final report on employee retention

7/29/2019 Final Report on Employee Retention

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A PROJECT REPORT

ON

Employee Retention

IN

GAGAL CEMENT WORKS

SUBMITTED TO

HIMACHAL PRADESH UNIVERSITY

IN PARTIAL FULFILMENT OF THE REQUIREMENT OF THE AWARD OFTHE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

(2010-2013)

UNDER THE GUIDANCE OF SUBMITTED BY:MR. MANOJ SHARMA KUMARI RASHMI SINGH(Head of Department) UNIVERSITY ROLL NO: 6959

REGISTRATION NO: 10-LSI-60

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ACKNOWLEDGEMENT

I would like to avail this opportunity to express my deep sense of gratitude & in-depth

ness to all those, who have helped & encouraged me towards the successful

completion of this project.

I am very grateful to Mr. Anil Kumar, Manager, HR & Mr. Vikramjit Singh, Asst.

Manager, HR for their valuable suggestions, guidance & solving the intricate problems

throughout the project & endeavor of his manuscripts. Also, without his initiation, I would

not have got a chance to undertake this study work & could not explore the new

spheres of knowledge.

I would also like to thanks the following people who shared their precious time with me

& provided me necessary guidance & help whenever required:

Mr. C.S.Shukla HR & EW

Mr. P.C.Soni Executive Time Office

Mr. Balwant Singh Sr. Engineer E&I

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PREFACE

Research project is the bridge for a student that takes him from his/her theoretical

knowledge world to practical industry world. The purpose of industrial training is to

familiarize students with the working environment in the industries. It helps them to

familiarize the students with working environment in industries. It helps them to study

the recent trends as well as the ones already established in the industrial sector. The

advantages of this sort of integration (research program), which promotes guided to

corporate culture, functional, social and norms along with formal teaching are

numerous.

1. To bridge the gap between theory and practical.

2. To install the feeling of belongingness and acceptance.

3. To help the student to develop the better understanding of the concept

and questions already raised or to be raised subsequently during their

research period.

Moreover to make student feel sure that whatever they are learning in this training

period would certainly help them in future & guide them to develop their potential and

technical skills, to allow them to explore various fields & better equip themselves as a

professional in future.

The training is being carried out at ACC Ltd. Gagal Cement Works. It is situated at

Barmana Distt. Bilaspur (H.P.).

The present research report gives a detailed view of the Employee welfare. The

research is definitely going to play an important role in developing an aptitude for hard

self-confidence.

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DECLARATION

I, Kumari Rashmi Singh, a student of BBA 3RD YEAR of, MANAHARAJALAKSHMAN SEN MEMORIAL, SUNDERNAGAR, hereby declare that thisproject report entitled Employee Retention activities at ACC Gagal works isthe outcome of my own work and the same has not been submitted to anyuniversity, institute for the award of any degree or any professionaldiploma.

Kumari Rashmi Singh

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TABLE OF CONTENTS

S.NO. TITLES PAGE NO.

1. Company Profile 5

2. Introduction 10

3. Preface to the problem 13

4. Research Methodology 145. Limitations of study 17

6. Data Analysis & Interpretation 18

7. Recommendations & suggestions 45

8. Questionnaire 47

9. Bibliography 49

COMPANY PROFILE

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BUILD WITH CONFIDENCE

Heritage - A Corporate Saga

ACC was formed in 1936 when ten existing cement companies came together underone umbrella in a historic merger the countrys first notable merger at a time when the

term mergers and acquisitions was not even coined. The history of ACC spans a widecanvas beginning with the lonely struggle of its pioneer F. E. Din Shaw and other Indianentrepreneurs like him who founded the Indian cement industry. Their efforts to facecompetition for survival in a small but aggressive market mingled with the stirring of acountrys nationalist pride that touched all walks of life including trade, commerce andbusiness.

The first success came in a move towards cooperation in the countrys young cementindustry and culminated in the historic merger of ten companies to form a cement giant.These companies belonged to four prominent business groups Tatas, Khataus, KillickNixon and F E Dinshaw groups. ACC was formally established on August 1, 1936.

Sadly, F E Dinshaw, the man recognized as the founder of ACC, died in January 1936.Just months before his dream could be realized.

F. E. Dinshaw the founderof ACC

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A strategic allianceThe house of Tata was intimately associated with the heritage and history of ACC, rightfrom its formation in 1936 upto 2000. Between the years 1999 and 2000, the Tata groupsold all 14.45 per cent of its shareholding in ACC in three stages to subsidiarycompanies of Gujarat Ambuja Cements Ltd (GACL), who are now the largest singleshareholder in ACC. This has enabled ACC to enter into a strategic alliance with GACL;a company reputed for its brand image and cost leadership in the cement industry.

Holcim - a new partnershipA new association was forged between ACC and the Holcim group of Switzerland in2005. In January 2005, Holcim announced its plans to enter into a long-term strategicalliance with the Ambuja Group by acquiring a majority stake in Ambuja Cements IndiaLtd. (ACIL), which at the time held 13.8 per cent of the total equity shares in ACC.Holcim simultaneously announced its bid to make an open offer to ACC shareholders,through Holcim Cement Pvt. Limited and ACIL, to acquire a majority shareholding in

ACC. An open offer was made by Holcim Cement Pvt. Limited along with AmbujaCements India Ltd. (ACIL), following which the shareholding of ACIL increased to 34.69per cent of the Equity share capital of ACC. Consequently, ACIL has filed declarations

indicating their shareholding and declaring itself as a Promoter of ACC.

Holcim is the world leader in cement as well as being large suppliers of concrete,aggregates and certain construction-related services. Holcim is also a respected namein information technology and research and development. The group has itsheadquarters in Switzerland with worldwide operations spread across more than 70countries. Considering the formidable global presence of Holcim and its excellentreputation, the Board of ACC has welcomed this new association.

The name of company was changed to ACC Limited from The Associated CementCompanies Limited with effect from September 1, 2006

New corporate brand identity and logo was adopted from October 15, 2006.

Figure1. New Logo of ACC

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THREE REGION CONFIGURATIONS

North, South West and East

CEMENT PLANT LOCATIONS

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NEW VISION OF ACC

To be one of the most respected companies in India recognized for challengingconvention and delivering on our premises.

MISSION OF ACC

Sustainable Development while operating in cement business.

VALUES OF ACC

ACC believes in the following 3 values

1) STREGTH:

A) A solid partner.B) Integrity & strength of character of our people.C) A strong organization with global leadership & competence.

2) PERFORMANCE:

A) Delivery on our promise to each other and to our stakeholders.B) Best solution for our customers.C) Demanding excellence.D) Open & always searching for new & better ways.E) Best result from working together.

3) PASSION:Dedication to commitment:

- We care about our people, their safety & their development, we take care of ourcustomer & their success, we care about the world, in particular the communitieswe live & work.

- We take pride in performance well & recognize & celebrate success.

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GAGAL CEMENT WORKS (GCW)

Gagal cement works (GCW) is the most modern plant having IS/SO 9002 and IS/ISO14001 environment management system certification and also the 18001- OHSAS(occupational health and safety assessment series) and also bagged variousprestigious awards in the field of safety of employees, environment conservation andIndira Priyadarshini Vrikshamitra (IPVM) award, 1996 for extraordinary work in aforestation etc.

The plant is located at Barmana on the National Highway no. 21, midway between thetown of Bilaspur and Sundernagar on the bank of river Satluj. The plant is at a height of600 meters above sea level.

GCW is the largest plant of ACC according to production & profit data. GCW projectwas initiated in October 1978. On 12th march 1984 Gagal-1 was successfullycommissioned and commercial production commenced with initial capacity of 5.6 lakhtons per annum. Gagal-2 was commissioned in 1994 and present capacity of the plantis 2.4 MTPA of cement. Gagal-1 and Gagal-2 units has installed eco-friendly modes of

material transporting system by adopting 2 km long over land belt conveying system fortransporting crushed limestone from its mines.

The strength of management staff and Non-Management Staff for Gagal Cement Works(GCW) is 154 and 575 respectively. Non-Management Staff includes 406 daily paid and207 monthly paid staff.

GCW has a compulsory rule to give 5days training in a year to the employees oforganization.

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INTRODUCTION

HUMAN RESOURCE MANAGEMENT is concern with the satisfying or fulfillingthe human resource requirement in the organization. It is mainly concern with planning,monitoring, and control on human resource. Its aims are to fulfill the managerial needsof human resource of the organization, achieving organizational goals to meet theexpectation of the employees, develop the employees, skill and abilities of theemployees, improve the qualities of working life and manage human resources in anethical and socially responsible manner. Human resource management is responsiblefor the people dimension of the organization

What is Employee Retention?

Employee retention refers to the techniques employed by the management to help theemployees stay with the organization for a longer period of time. Employee retention isthe ability of an organization to retain its employees. It helps in motivating theemployees so that they stick to the organization for the maximum time and contributeeffectively. Sincere efforts must be taken to ensure growth and learning for theemployees in their current assignments and for them to enjoy their work. Everyorganization invests time and money to groom a new joinee, make him a corporate

ready material and bring him at par with the existing employees. The organization iscompletely at loss when the employees leave their job once they are fully trained.Employee retention takes into account the various measures taken so that an individualstays in an organization for the maximum period of time.

Why do Employees Leave?

Research says that most of the employees leave an organization out of frustration andconstant friction with their superiors or other team members. In some cases low salary,lack of working environment, lack of growth prospects and motivation compel anemployee to look for a change. The management must try its level best to retain thoseemployees who are really important for the system and are known to be effectivecontributors. It is the responsibility of the line managers as well as the management toensure that the employees are satisfied with their roles and responsibilities and the jobis offering them a new challenge and learning every day.

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Need & Importance of Employee Retention

1) Hiring is not an easy process: The HR Professional shortlists few individualsfrom a large pool of talent, conducts preliminary interviews and eventuallyforwards it to the respective line managers who further grill them to judgewhether they are fit for the organization or not. Recruiting the right candidate is a

time consuming process.2) An organization invests time and money in grooming an individual and

makes him ready to work and understand the corporate culture: A newjoinee is completely raw and the management really has to work hard to train himfor his overall development.

3) When an individual resigns from his present organization, it is more likelythat he would join the competitors: To avoid such cases, it is essential that thenew joinee is made to sign a document which stops him from passing on anyinformation even if he leaves the organization.

4) The employees working for a longer period of time are more familiar withthe companys policies, guidelines and thus they adjust better: Employeeswho spend a considerable time in an organization know the organization in andout and thus are in a position to contribute effectively.

5) Every individual needs time to adjust with others: Organizations are alwaysbenefited when the employees are compatible with each other and discuss thingsamong themselves to come out with something beneficial for all.

6) It is essential for the organization to retain the valuable employees showing

potential: Every organization needs hardworking and talented employees whocan really come out with something creative and different. No organization cansurvive if all the top performers quit.

Challenges to employee retention:

1) Monetary dissatisfaction is one of the major reasons for an employee tolook for a change: The organization needs to take care of the interests of theother employees as well and cant afford to make them angry. The salaries of the

individuals working at the same level should be more or less similar to avoidmajor disputes amongst employees.

2) In the current scenario, where there is no dearth of opportunities, stoppingpeople to look for a change is a big challenge: Employees become greedyfor money and position and thus look forward to changing the present job.

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3) Individuals speak all kind of lies during interviews to get a job: Problemsarise whenever a right person is into a wrong profile. The human resourcedepartment should be very careful while recruiting new employees, checkreference done for better reliability and avoid confusions later.

4) Some individuals have a tendency to get bored in a short span of time.They might find a job really interesting in the beginning but soon find itmonotonous and look for a change. The management finds it difficult to convincethe employees in such cases. It becomes really difficult for the HR Department tofind out what exactly is going on in the minds of the individual.

5) Unrealistic expectations from the job also lead to employees looking for achallenge: An individual must be mature enough to understand that one cantget all the comforts at the workplace just like his home. Individuals from differentbackgrounds come together in an organization and minor misunderstandingsmight arise but one should not make an issue out of it.

Qualities in an Organization for a Better Employee Retention

1) Monetary satisfaction is one of the major reasons as to why an employeesticks to an organization for a longer duration. Incentive plans, perks andother benefits should meet the expectations of the employees and should bedirectly proportional to the hard work put by the individuals.

2) An organization must have a simple hierarchy and the functional areas of

each team should be well defined. Complicated hierarchies lead to confusions

and unnecessary disputes amongst team members. It is essential to maintaintransparency at all levels.

3) Freedom of expression is of utmost importance at the workplace to retain

employees. Individuals should have the liberty to express their ideas anddiscuss issues on an open forum. This way employee do not crib amongthemselves and come closer to each other.

4) The organization must encourage employees to celebrate major festivals

at the office premises itself. Ask them to bring their families as well. Suchactivities go a long way in strengthening the bond among the individuals and

retaining them.

5) It is important for the organization to have stringent policies for nonperforming employees. Strict action must be taken against those who come toorganization just for fun and are just not bothered about their own work. Theperformers must get an extra edge and should be entitled to exclusive benefits.

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RESEARCH METHODOLOGY

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NEEDS OF STUDY

1) Attrition rate of GCW, ACC GAGAL LTD. has decreased in last few years. Thisyear the attrition rate is near about 0.97% as compared to previous years 7.68%.This study would try to investigate the possible reasons behind this.

2) In spite of giving so many facilities to its employees, ACC is not able to retain100% of its employees with itself. This study would try to answer the reasonsbehind this.

RESEARCH PROBLEM

To study the reason for employee turnover at ACC Gagal.

OBJECTIVES

To know employees perception about the facilities being provided to them at

ACC GAGAL.

To track employees workplace climate in ACC GAGAL.

To suggest proactive steps to build a climate that encourages retention.

To track employees safety in ACC GAGAL.

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RESEARCH DESIGN TO MEET THE OBJECTIVES

Area of Study

The area of study is Gagal Cement Work, Barmana.

Sampling UNIT

Sampling unit consist of GAGAL CEMENT WORKS, BARMANA. (ACC LTD.)

Sampling ELEMENT

Sampling element consist of Management staff of ACC at GCW.

Sample of Respondents

A sample of 70 employees in management staff of GCW was taken.

Method of Sample & its design

Quota sampling & Convenience sampling methods were used.

Instrument for Information

For Primary Data

Structured Questionnaire & Personal Interview were used.

For Secondary Data

Newsletters of the ACC, Journals, Reports, HR MANUALS, and use of various

websites were made.

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LIMITATIONS OF STUDY

Time was among the most critical limitation of this study. This whole study is

done within a small time period of 6 weeks.

This study is done at only one plant of ACC i.e. Gagal Cement Works, Barmana.

So the results cannot be associated fully with whole organization.

Due to different shifts of working of employees, whole management staff could

not be covered in this study.

Most employees hesitated to fill the questionnaire as they feared that their

identity would be disclosed.

Some employees refused to fill the questionnaire as they were busy and couldnt

give their time to us to provide information.

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DATA ANALYSIS&

INTERPRETATION

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Demographic Profile

AGE

0

10

20

30

40

2012 12 17 8 33

40

QUALIFICATION

0

10

20

30

40

2012 14 7 10 39

DIPLOMA B.TECH MBA OTHERS

WORK EXPERIENCE

0

10

20

30

40

2012 27 5 5 33

0-5Years 5-10Years 10-15Years >20Years

Facilities

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PIE CHART-1

Coming to the most critical factors i.e. Salary, none of the respondents presume

that their salary was excellent. About 72% of the respondent employees think that

their salary was good, while others feel that it was just average. So it was the

main factor for employee turnover.

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PIE CHART-2

A similar response was seen in terms of incentives also. Here also, no one thinks

that incentives being provided to them were excellent. About 64% of the

respondents feel that their incentive was good while others feel the opposite one.

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PIE CHART-3

In the similar way, 6% of the respondents feel that reward given to them was

excellent. About 71% of respondents feel that the reward given to them was good

enough, while the rest feel the other way.

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PIE CHART-4

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Talking about training, around 84% of respondents feel that the training provided

to them in ACC was good. Near about 7% rate it as average while about 9% said

that it was poor.

PIE CHART-5

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About 7% feels excellent where 66% of employees feel that the long service

awards given to them were good. However 24% of them say that these were

dissatisfied. This may be due to the fact that they feel that there should be

something extra (increment or promotion) associated with the long service

awards.

PIE CHART-6

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About 84 % percent of responding employees feel that the loan facility being

provided to them was good, while 9% feel that it was just average. Only 7% feels

that the loan facility was poor in ACC.

PIE CHART-7

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ACC GAGAL is best known for the safety of its employees. As ACC GAGAL got

Reward for the safety also. Around 44% respondents think that the safety

facilities was excellent. About 53% feels that it was good and rest feels as the

safety was only average.

PIE CHART-8

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Most of the employees were in the favor that the housing facilities being provided

to them were good & they were satisfied by those. However a small percentage of

people do not think that the housing facilities were not up to the mark. This may

be because of perceived difference of standard of housing facilities for senior

managers & other employees.

PIE CHART-9

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About 76% of employees presume the satisfactory level of medical facilities being

provided to them. However 24 % of employees do feel that the medical facilities at

GCW was not not good. This was subjected to the reason of unavailability of all

types of medicines, sufficient space ( beds ) & manpower in the hospital.

PIE CHART-10

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About 79% of employees think that the co-operative store opened for ACC

employees was good. However the rest dont feel like that. This may be due to

less manpower at the co-operative store which results in rush every time there.

Also, only confectionary items can bought in the store. For buying other things

like clothes, home appliances etc. employees have to depend on other market.

PIE CHART-11

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About 70 % of respondent employees feel that the newly opened Marriage &

Community Centre in ACC colony was good. However the rest 26% rate it as

average. As the reason for the satisfied employees opinion may be the non-

availability of such facility earlier. At that time they had to make the arrangements

somewhere else (in outside hotels etc.) for different occasions. The reason

behind the opinion of the rest may be that they want more good facilities inside

the Marriage & Community Centre e.g. facility of Cooks, Servants, Helpers or

marriage bureau etc.

WORK PLACE CLIMATE

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PIE CHART- 1

A large number of respondents as 8% respondents feels that the performance

appraisal system was quite effective strongly agree, where 60% respondent feels

its agree and only 16% respondent disagree with the statement.

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PIE CHART- 2

About 72% of respondents agree with the statement while 12 % disagree with the

statement. The credit of this goes to Connect India Group of ACC which provides

different training facilities to ACC employees.

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PIE CHART-3

About 65% of respondents agree that the organization goes out & makes sure

that employee enjoy their work & life. There was scope for making work more

challenging & interesting. Only few people was disagreeing with statement.

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PIE CHART-4

About 83% of the respondents were in agreement with this statement. This

indicates a wide gap as perceived by the respondents for proper emphasis on

technical training. There was still need for improvement.

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PIE CHART-5

It was good to see that about 80%of respondents agreed with this statement that

they have full freedom to experiment with new ideas. This may be one of the

motivating factor for those who was satisfied by their job in ACC.

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PIE CHART-6

Survey shows that performance appraisal system in ACC a strong area. About

70% of respondent feel that existing PMS takes into account specific &

measurable contribution on the job. As 17% were disagree with the performance

appraisal system.

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PIE CHART-7

About 69 % of respondents were in the favor of the statement that employees

lacking competence in doing their jobs are helped to acquire competence rather

than being left unattended, while 15% are against it.

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PIE CHART-8

It was to be noted that as many as 44% of respondents feel that there was no

point in developing themselves as their efforts was not recognized and 20%

respondents was unable to suggest on it. Only 36% respondents agree and this

may be the reason for those who dont see their future in ACC.

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PIE CHART-9

As 55% of respondent employees feel that the growth prospects in ACC was

slow. Where, 32% respondents disagree with statement. There should we concern

as another reason for employees not continue with this organization.

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PIE CHART-10

This can be another reason for respondents not to see their future in ACC, 29% of

respondents dont find the existing system of granting increment effective. Only

49% of respondents find existing increment granting system effective.

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PIE CHART-11

About 76% of the respondents were of the opinion that opportunities exist to try

out what they have learnt from Training Programmes. However, 10% of

respondents do not feel that they get such opportunities. This shows that

organization was giving employees training and measuring its effectiveness & the

change that occurred in employees after getting the training.

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PIE CHART-12

Surprisingly, 37% respondents feel that their job is secure in ACC. On one side it

is matter of happiness for the organization while on the other hand it was great

matter of concern that a sizeable no. of employee viz. 17% respondents who dont

see their future in ACC; dont give any importance to this job security also.

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PIE CHART-13

Good environment is the most important factor for every organization. About 74%

of respondents feel agree that the working environment is not good at ACC, while

about 18% dont feels so.

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PIE CHART-14

About 61% of respondents feel that their job at ACC is challenging while about

27% dont feel so. This might be the possible other reason for respondents who

dont see their future in ACC.

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RECOMMENDATIONS

&

SUGGESTIONS

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Areas Of Improvement

The possible areas of improvement for ACC are:

1) JOB ROTATION: -By doing this, employees will feel that their job is challenging & they dont feelbored. Also as it includes learning new things every day, employees improvethemselves day by day.

2) ROLE PLAYING OPPORTUNITIES: -As we have concluded in research that few unsatisfied employees dont care

about the job security they get in ACC. So they should be offered something new& unique which may motivate them at work otherwise they will leave theorganization.

3) Role clarity should be there: -Each & every employee should know that what work he has to do. As presumedby an employee there is no role clarity in the organization.

4) Transparency in promotion system: -There should be clear transfer of information for criteria of promotion in theorganization.

5) Revision of salary:-As the attrition rate of ACC is increasing, new recruitments are being made. Butthese new comers dont find their salary in ACC as competitive to what othercompanies offer at same post. So to retain these new comers, salary structureshould be revised after particular time periods.

Few other strategies that can be used for motivating employees to work can be:-

Wedding Day Gift:

It is a very simple but very effective strategy to make employees feel that theyare a very important part of the organization.

Birthday Reminders:

This includes feeding of employees date of birth as a reminder which cansnooze on the computer of all the employees & tell that today is someonesbirthday so that they can wish him. He feels that he is also having some value in

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the organization. Due to this he feels more motivated & devoted towards hiswork.

QUESTIONNAIRE

I am a BBA student & undergoing industrial training at Gagal Cement Works and conducting a survey.

Kindly go through the following STATEMENTS & indicate your level of agreement by a tick mark ( )against the level of corresponding box.

There is no need to reveal your identity while filling this questionnaire.So, please be frank whilereplying & respond to all the statements .

1. Age

a) 45

2. Highest Qualification

a) Diploma b) B.Tech c) MBA d) Others

3. Your work experience with ACC

a) 0-5 years b) 5-10 years c) 10-15 years d) >20 years

4. How do you rate the following facilities provided by ACC?

S.No. Facilities Excellent Very Good Good Average Poor

1 Salary

2 Incentives

3 Rewards

4 Training

5 Long Service Awards

6 Loans

7 Safety

8 Housing Facilities

9 Medical Facilities

10 Co-operative Store

11 Marriage & CommunityCentre

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5. Please tick the following statements according to your perception & experience at ACC:-

S.No. Statements Strongly

agree

Agree Undecided Disagre

e

Strongly

disagree1) The performance appraisal system

prevalent in the organization is quiteeffective.

2) Adequacy of training.

3) Perception of quality of work life.

4) Perception of need for technical training.

5) Perception of creativity and new idea.

6) Perception of Performance Appraisalsystem.

7) Perception of skill improvement andcompetence enhancement.

8) Employee perception of recognition ofeffort.

9) Perception of growth prospect.

10) Perception of granting increment.

11) Perception of using knowledge acquired inTraining.

12) Perception of Job security

13) Perception of Working environment.

14) Perception of job challenging.

If there is any other suggestion that you would like to give to ACC, please specify_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

__________________________________________________________________________________________ _

THANK YOU

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Bibliography

BOOKS:-

HR manual, ACC

Websites:-

http://www.acccement.com

http://www.cmi.com/ACC

Google
http://www.acccement.com/http://www.acccement.com/

final report on employee retention

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