Absenteeism in KMML
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29-08-2010, 11:43 AM



Absenteeism is one of the most important wide spread obstacle to productivity. The absence may be due to personal problems, sickness, sickness of family members, or any other reason.The absenteeism can be divided as any other reason. The absenteeism can be divided as authorized and unauthorized absenteeism. In the authorized absenteeism the employee notifies the reasons at a reasonable time to the supervisors.

The absenteeism may be due to some uncontrollable events, heavy rain, or cyclone, rail or road strike, unrest reasons like violence, political issues etc. The problem of the employee absenteeism is an important problem for management because it involves heavy additional expenses.

Kerala Minerals and Metals Ltd. (KMML) is one of the leading producers of Titanium dioxide pigment in India, which are indispensable for the economic development of a nation, which gives a strong foundation for the basic structure of a society. The vital element which affects industrial relation, is absenteeism, a confrontation between conflicting interests between management and labor force. There is no industry left without this problem.

At the national level, absenteeism has become a perpetual problem of industries, there by affecting the economy of the nation. It is an endemic form confronting both production and personnel management. To the former it means idle machines, reduced output, extra mental strain to working teams and machines to get as near as possible to their usual efficiency and an increased in the cost of production. To the latter it means records, inquiries, and possible labor turnover. Absenteeism is a cancerous attitude, which must be checked, and 30% of the labor court cases arise out of these reasons. It doesnâ„¢t mean that employees should come to the factory daily without absence but they are eligible to take leave i.e. being afforded by the management. The problem of absenteeism actually stems up only when the employees take more number of leave, exceeding their limits and it ultimately results in the loss of pay and is deducted from their total salary.
The main reason behind this increased rate of absenteeism among different departments may also be due to the attitude of the managers and how the employees react to their immediate superiors. Irregular attendance has become a common phenomenon in heavy engineering industries and it is really a very hard task for the management to make out the reason underlying and also formulate efficient and effective steps so as to gain control over this economic disorder.

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Absenteeism means workers may remain absent from the regular work due to hard nature of jobs, monotony in the work and personal reasons. It is a normal and natural tendency among the factory workers.
In KMML absenteeism becomes a problem when it exceeds 10% as it disturbs the production schedules and create many problem. In order to identify the causes and extend of absenteeism proper record should be keep in every department of various causes and extend of absenteeism. The evaluator of the personal programme should classify the data relating to absenteeism and try to analysis the various causes of absenteeism.


KMML is one of the no.1 profits maintaining company in Kerala. So absenteeism affect the KMMLâ„¢s profit earning and it also affect the regular work of the company. KMML is an organization which converts the idle beach sand idle products like illmenite titanium dioxide etc which have high economic value and also which helps the country to earn more foreign exchange through exports and which earning a high rate of profit through a bulk quantity of production. The problems of absenteeism act as a hindrance to its activities. Absence of manpower directly affects the functioning of the organization. Absenteeism acts as an obstacle in the way of development. Absenteeism is a serious problem for the management because it involves heavy additional expense.
Hence the project and implimentation was carried out to study the existing empirical evidence along with the efforts to find out the means to bring down the rate of absenteeism of the workers in KMML.



The problem absenteeism is a universal fact. But its magnitude alone differs from country to country. Similarly it differs from industry to industry, occupation to occupation and also according to the make up of the work force. The problem absenteeism affects not only the industry but also the employees and their families. The absenteeism take place very often affects the production of commodities and also the supply.
It is a problem related with manpower in an industry. The machine breakdown can easily checked and corrected by a good mechanic, but in the case of manpower it canâ„¢t be possible. In the same way the law of productivity will lead to law of return of the industry and it affect both the employer and employee. Here the investigator is identify the problem faced by (KMML) due to absenteeism.


¢ To find out the effectiveness of absenteeism in KMML.

¢ To find out which factors has strong affect on absenteeism and which factor affect least.

¢ To find the remedial measures to prevent absenteeism.

¢ To identify the rate of absenteeism prevailing in the organization.

¢ Provide proper suggestion for controlling absenteeism.

¢ To know the measures taken by the company to reduce the absenteeism.

¢ To know how absenteeism affect the production of the organization.


The study was conducted to know about the absenteeism among employees in KMML .The study looks how it affect the work of KMML and how the management of the company controls the absenteeism among employees. The study also analysis the attitude of workers towards absenteeism and to access the opinion of the employees. The project and implimentation also studies whether the employees are satisfied with their attendance bonus, salary, allowance, labor facilities provided by the organization or not.


For collecting data the researcher used two methods that are the primary data collection and the secondary data collection.


The researcher used questionnaire & interview method for primary data collection.The questionnaire consists of two parts:

¢ general information or personal data
¢ Information related to study.

The information related to study consists of three parts:
(1) organizational factors
(2) personal factors
(3) other factors


Secondary dataâ„¢s are collected from the following:

¢ Information from supervisors and directors
¢ Attendance registers
¢ Journals
¢ Books
¢ Web sites
¢ Profiles and other records of the company


There are about 2500 employees in K. M. M. L, Chavara. The investigator selected 50 respondents for analyzing the data. Where 45 from personnel department employees and 2 from personnel department supervisors.


Percentage calculation is used for analyzing the data collected. The percentages of responses are then shown using tabular columns and charts. Inferences are drawn out by analyzing these charts.


The dataâ„¢s are collected directly from the respondents with the help of questionnaire method and interview schedule. Percentage analysis as well as graphical analysis is used to interpret the data collected.


Sample unit is the employees of KMML, Chavara.


 The interviewing with shift workers is very difficult.

 Some employees do not wish to disclose the truth to personal reasons.

 Time constrain is another problem.

 The topic under the study is vast and requires much information, but the information available is very limited.

 The company is refusal to disclose several material facts because they want to keep it very confidential.



In the year 1789, Fr. William Gregor (1761-1817) discovered Ilmenite at Konwet in England. He stated that the black sand contains some important metals or an ore of an important metal. But he failed to discover which metal it was. In 1875, the Hungarian scientists Martin Heenwich Kalpporth found that metal content is the rutile mineral about which Fr.William Gregor mentioned. After a number of serious investigation the metal was found to be Titanium that was named so after Titan of Greek Mythology.

The various Titanium minerals include rutile, anatase, ilmenite, leucoxene etc. Mining of ilmenite is carried out in several countries like Australia, Norway, Srilanka, Malaysia, South Africa and India.

The total reserve of Ilmenite in the world is estimated to be approximately 1722 million tonnes. The range of heavy mineral deposits is found in the eastern and western coastal strength of length 6000 km.

India is having a vast area of coastal region, which is addition to many other advantages is also richly endowed with the important mineral deposits. German chemist Schaumburg discovered the presence of the monazite along the south western coastal region of the country. This was found when his eyes accidently fell upon the black sand particles present in some of the godowns in Germany where coir is imported from this part of India was stored. He identified that the black sand particles contains monazite, which bears a group of rare elements like uranium, polonium, thorium etc. The geological survey of India then pointed out the presence of monazite in the coastal sand of Kerala. Besides Kerala the mineral deposits are also found in Tamil Nadu and Orissa. Kerala has a rich and extensive mineral deposit , which lies along the seashore between Thottappally and Neendakara. This track is popularly known by the name, ËœThe Black Gold Mine of Kerala the deposit contains Ilmenite, Zirconium etc.

Travancore Titanium products Ltd, started by His Highness Chithira Thirunal was established in 1946. This is the first manufacturing unit in India that started producing Titanium dioxide by using 1920s Sulphate process technology.

Later KMML also started producing TiO2 pigment with the help of 1920s Sulphate process technology. As when compared to the worldwide production undertaken in KMML is very little, but it has vast potential development.

Titanium is mainly used in paint industry. It is also used in case of inks, plastics, textiles, ceramics etc. Although utility of such extracted minerals and metals is unlimited, the sources are limited. At present in India, the KMML and Travancore Products Ltd (TTPL) are the only two manufacturers who produce TiO2. KMML produce Rutile grade TiO2 pigment whereas TTPL produce Anatase grade TiO2 pigment.



Kerala Minerals and Metals Ltd. is a fully owned Kerala Government enterprise. It has two factories “ Titanium Pigment Plant which is located at Sankaramangalam and the other is the Mineral Separation Plant located at Kovilthottam. KMML is the leading producer of Titanium dioxide (TiO2) pigment in India. It is an integrated TiO2 producing firm having mining, mineral separation as well as production plants of synthetic rutile and pigment. It is the only plant which produces Rutile grade pigment by the chloride route hence has monopoly all over India.

It has market leadership because of close access to one of the worldâ„¢s richest beaches. The product of KMML is reputed for high degree of gloss, tint retention capacities and ease of dispersion. The location and also because of being an integrated plant, the competitors predict that in future KMML will be a dominant factor in the pricing of TiO2 in international market.

Kerala is blessed with rich and extensive mineral deposits. This deposits stretch along the sea cost between Neendakara and Kayamkulam, a track generally known as Chavara coast. This deposits stretch up to a distance of 18 Km along the coastal strip and having a depth of 8m. The dark sands of Travancore coast are rich in mineral deposits as Monazite, Ilmenite, Rutile, Zircon etc.
The company is located at Sankaramangalam near Chavara, Kollam a coastal town 85 km north of Thiruvananthapuram. KMML is situated on the side of NH-47 to about 285 acres in area. KMML has a worldwide reputation, a socially responsible company with an eco-friendly image. The company derived strength from its dedicated manpower and customer organization.

KMML Layout Fig.


KMML has a vision to be the world class producer of mineral sand based value- added products.
1. To become the nodal agency for promoting and establishing mineral based industries in the state to ensure value addition and effective and controlled exploitation of the mineral reserves.
2. To develop adequate supply base for the services and utility for development of the mineral based industries.
3. To create more awareness about corporate social responsibilities for chemical industries in the state.
4. To become the leader in controlling green house gas emission so as to promote the concept of green earth.
1. To exploit the mineral wealth abundantly available in the coastal belt.
2. To manufacture value added product like Titanium dioxide and Titanium metal through chloride route technology.
3. Large scale generation of employment in the state.
4. Overall development of local area in particular and state in general.
4.3 Technical Collaborations
The company received a letter of indent for 48000 tones of TiO2 pigment using Chloride Route Technology in 1974. The KMML entered in to technical collaboration with three multinational corporations- M/s Kers MC Gee Chemical Corporation of USA. M/s. Benedict Corporation of America. M/s. Woodall Dukham of UK respectively for the above. The Metallurgical of Engineering Consultants India Limited (MECON) a Government of India Undertaking did the detailed engineering.
4.4 Certifications
KMML achieved ISO 9001:2000 certificate by M/S Bureau Virtues Quality International (BVQI) and holds certification of United Kingdom Accreditations Service, Dutch Council for Certification (Holland) and Register Accreditations Board (USA): KMML has won the 1997 National Award for in-house Research and Development effort in industry for technology absorption under the TAAS programme. The Kerala Productivity Council Award for high productivity standard has also been won by KMML.
4.5 Quality Systems
a) ISO 9001:2000 (Quality Policy)
KMML has been certified ISO 9001:2000 in the year 2003 as a recognition of practicing quality.

Quality Objectives
 Continual improvement in the areas of delivery.
 Encouraging innovation and technology updating.
 Training and empowering the work force.
 Better communication, cost reduction.
 Safe and clear space.
 Caring for requirements of the society.
 Compliance with documented quality system.

b) ISO 14001:2004(Environment Policy)
KMML has been certified as ISO 14001:2004 in the year 2005 as recognition of protecting and safeguarding the environment.

Environmental Objectives
1. Protecting and safeguarding the environment by strictly complying with the statutory and regulatory requirements.
2. Managing and continually improving process activities and products.
3. Controlling the impact of the products and processes on land, air and water and thus preventing pollution
4. Reducing health and safety risks.
5. Optimizing the use of resources.

c) OHSAS 18001:1999 (Occupational Health and Safety)
The manufacturer of synthetic rutile and rutile grade TiO2 are committed to protect health and safety of the employees and everybody involved in this activity of the company. Compliance with health and safety regulations and other requirements to which they subscribe.
KMML has elaborate Pollution Control system with respect to both water and air pollution. The waste (acidic) from Ilmenite Beneficiation Plant is sent to Effluent Neutralization Plant (ENP). ENP consist of a Primary Neutralization Tank (PNT) and Secondary Neutralization Tank (SNT) where it is treated with caustic soda solution. The totally neutralized slurry from the SNT is pumped to 50000m3 capacity setting pond provided with impervious clay, polythene lining at bottom side where the solids are settled. The day solution from setting pond of 25000 m3 capacity where the balance solids are allowed to settle. The clean water from the polishing pond meeting all specification stipulated by Pollution Control Board authorities is pumped in Arabian Sea.

All gases from Chlorination, Oxidation, Ilmenite Beneficiation Plant and Acid Regeneration Plant are scrubbed water or line or caustic solution to absorb the toxic gases diluted with enough fresh air and only let out to the atmosphere through tall slacks.
4.7 Future Plan
The company is studying the possibility of the productivity of more economic Titanium metal sheets. Recently, researchers established that the Aeronautic Industry could use Titanium metal instead of Aluminium alloy coverings. The company is in the process of expansion and the target expected is approximately as shown below:-

1. A new Mineral Separation Plan of 2 lakhs tones per year limonite
2. A new Synthetic Rutile Plant of capacity 1.3 lakh tons per year
3. A new 100 tons per day Oxygen Plant
4. Capacity enhancement of TiO2 pigment plant 1 lakh tons per year
5. Titanium sponge plant.

Government of Kerala has cleared KMMLâ„¢S proposal for the process of Titanium Tetra chloride project and implimentation named titanium sponge unit. The sponge thus produced will later on converted to Titanium INGOT (metallic form). This strategic metal is widely used in medical, chemical and pharmaceutical industries, laptop computers, mobile phones and sports goods. Light weight, higher strength and resistance to corrosion are some of its notable properties. In the domestic and international markets, its increased civilian use has created an excellent demand or availability situation. Only a few countries such as Japan, Russia, USA, UK, China and Germany have the technology available with leading scientific institutions for the process of Titanium sponge in its commercial venture.

KMML have monopoly in Titanium Dioxide (TiO2) pigment industry. Titanium Tetra Chloride (synonym-Tickle) is produced as an intermediary product in the production of rutile grade titanium dioxide pigment. Titanium Tetra Chloride is extensively used in the manufacture of Titanium dioxide pigment, Titanium sponge or metal.

At present KMML produces six grades of Titanium Dioxide. They are:

1) Kemox RC-800:- It is recommended for printing inks, high gloss coating, industrial coating, low abrasivity pigment for letterpress gravure polyamides and exterior application where maximum chalk resistance is not required.
2) Kemox RC-800 PG:- It finds application in plastic requiring a blue white high dispersion TiO2. Other areas of application are powder coating, polyethylene films and vinyl sheet goods. It is used in most other common plastic or rubber floor like applications.
3) Kemox Rc-822 :- It is recommended for interior and exterior enamels and lacquers for industrial and architectural purpose.
4) Kemox RC“813:- It can be used in both interior and exterior low gloss and flat paints and coating- both solvent and water based. It finds application in interior flat wall paints, exterior low gloss or flat house paints, low gloss maintenance pints, low gloss or flat chemical coating etc. Kemox RC-813 can be described as a universal pigment for all coatings formulated at higher percentage pigment volume concentrations.
5) Kemox RC-802:- It is recommended for both interior and exterior applications. This is also recommended for architectural and industrial paints-both solvent and water based.
6) Kemox RC-808:- It is recommended for automotive, industrial and architectural finishes. It is also recommended for coil coating, radiation cured finishes; emulsion paint systems powder coating, water borne coating and printing inks. It can also be used for letterpress gravure, polyamides and other inks where low abrasive pigments are required.

Like any other public sector undertaking, KMML has separate departments and separate executive heads for each department. Each department specializes in its own area of operation. The various departments in KMML are:-

Personnel Department is concerned with the peopleâ„¢s dimension in organization. The sincerity and dedication of the employees in KMML is a major success factor. With a full-fledged Human Resource department, regular training and refresher courses are part of the company life. Apart from skill betterment, these courses inculcate quality consciousness, safety and awareness that contribute to personality development. There are around 1777 employees in the company. Joint General Manager (Personnel & Administration) is the head of the department, and he is assisted by manager (welfare) and manager (HRD) and chief medical officer and a Legal officer and other staffs.

1.1 Functions
The major functions of Personnel department are as follows:
1) Recruitment & Selection
¢ Recruitment
The company adopts different methods of recruitment. For this KMML gives advertisements in Malayalam and English news papers, published in Kerala and other states of South India.
¢ Procedure for Recruitment
 For the vacancy in female category, it is notified to the concerned employment exchange.
 In the case of staff category selection, it is based on public service commission.
 For recruitment in managerial and professional posts, applications received with respect to the advertisements in the news papers are considered. Details furnished by Technical Employees Exchange are also considered.
 Those people in and around the company who were evacuated for the expansion purpose of the company will also be given job in the company.
 Applications received with respect to the advertisements in news papers and details furnished by technical employees are also considered.
 Those people in and around, the company who were interested for the expansion purpose of the company will also be given job in the company.
 Recruitment to vacancies is done by a committee set by the board of Directors with not less than three members and at least one of them being a Government representative.
¢ Sources of Recruitment
 Direct Recruitment
 Kerala Public Service Commission
 Technical Employment Exchange
 Through advertisement in newspapers
 Notification in the company notice board
 District Employment Exchange
 Related Instruction centers
 Company™s paid Apprentices
 Land acquired people and Evictees
 Internal Recruitment

¢ Selection
Various tools and techniques are adopted by the firm for the selection of candidates for various categories of post. Application blanks are employed for extracting the detailed bio-data of candidates. The company calls the eligible candidates for interview. Practical and written test are conducted for selection to technical post. For the post of clerical staff, written test and interview are conducted provided the number of candidate are very high, it is compulsory that for all vacancies there must be medical examination to check the physical fitness of candidates. Being a Public Sector Undertaking, the selection of candidates is subject to communal reservation policy of the State Government .The following are various steps involved in the selection process:

 Receipt and scrutiny of applications
 Preliminary interview
 Selection test
 Checking the reference
 Employment interview
 Medical examination
 Placement
 Orientation

2. Training and Development
KMML gives a lot of importance for its human resources. The company believes that the success depends upon providing necessary training to the employees. Training is provided to each and every employee in the organization. The full responsibility of the training and development program at KMML rests on the shoulder of Personnel and Administration Department. The department head identify the training needs and coordinate training activities. As per ISO requirement, annual training schedule has be prepared based on individual training needs of the employees identified by the supervision in a specified format.
KMML seeks training needs identification in the specified from all functions responsible to provide such identification on annual basis before 15 March every year for preparation of annual training plan. In case a training need for individual crops up suddenly, the concerned department heads prepares the training needs identification form and forward it to administrative officer who plans for the training. While identifying training needs, the respective department or selection identifying training needs of personal considerations.
a) Members present positions
b) Training already acquired
c) New skills to be imparted
d) Qualification required
e) Motivation or communication required
The details of qualification, experience and training undergone by the individual employee are maintained in the personal bio-data record. The annual training plan is authorized by the Managing Director and external training proposals are authorized by the Managing Director and technicians.

3. Promotion
Promotion is the movement of an employee from a lower position to another position with a better pay, and responsibility. The employees are promoted once in five years.

4. Transfer
There is only inter- departmental transfer in the company.

5.Retirement And Superannuation
KMML being a Kerala Government undertaking company, the retirement or superannuation is fixed at the age of 58.

6.Labor Remuneration
The remuneration of the employee includes salaries and wages.
Methods of wage payment:
In KMML two important wage payment systems are followed
They are:-

1. Time rate system: the time may be an hour, a week, or a month. Total amount of wages is calculated by multiplying time rate with the time spent by each worker on the job.
2. Piece rate system: in this method the workers are paid on the basis of the number of units produced by them. Wages are payable by multiplying the piece rate with the number of units produced.
In addition to this the employees get certain other benefits. These benefits are called Fringe benefits /wage extras. It includes medical facilities, leave with pay,
Traveling concessions, festival allowances, service awards, free meals, recreational facilities, retirement benefits such as pension, gratuity or annuity payment etc. Many other non monetary benefits are also allowed to the employees of the KMML based on their performance. E.g.: job encouragement, providing recognition for accomplishment, providing involvement /participation in work etc
1.2 Procedure for wage payment
The wage period of the workers in the Titanium pigment unit is fixed as 21st of the present month to the 20th of succeeding month. For the all other employees the period is fixed from the 1st to the last day of the month. The remuneration is calculated by the department and is paid to on the first day of every month. If the first day is on Sunday or any other holiday it will be paid on the proceeding working day.
1.3 Trade Union
The trade unions in KMML are:-
- RSP (B)
The middle level officers of KMML have two associations. They are:-
- KMML Officers Association
- KMML Officers Federation

1.4 Manpower Planning in KMML
The primary objective is ensure the availability of the required skill and avoids or minimizes redundancies. In order to achieve this objective the management should anticipate manpower needs, plan job requirements and description and should explore the various sources of manpower supply.
The manpower requirements in KMML has been estimated based on the Engineering Consultants (India) Limited. The company has now decided to review manpower requirements and entrusted Kerala State Productivity Council, Kalamassery to undertake the work study and job evaluation so as to enable the company to arrive at the required manpower for their plant capacity. The absence of proper manpower planning in the company had led to the excess employment of the work force. According to the executives, many external sources of the manpower are utilized by KMML in filling the position created from time to time. There is a detailed guideline for the company for filling position through promotion.

1.5 Workmen Classification:
1) Permanent Employees: - There are about 219 officers, 568 skilled and 427 unskilled workers in the TiO2 pigment plant as permanent employees, and 29 officers, 44 skilled, and 490 unskilled workers in Mineral Separation Plant.
2) Employees engaged on Contract Basis- These employees work on contract for a limited period of time says one year or six months on specific terms and condition fixed by the company. There are mainly engaged through Employment Exchanges. They have no preference for future employment in the company.
3) Temporary or Seasonal Worker: - These workers are employed when the work load is more. On certain season due to the increase in demand, more work forces are needed to meet the production. In such cases temporary workers are engaged. The services of such employees are dispensed with as and when the need is satisfied.
4) Casual Labor: - Casual laborers are employed from people who lost their land due to acquisition by KMML they are engaged first as Casual workers and then absorbed as permanent employee when vacancy arises.
5) Apprentice: - Apprentices work for a period of one year as part of their training programme as per Apprenticeship Act.
1.6 Working Hours
The daily working of the company is on shift basis. There are three shifts for plant and general shift for administration. The timing is as follows:-
- A shift-6 am to 2 p.m
- B Shift-2 p.m to 10 p.m
- C Shift-10 p.m to 6 a.m
- General-9 a.m to 5 p.m

1.7 Welfare Activities
1) Bonus-Employees who are drawing more than Rs.3500/- per month are eligible for bonus almost all the employees working here are eligible for bonus irrespective of permanent or casual worker.
2) Provident fund- Introduced in 1956 and administered by a trust. G Here both the employer and the employee have to continue 12% each of the basic pay, where eight and one third percent is transferred to pension fund.
3) Gratuity-Minimum amount payable as gratuity is Rs. 35000. Employees having continuous service of the years are eligible for gratuity calculated as below.
Gratuity = Basic pay Dearness Allowance* 15*Number of years/26
4) Employees State Insurance-All the employees working here come under employees State Insurance Scheme.

1.8 Labor Welfare Activities
The allowances provided by the company for its employees are as follows:
1) House Rent Allowances: - Workmen of the company shall be entitled to house rent allowance @ 10% of the basic pay effective from 1.1.1997.
2) Conveyance Allowances: - Up to Rs 175 is given as conveyance allowance as per Memorandum of Settlement dated8-10-2003.
3) Shift Allowances: - Employees working in A, B and C Shift are paid as Rs 15 for A& B shift while Rs.30 for C shifts as allowances.
4) Washing Allowances: Washing Allowance is Rs80 per month work for which at least five days attendance is necessary.
5) Cash Handling Allowances: Rs150 per month is paid as cash handling allowance to employees who look after the duties of the cashier.
6) Milk Allowances: Workers having 15 days of attendance are eligible for milk allowance amounting up to Rs150 per month.
7) Stitching Allowances: Employees are given the stitching allowance as follows:-
Uniform for gents-Rs.250
Blouse and apron-Rs.50
Over coat-Rs.100
8) Chlorine Tanker Duty Allowances: Rs 40 per month is paid as these allowances.
9) Acting Allowances- Operators grades A, B and C is paid Rs.25, Rs.20, and Rs15 respectively.
10) Education Allowances: Education Allowances are granted for up to two children. Up to SSLC education allowance of Rs100 per month is given to each child. Course, which demand minimum qualification of S.S.L.C other than plus two, are given Rs125 per month each. For Plus two Rs150 per month each, for degree courses Rs175 per month each, and for professional courses Rs200 per month each.
11) Attendance Bonus:- Employees who attain attendance of:
1) 80 to 90% are given a bonus of Rs.175/-
2) Greater than 90% are given a bonus of Rs200/-
3)100% are given two day wages (basic pay and DA)
12) Housing Loan: - An amount of Rs. 3 lakhs can be given to an employee limiting the eligible interest rate to the minimum rate prevailing with housing financial institutions approved by the company from time to time. The said subsidy shall be available for one house during the entire service of an employee subject to the order prevailing rules for payment of housing subsidies.
13) Vehicle Loan: - Vehicle loan shall be eligible to all workmen at the rate of 5% limiting the total eligible amount to Rs1.5 laks.

The other benefits include:-
 Retirement Benefits
 Death Relief Fund
 Medical Facility
 Financial Aid to prolonged Treatment
 Subsidized Canteen Facility
 Interest Subsidy for Housing Loan
 Transportation Facility
 Recreation Club
1.9 Personal Record
KMML maintains a personnel record for its employees. It is a file consisting of all the details regarding the employee and all the data relevant to him
1.10 Recording of the Attendance
The electronic punching system is adopted in KMML. Every employee had to punch the card on entering the work.
1.11Time Keeping and Time Booking
A separate wing is concerned with time keeping and time booking in the company. With the help of the punch card this section keeps an attendance register. Main function of this section is attendance recording of lease wage, absence, late coming, early going, lost hours, overtime, shift allowance, loosed wages due to absence, wages due to work holidays etc.

KMML have monopoly in Titanium Dioxide (TiO2) pigment industry. KMML is a public limited company that stands as a leader in production of TiO2. The company has a large number of customers from all over the world and out side. The marketing department is engaged in selling of the companyâ„¢s product. There is no separate department for sales and marketing management also performs these functions. The marketing section keeps detailed report about customersâ„¢ product, product group control, dispatch and payment. The Marketing department is headed by Deputy General Manager who is assisted by Manager (Marketing) and Deputy Manager and other officers and assistants.
Products of KMML always maintain very high standard perfection, achieving technical excellence in every phase of production to offer a wide range of products for quality conscious customers. At KMML, one factor comes before everything else is customers and KMML go out of their way to ensure customers satisfaction. A team of motivated marketing experts, who make it their business to find out the firmâ„¢s views, highlights customerâ„¢s consciousness. Maintaining close contacts, they are perfectly aware of customerâ„¢s needs and are instrumental in development of new products at price and offering.

™¦ Main Objectives
1) To find out the general impression of KMML products in the titanium dioxide marketing of India.
2) To ascertain whether demand exists in the Indian market. If we under take the proposed expansion of 6000 MT.
3) Equivalent grade needed in market.

Finance is the lifeblood of every business. This is one of the most important departments. KMML has a well organized finance department. The Finance department is headed by Deputy General Manager (Finance) who is assisted by Manager, Deputy Managers, accounts officers and other officers.

3.1 Capital structure of KMML
KMML has an authorized capital of 3500 lakhs. The issued, subscribed and paid up capital comes to 3093.27 lakhs. Equity is of value Rs 100 each. Today KMML is a Zero debt company making profit continuously for
3.2Functions of Accounting Section or Finance Department
The company maintains a clear and perfect accounting system. The main activity of the Finance Department is Working Capital Management. Preparation of Fund statement, cash Flow Statement, Balance Sheet, Profit and Loss Account etc are also the activities of Finance Department. Secretarial work relating to Board comes under the review of the Finance Department. Most of the activities carried out by the Finance Department are pertaining to long term and short term requirements of the operation, closing purchase bill, maintaining the account of contractors, subcontractors, income tax deduction, salary discrepancy, dealing with the financial institutions with imports and exports are also the functions of the Financial Department.
The Functions are:-
1) Recording And Analyzing of purchases.
2) Salary Section And Pay Division
3) Sales and Revenue Accounting
4) Cash and Bank Transactions
5) Costing
6) Calculation of Depreciation
3.3 Auditing
Auditors are appointed by the Government for a period of one Year. There exist an external audit and internal audit.
Internal Audit: - These are part of the organization. There is an internal auditing sector. They are in the charge of periodical audit
External Audit: - They are as follows:-
 Statutory Audit
 Account General™s Audit
 Inspection Audit
 Sales Tax Audit
 Income Tax Audit
 Cost Audit
KMML always maintain high standard of perfection by achieving technical excellence in every phase of production. Catering to strict guideline, KMML offers a wide range of products for quality conscious customers. Their products go in to the manufacture of variety of products used in every day life. Paint material, facial creams, tablets, newsprint, rubber products, cosmetics and printing inks all contain TiO2.
This department undertakes activities and decision regarding the production work. Deputy General Manager (production and maintenance) controls the activities of the department. He is assisted by Process Engineer, Assistant Engineers and other Workmen. Production of TiO2 is carried out in lot wise with specific lot number. Each lot contain 15 MT of TiO2, samples are collected from production at specific intervals and examined thoroughly in the laboratory or the company. If any defect is identified, then the lot is considered as inferior quality.
All functions relating to purchase and storage of materials for the company is carried out by this department. This department is headed by the Deputy General Manager (materials) and he is assisted by manager (purchase & Stores), purchasing officers, sales officers and other staffs. Purchase is one such department if functioning properly can bring about profit to the organization by carefully monitoring its purchase activity, i.e. maintenance of well developed vendor list and through inventory control. There is around 27000 items of raw materials in KMML. The functions of material department can be grouped in to three: -
1) Purchase
2) Storage
3) Inventory control
1) Purchase Section
Purchase can be broadly classified as
¢ Purchase made in India, i.e., indigenous purchase
¢ Purchase made from foreign countries
¢ Cash purchase i.e., up to Rs2000/-with the permission of unit head
¢ Local purchase. i.e., up to Rs25000/-this arises in the case of emergencies and purchase can be made from approved.
2) Store Section
Store section deals with: -
1) Receiving the materials
2) Inspection of materials
3) Storage and presentation
4) Proper classification and codification of materials
5) Materials handling
6) Issue and dispatch
7) Stock records
8) Store accounting
9) Stock taking
3) Inventory Control Section
Proper inventory management is necessary to provide and maintain good customer service. It enables smooth flow of goods through the production process. It is important as it provides protection against the Uncertainties of demand and supply and also performing the various production operations economically and independently.
Materials purchased for month is analyzed and an issue price is fixed for the month. The company follows weighted average method. The inventory control system of KMML is very efficient and it has helped the company to increase profitability by piling up less funds in stock and also stock control is being done whereby goods above lead time stock level are sold to metallic scrap trading organization (MSTC). Currently through this process goods bought before 2000 and not used till 2008 March were identified and it amounted to around 4.8 crore rupees worth, of this goods worth 1.16 crore rupees was certified as not required and are ready to be sold.
Fire and safety is a main department of KMML. It manages the process of giving security to the employees by giving successful training and giving license to employees and machines. The Deputy General Manager is the head and he is assisted by Assistant general Manager Fire officer, Safety officer, safety inspector and other fireman. The sections under fire and safety are: -
1. Employee details managing: - In this section the details of the employees are identified by separate employee codes. Here in employee code, employee name, designation, date of birth, date of joining and qualifications are recorded. These section supplies the details of employee to another section.

2. Employee training: - All the employees are trained for the successful running up of KMML. The details of training is recorded when they gives each training. Employee code, serial number, date of training, course and remark are recorded. When accidents occur, the details of the training given to the employee are produced.

3. Employee accident: - This section handles the details of accident occurs to the employee. Employee code, serial number, accident data, description of accident, the body part which was injured, unsafe condition or unsafe act, whether lost time accident or not lost time accident, the days lost are recorded.

4. Expo- Petro-License: - This section stores the details of the license provided to each machines. A different agency provides this license. It must be renewed after the validity is lost. This section stores the serial number, item name, license number, tag number, last test, test type etc.

5. Lifting machines and tackles: - There are different lifting machines in different location. These machines have to be tested and if any defect it is stored. The machine is given a hoist no., location, last test, tested by defect, next test and remarks are stored.
6. Pressure vessel: - This section handles different machines, which handle the substance of high pressure such as LPG, CHLORINE etc. It is very difficult to handle these types of machines. It needs high security and to confirm whether the equipment is running smoothly. It contains serial no., section, pressure vessel, last test etc.

7. Mock-drill: - This section contains trained person to maintain the security. If any accident occurs, the help of this person is supplied and reduces the complexity of accident. An accident controller is the head of this section.

The maintenance department of KMML can be grouped into Electrical, Mechanical and Instrumentation section. The Joint General Manager (maintenance) is the top authority and he is assisted by AGM (Mechanical, Electrical, and Instrumentation) and other other Managers and Engineers.
The main objectives of the maintenance department are as follows
 To carry out the maintenance work in the plant.
 To carry out preventive measures to avoid break down of machines.
Assistant General Manager (technical) is the head of this wing who is assisted by manager (Technical and Lab) and also deputy managers for both and scientific officers and statisticians. This wing functions as a third agency to the production and maintenance department. The technical wing takes charge to research and development, Quality control, Laboratory and technical services.
Joint General Manager (Project) is the head of the wing and he is assisted by Manager, Deputy Manager and manager an Engineer. This wing is engaged in the expansion program of the company. They are engaged in the building up of new products etc. They also decide up on the future plans of the company.

Some major project and implimentations on which they are working upon include: -
1. A new MS plant of 2 lacks tones illmenite capacity per year
2. A new synthetic rutile plant of capacity 1.3 lacks
3. A new 100 tone per day Oxygen plant
4. Capacity enhancement of TiO2 plant in to one lacks tones per year.

Data processing department mainly deals with processing of information to be used by the employees of KMML. Thus, it mainly involves Management Information System.
Management Information System (MIS) is under the supervision of the data processing department. Deputy General Manager (EDP) is the top authority of the department who is assisted by manager, software engineers and an assistant. There are 70 personal computers in the company. 53 personal computers in the company are in local area network. Company is having 10 Mega Bytes personal computers with copper cabling. It has four signals: -

1. Stores
2. Plant technical service
3. Ilmenite Beneficiation plant/Acid regeneration plant
4. Pigment processing unit/laboratory.

The MIS used in KMML is an in- house developed software. It started functioning from1999 December. There is a direct connection from IBM server to Purchase, Finance, Marketing and Personnel department. The entire Information Technology activities are monitored by Electronic Data Processing (EDP) section. KMML is using Oracle Related Database management system at backend and Power Builder as front-end. An integrated online application module developed in power builder is being used among finance, purchase, stores, marketing, personnel and production departments. The database is fed to the system by each department, which is required to generate various Management Information Systems to the management. A strict security control is incorporated in the operations of various modules.

Starting with the core departments now it has been extended to an Enterprise Resource Module (ERP) with integration from other departments as well. It also performs stock analysis like ABC analysis, expenditure analysis (variable and fixed cost analysis), sales (segment wise analysis report), comparison (segment wise, product wise).


KMML maintains a fully equipped research and Development facility in the area of Pigment and paint technology with a view to establish world- class products and competitiveness. This excellent facility undertakes research, development and product improvement. Scientists and Engineers continuously pursue innovative technologies in the area of TiO2 pigment, quality improvement and other allied products. The technical and sales service wing extends all helps to customer in the field of applications and users.
KMMLâ„¢s research and development has achieved following tasks in recent times: -
1. Developed new grade RC-802 with excellent balancing properties of glass and weather ability.
2. Successfully developed an improved process of oxidation plant.
3. Developed know how to convert iron oxide waste to bricks used for construction.
4. Developed grade RC- 808, special grade for automotive coating.

The following works are on progress: -
1. Developing a grade suited for thin film plastic application.
2. Management of solid effluent




The modern set up of the industry has become complex and calls for the service of the export to devote to the particular aspect of the working of an undertaking, Because its prosperity and profit depends on the stable production, low cost of production, efficient and regular labor force place an important role in the regular and efficient production of industry. A noticeable problem in the industrial life in India is absenteeism. experience has shown as all that more than 3/7 of Mondays are lost on account of absenteeism, industrial disputes other happening. The absenteeism of the labors from an industry is more dangerous to its economy than any factor. It adversely affect the employees and employers due to loss of wage and loss of production respectively. The nation is also affected by absenteeism. It is one of the chronic problems faced by the Indian industries. Excess absenteeism can result in significant reduction the production and ultimately put the undertaking into a loss. It affect the working life and its quality. Absenteeism is the failure to report work or remaining absent without prior permission or sanction from the concerned authorities. It is an absence without taking leave. Absenteeism among workers is universally acknowledged. No enterprise, whatsoever,is free from this chronic disease and just like a cancer on a human body; it spreads, if no action is take against it, and eventually put the firm in a loss. Absenteeism is an index of sickness and fatigue. It also indicates that the employees are not interested in the job.Sickness, accidents and family responsibilities are some of the reasons for absenteeism. Some times, the weather conditions also influence the workers to stay away from their duties. Pleasure seekers, status seekers are the employees who remain absent from their work for sheer enjoyment.


Absenteeism refers to the absence of an employee from work when he is scheduled to be at work. It refers to the loss of main shifts on account of the absence of a percentage of laborers
scheduled to be at work. Absenteeism is the difference between the numbers actually present.
Absence of workers may be authorided, willful or caused by reasons beyond ones control. There is another view that authorized absence for work need not be referred to as absenteeism in a strict sense.

There is a formula, which attempts to explain the term absenteeism.

Absenteeism rate = persons not working due to Unauthorized absence x 100
Man shift actually worked


Absenteeism refers to the frequency of absence of a job holder from the work place.

According to the labor Bureau, Absenteeism is the total man shift lost because absence as a percentage of total number of man shift scheduled to work.

According to Websterâ„¢s Dictionary, Absenteeism is the practice or habit of being an absentee and an Ëœabsenteeâ„¢is one who habitually stay away.

The official definitions of absenteeism on the basis of which statistics in our country are complied and reported are as follows :

Absenteeism is the failure of a worker to report for work when he is scheduled to work. A worker is to be considered as scheduled to work when the employer has work for him and the worker is answer of it.A worker is to be treated as absence for purpose of these absenteeism statistics even when he doesnâ„¢t turn up for work after, changing prior permission. Any worker who reports for duty even for a part of the day or shifts should not be counted among absentees. The statistics relates to only voluntary absenteeism defined as absence due to reasons which are personal to the individual concerned. As such, absence of a worker on account of strike or lockout or layoff, i.e,involuntary absence is not considered as absence for purpose of these absenteeism statistics. Indian Labor Journal, July, 1969.
According to Watkins and Dodd:

Absenteeism refers to the workerâ„¢s absence from his regular task, no matter what the case is.


Absenteeism is a universal fact. But its magnitude alone differs from country to country, industry to industry, occupation to occupation and also according to the make up of the work force. On the whole, the rate of absenteeism ranges from 1 to 30%.Any thing above this rate to be abnormal.

In India and Western countries various studies have be conducted regarding the problem absenteeism. The striking points of such studies reveal the following facts.

In Industrially advanced western nations, unmarried men fail to return to work on Mondays due to their habits of spending Sundays night for recreations and return to bed late night. As a result absenteeism is highest on Mondays and decreases accordingly.

Absenteeism is pronounced more among youngsters than older employees due to carelessness and casualness. The absenteeism is more in case of large concerns than that of small concerns.

¢ Deliberate and Willful absenteeism :
It means doesnâ„¢t come to work because he just feels like a day off, no other reasons. That is a n employee is always absent on day after pay day or always absents on Mondays or Fridays. It is a very series offence and should remember that employee must justify the absence.

¢ Absent from over time :
This is happen when an employee become absent from overtime when there is an agreement for doing overtime.
The absence where the employee does not turn up for work at all can sometimes be the most difficult type of absenteeism to handle simply because there may be lots of reasons for this and will have to shift out the truth from the absentees before deciding what action to take.

The absent doesnâ„¢t only mean not being at work but it also mean:-
 Arriving late, because of poor time keeping.
 Leaving early.
 Extended tea, lunch breaks.
 Attending to private business during working hours.
 Extended toilet breaks.
 Feigned illness “ unnecessarily visits the doctors.
 Under length of the time in selecting or carrying duty of employee is
 Come at work.
 Be on time.

 Do maintain a full record of each and every absence.
 Do monitor absenteeism at regular intervals and act on the results.
 Do distinguish between long and short term absenteeism.
 Make aware the frequent absentees.
 Providing counseling for both employee and family.
 Medical treatment for drug addicted absentees.
 Do punishment for absentees.
 Maintain good and healthy relationship in the organization.

The causes of absenteeism in general are as variegated and numerous. The absenteeism is purely related with the industry and very important with the human elements. That importance of the human elements in an organization is so great that any problem relating to man power leads to low productivity.
They can be classified as:-

1) Personal factors
Personal factors such as age, marital status, health, education, hobbies etc.
2) Work environment
This deals with working conditions, relation with co-workers and relation with supervisors, and attitude towards to the job.
3) Home conditions
Home conditions deals with the distance from residence to the company, mode of conveyance, family size, problems and responsibilities.
4) Economic factors
This deals with the economic problems and subsidiary economic interest of the employee.
5) Regional factors
Regional factors deal with the geographical conditions, political conditions, legalizations etc.
6) Organizational factors
Organizational factors such as size of the company, assigned workload, nature of work, shifts arrangements, management attitudes, personal policies, supervisory qualities, leave facilities, fringe and medical facilities etc.
7) Social factors
Social factors such as religion, community obligations, customs, festivals ,marriage, death, funerals etc.


The rate of absenteeism can be calculated by the following formula:-

= Man shift (day) lost due to absence x 100
Man shift (days) scheduled to work

Man shift scheduled to work = Average strength of workers x No. of man days.
Man shift loss = Man shift scheduled to work - The actual no. of present days.


(A) The study conducted by S.K. Bhatia, and reported in man power journal, July “ Sep. Vol. XV revealed that personal factors are dominant in causing absenteeism. He analyses the habitual absentees and found these habitual absentees were experiencing some difficulties in adjusting themselves to domestic and social environments.

(B) The above analysis supported another research by S.K. Bhatia in a large industrial organization employing over 19000 employees reported in Financial Express, New Delhi on 20 “ 06 “ 1980. According to it 90 % of the absenteeism is due to the personal factors such as family, educational, personality, marital, social etc.

© According to the report and study conducted by Indian Journal of Social work in October 1980 by studying 19000 employees found out 621 habitual absentees. These habitual absentees are spread over in different departments. The problem of absenteeism is mostly person centered. Then the researcher applied one to one counseling and group counseling to reduce absenteeism.

(D) The study conducted and published by Indian Journal of Industrial relations in October 1980. Vol. reported that 5% of the employees had contributed to about half of the total extra ordinary leave without wages taken by all the employees in industries. These five percent had availed 505 of the total extra ordinary leave spells of employees. They (numbering 396 out of 8000 employees) were found to be absenting themselves from work once in every three days.

(E) In the year 1991 Mr. Ram B.A submitted to Dr. K.J Karuppia his studies about absenteeism in Choian Road Ways Corporation Ltd, Kumbakonam.He find out the following from the study.

For reducing the absenteeism the management should develop the workers education, strict on leave rules, transport facilities, safety measures, well defined shift system, cordial relation between supervisors and workers improve communication and prompt redressel of grievances.


6.1 Absenteeism due to unhealthy working condition

In KMML most of the workers are absent because of their health problem. Unhealthy working condition means the intolerable and irritating working conditions exists in factories. Heat & moisture, noise & vibration in the factory, bad lighting, dust, fumes, & overcrowding etc can leads to absenteeism

Table 6.1
Opinion No of respondents Percentage (%)

Agree 32 68

Disagree 13 28

Undecided 2 4

Total 47 100

(Source: Primary Data)

The working condition has a great effect on absenteeism. Here the investigator identified that majority of the respondent said that absenteeism is due to unhealthy working condition because employees are not satisfied with the organizations working atmosphere.
Majority (i.e., 68%) of employeeâ„¢s opinion that absenteeism is cause due to improper working condition of the organization, where as minority saying that absenteeism is causes due to their personal interest.

Graphical representation of absenteeism due to unhealthy working condition

Figure 6.1

6.2 Absenteeism due to inadequate welfare facilities
Absence can also occur due to the inadequate welfare facilities available to workers. Welfare activities include bonus, provident fund, gratuity, accident benefits etc.

Table 6.2

Opinion No of respondents Percentage (%)

Agree 33 70

Disagree 5 11

Undecided 9 19

Total 47 100

Source: (Primary Data)

Here the investigator identified that majority of the respondents said that absenteeism is due to inadequate welfare facilities .That is the employees are not satisfied with the welfare programmes of the organization.
Majority (i.e.70%) of employees are saying that absenteeism is cause due to improper welfare facilities conducted by the organization, where as minority saying that absent is cause due to their personal interest.

Graphical representation of absenteeism due to inadequate welfare facilities

Figure 6.2

6.3 Shift pattern is a reason for absenteeism
Shift work is an employment practice designed to make use 24 hours of the clock, rather than a standard working day. The term shift work includes both long term night shifts work schedules in which employees change or rotate shifts.

Table 6.3

Opinion No of respondents Percentage (%)

Agree 24 51

Disagree 14 30

Undecided 9 19

Total 47 100

Source: (primary Data)

Shift pattern has a great effect on absenteeism. Here the investigator identified that majority of the respondents were dissatisfied with the shift patterns followed by the organization.

Absolutely majority (i.e.51 %) of the employees agree that absenteeism is cause due to the unsatisfied shift arrangements of the organization, where as minority says that there is nothing special about their shift patterns.

Graphical representation of Shift pattern is the reason for absenteeism

Figure 6.3

6.4 Absenteeism due to industrial fatigue
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