Human and physical resources


Industrial progress is an outcome of mainly of the human and physical resources of the production. Sufficient progress has been made in the sphere of physical input such as capital and technology. Despite rapid development in technology the desired level of economic development and social welfare are yet to be achieved! One of the main causes of failure has been underutilization of human resources in the country. Unfortunately the rate of progress in our country has not been commensurate with our potential on account of lack of appropriate work culture. Employer and employed are still looked upon as adversaries rather than as partners. In the joined endeavors frequent strikes, lockouts and 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 understanding of the theoretical concept and their practical application by being placed in the actual work environment

  • To understand their relevance and find the extent to which they are actually being applied in the work situation;
  • To have an in-depth knowledge of the function of the organization through actual work experience.


The project apart from a brief overall review of the organization studies the level of absenteeism rate in the organization, referring the general staff of both the managerial and non-managerial level of employees. The main issue of concern was related with the employee’s presence rate and how often they find themselves failing in reporting to work, at the same time analyzing different causes and other incentives regarding salaries and welfare packages offered to them as well as judging the satisfaction level with their compensation package, which surely creates a reason for determining their dedication towards the work.

This project has also been undertaken to gather the details of employees turn over as well as examining the general trend within an organization enabling to find an exact 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 in VBL.


A hypothesis is a proposition, condition or principle which is assumed, perhaps without belief, in order to draw logical consequences by this method to test its accord with facts which are known or may be determined.

When a researcher observes knows facts and takes up a problem for analysis, he first has to start somewhere and this point of start is the hypothesis. In other words, one has to proceed to formulate tentative solution as soon as the problem to be tackled is finalized. These proposed solutions or explanations constitute the hypothesis which the researcher proceeds to test on the basis of fact already known or that can be made known. Even, collection of facts merely for the sake of collecting them will yield no fruits; to be fruitful, facts need to be collected such that they are for or against some point of view or proposition. Such a point of view or proposition is the hypothesis. The tentative explanations or solutions are suggested to researcher by something in the subject matter and by our previous experience.

Hypothesis testing means to know whether the hypothesis based on the data collected is valid or not. The main object of hypothesis testing is whether to accept the null hypothesis. Procedure for hypothesis testing deals with steps on the basis of which a hypothesis is either rejected or accepted.

Thus, this study has been primarily carried out to analyse and judge the effects and implications of absenteeism among the employees of a bottling plant, both on the 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 prominent 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 that employees normally absents themselves from work due to certain unconditional and conditional reasons which affects organizational productivity.


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” it was found that 50% of absenteeism could be controlled through attending employees physical and emotional needs.


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 is 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 experience 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.


It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself. Its services touch different aspects of commercial and civilian domains like those of Bottling, Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on today can laid claim to expertise and leadership in the fields of education, food and beverages.

The business of the company was started in 1991 with a tie-up with Pepsi Foods Limited to manufacture and market Pepsi brand of beverages in geographically pre-defined territories in which brand and technical support was provided by the Principals viz., Pepsi Foods 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 International [formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise rights for Northern & Eastern India. It has total 46 Pizza Hut Restaurants & 1 KFC Restaurant under its company.

It diversified into education by opening our first school in Gurgaon under management of Delhi Public School Society. The schools of the group are run under a Registered Trust namely Champa Devi Jaipuria Charitable Trust. Companies are medium sized, professionally managed, unlisted and closely held between Indian Promoters and foreign collaborators.

The group added another feather to its cap when the prestigious PepsiCo “International Bottler of the Year” award was presented to Mr. R. K. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCo’s centennial year celebrations at Hawaii, USA. The award was presented by Mr. Donald M. Kendall, founder of PepsiCo 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 Weatherup, President of Pepsi Cola Company.


  • 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 Dyspepsia (indigestion). Under the supervision of Mr. Bradhman Pepsi’s first bottling plant was build 1905.

In 1977, when Coca-cola left the country then Pepsi Co. began to lay plans to enter this huge Indian soft drink market. Pepsi working with Indian business groups to seek government approval for its entry in the India soft drink market. Pepsi offered Indian Government to help in the exports of some of its agricultural products in a volume that would cover the cost of importing soft drink concentrate.

Pepsi Company is established in Indian in 1989. At that particular time it was know as a non-Cobo (Company owned bottling operations) company. In January 1995 Pepsi took over and it is now known as a Cobo (Company owned bottling operations) company. It joined hands with Voltas Ltd with 60%equity. But now it has become a fully owned 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. Established with a turnover of $ 28 billion in 1989, the company’s beverage business has grown 50% streets ahead of the market; which has expanded by 20%. It poured in vast sums to whip up its visibility at the retail level, so that consumes were greeted virtually at very street corner by Pepsi’s blue-red and white colors. Behind the hype, in effort invisible to consumers, Pepsi pumped in Rs.300 Crore to add muscle to its infrastructure in bottling and distribution. This is apart from the money that up grading the plants.

April 1993, Voltas and Punjab Agro’s equity stakes were bought over converting Pepsi Foods from a joint venture to fully own subsidiary. Weak bottlers who did nit have the finance were given massing support in from of interest- free loans to upgrade their operations. But the big strategy, which has proved to be winner was the position Pepsi, decided taken company owned Bottling operations (COBO). For this another subsidiary 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 India 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 India sift drink market. It is expanding its business in the other fields also. It is in the business of export of beverages concentrates. This year Pepsi has achieved a 100% growth in the export turnover in the first quart of 1998 over the corresponding period for the previous year. Pepsi has taken a lead in the beverage concentrate exports from potential in the near future. Pepsi has also developed agricultural linkages to boot its export thrust and as a move in the direction, its plant at Sonepat has become the first rice-processing facility in India.

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Pepsi mean while added a new range of products to its agro-export Portfolio. These include Baron, a bread of peanut butter marketed in U.S., Branded red and green chili, Puree, ginger and garlic paste &cooking paste under the season’s Harvest home, which is also the name of its branded basmati rice.

At present Pepsi is trying very hard to maintain its position in the market. It is operating in a very well managed manner. Some of its strategies it followed to be competitive in the market area follows –


One of the strongest weapons in the Pepsi’s armory is the flexibility it has empowered with its people. Every manger and sales person has the authorities to take whatever steps he feels will make consumer aware of the brand and increase its consumption.


Pepsi has a very well managed distributive system. It is said the “Pepsi don’t have bottlers, it has partners”. Pepsi has a well-aligned bottling network. It operates through COBO (Company owned bottling operations) and FOBO (Franchise owned Bottling Operations)

It is this way a Pepsi Co., India Strengthens it’s marketing that gives it an edge. Every number of its sales team is meticulously taught the merchandising and display skills that can leverage the reach of the company’s bottling network to achieve high visibility for the product.


Since the entry of Pepsi co. to India in 1987, the soft drink Industry has undergone a radical change. When Pepsi entered parley was the leader with ‘Thumps UP’ being its flagship brand. Other product offerings by parley included Limca & Gold Spot. Another upcoming player in the market was the erstwhile bottle of Coca-Cola, Pure Drinks. Its 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 more aggressive marketing to sustain its market share. The chronology the initial phase of the “Coal Wars” in India was:

July 1986

An application for soft drinks-cum-snack food joint venture by Pepsi, Voltas and Punjab Agro is submitted to the government after an earlier proposed alliance- 1985, between Pepsi and Duncan’s of the Goenkas fails to take off.


Final approval for the Pepsi Foods Limited (P.F.L) project granted by the Cabinet 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 to Lehar Pepsi. Simultaneously it rejects the Coca-Cola application. Citra form the Parle stable hits the market.

Dec 1991

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

Jan 1992

Brito Foods application cleared by the FTPB. Pepsi and Parle start initial negotiations for strategic alliance but talks break off after a while.


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

July 1993

Volta’s pulls out of PFL joint venture. Pepsi decides to raise equity to 92% Reports of coke – Parle negotiations gain strength.


Pepsi brought Dukes& Sons


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


Pepsi brought Mirinda Orange opposite to Fanta.


Pepsi launched Lemon Mirinda to give taught competition to Limca.


Pepsi has launched its Diet Pepsi Can and 1.5 Liters pet battles for health conscious people.


Refusing to dilute its equity state Coca-Coal winds up operations in the country. Parle launches Thumps Up and Drinks launches Campa Cola.


Pepsi launched Aquafina.


Pepsi launched Mountain Dew


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


Bubbly Pepsi was launched.


Pepsi Gold was launched.


By the word organization we generally mean, a structural framework of duties and responsibilities required of a personnel in achieving the predetermined goals.

An organization of VBL is a simple yet complex in terms of the different designations provided to its employees.

Company’s overall view of organization can be successfully dealt as follows:

The people at PBG reflect the Company’s 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 PBG’s 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.


The objectives of VBL are:

  • To observe the implementation and working of sales club programme at different sections in Noida.
  • To monitor whether it is successfully implemented in the market.
  • To monitor the customer awareness about the sales club programme whether they are fully aware about the programme or not.
  • To check out that all the required materials for sales club programmed are given to customer/ retailer or not.
  • To find out the effect on increasing the sales b/z of sales club 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 clan in time or not.
  • To make the books available to the customers.



Pepsi Co’s 2004 quarterly earnings releases are expected to be issued the week of April 12

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


Investor relations: – Security analysts and other members the professional financial community who have question Pepsi Co’s investor relations department at (914) 253-3035 or (914) 253-2155.

SHAREHOLDERS: – Pepsi Co’s (symbol: PED) shares are traded principally on the New York Stock Exchange in US. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. Pepsi Co’s has consistently paid cash dividends since the corporation was founded.


“Our mission is to be the world’s premier consumer product’s company focused on convenient foods and beverages. We seek to produce healthy financial rewards to invest as we provide opportunities for growth and enrichment. Our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity!” as exclaimed by Pepsi Co’s.


Pepsi Co’s believe that they are corporate citizen; it has a responsibility to contribute to the quality of life in our commodities. This philosophy is put into action through support of social agencies, projects and programs. The scope of this support is extensive-ranging from sponsorship of local programs and support of employee’s voluntary activities to contribute to time, talent and funds to programs of national impact. Each division is responsible for its own giving program. Corporate giving is focused on giving where Pepsi Co’s employees volunteer.


Pepsi Co’s world headquarters is located in purchase, New York, approximately 45 minutes from New York City. Edward Darell Stone, one of America’s foremost architects, designed the seven building headquarters complex. The building occupies 10 acres complex that includes the Donald Mkendall sculpture gardens, a world acclaimed sculpture collection in garden setting. The collection of work is focused on major twentieth century art, and features work by such as Augusta Rodin, Henri Laurens, Henery Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens were originally designed by the world famous garden planner, Russel Page, and have been a visitor’s booth in operation during the summer and spring.


It provide following to employee:

  • On Job Training Program
  • In House Training Program
  • Out door Training Program


Company provides welfare activities to its employees like:

  • Uniform
  • Transportation facilities
  • Canteen
  • Annual meet etc.


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


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 involvement 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 they are scheduled to work. In other words an unauthorized absence constitutes absenteeism.
  • It is referred to here in as failure of employees to report to work when they are scheduled to work.


The management of attendance is an important aspect of supervision. The cost of absenteeism is greater than the direct payment of wages and benefits made during the absence. Organization must also consider he indirect cost of staffing, scheduling, reframing, lost productivity, diminished moral, turn over, opportunity cost. The indirect cost often exceeds the direct cost of absenteeism. Effective supervisory efforts in attendance management will affect a relatively small percentage of employees but will generate substantial savings, increased productivity and moral.


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

  • INNOCENT ABSENTEEISM: – innocent absenteeism refers to employees who are absent for reasons beyond their control sickness and injury. Innocent absenteeism is not culpable i.e. blameless. In a labor relations context this means that it cannot be remedied of or treated by disciplinary measures.
  • CULPABLE ABSENTEEISM: – it refers to employees who are absent without authorization for reasons, which are within their control. For instance, an employee who is on sick leave even without being so and it can prove so; he/she is guilty of culpable absenteeism. To be culpable is to be blameworthy. In labor relation context this means that progressive action can be taken. For the large majority of employees, absenteeism is legitimate, innocent absenteeism, which occurs infrequently. Procedures for disciplinary action apply only to culpable absenteeism. Many organizations rake the view that through the process of individual absentee counseling and treatment, the majority of employees will overcome their problems and return to an acceptable level of regular attendance.


The rate of absenteeism is expressed as the percentage of man-days lost through absence to the total number of man days scheduled in a given period.

As we know, employees are the 21st century organization’s greatest assets. Accountants are 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 schedules 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 at 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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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 findings of Indian studies appear to have somewhat greater emphasis on non-pschyiological ones.

The workers in Indian industries found that chronic 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.

On the other hand there are few psychological factors as the major causes of absenteeism of Indian industrial workers. Such factors are poor health, transport difficulty, do chores, and indebtness etc.


The definition of absenteeism, factors affecting and its causes are quite clear. What is not so clear is how to take affirmative actions to control it. Traditional methods of absenteeism control based only on disciplinary procedures have proven to be ineffective. It is almost impossible to create a fair disciplinary action because even well run disciplinary systems, which treat which treat similar actions in consistently similar ways are seen as unfair. The reason for this is discipline alone usually identifies the root cause of absenteeism. Every employee who takes time off in defiance of company regulations has reasons, right or wrong which justify to themselves the legitimacy of their actions. Unless the management attendance programme identifies and addresses the cause of employees’ absenteeism it will be ineffective and unfair. Now, if absenteeism is to be controlled the physical and physical and emotional needs of employees must be addressed.

The purpose of attendance management is to develop a willingness on the part of all our employees to attend work regularly and to assist them in motivating their co-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 can understand and identify with them.
  3. Dealing with cases of excessive absenteeism effectively and fairly so deterrence can occur.

Successful administration of an attendance management program requires managers and supervisors to be aware of and create work environment in which the following can be actualized

  1. The greater the extent to which individuals identify their goals with the goals of the organization the greater their motivation to be regular in attendance.
  2. The more people find their jobs meaningful to them, the greater their motivation to be regular in attendance.
  3. As employees workload increases due to the absence of a co-worker, peer pressure is exerted on the absent co=worker to attend work regularly.
  4. The more people like working for the organization the higher their motivation to attend regularly. Recognition of good employee attendance helps improve attendance.
  5. Employees will have a lower absence ratio if they fail they fail face to discuss their on the job problems with their supervisors.
  6. Employees with a low absence ratio have attitudes of complaisance and ‘team spirit’.
  7. Low absence ratio employee is more satisfied.

Like employees turnover, there is avoidable and unavoidable absenteeism. Absenteeism is unavoidable when the employee himself falls sick, his dependants at home suddenly become unwell or there is an accident inside the plant. Unavoidable absenteeism is accepted by managers and is even sanctioned by labor laws. For insistence, one day of leave with wages for every 20 days of service is allowed by the factories act, 1948.

Avoidable absenteeism arises because of night shift, opportunities for moonlighting and earning extra income ineptness, lack of job security, job satisfaction and unfriendly supervision. This absenteeism needs intervening by the management. Managers should take steps to remove causes of absenteeism. On the positive side, managers must create a work environment which will make the employees realize that it make sense to work in the factory rather than stay at home and waste their time.Moreover, the management must have a safety plan, implement it and evaluate its effectiveness.


“Levels of absenteeism beyond the normal range in any organization have a direct impact on that organization effectiveness and efficiency.”

It is obviously difficult for an organization to operate smoothly and to achieve its goals if its employees fail to report to their jobs. The work plans is disrupted and often-important decisions are delayed. In organization that relies heavily on assembly- line production, absenteeism can be more than a disruption: it can result in the drastic decline in the output and in some cases it can bring about a complete shutdown of the production. But levels of absenteeism beyond the normal range in any organization have a direct impact on its efficiency.

Apart from the above viewed fact the most important problem faced is related with that of the cost of absenteeism! Many organizations set aside approximately 3% of budget for absenteeism. This makes an average of about 8 days a year per employee. If absenteeism is above your budgeted figure or certain employee exceed the average in your organization then this indicates that you have an absenteeism problem. However, even if absenteeism is below it a focused effort will likely yield improved attendance.

The cost of absenteeism leads to: –

Decrease in productivity-

  1. Employees may be carrying an extra workload or supporting new staff.
  2. Employees may be requires to attain and orientate new or replacement workers.
  3. Staff morals and employee service may suffer.

Financial cost-

  1. Payment of overtime may result.
  2. Cost of self-insured income protection plans must be borne plus the ways cost replacement employees.
  3. Premium cost may rise for insured plans.

Administrative cost-

  1. Staff time is required to secure replacement employees.
  2. Staff time is required to maintain and control absenteeism.


Although most absenteeism has a negative impact on the organization, we can conceive of situations in which the organization may benefit by an employee’s voluntarily choosing not to come to work. For instance, illness, fatigue or excess stress can significantly decrease an employee’s productivity. In jobs in which an employee needs to be alert it may well be better for the organization if the employees does not report to work rather than show up and perform poorly. The cost of an accident in such jobs could be prohibitive. Even in the management jobs, where mistakes are less spectacular, performance may be improved. When managers are absent themselves from jobs rather than make a poor decision under stress. But these examples are clearly a typical for the most past, we can assume that organization benefits when employee absenteeism is low!!


Recent surveys have shown: –

  1. The higher the rate of pays the greater the length of service of the employee, the fewer the absence.
  2. As an organization grows, there is a tendency towards higher rate of absenteeism.
  3. Women are absent more frequent than men.
  4. Single employees are absent more frequently than married employees.
  5. Younger employees are absent more frequently than older employees but the latter are absent for longer period of time.
  6. Unionized organization has higher absenteeism rates than non-union organizations.
  7. Logical outlook towards various problems was more prominent among regular attendees than absentees.
  8. Emotionally surcharged statements were more frequent among absentees.
  9. Absentee group was found to have indifferent attitude, whereas regular worker showed more critical thinking towards their work.

Attendance improvement programs can work! What the employees want is commitment 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 team spirit can thrive will at first sometimes seem a mammoth and unrealistic task. If you need encouragement just consider some of the benefits; reduced absenteeism, open communication, team spirit, advanced grievances and greater employee satisfaction.


Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. It is the pursuit of truth with the help of studies, observation, comparison and experiment. In short the search for knowledge through objective and systematic method of finding solution to a problem is research.

According to Clifford Woody, “Research comprises defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions and reaching conclusions to determine whether they fit the formulating hypothesis”.


A research design is an arrangement of conditions for connections and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research design is a plan that specifies the sources and types of information relevant to the research problem. It is a strategy specifying which approach will be used for gathering and analyzing the data. In fact, it is the conceptual structure with which research is conducted; it constitutes the blue print for the collection, measurement and analysis of data. The plan is an outline to research scheme on which the researcher id to work. The structure of the research is a more specific outline or the scheme. The strategy shows how the research will be carried out, specifying the method to be used in collecting data.


Research design is mainly of three types: –

  1. Exploratory research
  2. Descriptive research
  3. Experimental research

EXPLORATORY RESEARCH: – It is often the initial step in the series of studies designed to supply information for decision-making. The main purpose of this research is for formulating the problem for more precise investigation or of developing a working hypothesis from an operational point of view. The major emphasis in such studies is on the discovery of ideas and insights.

DESCRIPTIVE RESEARCH: – It includes surveys and fact-finding enquiries. The descriptive research is typically concerned with determining the frequencies with which something occurs or determining the degree to which variables is associated. It is guided by an initial hypothesis.

EXPERIMENTAL RESEARCH: – In this some variables are manipulated to observe their effect on other variables. Experimentation is defined as a process where events occur in a setting at the discretion of the experiment and controls are used to identify the source of variants in the subject. Thus they are those where the researcher tests the hypothesis of the causal relationship between variables.

The research undertaken by me in this project is a descriptive research

The research methodology adopted for the project can be stated as follows –

  • An extensive study of the topic through various sources like internet, books and work done on some topics
  • A questionnaire was prepared to analyze the level of absenteeism in VBL.
  • Collection of questionnaire took place after a couple of weeks to analyze data
  • All the responses were studied and certain findings and recommendation were given.
  • A detail and systematic report was prepared.


Sampling is used to collect primary data when the source of data is far too many to be 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 plan for obtaining a sample from a given population. It may as well lay down the number of items to be included in the sample i.e. the size of the sample.

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Sample design is determined before data are collected.


The 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.


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 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, magazines, manuals, journals etc.

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.

My study was strictly based on the primary data collection method collected by means of questionnaire dealing and involving the overall sample of 70 people working in Varun 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 and thus derive the percentage figure based on the answers given by the sample ingredients, represented below with the help of a pie-chart and percent (%) notation: –


  • The above data base structure shows that 10% of managers fall within the age 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.
  • 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
  • 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 is moderate!
  • 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 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.
  • 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 or on the same date concerning the task their subordinates have to perform while 30% adopt other factors like they appoint a leader to assist their employees or ask other departmental heads to take necessary action.
  • The above data shows that 65% of the managers confirmed that their employees are regular in the organization while 35% of managers complained about the irregularity of their employees due to obvious reasons like illness, anxiety, and in contingent situations.
  • 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 people in the plant. While none of the managers said that they do not maintain any record of their employees.
  • 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 require any reason for the absent from work.
  • The above data based structure shows that 48% of employees fall within the age of category of (20-30) years, 28% between (30-40) years, 20% between (40-50) years and only 4% fall between to (50-60) years.
  • 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
  • The above data based structure shows that 72% of employees of VBL earn up to 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).
  • 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 above data base structure shows that 2% of employees are affected due to intoxication and thus fall absent, 56% suffer from illness or injury and thus are 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 don’t want to report to work.
  • The above data base structure shows that 64% of employees face deduction in salary on being absent, 2% suffer stoppage in increment, 28% got their leaves reduced, 6% have to work for extra hours for which they are not paid, while
  • The above data base structure shows that 92% of employees inform their boss 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.
  • The above data base structure shows that 100% of employees do not want to be called as an absentee.
  • The above data base structure shows that 98% of employees want to convert themselves from an absentee employee to a non-absentee employee while remaining 2% remained indifferent of this view.
  • The above data base structure shows that 30% of employees think absenteeism as habitual problem of employees, 24% consider it as a regular practice in any organization as it is found everywhere, remaining 46% treat it as an incorrigible problem as it is beyond their control and thus they can’t avoid it.


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 complete knowledge 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 regular attendees than absentees.
  • Older employees have greater commitment towards their work.


  • There was found to be a timely well-structured and well-administered organizational 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 facilities 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.


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 to 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.


  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 VBL (special reference to Non-managerial categories)
  3. Comparison of the data of attendance record of 2005 with that of 2006 till the month of July, collected from the attendance register of VBL.


While undergoing the project for collecting various information’s and details I have referred the following: –


  • Organizational Behavior STEPHEN ROBBINS PEARSON EDUCATION-2005
  • Organizational Behavior FRED LUTHANS TMH-2005
  • Human Resource Management GARRY DESSLER
  • Business today magazine




  • Attendance register of VBL.
  • Oxford dictionary.


  • Advertisement and banners of Pepsi.
  • Television advertisements.
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