STRATEGIC DECISION ANALYSIS TO ENHANCE LABOR PRODUCTIVITY AFFECTED BY SICK LEAVE ABSENTEEISM IN THE MANUFACTURING INDUSTRY

• Main Author: Bagus Setyawan, Riska
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/81937
• Institution: Institut Teknologi Bandung

In the manufacturing industry, the worker absenteeism index/rate has a significant impact on productivity in the work environment. The higher the worker absenteeism rate in the factory/manufacturing industry, the higher the company's burden for financing workers (overhead costs). Labor costs are very sensitive for the manufacturing industry because they are directly related to the ratio of production costs compared to the output produced. Labor costs are classified as production costs (operational costs) along with other costs such as machine maintenance costs, electricity/water costs, or other costs whose amounts will influence the value of producing a product in the manufacturing industry. Therefore, the Company considers it necessary to monitor and control production costs to increase competitiveness with competitors. The research results show that a high absenteeism rate can be an indicator of low motivation, employee well-being, or health problems. Therefore, strategies that can be implemented to increase productivity through absenteeism management include Health and Wellness Programs, Incentive and Recognition Systems, Commitment to Work-Life Balance, Proactive Approaches to Mental Health, and Absence Monitoring and Analysis. By using strategic decision-making methods to reduce absenteeism, companies can increase worker productivity and increase competitiveness.