Lead by example
The top management must lead by example. If the leadership is very punctual and professional, it is definitely going to have an impact on the attitude of the employees as well. If a manager comes to work on time and does not take unapproved leaves, he will have the moral authority to hold his subordinates accountable if they are not on their toes. Every organization must take into account the trickle-down effect, as the behaviour or the performance of the leaders is going to reflect on the employees.
Instead of going the hard way and punishing the employees who are not dependable, the best way to enhance the attendance at a workplace is to motivate them through different means. Good organizations do give incentives to the employees who are regular and have a high rate of attendance. If the employee is motivated, he/she is more likely to deliver the goods for the company.
The motivation level of your subordinates should be that high that they continue to perform their duty with dedication, even if you are not present on top of their heads.
If you are leading by example and motivating your employees, then you must deal strictly with the people who do not have good attendance and are not dependable. You must understand that the unprofessional employees are having an extremely bad impact on other workers. You can fine the late arrivals or the absentees and if they still do not improve, give them warnings. Laying-off an employee should be the last step, if you have lost hope on that individual completely.