EFFECT OF ABSENTEEISMAND TURNOVER IN ORGANIZATION

Prepare by:-Abhisek Rout - 1461301047Jaya Dev Sahoo - 1461301057

PREVIEW

Organisations Absenteeism Types of Absenteeism Causes Effect of Absenteeism Controlling Absenteeism Turnover Causes Effects of Turnover Controlling Turnover

ORGANISATIONS

A social unit of people that is structured and managed to meet a need or to pursue collective goals.

All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems--they affect and are affected by their environment.

ABSENTEEISM

Absenteeism is a habitual pattern of absence from a duty or obligation.

The practice of regularly staying away from work or school without good reason

Absences from work

Unplanned absences

Industrial

disputes

Health incapacity

leave

Work related injury/illness

Sick leave

Short term Long term

Medical retirement

Special leave

Family

Community

Military service

Planned absences

Recreational

Study

leave

Long

service

TYPES OF ABSENTEEISM

• Voluntary

• Involuntary

VOLUNTARY

An employee's deliberate or habitual absence from work.

Absence from the work, without valid reason.

INVOLUNTARY

Employees can be absent from work for several

reasons such as illness, death in the family ,and the personal reasons for absences are unavoidable and understandable, many employers have sick-leave policies that allow employees a certain number of paid absent days per year for these.

CAUSES

Long hours of work. Bad working conditions. Lack of co-operation and

understanding between

management and workers. Sickness. Accidents. Occupational disease.

Low wages. Lack of proper medical aid and health programs. Lack of canteen services, rest rooms, etc. Bad housing conditions. Evil of drinking. Lack of marketing facilities. Social or religious festivals. Marriages. Education of children. Problem of transport facilities.

EFFECT OF ABSENTEEISM

Labour absenteeism is a harmful to both the employee and the worker as follow:

Normal work – flow in the factory is disturbed.

Overall production in the factory goes down.

Causal workers may have to be employed to meet production schedules such worker is not trained properly.

Difficulty is faced in executing the order in time.

CONTINUE….

Overtime allowance will increases considerably because of higher absenteeism.

When a number of workers absent themselves, there is extra pressure of work on their colleagues who are present.

Workers lose wages for the unauthorized absence from work.

Habitual absentees may be removed from service causing them great hardship.

CONTROLLING ABSENTEEISM

Controlling voluntary absenteeism is easier if managers understand its causes more clearly.

A variety of approaches can be used to reduce voluntary absenteeism.

Disciplinary approachPositive reinforcementCombination approachNo fault absenteeismPaid time-off(PTO) programs

DISCIPLINARY APPROACH:

Many employees use a disciplinary approach .People who are absent the first time receive an oral warning, but subsequent absences bring written warnings , suspensions and finally dismissal.

POSITIVE REINFORCEMENT:

Positive reinforcement includes such methods as giving cash, recognition, time off or other rewards for meeting attendance standards.

COMBINATION APPROACH:

Combination approaches ideally reward desired behaviors and punish undesired behaviors. This approach uses policies and discipline to punish offenders and develops various programs and rewards for employees with outstanding attendance.

“NO FAULT” ABSENTEEISM:

Here, the reasons of absences do not matter but the employees must manage their time rather than having managers make decisions about excused and unexcused absences.

Once absenteeism exceeds normal limit, then disciplinary action up to and including termination of employment can occur.

PAID TIME-OFF(PTO) PROGRAMS:

Some employers have a paid time-off (PTO) program in which vacation time, holidays, and sick leave for each employee are combined into a PTO account .Employee use days from their accounts at their discretion for illness, personal time, or vacation.

If employees run out of days in their accounts, then they are not paid to for any additional days missed.

TURNOVER

TURNOVER

HIGH-TURNOVER CAUSES

For the most part, high turnover is related to employee dissatisfaction with the job. Some specific

reasons might include low pay, poor working

conditions, long hours, not enough benefits or a

negative atmosphere, especially from authority

figures. Businesses that hire seasonally will obviously have high

turnover because seasonal employees do not necessarily come back the following year to work seasonally again. In addition, businesses that hire students will suffer from high turnover as students move or become too busy to work.

HIGH-TURNOVER EFFECTS

High turnover is financially costly to the business because it needs to spend time and resources filling the position and training the new employee.

In addition, high turnover can lower employee morale and cause a flood of people leaving because they see their peers doing the same thing.

High turnover can also make the remaining employees more stressed out because they have to fill in the gaps until a new employee is hired and trained.

LOW-TURNOVER CAUSES

Employees who have a positive working relationship with

their direct supervisors and co-workers are likely

to stay at their jobs. In addition, a company

that pays well compared with others offering

similar jobs is likely to see low turnover. Another cause of low turnover is having room for advancement

so employees feel like they can move up in their careers if they stay at the company.

Poor economic conditions can also contribute to low turnover because employees fear not being able to find other work.

LOW-TURNOVER EFFECTS

A company with low turnover is generally quite productive. This is because the employees know and trust each other and are better at their specific roles than a group of employees that sees more turnover would be.

Employees are likely to be more loyal to the company and more willing to devote their personal energy to the job.

Low turnover makes it easier for the company to focus its time and energy on the business at hand rather than adapting to new staff.

CAUSES

Rude behaviour.- Rudeness,

assigning blame, back-biting,

playing favorites and retaliations

are among reasons that aggravate

employee turnover. Feeling resentful and mistreated is not an enticement for a good work environment.

Work-life imbalance - Increasing with economic pressures, organizations continue to demand that one person do the work of two or more people. This is especially true when an organization downsizes or restructures, resulting in longer hours and weekend work. Employees are forced to choose between a personal life and a work life.

The job did not meet expectations.- When this happens it can lead to mistrust. The employee starts to think, “What else are they not being truthful about?” When trust is missing, there can be no real employee ownership.

People skills are inadequate.-Many managers were promoted because they did their jobs very well and got results. However, that doesn’t mean they know how to lead. Leaders aren’t born—they are made. People skills can be learned and developed, but it really helps if a manager has a natural ability to get along with people and motivate them. Managers should lead by example, reward by deed.

Coaching and feedback are lacking- Ineffective managers put off giving feedback to employees even though they instinctively know that giving and getting honest feedback is essential for growth and building successful teams and organizations. 

Growth opportunities not available-A lot of good talent can be lost if the employees feel trapped in dead-end positions. Often talented individuals are forced to job-hop from one company to another in order to grow in status and compensation

EFFECTS OF TURNOVER

High CostsTurnover is expensive for companies to

manage. Losing an employee may bring

costs such as severance pay and

administrative tasks such as exit interviews.  More critically, go through the recruitment, selection and hiring process all over again. because a new employee can't immediately deliver the same sales or production results as the former one.

Poor Performance:-

The major challenge is that high turnover contributes to a downward spiral that is tough to get out of, since poor performance leads to poor business results, which often forces your company to freeze salaries or cut back on training.

Management Frustration:-

Managers quickly get frustrated with the constantly revolving door of employees. In retail, for instance, a manager finds himself spending so much time hiring and training new employees he can't coach and develop those who have been around. This contributes to longer-term employees getting upset and leaving

Distractions:-Some businesses hire consultants to help get out of a turnover rut. As invest time, money and resources to correct high turnover, so take away from diversifying business, marketing to new customers and improving on performance.

CONTROLLING TURNOVER

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