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A STUDY ON
PERFORMANCE
MANAGEMENT
TOWARDS
MANAGING
ABSENTEEISM OF
EMPLOYEES IN
TEXTILE SPINNING
MILLS IN
TAMILNADU
ABSTRACT
iv
CHAPTER 1
over other countries. However, today the industry suffers from a low labour
productivity. Though there are many reasons for a low labour
productivity like poor skill, labour laws, attrition etc., and absenteeism is
an inherent problem in the textile industry. The absenteeism affects the
optimum utilization of human resources it is an industrial malady affecting
productivity profits and investments. An increasing rate of absence adds
considerable cost to the industry and social loss occurring from
Absenteeism cannot be determined accurately. The unpredictable
absenteeism leaves the production planning very difficult. There is always
a fluctuation in the rate of absenteeism. There is normally high rate of
absenteeism and this shoots up just after the monthly pay is given.
The global textile and apparel industry is worth over US$ 4,395
billion, with clothing accounting for 60 per cent of the market and apparel,
the balance 40 per cent. Global trade in this industry is now at US$ 350
billion and is expected to be in the range of US$ 800 billion by 2014.
India’s textiles and clothing industry is one of the largest contributing
sectors of India’s yarn exports worldwide. The report of Working Group
constituted by the Planning Commission on boosting India’s yarn
th
manufacturing exports during 12 Five Year Plan (2012-17), envisages
India’s yarn exports of Textiles and Clothing at USD 64.11 billion by the
end of March 2017. The textiles industry accounts for nearly 11% share of
the country’s total yarn exports basket.
sectors form the largest section of the textiles industry. Major sub-sectors
of the textiles sector are organised cotton/man-made fibre textiles mills,
1.2.1 Strengths
1.2.2 Weaknesses
and cottage type units without sufficient capital back-up. Therefore they are
unable to have sophisticated technology and are still being performed
1.2.3 Opportunities
1.2.4 Threats
1.5 ABSENTEEISM
ability to attend work. Ability to attend work variables included illness and
accidents, family responsibilities, and transportation problems.
10
When a worker does not report for work after obtaining prior
permission it is not absenteeism.
The sick and old type remains absent from work by reason of ill
health, weak constitution, chronic disease or old age.
Causes of Absenteeism
Effects of Absenteeism
THE PERFORMANCE
MANAGEMENT PROCESS
BEHAVIORAL INFORMATION
ISSUES TECHNOLOGY
THE PERFORMANCE
MEASUREMENT SYSTEM
CULTURAL WHAT IS
ISSUES Strategy THE MEASURED?
Environment INFORMATION
Structure SYSTEM
ATTITUDES Processes WHO USES THE
Relationships MEASURES?
REPORTING RESPONSIBILITIES
STRUCTURE
HOW SYSTEMS
ARE USED TO MANAGE
PERFORMANCE?
The sampling unit taken for the study are employees working in
Textile Spinning Mills in Tamil Nadu who are registered under South India
Mills Association (SIMA), South India Spinners Association (SISPA) and
Tamil Nadu Spinning Mills Association (TASMA). The address of each
firm was obtained from the SIMA, SISPA and TASMA. As per the
statistics, there were 1020 Textile Mills registered with them as on
30.06.2013. The details were received and a database created which was
the sample framework from which the sample firms were picked.
A simple random sampling method was used for this study. The
information about the textile firms obtained from SIMA, SISPA and
TASMA were made into a database. Each record was given a unique
number. Using the random number function in the MS Excel program,
required number of random number was generated and the corresponding
company was selected as the sample firm. In each of the sample firm,
questionnaire was distributed through the competent authority and the
response was obtained from the employees. To reduce the bias, employees
within the sampled firm were asked to volunteer for the study.
2.4 lakhs and hence the following formula was used for finding the sample
size with a standard deviation of 0.5 with 95 percent of confidence level (Z
= 1.96) and 3.77 percent as margin of error (Margin of Error is computed
using sample size calculator from the following link,
ttp://www.raosoft.com/ samplesize.html) and thus the sample size
computed was 384 which is explained as follows :
Z2 * p * q* N
Sample Size (n) (1.1)
e2 * (N 1) Z2 * p * q
where
q= 1 - p (0.5)
(1.96) 2 * (0.5)
* (0.5) * 240000
2
The Re quired Sample Size (n) (0.05) * (240000 1)
2
(1.96) * (0.5) * (0.5)
n = 384
21
The data collection was divided into two types as primary and
secondary. Answer for certain research questions were explored through
secondary sources which were already available in the form of annual
reports of the company, industry and the government. Concepts and
theories were referred from text books and research journals. Current
industry scenario and trends were collected from magazines, websites and
newspapers.
There arises certain situation where secondary data alone is not sufficient
to handle the study. At this juncture the primary data gave a helping hand.
Primary data regarding the opinion and the views of the textile mills were
collected through the questionnaire. Thus the study was carried over with
the available primary and secondary data and analysed using appropriate
techniques to fill the existing research gap.
withdrawal behaviour in the textile units. Section six collected the self
reported absenteeism.
textile clusters across the country. The data collection was through
questionnaire thus the researcher cannot bring the entire idea of the study.
The survey method using questionnaire is prone to lower response rates.
Few companies hesitated to give sensitive data such as financial data and
employee information due to pressure from regulatory and compliance
agencies. Therefore absenteeism and other performance variables were
captured only through interval scales. The study was a cross sectional study
and does not measure any trend.
Chapter 5 begins with the findings for the primary data collected
and the corresponding suggestions were given to the textile mills to revamp
their performance management systems, reduce absenteeism and increase
business performance and thereby improving the economy of the nation;
the chapter ends with the conclusion and future enhancements of the study.
CHAPTER 5
SUMMARY, CONCLUSIONS
AND RECOMMENDATIONS
The effects of high levels of absenteeism are wide ranging and affect
everyone in the organisation. It cannot be purely regarded as a management
problem. Employers, workers and their representatives have an obligation
towards the organisation in ensuring that absence of workers do not
jeopardise their prosperity or job satisfaction and or committed level of
output.
H60 : The opinion on various factors does not vary among the
respondents with different educational level.
H70 : The opinion on various factors does not vary among the
respondents of different designation.
performing staff and also keep track of their performance by ensuring staff
time is used efficiently.
justification for the decision made about employees jobs and also the
manger discuss the implication of the job with the employees.
The results show that the Cronbach’s alpha for all the constructs
with more than three items are above 0.7. The construct with only two
items was tested for correlation and found to be high. Therefore it is
concluded that the all the multi-items that measure the constructs are
having internal consistency and the measures are reliable.
Hypothesis Results
Effectiveness of PMS does not influence
H1 Rejected
organisational justice
Effectiveness of PMS does not have an influence on
H2 Rejected
withdrawal behaviour.
Organisational justice does not have an influence on
H3 Rejected
withdrawal behaviour
Working conditions does not have an influence on
H4 Accepted
withdrawal behaviour
Withdrawal behaviour does not influence
H5 Rejected
absenteeism.
The opinion on various factors does not vary among
H6 Rejected
the respondents with different educational level.
The opinion on various factors does not vary among
H7 Rejected
the respondents of different designation.
225
Hypothesis Results
5.2 RECOMMENDATIONS
5.4 LIMITATIONS
because of the second order latent construct and multiple paths leading to
one variable.
5.6 CONCLUSION
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