Francistown Textiles: Absenteeism on the Line
Francistown Textiles employs 120 production workers on a single day shift. Output averages 960 garments a day. Absenteeism has risen from 4% to 11% in six months, and the production manager reports that output falls by roughly 8 garments for every absent worker. Labour turnover is 30% a year; replacing a worker costs about P3,500 in recruitment and training. Workers complain that the line supervisor shouts at staff, that the canteen is poor, and that there is no chance of promotion. Management has P150,000 to spend and is considering either a 10% pay rise for production workers (costing about P216,000 a year) or a package of supervisor training, a refurbished canteen and a small bonus for full attendance.
1. Calculate the cost of absenteeism and labour turnover, and use these figures to evaluate the two options.
Read the worked answer
Absenteeism
- Absent workers per day at 11% = 13.2 (say 13)
- Lost output = 13 × 8 = 104 garments a day, about 10.8% of 960
- Over a 22-day month: about 2,288 garments lost
Turnover
- 30% of 120 = 36 leavers a year
- Replacement cost = 36 × 3,500 = P126,000 a year
Option A: 10% pay rise
- Costs P216,000 a year - more than the P150,000 available, so it cannot be fully funded without borrowing.
- It does not address supervision, canteen or promotion, which are the stated causes of dissatisfaction.
- It may reduce turnover, but there is no guarantee; and it raises fixed costs permanently.
Option B: training, canteen and attendance bonus
- Fits within P150,000 and targets the causes identified by workers.
- If absenteeism falls from 11% to 5%, about 7 fewer workers are absent daily, recovering roughly 56 garments a day - around 1,230 a month.
- Improving supervision could plausibly cut turnover, saving a share of P126,000.
Judgement: Option B is better value. It is affordable, addresses the root causes, and its savings are recurring. The pay rise alone treats a symptom and cannot be funded.
2. Explain how management could use motivation theory to design the package, and identify one weakness of the plan.
Read the worked answer
Herzberg's two-factor theory separates hygiene factors (pay, working conditions, supervision, company policy) from motivators (achievement, recognition, responsibility, advancement). The workers' complaints are largely about hygiene factors - the canteen and the shouting supervisor - which can cause dissatisfaction but do not by themselves motivate. The attendance bonus and any recognition scheme act as motivators, so the package sensibly combines both.
Maslow's hierarchy suggests that once basic needs (pay, safe conditions, food) are met, workers seek belonging and esteem. Supervisor training supports belonging; a promotion path supports esteem and self-actualisation. The absence of any promotion chance explains why turnover is high.
Taylor would favour the attendance bonus as a direct financial incentive linked to output, which fits the measurable link between absence and lost garments.
Weakness of the plan: the attendance bonus may encourage presenteeism - workers coming in while ill, spreading infection and reducing quality - and it rewards attendance rather than output or quality. It may also be resented by workers who are genuinely sick. Management should pair it with a clear, fair absence policy and monitor garment quality, not just attendance, so the incentive does not create a new problem.