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Ronald G. Ehrenberg

Human Resources Management

Absenteeism

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Absenteeism And The Overtime Decision, Ronald G. Ehrenberg Jul 2012

Absenteeism And The Overtime Decision, Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] Upon reading the congressional hearing on the Overtime Pay Penalty Act of 1964, one cannot fail to be impressed by the emphasis that management places on absenteeism as a primary cause of overtime. The argument given is basically quite simple: Large firms, it is claimed, attempt to account for absenteeism by hiring standby workers; however because of the stochastic nature of the absentee rate, it is impossible for them to have replacements always available. Hence overtime must be worked by existing employees in order to meet production schedules. One concludes from this argument that the randomness of absenteeism is ...