied Behavioral Science, 23, 491-517 Johns, G. (1994) 'Absenteeism Estimates by Employees and Managers: Divergent Perspectives and Self-Serving Perceptions', Journal of Applied Psychology, 79, 229-239. Gwaltney, M. J. (1994) 'Countering Abusive Absenteeism', FBI Law Enforcement Bulletin, March, 24-26 Dunn, L. F., and Youngblood, S. A. (1986) 'Absenteeism as a Mechanism for Approaching and Optimal Labor Market Equilibrium: An Empirical Study', Review of Economics and Statistics, 68, 668-674 Read More