THE FINANCIAL COST OF ABSENCE DECISIONS

A theory of reasoned action (Ajzen & Fishbein, 1980) and behavioral costing approach (Cascio, 1987; Mirvis & Lawler, 1977) were used to estimate the variable financial cost (i.e., cost incurred by organizations that vary positively with production rates of goods and services such as wage costs for an hourly work force) of absence decisions made by employees. Measures of the theoretical components of the theory of reasoned action were developed and administered to blue collar and clerical employees of a financial services organization in order to develop an assessment of absence as the outcome of choice. Three months after the questionnaires were completed by 176 blue collar employees and 264 clerical employees, paid and unpaid absence information was obtained from the organization. The financial cost of absence was estimated. The study showed that the theory of reasoned action was useful in predicting paid absence; the estimated financial cost of absence for the 3-month period for this sample was over $25,000. Implications are discussed.1