TABLE OF CONTENTS

CONTENTS
CHAPTER-1 1.1 Introduction 1.2 Objectives of the Study 1.3 Research Methodology 1.4 Limitations of the Study CHAPTER-2 COMPANY-PROFILE 2.1 Introduction of the Company 2.2 History of the company 2.3 Organizational Structure of the Company 2.4 Review of performance 2.5 Awards and Achievements CHAPTER-3 3.1 Concept of Credit Appraisal 3.2 Stages of Credit Appraisal 3.3 Process of Credit Appraisal 3.4 Credit Policy 3.5 Credit Delivery 18-52 7-17

PAGE NO.
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3.6 Statutary Restrictions on loans and advances 3.7 Selective Credit Control 3.8 Credit Risk Management 3.9 Credit Risk Rating 3.10 Data Analysis & Interpretation CHAPTER-4 4.1 Findings 4.2 Conclusion 4.3 Suggestions & Recommendations 1. Bibliography 2. Annexure - Questionnaire x-xi xii-xv 53-58

Chapter-1

1.1 INTRODUCTION 1.2 OBJECTIVES OF THE STUDY 1.3 RESEARCH METHODOLOGY 1.4 LIMITATIONS OF STUDY

1.1 INTRODUCTION
Absenteeism in Indian organization is not a new phenomenon. The Royal Commission on Labour observed that high absenteeism prevails among industrial labour mainly due to rural orientation. Absenteeism is one of the common factor, which affects the growth of the organization. When the absenteeism control programmes are introduced to the absentees continues to reduce the corporate profit severely. If the person employed is absent for few days then the management has to take severe action regarding this problem. So management has to go for recruitment of suitable employees. Substitute workers and such workers are to be well trained, because of this, management are to insure expenditure on it. Evaluation of absenteeism rate is a yardstick with which we can measure the employees job interest and their commitment to work. Apart from this, employees attitude about job can be known, since it affects productivity to a large extent.

1.2 OBJECTIVES OF STUDY

The overall objectives of this project report are

To find out level of absenteeism among employees in the organization.

To identify the rate of absenteeism of employees.

To identify the various causes of absenteeism.

To suggest remedial measures to control absenteeism rate.

1.3 RESEARCH METHODOLOGY

Research in a common parlance refers to search for knowledge. It is a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically.

Research Design:
A research design is the arrangement of condition for collection of data and analysis of data in a manner that aims to combine relevance to the research purposes with economy in procedure. In this study descriptive research design has been used.

Sample Selection & Size:

The population of absentees comprises of current year. The sample size of the study is 50 i.e. sample of 50 employees were used as a baseline of conducting research programme.

Data Collection & Statistical Tool:

The sources of data for the purpose of study were both primary and secondary. Primary was collected through questionnaire. Questionnaire (enclosed in Annexure) mainly contain closed-ended questions. Great care was taken in preparation of questionnaire so

that reliable data can be obtained. Secondary data was collected from the records of the department of the organization. Percentage method is used for analysis of data and bar graph is used to represent that data.

1.4 LIMITATIONS OF THE STUDY

There are some limitations of the study ,which are as follows:-

Respondent were reluctant were suspicious in responding to the questions.

Accuracy is another problem as data from sample may not reveal the fact.

The respondents opinion can be biased.

There may be error due to the bias of the respondents.

They dont tell truth because of job insecurity.

2.1 PROFILE OF THE COMPANY 2.2 HISTORY OF THE COMPANY 2.3ORGANIZATIONAL STRUCTURE 2.4REVIEW OF PERFORMANCE 2.5 AWARDS AND ACHIEVEMENTS

PUNJAB NATIONAL BANK

2.1 INTRODUCTION:
Punjab National Bank (PNB) was registered on May 19, 1894 under the Indian Companies Act with its office in Anarkali Bazaar Lahore. The Bank is the second largest government-owned commercial bank in India with about 4,904 branches across 764 cities. It serves over 37 million customers. The bank has been ranked 248th biggest bank in the world by Bankers Almanac, London. The bank's total assets for financial year 2007 were about US$60 billion. PNB has a banking subsidiary in the UK, as well as branches in Hong Kong, Dubai and Kabul, and representative offices in Almaty, Dubai, Oslo, and Shanghai.

PROFILE OF PNB
With over 56 million satisfied customers and 5002 offices, PNB has continued to retain its leadership position amongst the nationalized banks. The bank enjoys strong fundamentals, large franchise value and good brand image. Besides being ranked as one 10

of India's top service brands, PNB has remained fully committed to its guiding principles of sound and prudent banking. Apart from offering banking products, the bank has also entered the credit card & debit card business; bullion business; life and non-life insurance business Gold coins & asset management business, etc. Since its humble beginning in 1895 with the distinction of being the first Indian bank to have been started with Indian capital, PNB has achieved significant growth in business which at the end of March 2010 amounted to Rs 435931 crore. Today, with assets of more than Rs 2,96,633 crore, PNB is ranked as the 3rd largest bank in the country (after SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including 5 overseas branches ).During the FY 2009-10, with 40.85% share of CASA deposits, the bank achieved a net profit of Rs 3905 crore. Bank has a strong capital base with capital adequacy ratio of 14.16% as on Mar10 as per Basel II with Tier I and Tier II capital ratio at 9.15% and 5.01% respectively. As on March10, the Bank has the Gross and Net NPA ratio of 1.71% and 0.53% respectively. During the FY 2009-10, its ratio of Priority Sector Credit to Adjusted Net Bank Credit at 40.5% & Agriculture Credit to Adjusted Net Bank Credit at 19.7% was also higher than the stipulated requirement of 40% &18%. The Bank has maintained its stake holders interest by posting an improved NIM of 3.57% in Mar10 (3.52% Mar09) and a Return on Assets of 1.44% (1.39% Mar09). The Earning per Share improved to Rs 123.98 (Rs 98.03 Mar09) while the Book value per share improved to Rs 514.77 (Rs 416.74 Mar09) Punjab National Bank continues to maintain its frontline position in the Indian banking industry. In particular, the bank has retained its NUMBER ONE position among the

11

nationalized banks in terms of number of branches, Deposit, Advances, total Business, Assets, Operating and Net profit in the year 2009-10. The impressive operational and financial performance has been brought about by Banks focus on customer based business with thrust on CASA deposits, Retail, SME & Agri Advances and with more inclusive approach to banking; better asset liability management; improved margin management, thrust on recovery and increased efficiency in core operations of the Bank. The performance highlights of the bank in terms of business and profit are shown below: Rs in Crore Parameters Operating Profit Net Profit Deposit Advance Total Business Mar'08 4006 2049 166457 119502 285959 Mar'09 5744 3091 209760 154703 364463 Mar'10 7326 3905 249330 186601 435931 CAGR(%) 22.29 23.98 14.42 16.01 15.09

PNB has always looked at technology as a key facilitator to provide better customer service and ensured that its IT strategy follows the Business strategy so as to arrive at Best Fit. The bank has made rapid strides in this direction. All branches of the Bank are under Core Banking Solution (CBS) since Dec08, thus covering 100% of its business and providing Anytime Anywhere banking facility to all customers including customers of more than 3000 rural & semi urban branches. The bank has also been offering Internet banking services to the customers of CBS branches like booking of tickets, payment of bills of utilities, purchase of airline tickets etc. Towards developing a cost effective alternative channels of delivery, the bank with more than 350 ATMs has the largest ATM network amongst Nationalized Banks. With the help of advanced technology, the Bank has been a frontrunner in the industry so far as the initiatives for Financial Inclusion is concerned. With its policy of inclusive 12

growth in the Indo-Gangetic belt, the Banks mission is Banking for Unbanked. The Bank has launched a drive for biometric smart card based technology enabled Financial Inclusion with the help of Business Correspondents/Business Facilitators (BC/BF) so as to reach out to the last mile customer. The Bank has started several innovative initiatives for marginal groups like rickshaw pullers, vegetable vendors, dairy farmers, construction workers, etc. Under Branchless Banking model, the Bank is implementing 40 projects in 16 States. The Bank launched an ambitious Project Namaskar under which 1 lakh touch points will be established in unbanked villages by 2013 to extend the Banks outreach. Under this, 30 Kiosks have been opened covering 119 Villages reaching 1.32 Lakh beneficiaries. Backed by strong domestic performance, the bank is planning to realize its global aspirations. Bank continues its selective foray in international markets with presence in 9 countries, with branches at Kabul and Dubai, Hong Kong & representative offices at Almaty, Dubai, Shanghai and Oslo, a wholly owned subsidiary in UK, a joint venture with Everest Bank Ltd. Nepal and a JV banking subsidiary DRUK PNB Bank Ltd. in Bhutan. Bank is pursuing upgradation of its representative offices in China & Norway and is in the process of setting up a representative office in Sydney, Australia and taking controlling stake in JSC Dana Bank in Kazakhastan. Bank has been a recipient of many awards and accolades during the year: Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance 2009 by Standing Conference of Public Enterprises As per Financial Express-Ernest & young (FE-EY) Indias Best Banks Survey, PNB is identified as the best bank among the nationalized banks in terms of overall ranking.

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 As per HT-MaRS Survey on Customer Satisfaction, PNB stood NUMBER ONE in Delhi and Chennai in terms of customer satisfaction. As per the Forbes Annual list of 2000 global giants, PNB tops the list of nationalized banks with a global ranking of 695, substantial improvement over last years placement at 946th position. The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of 2010. Skoch Challenge Award 2010 for Livelihood Linkage of the milk producers in Bulandshahr District, Uttar Pradesh. IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

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2.2 HISTORY:
1895: PNB commenced its operations in Lahore. PNB has the distinction of being the first Indian bank to have been started solely with Indian capital that has survived to the present. (The first entirely Indian bank, the Oudh Commercial Bank, was established in 1881 in Faizabad, but failed in 1958.) PNB's founders included several leaders of the Swadeshi movement such as Dyal Singh Majithia and Lala HarKishen Lal, Lala Lalchand, Shri Kali Prosanna Roy, Shri E.C. Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass. Lala Lajpat Rai was actively associated with the management of the Bank in its early years. 1904: PNB established branches in Karachi and Peshawar. 1940: PNB absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi circle. 1947: Partition of India and Pakistan at Independence. PNB lost its premises in Lahore, but continued to operate in Pakistan.

15

 1951: PNB acquired the 39 branches of Bharat Bank (est. 1942); Bharat Bank became Bharat Nidhi Ltd. 1961: PNB acquired Universal Bank of India. 1963: The Government of Burma nationalized PNB's branch in Rangoon (Yangon). September 1965: After the Indo-Pak war the government of Pakistan seized all the offices in Pakistan of Indian banks, including PNB's head office, which may have moved to Karachi. PNB also had one or more branches in East Pakistan (Bangladesh). 1960s: PNB amalgamated Indo Commercial Bank (est. 1933) in a rescue. 1969: The Government of India (GOI) nationalized PNB and 13 other major commercial banks, on July 19, 1969. 1976 or 1978: PNB opened a branch in London. 1986 The Reserve Bank of India required PNB to transfer its London branch to State Bank of India after the branch was involved in a fraud scandal.

1986: PNB acquired Hindustan Commercial Bank (est. 1943) in a rescue. The acquisition added Hindustan's 142 branches to PNB's network. 1993: PNB acquired New Bank of India, which the GOI had nationalized in 1980. 1998: PNB set up a representative office in Almaty, Kazakhstan.

16

 2003: PNB took over Nedungadi Bank, the oldest private sector bank in Kerala. At the time of the merger with PNB, Nedungadi Bank's shares had zero value, with the result that its shareholders received no payment for their shares. PNB also opened a representative office in London. 2004: PNB established a branch in Kabul, Afghanistan. PNB also opened a representative office in Shanghai. PNB established an alliance with Everest Bank in Nepal that permits migrants to transfer funds easily between India and Everest Bank's 12 branches in Nepal. 2005: PNB opened a representative office in Dubai. 2007: PNB established PNBIL - Punjab National Bank (International) - in the UK, with two offices, one in London, and one in South Hall. Since then it has opened a third branch in Leicester, and is planning a fourth in Birmingham. 2008: PNB opened a branch in Hong Kong. 2009: PNB opened a representative office in Oslo, Norway, and a second branch in Hong Kong, this in Kowloon. 2010: PNB received permission to upgrade its representative office in the Dubai International Financial Centre to a branch.

VISION:
To be a Leading Global Bank with Pan India footprints and become a household brand in the Indo-Genetics Plains providing entire range of financial products and services under one roof.

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MISSION:
"Banking for the unbanked" A need was felt to have a vision to stretch the banks potential with well defined strategies.Accordingly,the honorable board of directors in the meeting held in Shimla in May 2008,proposed the concept of vision 2013 and set goals which were to be achieved in the next 5 years to position the Bank as the Number One Bank in the country.

PNB VISION 2013 QUANTITATIVE DIMENSIONSa. Deposits to increase from Rs.166457 Crore in March 2008 to Rs.582000 Crore in March 2013,at an average growth of 32%. b. Advances to increase from Rs.119502 Crore in March 2008 to Rs.418000 Crore in March 2013,at an average growth of 28%.

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c. Total business to increase from Rs.285959 Crore in March 2008 to Rs.1000000 Crore in March 2013,at an average growth of 28%.. d. Operating profit to increase from Rs.4006 Crore in March 2008 to Rs.15000 Crore in March 2013 with a CAGR of 30.2%. e. Net profit to increase from Rs.2049 Crore in March 2008 to Rs.7500 Crore in March 2013,at an average growth of 30%. f. The Return on Assets {RoA} to increase from 1.15% in March 2008 to 1.30% in March 2013 {This ratio is comparable to the RoA of the peer banks and is also better than all banks ratio of 1% as on March 08}. g. The Return on Equity {RoA} to increase from 19% in March 2008 to 21% in March 2013. h. 15 Crore in March 2013. i. To have a rural coverage of 100000 villages in the Indo-Gangetic Plains by March 2013.

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 QUALITATIVE DIMENSIONS
1. A leader and front runner amongst nationalized banks
a. In Financial inclusion b. In all domestic operations c. In adopting best risk management practices d. In adopting global best practices in Corporate Governance & Corporate Social Responsibility e. In HR policies to raise skills, morale and productivity.

2. To be Global Bank
a. Among the top 3 Indian banks with global presence in Middle East, South East Asia, China, UK, Australia, Canada, etc. b. Bring best global practices to effectively compete with global players in India.

3. Become a universal bank

Provider of complete range of financial services.

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4. To be the most profitable Bank amongst nationalized banks by focusing on:

a. Fee based income/off-balance sheet exposures b. Mid Cap segment, Retail lending, SME Advances & Agriculture c. Reduction in Gross NPAs d. Expenditure Control e. Low cost deposits f. Ensuring higher spreads (return on advances minus cost of deposits/funds)

5. Capitalize on IT initiatives
a. Provide more value added services b. Expand reach of ATMs c. Bank Office Centralization of all CBS branches d. Provide IT advisory services to other banks

6. Explore options of in-organic growth

a. Merger of Private/Public Sector Banks

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7. Enlargement of customer base and retention of existing customers. 8. Ensure smooth transition to adopting Basel II norms ahead of schedule. 9. Develop robust Management Information System for better decision making and policy prescription. 10. Further entrench brand image of the bank.

2.3 ORGANISATIONAL STRUCTURE:

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which the branches function. The delegation of powers is decentralized upto the branch level to facilitate quick decision making. Its organizational structure is shown below:

22

Head Office

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended June 2010: Profit
Operating Profit for the first quarter of current financial year (Q1 FY11) stood at Rs.2098.17 crore as against Rs.1569.34 crore in Q1 FY10, recording a YOY growth of 33.7%. Core Operating Profit excluding trading profit rose by 63.3% to Rs.1977.06 crore in Q1 FY11 from Rs.1210.86 crore in Q1 FY10. Net Profit of the Bank for the Q1 FY11 amounted to Rs.1068.29 crore as compared to Rs.832.05 crore in the corresponding quarter of previous year, registering a YOY growth of 28.4%. Net Profit excluding treasury operations witnessed a jump of 127% to reach Rs.960.81 crore in Q1 FY11 from Rs.423.18 crore in Q1 FY10.

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Business
Total Business of the Bank rose to Rs.4,52,205 crore as compared to Rs.3,76,939 crore in June 2009, showing a yoy growth of 20%. Deposits of the Bank at the end of June 2010 amounted to Rs.2,55,335 crore as compared to Rs.2,18,960 crore in June 2009, exhibiting a growth of 16.6% on yoy basis. CASA improved from Rs.83,948 crore in June09 to Rs.1,04,385 crore in June10 recording a growth of 24.3%. o CASA share improved to 40.9% in Q1 of FY 201011 from 38.3% a year ago. Advances of the Bank at Rs. 1, 96,870 crore as on 30.06.2010 grew by 24.6% (YoY) as against Rs.1,57,979 crore as on 30.06.2009. Credit Deposit Ratio improved to 77.1% as at June10 from 72.1% in June09.

Income and Expenses

Total income increased by 11.1% to Rs.6863.38 crore, led by YoY growth of 16.4% in interest income. o Net Interest Income rose by spectacular 45.4% on YoY basis to reach Rs.2618.57 crore in Q1 FY11. o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of 10.9% to touch Rs.674.15 crore. Total expenses (excluding provisions) at Rs.4765.21 crore at the end of June 2010 have registered a growth of 3.4% only from a year ago.

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 While growth in Interest expenses was contained at a miniscule 0.8%, NonInterest expenses growth was restricted to mere 10.2% during the first quarter of 201011 despite recent wage revision and provisions made for pension fund.

Important Ratios
Gross NPA to Gross Advances ratio stood at 1.82% as at June10. Net NPA to Net Advances ratio stood at 0.66% as at June10. Provision Coverage Ratio is at 77.61 % compared to RBIs stipulation of 70%. Net Interest Margin (NIM) has improved to 3.94% for the quarter ended 30.06.2010 from 3.24% in corresponding quarter of last year. Return on Assets improved to 1.38% in the quarter ended June 2010 as against 1.31% last year. Low increase in interest & operating expenses and a satisfactory interest income growth led to substantial reduction in Cost to Income Ratio to 39.88% for the quarter ended June 2010 as against 44.59% last year. Earnings per Share rose to Rs.135.53 (annualized) for the quarter ended 30.06.2010 as against Rs.105.55 last year. Book Value per Share was higher at Rs.548.66 as at June 2010 from Rs 443.11 as on June 2009.

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 As per Basel II the CRAR is 13.77% as at end of June10 (TierI Capital: 8.70%; TierII Capital: 5.07%). Return on Equity improved to 24.70% in the quarter ended June 2010 as against 23.82% last year.

Priority Sector:
PS advances grew by more than 25% to reach Rs.64,452 crore. o Outstanding Agricultural advances grew by around 27% to cross Rs.30,000 crore. o Issued 77,839 Kisan Credit Cards (KCCs) during Quarter ended June 10, taking cumulative number of KCCs issued to 33.42 lakh since inception. Small & Medium Enterprise: Credit to MSME sector reached Rs.37,018 crore including retail trade advances of Rs.3905 crore at the end of June 2010, recording a YoY growth of 29%. Besides 7 SME Hubs, 523 MSME specialized/focus branches have been operationalised to provide single window services to SME borrowers. Bank tops in extending collateral/guarantee free lending to MSMEs under CGTMSE amongst the member lending institutions of CGTMSE. Bank has adopted two Mega Artisans Clusters Brass and brassware products at Moradabad and Wood carving cluster at Saharanpur for intensive lending. Collateral free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

26

800 Artisans at Muzaffarnagar. During the current quarter, Bank adopted 25 MSME clusters for cluster based lending approach taking total to 41 clusters.

Retail Credit:
Total Retail credit of the Bank marked a yoy increase of more than 17% to Rs.19,410 crore at the end of June 2010. o Good yoy growth in all key schemes i.e. Education loan (42%), Personal Loan (39%) and Housing loans (16%).

Financial Inclusion:
Opened 57.25 lakh No Frill/PNB Mitra accounts and issued more than 46000 General Credit Cards. Implemented 39 ICT based projects in 16 states. Set up exclusive FI Back Offices at Delhi, Chandigarh, Jaipur, Hyderabad, Lucknow, Patna, Shimla and Raipur. Bank has been allocated 4700 villages with population of over 2,000 in the country for providing Banking services. PNB propose to cover these by 2012.

International Forays:
International presence in 9 countries, with branches at Hong Kong, Kabul and Dubai & representative offices at Almaty, Dubai, Shanghai and Norway; a wholly owned

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subsidiary in UK; a joint venture in Nepal and a JV banking subsidiary in Bhutan. Bank is pursuing upgradation of its representative offices in Norway into a fullfledged branch and is in the process of setting up a representative office in Sydney, Australia and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada.

I.T. Initiatives:
Bank has installed 3715 ATMs facilitating more than 108 lakh ATM/Debit cardholders of the Bank transacting at more than 60000 ATMs of various Banks and at over 3 million POS terminals across the country. Bank has introduced Online Credit Proposal Tracking System in order to enable customers online access to view the status of their loan applications. Registered Payee Mechanism has been enabled for Funds transfer to other/3rd party accounts in respect of Retail Internet Banking Users for protecting our valued customers from online frauds & phishing attacks. Bank has launched PNB Platinum Debit Card embedded with the brand equity of PNB and endorsed by Master Card for the premium customers. Bank is also planning to launch Platinum Credit Cards shortly. PNB has over 10 lac customers using Internet Banking and 2.3 lac customers availing SMS alert facility.

CSR initiatives:
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 A board approved CSR policy has been adopted by the Bank to take CSR agenda forward in synchronization with its mission of Banking for the Unbanked. Under this a Green drive has been implemented across the organization to conserve energy/optimize resource and lower costs. Bank has so far brought 68,949 farmers out of the clutches of moneylenders by financing them Rs.264 crore under PNB Krishak Saathi (Debt Swap Scheme). Bank has 9 Farmers Training Centres where around 2.70 lac persons have been trained till June 2010 at Banks cost including more than 51,000 women. Bank has operationalised 20 PNB Rural Self Employment Training Institutes (PNBRSETIs) which provide training to Rural BPL youth and women. Till June, 9255 persons have been trained in these centres of which 5518 are women. 42 Medical Health Check Up Camps, 44 Tree Plantation Camps and 17 Blood Donation Camps were arranged during Q1 FY11. Launched a pioneering PNB Saathi Scheme to provide credit facility to milk pourers in Bulandshahar District, Uttar Pradesh with support of Mother Diary.

AWARDS:
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Awards Times

&

Achievements

of

Punjab National Bank in Recent

"Best IT Team of the Year Award" SKOTCH Challenger Award Best IT User in Banking & Financial Services Industry 2004 Golden Peacock Award FICCI's Award Rural

at the IDRBT Banking Technology awards for the year 2005-06. for Change Management for the year 2005-06 by NASSCOM in partnership with Economic Times for Excellence in Corporate

Governance - 2005 by Institute of Directors

Development for Excellence in Rural Development 2005

Skotch Challenger Award for for becoming a pioneer in Public Exemplary use of Technology Banks - 2005 Golden Peacock National Training - 2004 & 2005 in SSI Lending 2004 Runner up in 'Best IT Team by Institute of Directors

National Award for Excellence Ranked 2nd for 4 consecutive years 2002, 2003, 2004 & 2005 TFCI Banking Technology Awards Jointly Adjudged by IBA, Finacle &

30

of the Year Award 2005' Money Outlook Award - 2004 Runner up in 'Best Bank (public Sector) of the year Award' -2005 for excellence in export perforamnce for 3 consecutive years 2001, 2002 & Niryat Bandhu Gold Trophy 2003 by Federation of Indian Exporters Organization (FIEO) 21st Amongst Top 500 by the leading Financial Daily The Economic Times, June 2005

Companies

9th amongst India's Top 50 A.C Nielson Survey, The Economic Most Trusted Service Brands Times Dec 2004 3rd Rank amongst Banking Sector 368 in amongst India Top 1000 The Bankers' Almanac, January 2006 323rd Rank in the World Global Banks The Banker, London July 2005

Skoch Challenger Award for Exemplary Use of Technolgy

Winner for becoming a pioneer in public banks by Skoch consultancy services pvt ltd, Gurgaon 2005 for excellence in rural development 2005 Amity Business School, Noida has conferred the Award to PNB, after an in-depth research to analyse the

FICCI's Rural Development Award Award

Amity

Global

Excellence Award

Corporate strengths and core competencies of the Global 500 companies and banks which have already made an indelible most admired impression on the Indian economy. & 2007 & 2005 2008

31

IBA, Finacle & TFCI jointly adjudged Banking Technology Awards PNB as runner up in "Best IT Team of the year Award" 2005 PC Quest Users Choice Best & 2005 Information Security Impact 2005 Money Outlok adjudged PNB as Money Outlook Award runner up in "Best Bank (Public Sector) of the year Award" 2005 IBA, Finacle & TFCI runner up Award Banking Technology Awards for Outstanding Achiever of the Year (Individual). 2005 Golden Peacock Innovative Product/Service Award Excellence Governance Change Management IDRBT Banking Technology Awards National sector Skoch Challenger Award for capacity building for FTC initiative Computer Excellence Award CIO 100 Award Associates Award For Excellence in lending to Tiny in 2010 (for BCP implementation) IT Implementation 2007 Award Symantec Visionary Award

Golden Peacock Award for Winner in the Large Joint Entry.2009 Corporate & 2007 & 2005 society 2006 Best IT Team of the Year Award 2006 First Prize by By Ministry of Small Scale Industries.2006 Skoch Consultancy Services Pvt Ltd 2007 Excellence in EMS Roll Out. 2007 For Best IT Implementation by IDG Media Pvt. Ltd.2007, 2008 & 2009

Skoch Challenger Award for For upliftment of Weaker sections of

National Award for Excellence For Lending to Micro enterprises 2007

32

in

Lending for

to the for

Micro use of Institute for in Development Banking and

Enterprises Award Inclusion. Dun & Bradstreet Award for Priority Sector Lending Dun & Bradstreet 2009 Khadi & Village Industry Commission, Ministry of Micro, Small & Medium Enterprises, Scheme) 2009 Khadi & Village IndustryCommission, National Award for Excellence Ministry of Micro, Small & Medium in Lending for Institutional Enterprises, Govt. of India Finance in Propagating KVI Programmes CENTRAL ZONE in (Interest Subsidy Eligibility Certificate Scheme) 2009 National Award for Excellence in Lending for Institutional Finance in Propagating KVI Programmes in NATIONAL LEVEL Khadi & Village IndustryCommission, Ministry of Micro, Small & Medium Enterprises, Govt. of India (Interest Subsidy Eligibility Certificate Scheme) 2009 Govt. of India (Interest Subsidy Eligibility Certificate including Financial Inclusion. National Award for Excellence in Lending for Institutional Finance in Propagating KVI Programmes ZONE in NORTH Technology Financial Research Technology

(IDRBT), Hyderabad. 2008

National Award for Excellence Khadi & Village IndustryCommission, in Lending for Institutional Ministry of Micro, Small & Medium Finance for Propagating KVI Enterprises, Govt. of India Programmes in (Prime Minister Employment

33

NORTH ZONE National Award for Excellence in Lending for Institutional Finance for Propagating KVI Programmes CENTRAL ZONE India Pride Award by dainik Bhaskar analysis Indira Shield Emerson Uptime Champion Awards Best InfoSphere Warehouse Solution Award by IBM Gandhi Rajbhasha and Daily in

Generation Programme) 2009 Khadi & Village IndustryCommission, Ministry of Micro, Small & Medium Enterprises, Govt. of India (Prime Minister Employment

Generation Programme) 2009 News Excellence in PSU 2009

Promoting Hindi 2009 2009 2009 (for implementation of Enterprise Wide Data Warehouse)

CSR Excellence Award by the Associated Chamber of 2010 Commerce

34

35

3.1 CONCEPT OF ABSENTEEISM 3.2 MEASUREMENT OF ABSENTEEISM RATE 3.3 TYPES OF CHRONIC ABSENTEES 3.4 TYPES OF ABSENTEEISM 3.5 CAUSE OF ABSENTEEISM 3.6 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS 3.7 GUIDELINES & MEASURES FOR CONTROL OF ABSENTEEISM 3.8 THE BRADFORD FACTOR & ABSENTEEISM 3.9 DATA ANALYSIS & INTERPRETATION

ABSENTEEISM

3.1 CONCEPT OF ABSENTEEISM:

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It refers to workers absence from their regular task when he is normally schedule to work. According to Websters Dictionary - Absenteeism is a practice or habit of being an absentee and an absentee is one who habitually stays away from work. According to Labour Bureau of Shimla Absenteeism is the total man shifts lost because of absence as percentage of total number of man shifts scheduled to work. In other words, it signifies the absence of employee from work when he is scheduled to work. Any employee may stay away from work if he has taken leave to he entitled or on ground of some sickness or some accident or without any previous sanction leave. Thus absenteeism may be authorized or unauthorized, willful or caused by circumstances beyond ones control. May even worse than absenteeism, it is obvious people such as malingerers and those unwilling to pay their part in the work place can also have a decidedly negative impact. Such team members need individual attention from frontline supervisors and management. Indeed, as prevention is better than cure, where such a problem occur it always important to review the recruitment procedure to identify how such people are employed in first place. For any business owner or manager, to cure excessive absenteeism, it is essential to find and then eliminate the cause of discontent among team members. Any effective absentee control program has to locate cause of discontent or modify those causes or eliminate them entirely. Any investigation into absenteeism needs to look at real reason for it.

37

Sometime team member call in sick when they really do not want to go to work. They would not call you up and say, Im not coming today because my supervisor abuses me. Or Im not coming in today because my chair is uncomfortable. There are few essential questions to consider at the outlet if you want to make a measurable improvement to your absenteeism figure. It has been observed that the phenomenon of absenteeism does not exist in Indian industry. It may differ according to the make up of the work force. Workers need monetary benefits for his services.

3.2 MEASUREMENT OF ABSENTEEISM RATE:

For calculating the rate of absenteeism, two facts are required:i. ii. The number of persons scheduled to work. The number of actually present.

Thus absenteeism can be calculated by following formula:-

For Example: a.) Average number of employees in work force = 100 b.) Number of available workdays during period = 20 c.) Total number of available workdays (a x b) = 2000 d.) Total number of lost days due to absences during the period =93 e.) Absenteeism rate {(d/c) x 100} = 4.65%

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Since absenteeism is a major barometer of employee morale, absenteeism above 5% has to be considered as very serious (across most industries 3% is considered standard).

Absenteeism Rate at PNB:

1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 jan feb m ar apr m ay jun july aug sept oct nov dec

2009

2010

3.3 TYPES OF CHRONIC ABSENTEES:

These are as follows-

39

1. Entrepreneurs: This class of absentees considers that their jobs are very small
for their total interest and personal goals. They engage themselves in other social and economic activities of to fulfill their goals.

2. Status Seekers: These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it.

3. Epicureans: This class of absentees does not like to take up the jobs, which
demand initiative, responsibility, discipline and discomfort. They wish to have money, power, status, but unwilling to work for their achievement.

4. Family Oriented: This type of absentees is over identified with the family
activities.

5. Sick and Old: These categories of absentees are mostly unhealthy weak
constitution or old people.

3.4 TYPES OF ABSENTEEISM & THEIR CONTROL:

40

There are two types of absenteeism, each of which requires a different type of approach.

1. INNOCENT ABSENTEEISM :
Innocent absenteeism refers to employees who are absent for reasons beyond their control; like sickness and injury. Innocent absenteeism is not culpable which means that it is blameless. In a labour relations context this means that it cannot be remedied or treated by disciplinary measures.

2. CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization for reasons which are within their control. For instance, an employee who is on sick leave even though he/she is not sick, and it can be proven that the employee was not sick, is guilty of culpable absenteeism.

To be culpable is to be blameworthy. In a labour relations context this means that progressive discipline can be applied.

For the large majority of employees, absenteeism is legitimate, innocent absenteeism which occurs infrequently. Procedures for disciplinary action apply only to culpable absenteeism. Many organizations take the view that through the process of individual absentee counselling and treatment, the majority of employees will overcome their problems and return to an acceptable level of regular attendance.

41

COUNSELLING INNOCENT ABSENTEEISM:

Innocent absenteeism is not blameworthy and therefore disciplinary action is not justified. It is obviously unfair to punish someone for conduct which is beyond his/her control. Absenteeism, no matter what the cause, imposes losses on the employer who is also not at fault. The damage suffered by the employer must be weighed against the employee's right to be sick. There is a point at which the employer's right to expect the employee to attend regularly and fulfill the employment contract will outweigh the employee's right to be sick. At such a point the termination of the employee may be justified, as will be discussed. The procedure an employer may take for innocent absenteeism is as follows: 1. 2. 3. 4. Initial counselling(s) Written counselling(s) Reduction(s) of hours and/or job reclassification Discharge

1) Initial Counselling:
Presuming you have communicated attendance expectations generally and have already identified an employee as a problem, you will have met with him or her as part of your attendance program and you should now continue to monitor the effect of these efforts on his or her attendance. If the absences are intermittent, meet with the employee each time he/she returns to work. If absence is prolonged, keep in touch with the employee regularly and 42

stay updated on the status of his/her condition. (Indicate your willingness to assist.) You may require the employee to provide you with regular medical assessments. This will enable you to judge whether or not there is any likelihood of the employee providing regular attendance in future. Regular medical assessments will also give you an idea of what steps the employee is taking to seek medical or other assistance. Formal meetings in which verbal warnings are given should be given as appropriate and documented. If no improvement occurs written warning may be necessary.

2) Written Counselling
If the absences persist, you should meet with the employee formally and provide him/her with a letter of concern. If the absenteeism still continues to persist then the employee should be given a second letter of concern during another formal meeting. This letter would be stronger worded in that it would warn the employee that unless attendance improves, termination may be necessary.

3) Reduction(s) of Hours and or Job Reclassification:

43

In between the first and second letters the employee may be given the option to reduce his/her hours to better fit his/her personal circumstances. This option must be voluntarily accepted by the employee and cannot be offered as an ultimatum, as a reduction in hours is a reduction in pay and therefore can be looked upon as discipline. If the nature of the illness or injury is such that the employee is unable to fulfil the requirements of his/her job, but could for example benefit from modified work, counsel the employee to bid on jobs of such type if they become available. (N.B. It is inadvisable to "build" a job around an employee's incapacitates particularly in a unionized environment. The onus should be on the employee to apply for an existing position within his/her capabilities.)

4)Discharge:
Only when all the previously noted needs and conditions have been met and everything has been done to accommodate the employee can termination be considered. An Arbitrator would consider the following in ruling on an innocent absenteeism dismissal case. a) Has the employee done everything possible to regain their health and return to work? b) Has the employer provided every assistance possible? (i.e. counselling, support, time off.) c) Has the employer informed the employee of the unworkable situation resulting from their sickness?

44

d) Has the employer attempted to accommodate the employee by offering a more suitable position (if available) or a reduction of hours? e) Has enough time elapsed to allow for every possible chance of recovery? f) Has the employer treated the employee prejudicially in any way? As is evident, a great deal of time and effort must elapse before dismissal can take place. These points would be used to substantiate or disprove the following two fold test. 1. 2. The absences must be shown to be clearly excessive. It must be proven that the employee will be unable to attend work on a

regular basis in the future.

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated, culpable absenteeism consists of absences where it can be demonstrated that the employee is not actually ill and is able to improve his/her attendance. Presuming you have communicated attendance expectations generally, have identified the employee as a problem, have met with him/her as part of your attendance program, made your concerns on his specific absenteeism known and

45

have offered counselling as appropriate, with no improvement despite your positive efforts, disciplinary procedures may be appropriate. The procedures for corrective/progressive discipline for culpable absenteeism are generally the same as for other progressive discipline problems. The discipline should not be prejudicial in any way. The general procedure is as follows: [Utilizing counselling memorandum] 1. 2. 3. 4. Initial Warning(s) Written Warning(s) Suspension(s) Discharge

1) Verbal Warning:
Formally meet with the employee and explain that income protection is to be used only when an employee is legitimately ill. Advice the employee that his/her attendance record must improve and be maintained at an improved level or further disciplinary action will result. Offer any counselling or guidance as is appropriate. Give further verbal warnings as required. Review the employee's income protection records at regular intervals. Where a marked improvement has

46

been shown, commend the employee. Where there is no improvement a written warning should be issued.

2) Written Warning:
Interview the employee again. Show him/her the statistics and point out that there has been no noticeable (or sufficient) improvement. Listen to the employee to see if there is a valid reason and offer any assistance you can. If no satisfactory explanation is given, advise the employee that he/she will be given a written warning. Be specific in your discussion with him/her and in the counselling memorandum as to the type of action to be taken and when it will be taken if the record does not improve. As soon as possible after this meeting provide the employee personally with the written warning and place a copy of his/her file. The written warning should identify any noticeable pattern. If the amount and/or pattern continue, the next step in progressive discipline may be a second, stronger written warning. Your decision to provide a second written warning as an alternative to proceeding to a higher level of discipline (i.e. suspension) will depend on a number of factors. Such factors are the severity of the problem, the credibility of the employee's explanations, the employee's general work performance and length of service.

47

3) Suspension (only after consultation with the appropriate superiors) :

If the problem of culpable absenteeism persists, following the next interview period and immediately following an absence, the employee should be interviewed and advised that he/she is to be suspended. The length of the suspension will depend again on the severity of the problem, the credibility of the employee's explanation, the employee's general work performance and length of service. Subsequent suspensions are optional depending on the above condition.

4)

Dismissal

(only

after

consultation

with

the

appropriate

superiors) :

Dismissals should only be considered when all of the above conditions and procedures have been met. The employee, upon displaying no satisfactory improvement, would be dismissed on the grounds of his/her unwillingness to correct his/her absence record.

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3.5

CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is due to rural orientation their frequent urge for rural exodus. According to Acharaya, In modern industrial establishment the incidence of industrial fatigue, mal-nutrition and bad working conditions aggravate that feeling for change among industrial worker and some time impel them to visit their village home frequently for rest and relaxation. There are various reasons of absenteeism. Some of them are discussed below-

1. Social and Religious Ceremonies: Social and religious functions divert the
workers attention from the work. In a large number of the proportion of absenteeism due to sickness accident is not as a high as it is due to other causes including social and religious ceremonies.

2. Unsatisfactory Housing Condition: This another one of the cause of

absenteeism in an organization i.e. unsatisfactory housing condition at the work place. Health conditions are naturally bad, leading to consequent ill- health.

3. Industrial Fatigue: Industrial fatigue compels the workers to remain outside

the work place.

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4. Unhealthy Working Conditions:

The poor and intolerable working

conditions in the factories irritate the workers. Excess heat, noise, either too much or too low lighting, poor ventilation, dust, smoke, etc. causes poor health of the workers. These factors cause the workers to be absent.

5.

Poor Welfare Facilities: Though a number of legislations concerning

welfare facilities are enacted, many organizations fail to provide welfare facilities. This is either due to the poor financial position of the companies or due to exploitive attitude of the employer. The poor welfare facilities include poor sanitation, washing, bathing, first aid appliances, ambulance, rest rooms, drinking water, canteen, shelter, crches, etc. Dissatisfied workers with these facilities to prefer to be away from the work place.

6. Alcoholism: Workers mostly, prefer to spend money on the consumption of

liquor and enjoyment after getting the wages. Therefore the rate of absenteeism is more during the first week of every month.

7.

Indebtness: The low level wages and unplanned expenditure of the workers
force them to borrow heavily. The research studies indicate that workers borrow more than 10 times of their net pay. Consequently, workers fail to repay the money. Then they try to escape from the place in order to avoid the money lenders. This leads to absenteeism.

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8. Maladjustment with the Job Demand: The fast changing technology

demands higher level of skills from the workers. Some worker fails to meet these demands due to their level of education and/ or absence of training.

9. Unsound Personnel Policies:

The improper and unrealistic personnel

policies result in employees dissatisfaction. Dissatisfied employee in turn prefers to be away from the wok place.

10. Inadequate Leave Facilities: The inadequate leave facilities provided by

employer forces him to depend upon E.S.I. leave which allows the workers to be away from the work for 56 days in a year on half pay.

11.Low Level of Wages: Wages in some organizations are very poor and they
are quite inadequate to meet the basic needs of the employees. Therefore, employees go for other employment during their busy seasons and earn more money. Further, some employees take up part- time jobs. Thus, the employment resorts to moonlighting and absent them from work.

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3.6

EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India. It hinders industrial growth and it effect in two fold:-

1. Loss to Employees: Firstly due to the habit of absenting frequently workers

is reduced to a large extent. It is because there is a general principle of no work no pay. Thus the time lost in terms of absenteeism is a loss of income to workers.

2. Loss to Employers: On the other hand, the employer has to suffer a greater
loss due to absentees. It disturbs the efficiency and discipline of industries consequently, industrial production is reduced. In order to meet the emergency and strikes, an additional labour force is also maintained by the industries. On certain occasions, those workers are employed who present themselves at factory gates. During strikes they are adjusted in place of absent workers. Their adjustment brings serious complications because workers do not generally prove themselves up to work. Higher absenteeism is an evil both for worker and the employers and ultimately it adversely affects the functioning of the industries.

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3.7 GUIDELINES & MEASURES FOR CONTROL OF ABSENTEEISM

Absenteeism is a disease that appears whenever a company fails to inoculate itself through the use of sound management practices. To cure excessive absenteeism, one has to know the exact causes and then examine the available, workable and proven solutions to apply against those causes. To embark upon a successful absenteeism reduction program, you need to make sure you have some basic information and facts about absenteeism in your company. Consider the following four questions, which should help you further focus your ideas and put a plan into action. Q . Why is your present absenteeism policy ineffective? Absenteeism policies vary in effectiveness. Most ineffective policies I have reviewed have a common denominator: They allow "excused" absences, whereas those that do work are "no fault" policies. Q. Where and when is excessive absenteeism occurring? Numerous studies have concluded that under trained supervisors is one of the main causes of absenteeism. Therefore, any company experiencing absenteeism of greater than 3 percent should consider supervisors as a potential contributor to

53

the problem. Given that this may be the case, you first should check the percentage of employee absenteeism by supervisor to see if it is concentrated around one or two supervisors. If it is, you've begun to uncover the obvious under trained supervisors. If, however, your research reveals that the rate of absenteeism is almost equally distributed throughout your factory, you will need to investigate other possible causes. Q. What are the real causes for absences? People-oriented companies are very sensitive to employee opinions. They often engage in formal mini-studies to solicit anonymous employee opinions on topics of mutual interest. These confidential worker surveys commonly ask for employee opinion regarding higher-than-normal absenteeism. In other words, employees revealed that repetitive, boring jobs coupled with uncaring supervisors and/or physically unpleasant workplaces led them to make up excuses for not coming to work, such as claiming to be sick. One way to determine the causes of absenteeism is to question your supervisors about their employees' excessive absenteeism, including what causes it and how to reduce it.

54

Q. How much formal training have your supervisors received on absenteeism containment and reduction? If you find that your supervisors hesitate to provide meaningful answers to your questions, then you're on the right track toward a solution. Ask yourself, "How much formal training have I given my supervisors in the areas of absenteeism reduction and human resources skills?" If your answer is none or very little, your solution can't be far behind. The fact of the matter is, you cannot ask a person to do a job he or she has never been trained to do.

Following are the measures to control absenteeism:1) ADOPTION OF WELL-DEFINED RECRUITMENT POLICY:
The selection of employees on the basis of command, linguistic and family consideration should be avoided. The management should look for aptitude and ability in the prospective employees and should not easily yield or pressure of personal likes and dislikes. Application blanks should invariably be used for a preliminary selection and tools for interviews. The personal officer should play more effective role as coordinator of information, provided that he has acquired job knowledge in the function of selection. Employers should also take into account the fact that selection should be for employees development, their reliance. They should as far as possible rely on employment exchange.

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2) PROVISION OF HEALTHFUL AND HYGENIC WORKING CONDITION:

In India, where the climate is warm and most of the work involves manual labour, it is essential that the workers should be provided with proper and healthy working conditions. The facilities of drinking water, canteens, lavatories, rest rooms, lighting and ventilation, need to be improved. Where any one of these facilities is not available, it should be provided and all these help in keeping the employee cheerful and increase productivity and the efficiency of operations throughout the plant.

3) PROVISION OF REASONABLE WAGES & ALLOWANCES & JOB SECUITY TO WORKERS:

The wages of an employee determine his as well as his family standard of living. This single factor is important for him than other. The management should, therefore pay reasonable wages and allowances, taking into account the capacity of the industry to pay.

4) MOTIVATORS WELFARE AND SOCIAL MEASURES:

The management should consider the needs of workers and offer them adequate and cheap housing facilities, free of subsidized food, free medical and transport facilities, free education facilities for their children and other monetary benefits. 56

As for social security is concern, the provision of Provident Fund, SBI facilities, Gratuity and Pension, all those need to be improved.

5) IMPROVED COMMUNICATION AND PROMPT REDRESSAL OF GRIEVANCES:

Since a majority of the workers are illiterate or not highly educated bulletins and written notices journals and booklets are not easily understood by them. Meetings and concealing are called for written communication becomes meaningful only when workers can readied understood them, too many notices should be avoided only the essential ones should be put on the boards, which should be placed near the entrance inside the canteen and in areas which are frequently visited by the workers so that they are aware of the policies of the company and any sort changes being made.

6) LIBERAL GRANT OF LEAVE:

The managements strict attitude in granting leave and holidays even when the need for them is genuine, tempts workers to go on E.S.I. leave for under this scheme, they can have 56 days leaves in years on half pay. An effective way of dealing with absenteeism is to liberalize leave rules.

7) SAFETY AND ACCIDENT PREVENTION:

Safety at work can be maintained and accidents can be prevented if the management tries to eliminate such personal factors as negligence,

57

overconfidence, carelessness, vanity, etc and such material factorizes unguarded machinery and explosives, defective equipment and hand tools. Safe methods of operation should be taught. In addition consistent and timely safely instruction, written instructions (manual) in the regional language of the area should be given to the work force.

8) CORDIAL WORKERS:

RELATIONS

BETWEEN

SUPERVISORS

AND

The supervisor should be recognize that industrial work is a groups task and cannot be properly done unless discipline is enforced and maintained. Cordial relations between the supervisors and these workers are therefore essential for without them, discipline cannot be increased. One of the consequences of unhealthy relations between supervisors and subordinates is absenteeism.

9) DEVELOPMENT OF WORKERS BY TRAINING:

The system of workers education should be so designed as to take into account their educational needs as individuals for their personal evaluation, as operatives for their efficiency and advancement, as citizens for happy integrated life in the community, as members of a trade union for the protection of their interests. The educational programs according to their national commission on Labour should be to make a worker:a) b) A responsible, committed and disciplines operative. Aware of his rights and obligations. 58

c)

Lead a calm, clean and health life, based on a firm ethical foundation.

d)

A responsible and alter citizen.

3.8 THE BRADFORD FACTOR & ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure and identify areas of absenteeism. The theory is that short, frequent and unplanned absences are more disruptive than longer absences. It is based on the fact that it is normally easier to make arrangements to cover for staffs who are going to be off for long periods, and which are more likely to be suffering from a genuine illness. However, employees taking odd unplanned days off here and there actually cause more disruption to the business. If this pattern is repeated regularly, the employee will have a high Bradford Factor score; which may raise questions about how genuine the illness actually is? The formula for the Bradford Factor is:E x E x D = Bradford Factor Score Where E is the number of episodes of absence and D is the total number of days absent in a rolling 52 week period. 59

So, for employees with a total of 10 days absence in one year, the Bradford Factor score can vary enormously, depending on the number of episodes of absence involved. For example: One absence episode of 10 days is 10 points (i.e. 1 x 1 x 10)

Five absence episodes of two days each is 250 points (i.e. 5 x 5 x 10) Ten absence episodes of one day each is 1,000 points (i.e. 10 x 10 x 10) How do organizations use the Bradford Factor? There are no set rules for using the Bradford Factor; it is down to each organization to determine the ways in which it uses the score. However, used effectively, the Bradford Factor can reduce absenteeism dramatically, serving as a deterrent and a method for tackling persistent absenteeism. Studies have shown that by educating staff about the Bradford Factor, and then showing them their score on a regular basis, absenteeism can be reduced by over 20%. This is largely down to staff understanding that taking the odd day off here and there will quickly multiply their Bradford Factor score. The Bradford Factor places a value on the absence which an employee can clearly see. Where the absence is not absolutely necessary, this can serve to deter absenteeism. When this is used in conjunction with a points system the Bradford Factor can be effectively utilized to deter unnecessary absenteeism.

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For example, the Bradford Factor can be utilized by creating triggers whereby certain actions are taken when an employees Bradford score reaches a certain point. For example, the UK Prison Service has used the following triggers:

51 points verbal warning. 201 points written warning 401 points final warning 601 points dismissal

Setting these triggers is entirely dependent on the organization using the Bradford Factor. It is usually advisable to use the Bradford Factor as one of a number of absence policies. However, setting these triggers and making staff aware of them, in addition to taking action, resulted in the Prison Service reducing absenteeism by 18%. By implementing mandatory procedures for tackling absenteeism across an organization led by the Bradford Factor, an organization can remove the potential for differences across teams and management and remove the difficulties and reluctance that line managers often face when having to discipline a close staff member. The Bradford Factor can provide organizations with a two pronged method for tackling absence: proactively deterring absence in the first place and utilizing a set procedure to identify and tackle persistent absenteeism.

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Implementing the Bradford Factor:

Calculating the Bradford Factor for one member of staff over a given period is not a difficult proposition. However, calculating the Bradford Factor over a rolling 52 week period, across multiple teams and locations and considering different types of absence is a very difficult task. As a result of the exponential nature of the formula {E x E x D}, even the slightest mistakes in calculation can result in a wide variance of an employees Bradford Factor score. For example: For an employee who has had 10 days off in a year in total, on two separate occasions: 2 X 2 X 10 = 40 {which does not trigger a warning fewer than 50} However, if their absence is either not recorded correctly, or is calculated wrong by just one day: 3 X 3 X 10= 90 {which does trigger a warning over 50} You can see that their score is more than double, despite the small mistake. Getting the formula the wrong way round can have even more significant results: 10 X 10 X 2 = 200 {which would trigger disciplinary proceedings over 200}

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If an organization wants to tackle absenteeism effectively, using the Bradford Factor, including using an employees Bradford Factor score in potential disciplinary proceedings, then the process for calculating the Bradford Factor has to be full proof, consistent and equal. To achieve this, an organization will need to ensure:

Absence reporting and monitoring is consistent, equal and accurate both over time and across the whole organization.

The calculation of an employees Bradford Factor score is based on these accurate, equal and updated absence records.

Management and staff have access to updated Bradford Factor scores.

Without these processes in place the calculation of the Bradford Factor is extremely difficult and time consuming. In addition to this; unequal processes for reporting and calculating the Bradford Factor could be discriminatory; everyones Bradford Factor score should be subject to the same, indisputable criteria.

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3.9

DATA ANALYSIS & INTERPRETATION

The method of statistical representation is through bar diagram. The primary data obtained through questionnaire are analyzed and interpreted below:-

Q. For how many years you are working with Punjab National Bank?

60% 50% 40% 30% 20% 10% 0% 0-2 Years 2-5 Years 5-15Years >20 Years

Employees

Interpretation: It can be seen that 56% of the employees of PNB are working for more than 20 years whereas 36% are working for more than 5 yrs.

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Q. How often you remain absent in a month?

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% nil once tw ice >tw ice no of absents in a month

Interpretation: It can be seen that 96% of employees do not remain absent.

Q. According to you what are the main reasons for employees absent?
80% 70% 60% 50% 40% 30% 20% 10% 0% stress reason for being absent

100% 90% 80%

w orking personal 70% environm ent problem

60% 50% 40%

w orking condition

reason Interpretation: According to 78% employees, personal problem is the reason forfor being absent 30% that stress can also be the reason. being absent. While 22% think 20% 10% 0% stress personal prob

65

Q. Your views regarding present Absenteeism Policy of Punjab National Bank?

80% 70% 60% 50% 40% 30% 20% 10% 0% excellent good fair poor view s regarding absenteeism policy

Interpretation: It can be seen that 76% employees rates the present absenteeism policy as good whereas 22% as excellent and 2% rates as fair.

Q. Are you clear about your work / job responsibilities?

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% w ell clear good fairly clear don't know clarity regarding w ork

66

Interpretation: 94% employees are well-cleared about their work / job responsibilities, 4% employees have good knowledge about it and only 2% are fairly cleared idea about their work. Q. Are you satisfied with your work?
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% w ell satisfied good fair not satisfied satisfaction regarding w ork

Interpretation: 82% of the employees are fully satisfied with their work whereas 16% employees think their work as good.

Q. Views regarding working environment of Punjab National Bank?

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% excellent good fair poor view s regarding w orking env.

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Interpretation: 82% employees feel that the working environment at PNB is good & 14% feel it as excellent.

Q. Your relations with your superiors?

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% excellent good fair poor relations with superiors

Interpretation: 50% employees have good relations with the superiors whereas 30% have excellent relations with the superiors.15% says that they fair relation with their superior while 5% poor relation with superior.

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Q. Yours superiors behaviour towards your problem?

60% 50% 40% 30% 20% 10% 0% excellent good fair poor

superiors behaviour tow ards your problems

Interpretation:

32% employees think that their superiors behaviour toward

their problems is excellent & 56% employees consider it as good.7% thinks that it is fair while 2% assumes it poor.

Q. Yours views regarding facilities provided by Punjab National Bank?

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% excellent good fair poor facilities provided by PNB

69

Interpretation: 86% employees consider that facilities provided to them are good whereas 10% consider them as excellent .

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4.1 FINDINGS 4.2 CONCLUSIONS 4.3 SUGGESTIONS & RECOMMENDATIONS

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4.1

FINDINGS

From the analysis I got following result Almost 56% of the employees at Punjab National Bank are working for more than 20 years whereas 36% are working for more than 5 yrs. Almost 96% of the employees do not remain absent. According to 78% employees, personal problem is the reason for being absent. 22% think that stress can also be the reason . Almost 76% employees, rate the present absenteeism policy as good whereas 22% rate it as excellent. Almost 94% of the employees at Punjab National Bank are clear regarding their work responsibilities. 82% of the employees are fully satisfied with their work whereas 16% workers think their work as good. 14% of employees feel that working environment of Punjab National Bank is excellent while 82% employees consider as good. 50% employees have good relations with the superiors whereas 30% have excellent relations with the superiors.15% says that they fair relation with their superior while 5% poor relation with superior.

72

 32% employees think that their superiors behaviour toward their problems is excellent & 56% workers consider it as good.7% thinks that it is fair while 2% assumes it poor. 86% employees consider that facilities provided to them are good whereas 10% consider them as excellent.

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4.2

CONCLUSION

Absenteeism is considered an important factor in determining the organizational effectiveness. The objective of the organization is to maximize its profit.

If the organization has to achieve its objectives then they should concentrate on employees. The management has to find out causes for absenteeism.

Based on the cause certain suggestions are to make to control the further rate of absenteeism. The measures taken by the management should not be offensive and its should be control in a simple manner.

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4.3

SUGGESTIONS & RECOMMENDATIONS

Absenteeism is a serious problem for management because it involves heavy additional expenses. The management should take the following measures to reduce the rate of absenteeism:-

1) Provide Incentives - An incentive boost the morale of employees and also motivates them and avoid unnecessary absenteeism. Incentives like two hours of bonus pay for every month of perfect attendance can improve a lot.

2) Employee Assistance Program - If you confront an employee about his or her frequent absenteeism and you find out that it is due to personal problems refer them to EAP.

3) Sickness Reporting Tell employees that they must phone in, as early as possible to advise why they are unable to make it to work and when they expect to return.

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4) Return to Work Interview- When an employee returns to work then ensure that they have a return to work interview.

5) Bradford factor: It can also be used to identify and cure excessive absenteeism.

76

77

BIBLIOGRAPHY

In the completion of this research report, I have consulted various books and also internet.

BOOKS:
C.B. Mamoria, Personnel Management, Himalaya Publishing House, Mumbai N.G.Nair & Nair Latha, Personnel Management, Sultan Chand & Sons Publishing, New Delhi. T.N. Chabra, Human Resource Management, Dhanpat Rai & Co. (P) Ltd., New Delhi.

WEBSITES:
www.wikipedia.com www.informaworld.com www.joem.org www.employer-employee.com

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79

QUESTIONNAIRE
Personal Information Name .. Age. Sex..

Job status.

1)

For how many years you are working with Punjab National Bank? (a) 0-2 yr (c) 5-10yr (b) 2-5yr (d) > 20yr

2)

How often you remain absent in a month? (a) Nil (c)Twice (b) Once (d) > Twice

3)

According to you what is the main reason for employees absent? (a) Health problem / domestic reasons (c)Work dissatisfaction (b) Stress (d) Working environment

80

4)

Your views regarding the present Absenteeism Policy of Punjab National Bank? (a) Excellent (c) Fair (b) Good (d) Dont know

5)

Are you clear about your work / job responsibilities? (a) Well clear (c) Fairly clear (b) Good (d) Dont know

6)

Are you satisfied with your work? (a) Well satisfied (c) Fair (b) Good (d) Not satisfied

7)

Your views regarding the working environment of Punjab National Bank? (a) Excellent (c) Fair (b) Good (d) Poor

8)

How are your relations with your superiors / co-workers? (a) Excellent (c) Fair (b) Good (d) Poor

81

9)

Your superiors behaviour towards your problems? (a) Excellent (c) Fair (b) Good (d) Poor

10)

Your views regarding the facilities provided to you by Punjab National Bank? (a) Excellent (c) Fair (b) Good (d) Poor

Any suggestions / Comments _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _____

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