pepsi project project

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RATIONALE BEHIND THE STUDY

Industrial progress is an outcome of mainly of the human and physical resources of th

production. Sufficient progress has been made in the sphere of physical input such a

capital and technology. Despite rapid development in technology the desired level o

economic development and social welfare are yet to be achieved! One of the main cause

of failure has been underutilization of human resources in the country. Unfortunately th

rate of progress in our country has not been commensurate with our potential on account

lack of appropriate work culture. Employer and employed are still looked upon

adversaries rather than as partners. In the joined endeavors frequent strikes, lockouts an

other forms of industrial unrest are symptoms of prevailing environment in industry.

In this project the main purpose of the study was to have a thorough understandinof the theoretical concept and their practical application by being placed in the actual wo

environment

To understand their relevance and find the extent to which they are actually bein

applied in the work situation;

To have an in-depth knowledge of the function of the organization through actu

work experience.

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OBJECTIVES OF THE STUDY

The project apart from a brief overall review of the organization studies the level o

absenteeism rate in the organization, referring the general staff of both the managerial an

non-managerial level of employees. The main issue of concern was related with th

employees presence rate and how often they find themselves failing in reporting to worat the same time analyzing different causes and other incentives regarding salaries an

welfare packages offered to them as well as judging the satisfaction level with the

compensation package, which surely creates a reason for determining their dedicatio

towards the work.

This project has also been undertaken to gather the details of employees turn over

well as examining the general trend within an organization enabling to find an exa

reason behind the increasing absenteeism rate in the organization.

Hence, the major objectives of this study were: -

To identify the prevalence level of the absentees in Varun Beverages Ltd.

To identify the major causes of the absenteeism at Varun Beverages Ltd.

To Asses the after effects of absenteeism in Varun Beverages Ltd.

The project is based on my experience and frequent interaction with the employees

VBL.

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HYPOTHESIS

A hypothesis is a proposition, condition or principle which is assumed, perhap

without belief, in order to draw logical consequences by this method to test its accor

with facts which are known or may be determined.

When a researcher observes knows facts and takes up a problem for analysis, h

first has to start somewhere and this point of start is the hypothesis. In other word

one has to proceed to formulate tentative solution as soon as the problem to be tackle

is finalized. These proposed solutions or explanations constitute the hypothesis whic

the researcher proceeds to test on the basis of fact already known or that can be mad

known. Even, collection of facts merely for the sake of collecting them will yield n

fruits; to be fruitful, facts need to be collected such that they are for or against som

point of view or proposition. Such a point of view or proposition is the hypothesi

The tentative explanations or solutions are suggested to researcher by something

the subject matter and by our previous experience.

Hypothesis testing means to know whether the hypothesis based on the da

collected is valid or not. The main object of hypothesis testing is whether to accept th

null hypothesis. Procedure for hypothesis testing deals with steps on the basis o

which a hypothesis is either rejected or accepted.

Thus, this study has been primarily carried out to analyse and judge the effec

and implications of absenteeism among the employees of a bottling plant, both on th

managerial and the non-managerial section of employees.

The hypotheses of the study are: -

Absenteeism affects and reduces organizational productivity.

Logical outlook towards various problems was more promine

among regular attendees than absentees.

Older employees have greater commitment towards their work.

The hypothesis of this study has been deduced and identified on the basis of the belief th

employees normally absents themselves from work due to certain unconditional an

conditional reasons which affects organizational productivity.

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SCOPE OF THE STUDY

Every employee who takes off in defiance of organization regulation has reasons,

right or wrong which justify themselves the legitimacy of their actions. Unless a

management attendance program identifies and addresses the causes of employee

absenteeism it will be ineffective and unfair. Traditional disciplinary programs alone

can, at best, give the illusion of control. It is no secret that there are ways to beat even

the best systems. The fear of discipline often only increases the desire to avoid

management systems.

If absenteeism is to be controlled the physical and the emotional needs of

employees must be addressed. In a 1985 study on Rates of absence among Nurses

was found that 50% of absenteeism could be controlled through attending employees

physical and emotional needs.

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CONSTRAINTS OF THE STUDY

My project is entitled as:

A study of the level of absenteeism and its causes, at Varun Beverages Ltd.

(A study conducted at Pepsi Bottling Plant Greater Noida, UP, with special reference to

managerial and non-managerial categories of employees)

My project being based on the primary data, I have undergone a session of

interaction through questionnaire with both the managerial and non-managerial group of

employees as per the requirement of my project.

Now, while undergoing the interview process I found certain constraints existing

thereby in VBL:

Hiding of some true facts by the respondents due to fear of the management.

Some of the responses given by the respondents vague i.e. not legible and clear.

Few of them showed disinterest as they all have a notion that such an investigation

futile and that they will gain no benefit from it.

Few of them remained quiet when asked about what suggestions they would like to

give for future developments and success of VBL.

Besides all these constraints I have been impressed by the ingenuity, cooperation,

confidence and efficiency which were reflected through their knowledge and experien

and still find my journey of interviewing, interesting and people at VBL amiable and

thus at least I successfully interacted to 70 employees in Varun Beverages Ltd.

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ORIGIN OF VARUN BEVERAGES LTD. UNDER RKJ GROUP

It can be said with absolute certainty that the RKJ Group has carved out a special niche fo

itself. Its services touch different aspects of commercial and civilian domains like those

Bottling, Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as o

today can laid claim to expertise and leadership in the fields of education, food an

beverages.

The business of the company was started in 1991 with a tie-up with Pepsi Foods Limited

manufacture and market Pepsi brand of beverages in geographically pre-defined territori

in which brand and technical support was provided by the Principals viz., Pepsi Food

Limited. The manufacturing facilities were restricted at Agra Plant only.

Varun Beverages Ltd. is the flagship company of the group.

The group also became the first franchisee for Yum Restaurants Internation

[formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchi

rights for Northern & Eastern India. It has total 46 Pizza Hut Restaurants & 1 KF

Restaurant under its company.

It diversified into education by opening our first school in Gurgaon undmanagement of Delhi Public School Society. The schools of the group are run under

Registered Trust namely Champa Devi Jaipuria Charitable Trust. Companies are mediu

sized, professionally managed, unlisted and closely held between Indian Promoters an

foreign collaborators.

The group added another feather to its cap when the prestigious PepsiC

International Bottler of the Year award was presented to Mr. R. K. Jaipuria for th

year 1998 at a glittering award ceremony at PepsiCos centennial year celebrations

Hawaii, USA. The award was presented by Mr. Donald M. Kendall, founder of PepsiC

Inc. in the presence of Mr. George Bush, the 41st President of USA, Mr. Roger A

Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatheru

President of Pepsi Cola Company.8


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Vision

Being the best in everything we touch and handle.

Mission

Continuously excel to achieve and maintain

leadership position in the chosen businesses; an

delight all stakeholders by making economicvalues in all corporate functions.

Their Success

Production of innovative, high quality retail brande

beverages combined with world-class packaging.

Driven by a management team with

relentless focus on achieving superior customer servic

driving earnings improvement and increasing sharehold

value.

Their People

At RKJ Group they are creating an environment where o

employees enjoy a greater degree of empowerment bo

individually and in their work teams.

Their employees are equipped with th

necessary tools, training and manageme9


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backup for strong performance and accountability, as well as in a

environment of open communication and involvement.

RKJ GROUP OWNED BUSINEES IN INDIA AND WORLDWIDE

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COMPANY PROFILE WORLDWIDE

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COMPANY VISION

To become truly global company, by continuing to build a competitive and profitab

worldwide refreshment beverage business.

PEPSI COLA INTERNATIONALS STRATEGY

Target core Brand

Focus on business growth.

Satisfy market priorities Focus on franchising with building core of company owner.

A North Carolina Pharmacist established Pepsi Cola in 1980 as a cure for Dyspeps

(indigestion). Under the supervision of Mr. Bradhman Pepsis first bottling plant was bui

1905.

In 1977, when Coca-cola left the country then Pepsi Co. began to lay plans to ent

this huge Indian soft drink market. Pepsi working with Indian business groups to see

government approval for its entry in the India soft drink market. Pepsi offered India

Government to help in the exports of some of its agricultural products in a volume th

would cover the cost of importing soft drink concentrate.

Pepsi Company is established in Indian in 1989. At that particular time it was know

a non-Cobo (Company owned bottling operations) company. In January 1995 Pepsi too

over and it is now known as a Cobo (Company owned bottling operations) company.

joined hands with Voltas Ltd with 60%equity. But now it has become a fully owne

subsidiary.

Pepsi Company is broad based food and Beverages Company, serving more than 60%

of its sales and operation profits from its snack- foods and restaurants business. Establishe

with a turnover of $ 28 billion in 1989, the companys beverage business has grown 50

streets ahead of the market; which has expanded by 20%. It poured in vast sums to whip u

its visibility at the retail level, so that consumes were greeted virtually at very street corn

by Pepsis blue-red and white colors. Behind the hype, in effort invisible to consumer

Pepsi pumped in Rs.300 Crore to add muscle to its infrastructure in bottling an

distribution. This is apart from the money that up grading the plants.

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April 1993, Voltas and Punjab Agros equity stakes were bought over converting Pep

Foods from a joint venture to fully own subsidiary. Weak bottlers who did nit have th

finance were given massing support in from of interest- free loans to upgrade the

operations. But the big strategy, which has proved to be winner was the position Peps

decided taken company owned Bottling operations (COBO). For this another subsidia

Pepsi co. India Holding was set up as investment vehicle capitalized at $9.5 million.

1991 saw a major launch of 7-up in India, which was warmly received by Ind

customers and consumers.

1994 Pepsi achieved the number 1 position in cola brand India.

1995 2new COBOs were opened in UP & Gujarat.

1996 Mirinda attend No 1 Position in orange beverage category.

May 1998 was major launch of Mirinda Lemon in India.

Pepsi is trying very hard to maintain the lead it made over its competitors in the Ind

sift drink market. It is expanding its business in the other fields also. It is in the business

export of beverages concentrates. This year Pepsi has achieved a 100% growth in th

export turnover in the first quart of 1998 over the corresponding period for the previou

year. Pepsi has taken a lead in the beverage concentrate exports from potential in the ne

future. Pepsi has also developed agricultural linkages to boot its export thrust and as

move in the direction, its plant at Sonepat has become the first rice-processing facility i

India.

Pepsi mean while added a new range of products to its agro-export Portfolio. The

include Baron, a bread of peanut butter marketed in U.S., Branded red and green chi

Puree, ginger and garlic paste &cooking paste under the seasons Harvest home, which

also the name of its branded basmati rice.

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At present Pepsi is trying very hard to maintain its position in the market. It is operating i

a very well managed manner. Some of its strategies it followed to be competitive in th

market area follows

EMPOWERMENT

One of the strongest weapons in the Pepsis armory is the flexibility it has empowered wi

its people. Every manger and sales person has the authorities to take whatever steps h

feels will make consumer aware of the brand and increase its consumption.

CHANNEL MANAGEMENT

Pepsi has a very well managed distributive system. It is said the Pepsi dont have bottler

it has partners. Pepsi has a well-aligned bottling network. It operates through COB

(Company owned bottling operations) and FOBO (Franchise owned Bottling Operations)

It is this way a Pepsi Co., India Strengthens its marketing that gives it an edge. Ever

number of its sales team is meticulously taught the merchandising and display skills th

can leverage the reach of the companys bottling network to achieve high visibility for th

product.

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COMPANY PROFILE IN INDIAN SCENARIO

Since the entry of Pepsi co. to India in 1987, the soft drink Industry has undergone

radical change. When Pepsi entered parley was the leader with Thumps UP being i

flagship brand. Other product offerings by parley included Limca & Gold Spot. Anoth

upcoming player in the market was the erstwhile bottle of Coca-Cola, Pure Drinks. I

offerings included Campa Cola, Camps Lemon and Campa Orange.

With the re-entry of Coca-Cola in the Indian market, Pepsi had to go in for mor

aggressive marketing to sustain its market share. The chronology the initial phase of th

Coal Wars in India was:

July 1986

An application for soft drinks-cum-snack food joint venture by Pepsi, Voltas an

Punjab Agro is submitted to the government after an earlier proposed alliance- 198

between Pepsi and Duncans of the Goenkas fails to take off.

Sept.1988

Final approval for the Pepsi Foods Limited (P.F.L) project granted by the Cabin

Committee on Economic Affairs of the Rajeev Gandhi Government.

March 1990

Pepsi Cola and Seven up Launched in limited market in North India.

May 1990

The government clears the Pepsi project again but with a change in brand name t

Lehar Pepsi. Simultaneously it rejects the Coca-Cola application. Citra form the Par

stable hits the market.

Dec 1991

Pepsi extends its soft drinks reach on national scale. Products launched Delhi an

Bombay.Jan 1992

Brito Foods application cleared by the FTPB. Pepsi and Parle start initi

negotiations for strategic alliance but talks break off after a while.

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1993

Pepsi launches Teem and Slice. Captures about 25.30% of the soft drinks market

about two years.

July 1993

Voltas pulls out of PFL joint venture. Pepsi decides to raise equity to 92% Repor

of coke Parle negotiations gain strength.

1994

Pepsi brought Dukes& Sons

1995

Pepsi launched Cans having capacity of 330 ml in various flavors.

1997

Pepsi brought Mirinda Orange opposite to Fanta.

1998Pepsi launched Lemon Mirinda to give taught competition to Limca.

1999

Pepsi has launched its Diet Pepsi Can and 1.5 Liters pet battles for health consciou

people.

1997

Refusing to dilute its equity state Coca-Coal winds up operations in the countr

Parle launches Thumps Up and Drinks launches Campa Cola.

2001

Pepsi launched Aquafina.

2003

Pepsi launched Mountain Dew

2005

Mirinda lemon zinger, 7UP.Ice was launched by Pepsi.

2006

Bubbly Pepsi was launched.

2007

Pepsi Gold was launched.

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ABOUT ORGANIZATION AND ITS OBJECTIVES

By the word organization we generally mean, a structural framework of duties an

responsibilities required of a personnel in achieving the predetermined goals.

An organization of VBL is a simple yet complex in terms of the differe

designations provided to its employees.

Companys overall view of organization can be successfully dealt as follows:

The people at PBG reflect the Companys emphasis on superior sales capability and

service. In North America, more than one-half of PBG employees work in sales, followed

by nearly one-third in operation. Their organizational structure, based on a general

management model, reflects the same priorities. The Vice President/General Managers of

PBGs market units lead marketing and sales efforts in contiguous geographic areas with

common major customers. They designed their organization to give their market units the

autonomy to serve the needs of individual customers, develop market-specific strategies,and respond to local marketplace dynamics. From the General Manager to the frontline

customer representative, the entire PBG sales force competes on a local level to serve

existing customers and to win new accounts.

Their aims are:

We compete locally.Small in big/small companyVisible community leadershipMindset of an entrepreneurKnow/Service every customer

Sense of urgencyThere is no tomorrow.Fix it today.Our success is built upon passion.

Every front-line job has targets.Reinforce goals, plan performancePrioritize, focus, simplifyClear accountability for resultsNo excuses.

Treat everyone fairly, and with dignity.Operate with integrity and justice.Every individual is important.

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OBJECTIVES OF VARUN BEVERAGES

The objectives of VBL are:

To observe the implementation and working of sales cluprogramme at different sections in Noida.

To monitor whether it is successfully implemented in th

market.

To monitor the customer awareness about the sales clu

programme whether they are fully aware about th

programme or not.

To check out that all the required materials for sales clu

programmed are given to customer/ retailer or not.

To find out the effect on increasing the sales b/z of sales clu

programmed at partial shop.

To monitor the purity of vis-cooler at sales club account.

To monitor the purity of sack at sales club account.

To monitor whether updates in the programmed book is cla

in time or not.

To make the books available to the customers.

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OTHER INFORMATIONS ABOUT VBL

EARNINGS RELASES

Pepsi Cos 2004 quarterly earnings releases are expected to be issued the week of April 12

July 12, September 27, 2005 and January 30, 2005.

COMPANY DOCUMENTS

Investor relations: - Security analysts and other members the professional financi

community who have question Pepsi Cos investor relations department at (914) 253-303

or (914) 253-2155.

SHAREHOLDERS: - Pepsi Cos (symbol: PED) shares are traded principally on the Ne

York Stock Exchange in US. The company is also listed on the Amsterdam, Chicag

Swiss and Tokyo stock exchanges. Pepsi Cos has consistently paid cash dividends sin

the corporation was founded.

MISSION STATEMENT

Our mission is to be the worlds premier consumer products company focused o

convenient foods and beverages. We seek to produce healthy financial rewards to invest

we provide opportunities for growth and enrichment. Our employees, our business partne

and the communities in which we operate. And in everything we do, we strive for honest

fairness and integrity! as exclaimed by Pepsi Cos.

CORPORATE CITIZENSHIP

Pepsi Cos believe that they are corporate citizen; it has a responsibility to contribute to th

quality of life in our commodities. This philosophy is put into action through support

social agencies, projects and programs. The scope of this support is extensive-ranging fro

sponsorship of local programs and support of employees voluntary activities to contribu

to time, talent and funds to programs of national impact. Each division is responsible for i

own giving program. Corporate giving is focused on giving where Pepsi Cos employee

volunteer.

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PEPSI HEADQUARTERS

Pepsi Cos world headquarters is located in purchase, New York, approximately 4

minutes from New York City. Edward Darell Stone, one of Americas foremost architect

designed the seven building headquarters complex. The building occupies 10 acr

complex that includes the Donald Mkendall sculpture gardens, a world acclaimed sculptu

collection in garden setting. The collection of work is focused on major twentieth centu

art, and features work by such as Augusta Rodin, Henri Laurens, Henery Moor

Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. Th

gardens were originally designed by the world famous garden planner, Russel Page, an

have been a visitors booth in operation during the summer and spring.

TRAINING AND DEVELOPMENT

It provide following to employee:

On Job Training Program

In House Training Program

Out door Training Program

WELFARE ACTIVITIES

Company provides welfare activities to its employees like:

Uniform

Transportation facilities

Canteen

Annual meet etc.

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PRODUCTION SETUP AT GR.NOIDA BRANCH OF PEPSI

Gr.Noida plant in Varun Beverages plant is a dedicated plant for five major products.

These are as follows:

PRODUCT BOTTLE FILLING

PEPSI 300ml, 200ml

MIRINDA ORANGE 300ml, 200ml

MIRINDA LEMON 300ml, 200ml

SLICE 250ml

7-UP 300ml, 200ml

EVERVESS SODA 300ml

MOUNTAIN DEW 300ml, 200ml

Plant is producing 10 million cases every year.

Plant has employed about 200 employees with separate company uniform on permane

and causal basis. There are 40 managers/ officers/ supervisors and rest of workmen. Pla

is dispatching near about 125-150 tracks in peak seasons per day to various location. Th

Plant spreads over 75 acres.

QUALITY POLICY

The best delivery.

The best product in the market place

The highest quality

The best testing.

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AN OVERVIEW OF ALL PEPSI-COLA BRANDS

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AN OVERVIEW OF PEPSI-COLA BRANDS PRODUCED BY VBL

PEPSICONTENTS: -

CALORIES 100

TOTAL FAT 0gm

SODIUM 25mg

POTASSIUM 10mg

TOTAL CARBOHYDRATE 27g

SUGAR 27g

PROTEIN 0g

CAFFEINE 25mg

Pepsi contains carbonated water, high fructose com syrup and/or sugar, Carmel color,

phosphoric acid, caffeine, citric acid and natural flavors.

SLICE

Produced at 80.c and is prepared by VBL on large scale!

CONTENTS: -

CALORIES 130

TOTAL FAT 0g

SODIUM 35mg

POTASSIUM 70mg

TOTAL CARBOHYDRATE 34g

SUGAR 33g

PROTEIN 0g

CAFFEINE 0g

Slice contains carbonated water, high fructose com syrup and/or citric acid, potassium

citrate, potassium benzoate (preserve freshness) gum Arabic, malice acid, potassium

sorbate (preserve freshness), yellow 6, salt, ester gum, natural flavors, calcium

disodium EDTA (to protect flavor) and brominated vegetable oil.

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CELEBRITIES FOR PEPSI

Following are some celebrities of Pepsi: -

AMITABH BACCHAN

SHARUKH KHAN

SAIFALI KHAN

FARDEEN KHAN

JOHN ABRAHAM

KAREENA KAPOOR PRIETY ZINTA

PRIYANKA CHOPRA

SACHIN TENDULKAR

SAURABH GANGULY

YUVRAJ SINGH

HARBHAJAN SINGH

RAHUL DRAVID

ZAHEER KHAN

MOHAMMED KAIF

AJEET AGARKAR

MAHENDER SINGH DHONI

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FAMOUS CATCH LINES OF PEPSI

Some famous catch lines of Pepsi are: -

YEHI HAI RIGHT CHOICE BABYAAHA!!!!

NOTHING OFFICIAL ABOUT IT

CHOICE OF NEXT GENERATION

MORE CRICKET MORE PEPSI

YEH AAZADI HAI DIL KI

YEH DIL MANGE MORE

ZOR KA JHATKA DHHERE SE LAGE

PEPSI KE LIYE HUM BESHRAM HAIN

YEH PYAAS HAI BADI

DO THE DEW

OYEBUBBLY!

PEPSI UTHAO, GHAR LEY JAO

JOIN THE BLUE BILLION

MOUTH HAPPY POCKET HAPPY

PEPSI. MY CAN

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DEFINING ABSENTEEISM

Absenteeism in short can be defined as a failure to report to work.

It is likely a symptom of low moral and declining productivity or little involveme

at work as demonstrated by the employees staying away from work.

It refers to the failure on the part of employees to report to work through which the

are scheduled to work. In other words an unauthorized absence constitut

absenteeism.

It is referred to here in as failure of employees to report to work when they ar

scheduled to work.

UNDERSTANDING ABSENTEEISM OR INTRODUCTION TO ATTENDANC

MANAGEMENT

The management of attendance is an important aspect of supervision. The cost absenteeism is greater than the direct payment of wages and benefits made during th

absence. Organization must also consider he indirect cost of staffing, schedulin

reframing, lost productivity, diminished moral, turn over, opportunity cost. The indire

cost often exceeds the direct cost of absenteeism. Effective supervisory efforts

attendance management will affect a relatively small percentage of employees but wi

generate substantial savings, increased productivity and moral.

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TYPES OF ABSENTEEISM

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

a) INNOCENT ABSENTEEISM: - innocent absenteeism refers to employees who a

absent for reasons beyond their control sickness and injury. Innocent absenteeism

not culpable i.e. blameless. In a labor relations context this means that it cannot b

remedied of or treated by disciplinary measures.

b) CULPABLE ABSENTEEISM: - it refers to employees who are absent withoauthorization for reasons, which are within their control. For instance, an employe

who is on sick leave even without being so and it can prove so; he/she is guilty

culpable absenteeism. To be culpable is to be blameworthy. In labor relation conte

this means that progressive action can be taken. For the large majority

employees, absenteeism is legitimate, innocent absenteeism, which occu

infrequently. Procedures for disciplinary action apply only to culpable absenteeism

Many organizations rake the view that through the process of individual absente

counseling and treatment, the majority of employees will overcome their problem

and return to an acceptable level of regular attendance.

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CALCULATION OF ABSENTEEISM

The rate of absenteeism is expressed as the percentage of man-days lost through absence t

the total number of man days scheduled in a given period.

No. Of Employees Absent * 100

Absenteeism% = ------------------------------------

No. Of Employees Present

No. Of Employees Present = (Avg. No. of workers) *(No. of working days)

As we know, employees are the 21st century organizations greatest assets. Accountants ar

even adding human capital to the balance sheet. Absenteeism is a universal problem in an

industry. It becomes a problem when it exceeds 10% as it disturbs the production schedul

and creates many problems. Personnel Research studies have further revealed that: -

The days before and after a holiday are liable to higher rate of absenteeism.

Employees who belong to local area are absent more often than outsiders.

Bad weather increases rate of absenteeism, especially among employees who live a

distant places.

Employees under the age of 25 years and above the age of 55 years are absent more

often than those in the age group of 26 to 55 years.

Operative employees are absent more frequently than the supervisors and managers

The higher the rate of pay and greater the length of services of the employees\, the

fewer the absences.

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FACTORS CAUSING ABSENTEEISM

The causes of absenteeism are many and include: -

Major accidents and illness

Low morale

Poor working conditions

Boredom on the job

Lack of job satisfaction

Inadequate leadership and poor supervision Personal problems

Poor physical fitness

Inadequate nutrition

Transportation problems

The existence of income protection plans

Stress

Work load

Employee discontent with a collective bargaining process and its results.

Although both pschyiological and non- pschyiological factors contribute to it, the finding

of Indian studies appear to have somewhat greater emphasis on non-pschyiological ones.

The workers in Indian industries found that chron

absenteeism was related to: -1. The extent of workers identification with the company.

2. Integration with work group.

3. Satisfaction with supervisors.

4. Belief in the future of the company.

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On the other hand there are few psychological factors as th

major causes of absenteeism of Indian industrial workers. Such factors are poor healt

transport difficulty, do chores, and indebtness etc.

Lets have a tabular evaluation of the: -

Observable Behavior pattern indicating possible alcohol related problems

STAGE ABSENTEEISM GENERAL BEHAVIOUR JOB PREFERENCE

I STAGE

(Early)

II STAGE(Middle)

III STAGE(Late middle)

IV STAGE(Approaching terminalstage)

Tardiness, quits early

(Absenteeism from

situations)

I drink to relieve tension

Frequent days off for vague

or implausible reasons.

I feel guilty about

sneaking drinks I have

tremors.

Frequent days off, several

days at a time, does not

return from lunch.

I dont feel like eating

Dont want to talk about

it

I like to drink alone

Prolonged unpredictableabsenceMy job interferes with my

drinking

Complaints from fellow

employees for not doing

his/her share. Overreaction

complains of not feeling

well, makes untrue statement

Marked changes,

undependable statements,

avoid money from fellow

employees, exaggerate work,

and accompanies frequent

hospitalization.

Aggressive and belligerentbehavior domestic problemsinterfere with work,financial difficulties(garnishments and so on),and more frequenthospitalization, Resignation!

Does not want to discussproblems. Problems with thelaw community.

Drinking on the job(probably) completelyundependable, repeatedhospitalization, seriousfinancial problems, serious

family problems, divorceetc.

Misses deadlines,

commits error

(Frequently low job

profile)

Criticism from boss,

general deterioration

cant concentrate,

occasional loss of

memory, minor

injuries on the job

(repeatedly), warning

from the boss.

Far below

expectations

Punishable

disciplinary actions.

Generallyincompetent facestermination orhospitalization.

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Thus above cases reveal that how an effect of alcohol severely affects the presence

of employees leading to absenteeism

HOW ABSENTEEISM CAN BE CONTROLLED

The definition of absenteeism, factors affecting and its causes are quite clear. What is no

so clear is how to take affirmative actions to control it. Traditional methods of absenteeis

control based only on disciplinary procedures have proven to be ineffective. It is almo

impossible to create a fair disciplinary action because even well run disciplinary system

which treat which treat similar actions in consistently similar ways are seen as unfair. Th

reason for this is discipline alone usually identifies the root cause of absenteeism. Ever

employee who takes time off in defiance of company regulations has reasons, right

wrong which justify to themselves the legitimacy of their actions. Unless the managemen

attendance programme identifies and addresses the cause of employees absenteeism it w

be ineffective and unfair. Now, if absenteeism is to be controlled the physical and physic

and emotional needs of employees must be addressed.

The purpose of attendance management is to develop a willingness on the part of a

our employees to attend work regularly and to assist them in motivating their c

workers to attend work regularly. Now, this can be done by-1. Addressing the physical and emotional needs of our employees.

2. Communicating the attendance goals of the organization so employees ca

understand and identify with them.

3. Dealing with cases of excessive absenteeism effectively and fairly so deterren

can occur.

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the factory rather than stay at home and waste their time.Moreover, the management mu

have a safety plan, implement it and evaluate its effectiveness.

EXAMPLES SHOWING ABSENTEEISM RATE IN CONTEX

OF VARIOUS INDUSTRIES

Absenteeism is computed and is expressed in terms of percentages. Table belo

shows absenteeism rate in selected industries: -

Absenteeism costs money to the organization besides reflecting employe

dissatisfaction with the company.

TABLE: - ABSENTEEISM IN SELECTED INDUSTRIES

INDUSTRIES 1971 1976 1981 1983 1986 1987

COTTON

TEXTILES 19.3 20.1 21.8 22.9 18.3 19.2

IRON & STEEL11.0 14.9 15.9 16.8 13.9 15.6

CEMENT13.1 13.1 10.8 12.2 12.4 12.2

MATCH

MAKING14.7 14.1 16.6 19.3 19.0 23.1

TELEGRAPH

WORKSHOP

16.2 14.7 15.8 17.9 20.2 17.7

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Administrative cost-

1. Staff time is required to secure replacement employees.

2. Staff time is required to maintain and control absenteeism.

DO ABSENTEEISM IS REALLY BAD?

Although most absenteeism has a negative impact on the organization, we ca

conceive of situations in which the organization may benefit by an employee

voluntarily choosing not to come to work. For instance, illness, fatigue or exce

stress can significantly decrease an employees productivity. In jobs in which a

employee needs to be alert it may well be better for the organization if th

employees does not report to work rather than show up and perform poorly. The co

of an accident in such jobs could be prohibitive. Even in the management jobwhere mistakes are less spectacular, performance may be improved. When manage

are absent themselves from jobs rather than make a poor decision under stress. Bu

these examples are clearly a typical for the most past, we can assume th

organization benefits when employee absenteeism is low!!

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CONCLUSION

Recent surveys have shown: -

- The higher the rate of pays the greater the length of service of th

employee, the fewer the absence.

- As an organization grows, there is a tendency towards higher rate

absenteeism.

- Women are absent more frequent than men.

- Single employees are absent more frequently than married employees.- Younger employees are absent more frequently than older employees b

the latter are absent for longer period of time.

- Unionized organization has higher absenteeism rates than non-unio

organizations.

- Logical outlook towards various problems was more prominent amon

regular attendees than absentees.

- Emotionally surcharged statements were more frequent among absentees.

- Absentee group was found to have indifferent attitude, whereas regul

worker showed more critical thinking towards their work.

Attendance improvement programs can work! What the employees want is commitme

and support from all levels of management, an effective attendance record-keeping system

consultation and open communication on the reasons for the attendance programs.

Implementing and maintaining a work environment where open communication and tea

spirit can thrive will at first sometimes seem a mammoth and unrealistic task. If you nee

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encouragement just consider some of the benefits; reduced absenteeism, ope

communication, team spirit, advanced grievances and greater employee satisfaction.

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RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. One can also defin

research as a scientific and systematic search for pertinent information on a specif

topic. In fact, research is an art of scientific investigation. It is the pursuit of truth wi

the help of studies, observation, comparison and experiment. In short the search fo

knowledge through objective and systematic method of finding solution to a proble

is research.

According to Clifford Woody, Research comprises defining and redefinin

problems, formulating hypothesis or suggested solutions, collecting, organizing an

evaluating data, making deductions and reaching conclusions to determine whethe

they fit the formulating hypothesis.

RESEARCH DESIGN

A research design is an arrangement of conditions for connections and analysis of da

in a manner that aims to combine relevance to the research purpose with economy procedure. Research design is a plan that specifies the sources and types

information relevant to the research problem. It is a strategy specifying whic

approach will be used for gathering and analyzing the data. In fact, it is the conceptu

structure with which research is conducted; it constitutes the blue print for th

collection, measurement and analysis of data. The plan is an outline to researc

scheme on which the researcher id to work. The structure of the research is a mor

specific outline or the scheme. The strategy shows how the research will be carrie

out, specifying the method to be used in collecting data.

TYPES OF RESEARCH DESIGN

Research design is mainly of three types: -

1. Exploratory research

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SAMPLING DESIGN

Sampling is used to collect primary data when the source of data is far too many to b

exhausting handled. Sampling is the integral part of data collection process.

The way of selecting a sample is known as sample design. It is the definite pla

for obtaining a sample from a given population. It may as well lay down the numbe

of items to be included in the sample i.e. the size of the sample.

Sample design is determined before data are collected.

METHODS OF DATA COLLECTIONThe key for useful systems is the selection of the method for collecting data and

linking it to analysis and decision issue of the action to be taken. The accuracy of the

collected data is of great importance for drawing correct and valid conclusion from

detailed investigations.

There are two types of data viz. primary and secondary.

PRIMARY DATA

The primary data are those, which are collected afresh and for the first time, and thus

happen to be original in character. There are several methods of collecting primary

data, particularly in survey and descriptive research. Some important ones are

observation method, interview method, through questionnaire, through schedules etc

SECONDARY DATA

Secondary data means, data that are already available that is they refer to the data

which have already been collected and analyzed by someone else and which have

already been passed through the statistical process. Secondary data may either be

published data or unpublished data and can be gathered through Internet, books,

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In this study I have used Structural Questionnaire for collecting primary data. I

have also made frequent interaction with the management and the employees during

my training at Varun Beverages Ltd.

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My study was strictly based on the primary data collection method collected by means

questionnaire dealing and involving the overall sample of 70 people working in Varu

Beverages Ltd., constituting 20 of manager level of employees and 50 of the non

managerial section!

The data has been interpreted on the basis of tally marking an

thus derive the percentage figure based on the answers given by the sample ingredient

represented below with the help of a pie-chart and percent (%) notation: -

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ANALYSIS OF RESPONSES RECEIVED FROM THE MANAGERIAL SECTION

1. ANALYSIS OF QUESTION NO.3

The first question an effort is made to clarify the age factor of

respondents of the total of 20.

AGE GROUP (in years)

20-30 30-40 40-50 50-60

NO. OF EMPLOYEES 2 11 5 2

% OF EMPLOYEES 10% 55% 25% 10%

The above data base structure shows that 10% of managers fall within the ag

category of (20-30) years, 55% are between (30-40) years, 25% are in (40-50

years and 10% are under (50-60) years of age. This shows that the young

executives effectively run Varun Beverages.

We can represent the above data on the basis of below visual pie-diagram!

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The second question under analysis and interpretation concern

the educational profile of employees.

EDUCATIONAL PROFILE

GRADUATE POSTGRADUATE

NO.OF EMPLOYEES 8 12

% OF EMPLOYEES 40% 60%

The above data base structure shows that40% of managers fall under the

category of postgraduates and 60% of them fall within the category of

postgraduates. This shows that in Varun Beverages most of the manager are

Either MBA or MCA or possessing other equivalent degrees!

We can represent the above data with the help of below visual pie-diagram: -

49

AGE GROUP

10%

25%

55%

10%

50-60 40-50 30-40 20-30

EDUCATIONAL PROFILE

40%

60%



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The third question concerns the financial profile of employees.

The above data base structure shows that none of the managers fall under the

pay scale of Rs.5000, 30% of managers lie between (5000-0000), 40%

between (10000-15000), 10% between (15000-20000), no employee between

(20000-30000), 10% between (30000-40000) and 10% between (40000-

50000). This shows that the salary of the managers in Varun Beverages Ltd i

moderate!

We can represent the data on the basis of below visual pie chart.

FINANCIALPROFILE

UPTO5000

5000-1000 1000-15000

15000-20000

20000-30000

30000-40000

40000-50000

NO. OF EMPLOYEES . 6 8 2 .. 2 2

% OF EMPLOYEES . 30% 40% 10% 10% 10%

50

FINANCIAL PROFILE

0%30%

40%

10%

0%

10% 10%

UPTO 5000 PER MONTH 5000-10,000

10,000-15,000 15,000-20,00020,000-30,000 30,000-40,00040,000-50,000


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4. ANALYSIS OF QUESTION NO. 11

The fourth question is about the possible reasons for the managers totake leave.

The above data base structure shows that 5% of the managers suffer from

monetary which is caused due to repetition of same type of work and thus to

take leave while 95% of managers considers other factors like illness,

indifferent situations, incorrigible problems etc as an obvious reason for

POSSIBLEREASONS

MONOTONOUS

WORK

OVERLOAD

OF WORK

COMMUTING

FROM HOME

TO WORK

PLACE IS

CUMBERSOME

STRESS OTHER

NO OFEMPLOYEES

1 .. .. 19

% OFEMPLOYEES

5% .. .. 95%

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taking leave from work. None of the managers complained of overload of

work, stress and cumbersome situations, as they remained indifferent toward

these facts for being a possible cause to leave.

We can represent the data through below visual pie chart.

POSSIBLE REASONS

5%0%0%0%

95%

MONOTONOUS WORKOVERLOAD OF WORKCOMMUTING FROM HOME TO WORK IS CUMBERSOMESTRESSOTHERS


The fifth question is about the directions the managers of VBL

communicate to their subordinates in case of leave.

DIRECTIONS

CARRYON WITH THEPENDINGWORK

DECLAREHOLIDAY ORTHAT DAY

DIRECT THEMBEFORE OR ONTHE SAME DAY

OTHERS

NO.OFEMPLOYEES 6 . 8 6

% OFEMPLOYEES

30% . 40% 30%

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The above data base structure shows that 30% of the managers convey their

subordinates to carry on with the pending work. No manager declares the

holiday for their employees when they are on leave, 40% direct them before

on the same date concerning the task their subordinates have to perform whil

30% adopt other factors like they appoint a leader to assist their employees o

ask other departmental heads to take necessary action.

We can represent the following data with help of below visual pie-diagram!

DIRECTIONS

30%

0%

40%

30%

CARRY ON THE PENDING WORKDECLARE HOLIDAY FOR THAT DAYDIRECT THEM BEFORE OR ON THE SAME DAYORHERS

6. ANALYSIS OF OUESTION NO.13

The sixth question deals with the regularity of subordinates from managers poin

of view.

CONDITIONS YES NO

NO.OF EMPLOYEES 13 7


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The above data shows that 65% of the managers confirmed that their

employees are regular in the organization while 35% of managers complaine

about the irregularity of their employees due to obvious reasons like illness,

anxiety, and in contingent situations.

The below visual pie chart represent the above data-:

CONDITION

65%

35%

YES NO


The seventh question concern about the acknowledgement of absence recordof employees.

METHODS MAINTAINATTENDANCE

REGISTER

PERSONAL

WATCH

THROUGH

OTHER

MEMBERS

DO NOT

MAINTAIN

OTHERS

NO.OFEMPLOYEES 15 4 1

% OFEMPLOYEES 75% 20% 5% ..

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The above data base structure shows that 75% of managers maintain an

attendance register. 20% go for a personal watch to check their employees,

5% come to know about the presence of their employees through other peopl

in the plant. While none of the managers said that they do not maintain any

record of their employees.

We can represent the above data on the basis of visual pie chart below-

METHODS

75%

20%

5% 0%

0%

MAINTAIN ATTENDANCE REGISTERPERSONAL WATCHTHROUGH OTHER MEMBERSDO NOT MAINTAINOTHERS

8.ANALYSIS OF QUESTION NO.15The eight questions under analysis and interpretations concerns about the measures

That manager adopt for the decreasing the level of absenteeism in VBL.

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The above data shows that 25% of managers think that true training and

development absenteeism can be reduced as than employees will become

more efficient to perform their job well and thus will to love to work. 20% of

managers think recreation and amusement facilities should be provided to

employees and it will reduce their stress and thus they will file relaxed.30%

think that salaries of employees should increase while 25% are of the view

that employees should be provided enough leave show that they do not requi

any reason for the absent from work.

The below mentioned visual Pie chart represents the above data.

MEASURES25%

20%30%

25%

TRAINING AND DEVELOPMENTRECREATION AND AMUSEMENTSSALARY INCENTIVESPROVIDING PROPER LEAVE

MEASURES TRAINING ANDDEVELOPMENTS

RECREATION

AND

AMUSEMENTS

SALARY

INCENTIVES

PROVIDING

PROPER

LEAVE

NO. OFEMPLOYEES

5 4 6 5

% OFEMPLOYEES

25% 20% 30% 25%

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ANALYSIS OF RESPONSES RECEIVED FROM THE NON-MANAGARIAL

SECTIONS.


In the first question an effort has been made to classify the age factor ofrespondents of the total of 50respondents.

AGE GROUP 20-30 30-40 40-50 50-60

NO.OFEMPLOYEES

24 14 10 2

% OF EMPLOYEES 48% 28% 20% 4%

The above data based structure shows that 48% of employees fall within the

age of category of (20-30) years, 28% between (3040) years, 20% between

(40-50) years and only 4% fall between to (50-60) years.

We can represent the above data with the help of below visual Pie chart.

AGE GROUP

48%

28%

20%4%

20-30 30-40 40-50 50-60

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The second question concern to educational profile of the employees.

EDUCATIONALPROFILE

MATRICULATE INTERMEDIATE GRADUATE POSTGRADUA

NO. OF EMPLOYEES27 13 9 1

% OF EMPLOYEES 54% 26% 18% 2%

The above data based structure shows that 54% employees are metric passed

26% is intermediate, and 18% are graduate while only 2% are postgraduate.

They show that for VBL higher academic qualifications are not more

important than efficiency and hard work

We can represent the above data with the help of below visual Pie chart.

EDUCATIONAL PROFILE

54%

26%

18%2%

MATRICULATE INTERMEDIATE


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Third questions concern with the financial status of employees.

FINANCIALPROFILE

UPTO 5000 5000-10000 10000-15000

NO.OFEMPLOYEES

36 12 2

% OFEMPLOYEES

72% 24% 4%

The above data based structure shows that 72% of employees of VBL earn uto Rs 5000/ per months, 24% of employees earn between (5000/-10000/) per

months while only 4% of employees were having their monthly salary

between (10000/-15000).

We can represent the above data from the basis of below Pie chart.

FINANCIAL PROFILE

72%

24%

4%

UPTO 5000 5000-10000 10000-15000

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The fourth question deals with the rate with which employees fall under the

category of an absentee in VBL.

CRITERIA VERY

FREQUENTLY

FREQUENTLY RARELY NEVER

NO. OFEMPLOYEES

4 40 6

% OFEMPLOYEES

. 8% 80% 12%

The above data shows that 80% of people in VBL rarely take leave from the

company, 12% said they never take leave, 8% said they due to reasons of

illness and exhaustion frequently take leave from their work while everyone

of them remained indifferent for frequently falling under the category of an

absentee. Thus, the commitment of workers in VBL towards their job is very

high.

The below visual pie chart satisfy the above data!

CRITERIA

0% 8%

80%

12%

VERY FREQUENTLY FREQUENTLY

RARELY NEVER

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The fifth question concerns the contributing factors behind workers being absenfrom their work.

FACTORS EFFECT OFINTOXCATION

ILLNESS ANDINDISPOSITION

UNFORESEENCONTINGENTSITUATIONS

JOBDISSATISFACTIO

NO.OFEMPLOYEES

1 28 13 8

% OFEMPLOYEES

2% 56% 26% 16%

The above data base structure shows that 2% of employees are affected due t

intoxication and thus fall absent, 56% suffer from illness or injury and thus a

committed to absenteeism, 26% consider some unforeseen contingent

situations, which are beyond their control like, death in the family, marriages

etc. and thus fall absent while 16% are not satisfied with their jobs hence

dont want to report to work.

The below visual pie chart outlays the above data!

FACTORS

2%

56%26%

16%

EFFECT OF INTOXICATIONILLNESS AND INDISPOSITIONUNFORESEEN CONTINGENT SITUATIONSJOB DISSATISFACTION

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The sixth question concerns the disciplinary actions faced by the workers onbeing absent.

The above data base structure shows that 64% of employees face deduction i

salary on being absent, 2% suffer stoppage in increment, 28% got their leave

reduced, 6% have to work for extra hours for which they are not paid, while

none of the employees were charged for detention or stoppage in promotion.

We can represent the above data from the basis of below Pie chart

ACTIONS

64%2%

28%

0%

6%

DEDUCTION IN SALARYSTOPPAGEIN INCREMENTREDUCTION IN LEAVESSTOPPAGE IN PROMOTIONNON-REMUNERATIVE OVERTIME

ACTIONS DEDUCTIONIN SALARY

STOPPAGE ININCREMENT

REDUCTIONIN LEAVES

STOPPAGEIN

PROMOTION

NON-REMUNARATI

OVERTIME

NO.OFEMPLOYEES

32 1 14 0 3

% OFEMPLOYEES

64% 2% 28% 0% 6%

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The seventh question concerns about the application of leave framed by theworkers to their superiors.

CRITERIA PRIOR OF BEINGABSENT

THE NEXT DAY ON THE SAMEDAY

DO NOTINFORM

NO. OFEMPLOYEES

46 1 2 1

% OFEMPLOYEES

92% 2% 4% 2%

The above data base structure shows that 92% of employees inform their bos

prior of being absent, 2% inform the next day, 4% inform the same day from

telephone or personally, while 2% do not inform at all as they consider it

necessary.


CRITERIA

92%

2% 4% 2%

PRIOR OF BEING ABSENT THE NEXT DAY

ON THE SAME DAY DO NOT INFORM

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8.ANALYSIS OF QUESTION NO.13

The eight question concerns whether the employees want to be called as anabsentee or not?

CONDITION YES NO

NO. OF EMPLOYEES 0 50


The above data base structure shows that 100% of employees do not want to

be called as an absentee.


CONDITION

0%

100%

YES NO

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FINDINGS OF THE STUDY

Conducting a questionnaire based on the level of absenteeism and its causes at Varun

Beverages Ltd. Of both the managers and the non-managers, facts that can be derived are

Youngsters are more privileged with job options in VBL.

Managers as well as the employees of VBL are completely dedicated and

devoted towards their sphere of activities.

Both the managers and the workers consider absenteeism as an incorrigible

problem, which is found more likely to be beyond their control.

Most of the employees of VBL are educated and packed with completeknowledge of their work profile.

Both the sections consider salary as an important incentive in curing

increasing absenteeism rate and there in VBL they are facing problems with

low salary.

Non of the employees at VBL want to be called as an absentee and wants to

contribute his maximum and pay their best efforts towards increasing the

product ional activity as well as progress of Pepsi group.

Thus, all our hypothesis namely:

Absenteeism affects and reduces organizational productivity.

Logical outlook towards various problems was more prominent among regu

attendees than absentees.

Older employees have greater commitment towards their work.

Proved to be true and authentic!

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IMPRESSIONS FROM THE STUDY

There was found to be a timely well-structured and well-administered organization

culture in VBL.

The wages and salaries structure of the company was found to be strictly in

accordance with the law.

A duly and timely filing of all returns in relation to wages and salary administration

was carried out.

The awareness level among the employees regarding the various leaves and faciliti

being provided by the company were found to good.

There was a general satisfaction amongst the people with regards to their salaries in

relation to their merits.

It was found that company did not provide any educational facilities to the

employees.

There was a general satisfaction amongst people with regards to canteen and other

facilities. Also they are not completely satisfied by the welfare activities of

company.

There was found to be very low job security amongst employees.

The salary of most of the people could satisfy either their basic needs only, or their

needs as well as reserve requirements.

Most of the people employed at Pepsi felt that their colleges possessing

approximately equal qualifications and experiences working in other firms were

drawing more salary than them.

Frequent biases can be witnessed in the plant.

There is a lack of technical knowledge among the workers of the company.

A majority of the employees working at Pepsi are satisfied with the leaves they are

provided.

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SUGGESTIONS

With all the theoretical knowledge and practical experience I posses, I would like to

suggest the following-:

To increase the awareness level of employees working at Pepsi with regards

various things like number of earned leaves.

To improve upon their Grievance redresser programme should be conducted

To bring a sense of job security among the employees.

They should be provided with welfare activities in absolute terms.

Trainings and development program should be conducted more seriously.

Rules and regulations of the enterprise or that of the plant should be made

clearer to every employee working in VBL and it should be insured that they

abide to the same.

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ANNEXURES

1.Questionnaire based on the study of the level of absenteeism and its causes at VBL

(special reference to Managerial categories)

2.Questionnaire based on the study of the level of absenteeism and its causes at VB

(special reference to Non-managerial categories)

3.Comparison of the data of attendance record of 2005 with that of 2006 till the mon

of July, collected from the attendance register of VBL.

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BIBLIOGRAPHY

While undergoing the project for collecting various informations and details I have

referred the following: -

BOOKS AUTHORS PUBLICATION

Organizational Behavior STEPHEN ROBBINS PEARSON

EDUCATION-2005

Organizational Behavior FRED LUTHANS TMH-2005

Human Resource Management GARRY DESSLER

Business today magazine

SITES

www.pepsico.com

www.googlesearch.com

www.answers.com

www.yahoo.com

www.rkjgorup.com

www.pepsi.com

RECORDS

Attendance register of VBL.

Oxford dictionary.
http://www.pepsico.com/http://www.pepsico.com/http://www.googlesearch.com/http://www.googlesearch.com/http://www.answers.com/http://www.answers.com/http://www.yahoo.com/http://www.yahoo.com/http://www.rkjgorup.com/http://www.rkjgorup.com/http://www.pepsi.com/http://www.pepsi.com/http://www.pepsico.com/http://www.googlesearch.com/http://www.answers.com/http://www.yahoo.com/http://www.rkjgorup.com/http://www.pepsi.com/

pepsi project project

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