retention strategy to reduce attrition

8/6/2019 Retention Strategy to Reduce Attrition

http://slidepdf.com/reader/full/retention-strategy-to-reduce-attrition 1/124

1

CHAPTER 1

INTRODUCTION

1.1 ORGANIZATION PROFILE:

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor

Company (HMC), South Korea and is the second largest and the fastest growing carmanufacturer in India. HMIL presently markets 34 variants of passenger cars across

segments. The Santro in the B segment, the Getz Prime and the i10 in the B+

segment, the Accent and the Verna in the C segment, the Sonata Embera in the E

segment and the Tucson in the SUV segment.

Hyundai Motor India, continuing its tradition of being the fastest growing passenger

car manufacturer, registering total sales of 327,160 vehicles in the calendar year (CY)2007, an increase of 9.2 percent over CY 2006. In the domestic market it clocked a

growth of 7.6 percent as compared to 2006 with 200,412 units, while overseas sales

grew by 11.8 percent, with exports of 126,748 units.

HMIL·s fully integrated state-of-the-art manufacturing plant near Chennai boasts of

the most advanced production, quality and testing capabilities in the country. In

continuation of its commitment to provide the Indian customer with global

technology, HMIL has set up its second plant, which produces an additional 300,000

units per annum, raising HMIL·s total production capacity to 600,000 units per

annum.

CH.I - INTRODUCTION

1.1 ORGANIZATION PROFILE



2





units per annum, raising HMIL·s total production capacity to 600,000 units per annum.

HMIL is investing to expand capacity in line with its positioning as HMC·s global export

hub for compact cars. Apart from expansion of production capacity, HMIL plans to

expand its dealer network, which will be increased from 232 to 260 this year.

The year 2007 has been a significant year for Hyundai Motor India. It achieved a

significant milestone by rolling out the fastest 400,000th export car. Hyundai exportsto over 90 countries globally; even as it plans to continue its thrust in existing export

markets, it is gearing up to step up its foray into new markets. The year just ended

also saw Hyundai Motor India attaining other milestones with the launch of the i10

and yet another path-breaking record in its young journey by rolling out the fastest

1,500,000th car.

Hyundai·s new model i10 which made its global debut here in India in October, 2007made a clean sweep of all the ¶Car of the Year 2008· awards from the leading

automotive magazines and TV channels like BS Motoring, CNBC-TV18 AutoCar, NDTV

Profit Car & Bike India and Overdrive magazine. The i10 is also the choice of the

discerning automotive media of the country as they conferred the prestigious ¶Indian

Car of the Year· (ICOTY) award to the i10 as well. The i10 bagged these awards on the

basis of excellence in build quality, handling, driver comfort, safety and ride quality.

The Santro and the Accent also received the ¶TNS Voice of the Customer - 2008·

award for the Premium Compact Car (Santro) and the Entry Mid size Car (Accent). In

March 2008 it achieved yet another milestone by rolling out the fastest 500,000th

export car.



3

Last year, the Hyundai Verna bagged some of the most prestigious awards starting

with the title of "Car of the Year 2007" by India`s leading automotive publication ²

Overdrive, the ´Best Mid-size Car of the Yearµ award by the NDTV Profit Car & Bike

India Awards 2007, the ´Best Value for Money Carµ by the CNBC Autocar Auto awards

and ¶Performance Car of the Year 2007· from Business Standard Motoring.

Hyundai cars have been a favorite at all awards ceremonies and have always been

winning awards. Our models like Sonata Embera won the ¶Executive Car of The Year

2006· award from Business Standard Motoring Magazine and NDTV Profit Car & Bike

India declared the Tucson as the ¶SUV of The Year 2006·. Not only this, HMIL has also

been awarded the benchmark ISO 14001 certification for its sustainable environment

management practices.

About HYNDAI MOTOR COMPANY

Established in 1967, Hyundai Motor Co. has grown into the Hyundai-Kia Automotive

Group which was ranked as the World·s Fifth-Largest Automaker in 2007 and

includes over two dozen auto-related subsidiaries and affiliates. Employing over

75,000 people worldwide, Hyundai Motor posted sales of US$74.9 billion in 2007 on aconsolidated-basis and US$32.8 billion on a non-consolidated basis (using the average

currency exchange of 929 won per US dollar). Hyundai vehicles are sold in 193

countries through some 6,000 dealerships and showrooms. Further information about

Hyundai Motor Co. and its products is available at http://www.hyundai-motor.com



4

PRODUCT LINE-UP:

Here·s the car brimming with

innovative ideas and good design that will put pleasure into every

moment you spend behind the

wheels.

The first glimpse of the Sonata V-6 will

always take your breath away . Your quest

for automotive perfection ends with

Sonata. This is a car worthy of a modern

day Caesar .

A dexterous combination of form &

function . Rugged yet refined. Off &

on the road, the Terracan is designed

to rule. The luxurious & rich interiors

belie the rugged exteriors.

The Santro Xing is a stunning

combination of contemporary looks and

functional luxury. It also incorporates

the revolutionary EUROSAFE Passenger Protection System that meets the latest

European safety standards. The new

Santro Xing combines a fresh new

attitude , warmth and comfort



5

Getz's space/comfort and Santro's

engine make Getz Prime. A very

practical car . Fuel economy had

been a concern but with 1.1Lengine, it's not any more. Getz 1.3

is still available as top-end versions.

This car sits between the Santro and Getz

Prime presents itself as a good looking

VFM family car. There are options like

ABS and airbags along with features like

sunroof to opt for. All this in a small-car!

Won Car of the Year - 2008

Even though the styling of the Verna

seems contemporary you always end up

comparing it with the Accent. The

external additions of the body of theVerna seem to blend together with the

shape and this sets it apart from the

Accent

The Tucson 2.0 CRDi, 1991cc, 4 cylinder,

16 valve engine comes with amazing power

122ps and 245Nm of torque. This soft-

roader is highly fuel economic and yet is

very good at engine performance. Dual

airbags provide very high level of safety.



6

HMIL presently markets 34 variants of passenger cars across segments, the Santro in

the B segment, the Getz Prime and the i10 in the B+ segment, the Accent and the

Verna in the C segment, the Sonata Embera in the E segment and the Tucson in the

SUV segment.

Hyundai Motor India, continuing its tradition of being the fastest growing passenger

car manufacturer, registering total sales of 327,160 vehicles in the calendar year (CY)

2007, an increase of 9.2 percent over CY 2006. In the domestic market it clocked a

growth of 7.6 percent as compared to 2006 with 200,412 units, while overseas sales

grew by 11.8 percent, with exports of 126,748 units.








continuation of its commitment to provide the Indian customer with globaltechnology, HMIL has set up its second plant, which produces an additional 300,000


HMIL is investing to expand capacity in line with its positioning as HMC·s global export

hub for compact cars. Apart from expansion of production capacity, HMIL plans to

expand its dealer network, which will be increased from 232 to 260 this year.

The year 2007 has been a significant year for Hyundai Motor India. It achieved a

significant milestone by rolling out the fastest 400,000th export car. Hyundai exports

to over 90 countries globally; even as it plans to continue its thrust in existing export

markets, it is gearing up to step up its foray into new markets. The year just ended



7

also saw Hyundai Motor India attaining other milestones with the launch of the i10

and yet another path-breaking record in its young journey by rolling out the fastest

1,500,000th car.

Hyundai·s new model i10 which made its global debut here in India in October, 2007made a clean sweep of all the ¶Car of the Year 2008· awards from the leading

automotive magazines and TV channels like BS Motoring, CNBC-TV18 Auto Car, NDTV

Profit Car & Bike India and Overdrive magazine. The i10 is also the choice of the

discerning automotive media of the country as they conferred the prestigious ¶Indian

Car of the Year· (ICOTY) award to the i10 as well. The i10 bagged these awards on the

basis of excellence in build quality, handling, driver comfort, safety and ride quality.

The Santro and the Accent also received the ¶TNS Voice of the Customer - 2008·

award for the Premium Compact Car (Santro) and the Entry Mid size Car (Accent). In

March 2008 it achieved yet another milestone by rolling out the fastest 500,000th

export car.

Last year, the Hyundai Verna bagged some of the most prestigious awards starting

with the title of "Car of the Year 2007" by India`s leading automotive publication ²

Overdrive, the ´Best Mid-size Car of the Yearµ award by the NDTV Profit Car & BikeIndia Awards 2007, the ´Best Value for Money Carµ by the CNBC Auto car Auto awards

and ¶Performance Car of the Year 2007· from Business Standard Motoring.

Hyundai cars have been a favorite at all awards ceremonies and have always been

winning awards. Our models like Sonata Embera won the ¶Executive Car of The Year

2006· award from Business Standard Motoring Magazine and NDTV Profit Car & Bike

India declared the Tucson as the ¶SUV of The Year 2006·. Not only this, HMIL has also

been awarded the benchmark ISO 14001 certification for its sustainable environment

management practices.



8

The Hyundai Logo

The symbol represents an image of Car Company that produces refined cars

with cutting edge technology.

Expresses the will of the management for harmony and stability

The oval shape symbolizes the earth to expresses the global nature of HMC car.

The H logo stands fort the first letter of Hyundai motor company

The slanted shape of the H represent progress and a company that will

successfully face future challenges as it continues to raise its standard of

quality.

Goals of HMIL:

The ultimate goal is to join the ranks of the world·s top 10 automakers.

Focus on developing advanced technology.

Hyundai cars known as world-class cars

Concentrating on building cars that are more environments conscious andfurther improving the quality of life for everyone in future.

Basic objectives of HMIL:

Best customer service

Best technology

Best quality products

Best value for people

This has helped the company deliver consistently producing some of the finest cars of

the company.



9

HMIL Vision

DREAM

STRIVE

ACHIEVE TOGETHER

HMIL Mission :

INNOVATION FOR HUMANITY

Vision of Hyundai is ´ Innovation for humanity ´ .



10

Milestones :

199 6

May 06 Hyundai Motor India incorporated.

December 10 Ground-breaking ceremony at the Irrungattukottai plant near Chennai.

199 8

May 27Pilot production of Santro at plant begins within a record 17 months ofground breaking.

Se p tember 23Hyundai Santro (Atos Prime) makes its world debut in India

1999

March 31Hyundai Motor India emerges as the second largest auto-manufacturer inthe country.

October 14

Launch of Hyundai Accent2000

April 27100,000th Car rolls out from the Chennai plant in just 19 months of sincecommencement of operations.

May 08 Launch of Santro zipDrive.

J une 12Hyundai Santro crosses 100,000 car sales.

J uly 21First major export-shipment of 760 Accent and Santro cars roll out of theChennai Port for Algeria.



11

November 0 1Both Santro & Accent bag top honours in JD Power Asia Pacific 2001ÍQSµ and ́ APEALµ studies.

November 29

Roll out of the 1,50,000th car from Chennai Plant in just 25 months.200 1

J une 12Hyundai Motor India rolls out its 200,000th car in 32 months.

J uly 11Hyundai Motor India introduces new look Santro.

J uly 18

Hyundai Motor India launches luxury sedan Sonata.November 22

Santro ranked No 1 in JD Power Asia Pacific 2001 Ínitial Qualityµ study.

November 26 Both Santro & Accent ranked No. 1 in JD Power Asia Pacific 2001ÁPEALµ study.

200 2

March 18 Global launch of 1.1 Litre E-Epsilon engine on the new Santro Zip Plus.

J une 26 Hyundai Motor India rolls out 3,00,000th car.

August 16 Hyundai Motor India launches Accent VIVA.

Se p tember 06 Hyundai Motor India launches Santro Automatic Transmission.

October 10 Hyundai Motor India launches Accent CRDi.

October 23Hyundai Motor India launches Sonata 2.7 V6.

November 0 1



12

Santro bags top honours in J D Power Asia Pacific 2002, tops both IQS& APEAL for 3rd time in a row & Accent ranked No. 1 in APEAL for 2ndtime in a row.

December 0 1

Hyundai Motor India rolls out 350,000th car in a short period of 50months.

200 3

J anuary 14Hyundai Motor India awarded ¶Manufacturer of the Year· at the CNBCAutocar India Awards for the second year in a row.

February 5Hyundai Motor India declared ¶Car Maker of the Year· at the ICICI

Overdrive Awards.March 13

Hyundai Motor India commences exports to Latin America

March 18 Hyundai Motor India awarded ISO 14001 for sustainable EnvironmentManagement

May 08 Hyundai Motor India rolls out 400,000th car.

May 22Hyundai Motor India launches Santro Xing, the global small car.

J une 0 1Hyundai Motor India wins the Business Standard Motoring Jury Award forthe Accent CRDi.

August 0 4Hyundai Motor India launches its premium SUV, Terracan

August 12Export shipment of 1500 Santro Xing cars leave for Europe, HMI becomessmall cars export hub for HMC.

December 11Hyundai rolls out 500,000th vehicle in India.



13

200 4J anuary 15

Launch of Accent Viva CRDi

March 0 1

Santro crossed the figure of 1,00,000 sales in terms of annual sales. Thefirst Indian car to do so in its segment.

April 15Launch of Elantra.

Se p t 10 Launch of Getz.

October 31HMIL crossed the figure of 1, 00,000 vehicles in export and emerged as

the largest exporter in the automobile industry.Nov 17

HMIL introduced India·s Best Warranty for the 1st time in the history ofIndian Automotive Industry ² 4 years/80,000 km warranty for Sonata &Elantra.

Dec 0 1Santro becomes India·s largest selling single brand across segments with12,061 units.

Dec 25Getz awarded ́ Car of the Yearµ 2005 by Standard Motoring Magazine

200 5

J an 0 1Santro once again becomes the largest selling brand in its segment.

J an 17Getz awarded ¶Car of the Year 2005µ by CNBC ² TV 18, Auto Car AutoAwards.

J an 0 1Accent Petrol ² was awarded the 'No 1 Entry Midsize Car' by TNSAutomotive, India.Accent CRDi ² was awarded the 'No 1 Midsize Diesel Car' by TNSAutomotive, India.



14

Feb 0 1HMIL was declared the ´Star Companyµ amongst the unlisted companiesby Business Standard.

April 6

Launch of SUV ² Tucson~ HMIL launches the GDMS ² Global Dealer Management System , asoftware that will help its dealers stay connected with the company inreal time.

J une 08 Hyundai Motor India launched three new variants of the Santro Xing witheRLX technology(XK-non AC,XK, XL)

Aug 17Launch of Sonata Embera

Aug 18 Hyundai Motor India introduced the export variant of its premiumhatchback, Getz, in the Indian market,Getz-GLE.

Se p 2 6 Sania Mirza was signed as Brand Ambassador of Hyundai Getz

Oct 18 HMI exported its 200,000th car to the overseas market.

Nov 0 1All time high cumulative sales in October.

Nov 29HMI exports its first shipment to UK

2006

J an 11Tucson was awarded as ´SUV of the Year 2006µ by NDTV Profit-Car India

awards 2006 .

Feb 0 9Plant Capacity expansion announcement by Hyundai Motor Chairman,production to be enhanced by 600,000 units by 2007



15

March 13HMIL rolled-out the fastest 10,00,000th car

April 10 Launch of Hyundai Motor India Foundation

Se p tember 25Launch of Hyundai Verna Petrol & Diesel

October 31Hyundai Motor India rolls out the fastest 300,000th export car.

November 0 1Santro crosses the million mark.

December 30

Verna CRDi was awarded the ¶Performance Car of The Year 2007· byBusiness Standard Motoring.

200 7

J anuary 0 3Verna was awarded the ¶Car of the Year 2007· by Overdrive magazine.

J anuary 0 4Verna was awarded the ¶Best Value For Money Car 2007· by CNBC TV 18Autocar Auto awards.

J anuary 12Launch of Sonata CRDi.

March 26 Hyundai Motor India ships out the first Getz.

April 0 2Launch of Getz Prime.

April 19Launch of Verna CRDi SX.

J une 0 1Hyundai Motor India Receives EEPC(Engineering Export PromotionCouncil)¶Top exporter of the year· Award for 2005-06.



16

J une 27Launch of Sonata CRDi Automatic.

J uly 0 4Launch of Santro CNG.

Aug 06 Export of 400,000th car

Se p 0 1HMIL rolled out the fastest 1,500,000th carLaunch of Getz CRDi

Oct 31Launch of i10

Dec 29i10 awarded ¶Car of the Year 2008· by Business Standard MotoringMagazine

2008

J an 0 9i10 awarded ¶Car of the Year 2008· by CNBC TV18 Autocar Auto awards

J an 10 i10 awarded ¶Car of the Year 2008· by NDTV Profit Car& Bike

J an 11i10 awarded ¶Car of the Year 2008· by Overdrive magazine

Feb 0 2Inauguration of 2nd plant in Chennai

March 27Export of 500,000th car

April 0 4i10 awarded ¶Car of the Year 2008· by ICOTY

J une 11Fastest Export - Over One lakh units of i10 exported since its launch inOct 31



17

J uly 0 1Hyundai-Kia Automotive Group Joins Ranks of Global Top 5 Automakers(Automotive News' 2008 Global Market Data Book)

J uly 15

i 10 Kappa launchedJ uly 15

Inauguration of the new Engine & Transmission plant.

Se p tember 10 10th Anniversary celebration and flag-off of ¶i drive to Paris· by AbhinavBindra.

Se p tember 30 Hyundai launches the dual fuel- ¶Santro Eco·.

October 0 2i 20 launched in Paris Motor Show and display of ¶i drive to Paris· cars.

HMI Exports :

Hyundai Motor India, the global compact cars export hub of the US$47 bn Hyundai

Motor Grou p , started export shipment to Europe with a consignment of 1 , 500 units

of its , flagshi p ' Santro ' bound for Italy , Spain and Netherlands .

The first ex port shi pment to Euro pe since the announcement of HMI as the global

export hub for Hyundai compact cars, this consignment will carry 1,500 units of the

New AtoS Prime, as the Santro is badged in Europe. This included 710 units bound for

Italy, 690 for Spain and 100 units for Netherlands.

Western Europe is globally the largest consumer of small / compact cars with the

largest markets being Italy, Spain, Greece, Netherlands and Belgium. The companyhas scaled up its export target from 8,966 units in FY 03 to 30,000 units in FY 04. The

company has already exported 6,740 units YTD. Algeria , Morocco , Indonesia ,

Colombia , Nepal and Sri Lanka are currently some of the biggest export markets for

Hyundai Motor India.



18

HMIL is India's second largest carmaker and a clear leader in the B, C and E passenger

car segments, which together account for over 70% of the Indian passenger car

industry. The company has announced aggressive plans to emerge as India's leading

exporter of passenger cars by CY 2004.

Awards and Certifications :

For Envi ro nment

Ene rgy Conve rsa ti on & Saf et y

3 Leaves Award in 200 1from CSE, New Delhi

ISO 14 00 1Certification (EMS) in 2003 from TUV,

GermanyEco First Award in 200 3 from

Kanchi Health & EducationSociety

Energy Efficient Unit Awardin 2001 from CII

National Energy Conservation Awardin 2002 from Govt.

of IndiaSafety Appreciation Award

in 2001 from NationalSafety Council



19

Car of the YearCompact Car of the Year

Car of the Year 2008Small Car of the Year 2008

Car of the Year 2008 PM Presents ́ Star Com pany µ Award toHyundai Motor India

Car of the Year - Aaj Tak Viewers ChoiceAward

Hyundai Santro has topped the J D Power Asia Pacific Intial Q uality Study (IQ S)

that measures product quality for threeyears in a row (Years 2000, 2001 & 2002)

CNBC-TV18 Autocar Auto Awards 2007:'Best value-for-money car '

Hyundai Getz is the CNBC Autocar Car of the Year 2005

Hyundai Elantra ² Best Value for Money Car of the Year 2005

Com pany ² Awards ² CNBC Autocar India ² Hyundai has been the manufacturer of

the year for two years in row .



20

Executives Jr. Executives Non Executives

Man power : [ Category wise]

Unique HR initiatives :

Morning Department Standing Meeting ² done by all

My Machine and My Station concept

Music Extravaganza in the Plant ² once a year at Founders day Free Help Line services to serve employees

Employees Family Visit Program ² Gift from Management thanking the family

Publicity for Outstanding Work

By display of achievement and Photograph in Department Notice Board

By distribution of Prizes in meetings attended by all employees

Annual Picnics to promote ´ ONENESS µ

Birthday Greeting with flower bouquet & Plantation of trees named after them

Marriage Gift to newly married employees

Welfare benefits over and above what is prescribed by law

Meditation for Managers ² and follow up

Tax Saving Gift vouchers / Gift Credit Card on Festive occasions

E m pl oy ees

959

1280

3096

Executive s:

Mgmt. Trainee / Grad. Engr. Trainee

Asst. Mgr / Dy. Mgr

Mgr / Sr. Mgr / AGM / DGM / GM

Sr.GM / VP / Sr.VP / President

J r. Executive s:

Engineer / Officer

Technical / Business Associate

Technical /Business Associate Trainees

N on - Executive

s:

Technician / Workman / Trainee



21

The Ch all en ge s we r e«

To manufacture and sell a global technology, global quality car reflecting Indian

consumer needs at an appropriate price and attain profitability.

What Hyundai Provide :

A highly Energized & Stimulating work environment

High Levels of Motivation, Empowerment & Recognition

Emphasis on Competence, Creativity and Challenge

Proactively unleashing People·s Potential that will build the future

Encourage Innovation and allow the freedom to learn from mistakes A culture of Continuous Change & Improvement

Health :

Regular Health Camps (Eye, Cardiac and Wellness) at the adopted villages

Donated Ultra Sound Machines and Auto Refractometer to Primary Health Center

Infrastructure :

Construction of Cement Roads at Keevalur

Deepening of Ponds in Thandalam & Kattarambakkam

Drinking Water Tank construction at Irrungattukottai

Education :

Construction of High School at Thandalam (Common for Four villages)

Infrastructure Facilities like Fans, Benches for the Schools of nearest 4 villages

Distribution of Note Books and Stationery items to School Children

Picnics for all the 4 school children once a year



22

Social Needs & Contingency Supp ort :

Joint participation in Social Welfare Programmes with the District Adminisitration

Support during natural calamities like Flood

Artificial Limbs, Wheel chair and Tricycles for Physically Disabled

Persons in the adopted villages

Contribution for setting up Night Schools

Support being extended for functioning of Vidya Prakasam ² Society

for Well-being of Spastic Children

Emp loyment :

Provided employment for all those eligible land displaced people of the 4 villages

Provided job oriented technical training to the Unemployed youth of the villages



23

1.2 CONCEPTS:

Attrition :

General Usage :

In general usage the word attrition means 'W ARE DOWN' and ' F RICTION' .

Industrial Usage :

Attrition in the industrial point of view is the process of employees leaving the

organization because of various reasons. In detail it is the process where in the

employee gets separated from the employer under whom he works under avoidable

and unavoidable circumstances.

Ty pes of Attrition :

Death

Resignation

Retrenchment (Lay off)

Retirement

Advantages of Attrition

Excess manpower can be checked

Employee movement in the industries

Job rotations

Employment generation

Reduces boredom

Fresh and innovative ideas through new people

CH.I - INTRODUCTION

1.2 CONCEPTS



24

Disadvantages of Attrition

Loss of trained manpower

Recruitment expense

Costs of training the new person

Employee may spoil the image

Costs of retaining the talent

Company information

Attrition in Manufacturing Sectors

´Attrition spreading to traditional sectors as wellµ ATTRITION is not just rampant in

the BPO sector, but it is fast catching up in other traditional sectors such as

manufacturing and engineering, public sector undertakings and services.

According to an Emp loyee Vulnerable Study by NFO India , employees in the

traditional sectors are most dissatisfied and would switch jobs at the first available

opportunity. However, employees belonging to new-age sectors such as financial

services, insurance and banking, FMCG and white-goods, IT and telecom seem to be

relatively more satisfied.

Mr. Gautam Nath, Director-Corporate Services for NFO, said the "possible

vulnerability" of white-collar workers should ring alarm bells for HR heads. The major

pitfalls for the manufacturing sector were found to be lack of growth opportunities,

dissatisfaction with job content, inadequate emphasis on policies and systems and

interpersonal relationships.

"There is a crying need for com panies to engage the em p loyees ' interest bycreating a conducive environment for growth, learning, bolster ¶we-feeling· and

compensate as per industry standards," said Mr. Nath. "After all, the hidden costs

incurred in attracting the right workforce and on-the-job training, is phenomenal.



25

Also, if we take into account client business that goes away, each time we lose a key

performer," added Mr. Nath.

NFO randomly polled over 200 corporate executives from some leading companies in

Delhi, Mumbai and Bangalore. It is aimed at understanding motivation levels of

employees, reasons for high degree of employee turnover in certain sectors and

factors that keep the interest level of employees going.

For many service sectors, within their aggregate attrition numbers there are hidden

problem areas of attrition. Sometimes these are associated with particular products,

service functions, or customer segments. Frequently, and with the greatest negative

impact, these problems particularly hurt retention among the highest valuecustomers.

Retention :

Retaining talented employees is one of the topmost priorities of employers today.

Reasons for attrition could be the innumerable changes engulfing workplaces, like

reorganization, higher performance standards and resultant high-pressure levels.

The challenge is not only to attract the best talent but also to retain them.

Rising opportunities for career development, lifestyle decisions, job mobility,

unbalanced work life, poor mentoring and stress are some factors which influence and

individual·s decision to continue or quite.

Among other things, a retention strategy demands respecting employees· concerns

right from their entry into the organization till their retirement.It encompasses the organization·s ability to provide the best of work climates.



26

What troubles em p loyees?

An Employee expect from Employer to:

Provide induction

Create a good work environment

Motivate them to work

Train them

Provide a suitable compensation package

Implement reward strategies

Counsel them

Hold affable exit interviews

Appropriate HR strategies alone can satisfy employee expectations. Retention will

not be a major concern if the organization stands firm on its values and promises.

Design on Retention Strategies :

Cor porate image

Maintaining corporate image is an effective way to attract the talented. Theorganization has to ensure that it is sought after for employment by cashing on itsgood will and reputation.

Saleable Features

The organization must identify its strengths and opportunities and portray themeffectively. This is almost equivalent to selling the organization to the new recruits; ithelps in building positive impressions initially.

Turnover

Organisations must hold strict exit interviews and review reasons for turnover.The information must be ideally used to plan strategies for retention. Those issuesthat might drive talent to leave should be dealt with immediately.



27

Continuous develo pment

Unless organizations adapt to changes and developments, they cannot mentortheir employees and new recruits. Give the new recruits every reason to work for theorganization and build a long-term relationship.

Information use

All information about the new recruits should be kept in mind even after therecruitment process ends. This will help in identifying their potential and settingperformance targets thereby, maximizing the recruit·s performance.

Cultural Profile

Matching the profile of the recruit with the cultural profile of the organization iscrucial.

Organisations should look for the best fit into their territory with reviews fromtheir colleagues, customers and managers.



28

1.3 NEED FOR THE STUDY

Today's manager is really the conductor of his own orchestra. Like an orchestra, no

matter how good you are, you sometimes need to stop and re-sync. Were the violins

too loud? Could you hear the flutes? How did the composer mean for the music to

be played?

Top performing managers lead with a style that coordinates the talents of this diverse

orchestra into a deep, rich symphonic sound or a cacophony of simultaneous musical

notes. What sounds are coming out of the employees your managers are conducting?

Employees today come to work with all types of skills, skill levels, attitudes and

personalities. Both men and women have integrated into the workplace. The diversity

of cultures and ethnicity is growing at lightening speed.

But even with this economic slowdown, your best people have other offers. Employeeattrition has risen by more than 25 percent in the past five years. Attrition costs are

roughly 18 months' worth of salary for each manager or professional who leaves and a

half year's pay for each hourly worker. Employee defections are killing the bottom

line and even worse, they are killing any chances for a quick turn-around once the

economic winds of fate shift direction.

The Hay Group, having surveyed nearly 1 million workers in more than 330 companies

over the past four years, has shown that it is important to weed out bad managers

who chase workers away. Otherwise, the good people will be frustrated and leave

too. Attrition is costly and one of the direct causes of employee turnover can be

attributed to the manager.

CH.I - INTRODUCTION

1.3 NEED FOR THE STUDY



29

Thousands of organizations spend billions of dollars on skill training for managers.

Unfortunately these programs often deal exclusively with the ´how-toµ dimension,

the result is merely educational and little or no performance gains are realized. This

ritual of how-to training is referred to by Training House, Inc. as the annual ´sheep

dipµ, where managers and employees are ´herded upµ and run through a program

chosen because ´we haven't done that one in a whileµ or by selecting a patchwork

quilt of topics attempting to meet the needs of all participants but not the specific

needs of anyone.

Companies need to stop tuning into WWRN (Whatever Works Right Now ) and POTY

(Program of the Year ) training if they ever hope to attract and retain their best

people and get a return on their training investments.

Training House Inc. has benchmarked 72,000 managers in 700-plus companies in

dozens of industries in 17 countries. Universally they identified twelve competencies

that highly effective managers have in common that the average performers do not

possess.

Competency based training first identifies the specific skills that are holding averageperformers back from top performance and then targets training time and dollars to

improve only the most needed skills. The result is a greater transfer of classroom

learning to on-the-job performance gains, a reduced learning curve, and a baseline

by which future performance gains can be measured. Most importantly, training is

focused on improving performance, not just personality changes, which translates into

greater productivity and more profits.

According to Scott Parry, author of ´ J ust What Is A Com petency µ , a competency is

"a cluster of related knowledge, attitudes and skills that affects a major part of one's

job; that correlates with performance on the job; that can be measured against well-

accepted standards; and that can be improved via training and development".



30

These twelve competencies identified in top performers have been broken down into

six major managerial activity clusters:

Task Handling

Administrative (Managing Your Job)

Cognitive (Thinking Analytically)

People Handling

Communications (Relating to Others)

Supervisory (Building the Team)

A major reason training courses often don't make much difference in on-the-job

performance is because most training programs do not deal with all three dimensions:

Knowledge

Behaviors/attitudes

Skills



31

1.4 P ROBLEM

´ OUR ASSEST WALK OUT OF THE DOOR EACH EVENING.WE HAVE TO MAKE SURE THAT THEY COME BACK THE NEXT MORNING ´

- Mr. NarayanamurthyChief Mentor of Infosys

High attrition destroys the value of going offshore. It causes companies to lose

knowledge, incur training fees, get caught up in the never-ending cycle of hiring, and

fall behind on scheduled projects. Employee recruiting and retention are big issues for

IT organizations, so create a work environment where the employees are involved in

the development of rewards programs.

Global outsourcing and the astounding amount of foreign direct investment pouring

into China, Russia, and India have created tremendous opportunities and competition

for talented IT professionals in those countries. The downside of this increased

competition is a rising rate of attrition, particularly in India. Fiscal third-quarter 2005

(ended December 2004) results filed by Infosys, Wipro, Satyam, and TCS listedattrition rates between 7.6% and 17.7%. Vendors that we have interviewed place the

numbers much higher, at 25%²60%, while an April 2005 Business Week article

estimated an attrition rate of 60%, with some India service providers experiencing up

to 80% turnover.

To put these attrition numbers into perspective, if your company has 100

programmers and an attrition rate of 25%, then 25 of your IT staff will leave each

year. Think about the time and money it took to find, interview, hire, train, andcoach those 25 people. Now think about losing them and starting the hiring and

training processes anew.

How do the hiring and training processes break down in terms of total costs in India?

The typical time for advertising, interviewing, screening, negotiating, and hiring a

CH.I - INTRODUCTION

1.4 PROBLEM



32

new employee is about two weeks. Companies usually allot one week for programmers

to become familiar with the new business, two more weeks for technical training, and

one last week for customer training. Now imagine a 25% attrition rate and replacing

25 of these programmers each year. Based on a yearly salary of $15,000 for the

human resource person and $25,000 for the programmer, we estimate that it would

cost an additional $63,000 annually in acquisition and employee training costs.

After considering these figures, it quickly becomes apparent why companies are

investing in strategies to prevent attrition. Implementing the seven strategies that

follow will help IT managers retain valuable offshore employees longer. While we

primarily cite examples taken from India, the basic principles apply to other offshore

destinations as well.

First we have to identify the reasons for why an employee leaves an organization. A

talented HR Manager can identify the reason and can plan retention strategy.

Reasons why an em p loyee leaves an organization

Because of BOSS (50% Main Reason)

Monetary factors

Lack of good working conditionNo Flexible work schedules

Lack of respect

Very Few Supportive colleagues

Organization is more concern toward business

Increase in favoritisms

Employee needs pride in where they work & what they do

Lack of appreciation and challenges in jobThe job or workplace was not as expected

The Mismatch between Job and Person

Too Little Coaching and Feedback

Lack of support



33

Stress from Overwork and Work-Life Imbalance

Loss of Trust and Confidence in Senior Leaders

Less frequency in giving rewards

Effect on Organization if it·s Emp loyee Leave

Loss of productivity

Replacing qualified employees

Poor retention creates a ́ revolving doorµ culture within the organization

lowering

morale and confidence.

Cost of overtime or temporary helpRecruiting costs

Interviewing costs

Time spent in orientation



34

1.5 OBJ ECTIVES

To study the existing trend , extent and impact of em p loyee turnover .

To analyze the causes for em p loyee Attrition .

To suggest measures to check employee turnover.

One of the greatest challenges organizations face today is retaining valued staff .

This is especially true in high-technology fields. What are the major factors

influencing?

Primary : - Com prehensive app roach factors :

Compensation benefits

Employee Development and Training

Organizational Identity and prestige

Organizational distinctiveness

Teamwork vs. internal competition

Work schedules Management style

Communication & Facilities

Secondary : - Analysis to each unique enterprise, using a combination of

individual interviews, focus groups, surveys, statistical analysis and benchmarking.

Inferences from EXIT INTER VIEWS shows that,

Opportunity for growth & development (Time-bound & unstructured)

Compensation package (Considered to be below industry standards)

Boss-subordinate relationship

(Arising out of cultural differences and inadequate orientation)

Empowerment ² as important causes for employee turnover.

CH.I - INTRODUCTION

1.5 OBJECTIVES



35

The Attrition Study enables organizations in building

Predictive Retention Practices

Employer Experience Score

Benchmarking

Strong Employers

Predictive Retention Practices

This analytics based study would focus to first understand, and then, post analysis,

predict employee behavior. This practice is derived from the identification of

predictive attrition areas, which help organizations in identifying probable areas of

attrition

Identify "probable areas of attrition" and "current Retention Practicesµ

Segmentation models help developing "Industry wise Benchmarkingµ

Emp loyer Experience Score

Employer Experience Score is an index that measures the "embedded cultural

commitment" of an organization towards "building the talent" of the organization. Theexperience score is anchored on four predictors:

Affiliation

Development Initiatives

Employability and

Our Work Environment

Through this score, we are able to gauge the unique experience that an employer hasbeen able to provide to his talent force, which not only acts as a powerful retention

management tool, but also becomes equally important for acquiring the right talent

for the organization



36

Benchmarking

India Attrition Study data will not only help in developing an organizational and

industry wise best practices report, but also help in identifying the "Employer

Experience Score". This will enable organizations in determining the strengths and

weaknesses of their HR, set up short-term and long-term targets and develop their

action plan.

Organizational and Industry wise best practices

Enable Organizations determine strengths and weaknesses of their

People Processes

Strong Emp loyers

Strong Employers is a unique way to recognize the accomplishments of organizations

who have successfully implemented practices that build a strong connect with the

employees, thus increasing the "Association" and "Affiliation" with the organization.

These would be companies who have a comparatively higher "Employee Experience

Score" and have not only successfully developed, but also have successfully deployed

employee "Predictive Retention Practices"

Organizations with high experience score Recognize Industry Leaders



37

1. 6 PROCEDURE ² METHODOLOGY

Research Design is the conceptual structure within which the research is conducted. It

constitutes the blue print for the collection measurement and analysis of data. A

good design is often categorized as flexible, appropriate, efficient, economical etc.

The design used for the dissertation is a ´ DESCRIPTIVE RESEARCH DESIGNµ. In this

design there is a possibility of maximum bias and minimum reliability of data

collected. It also includes attempts by the research to discover causes behind thefigures.

The Flow of events are enumerated below :

CH.I - INTRODUCTION

1.6 PROCEDURE ² METHODOLOGY

Defining Goals and Objectives

Design Methodology

Develop Instruments

Select Sampling Design

Conduct Research

Analyze Data

Present Finding andRecommendation



38

a) Design : Descriptive design

b) Data Collection : i) Direct Interview

ii) Company Records

c) Research Ty pe : Quantitative

d) Sam p ling : Structured Questionnaire containing 26

Questions under the following sub sections namely:

Orientation

Interpersonal Relationship

Superior ² Subordinate Relationship

Problem Management Communication Skills

Decision Making

Risk Taking

Innovation / Change

Conflict Management

e) Sam p le size : 200 samples

f) Tools & Techniques :

Chi ² Square Analysis

SWOT Analysis

Ranking Average Method

Trend Analysis



39

g) Limitations of the study : The study has got its own Limitations,

The sample respondents may not be true representation of the total

population.

There can be errors due to bias of respondents

It was observed that some of the respondents were reluctant in

answering to some questions.

Due to the length of questionnaire very few respondent could answer

the question genuinely.

The survey method was a convenience survey method and it has got its own

limitations.

Method Of Data Collection

Basically, data is of two types· Primary data and Secondary data. So, before data

collection the researcher has to decide the nature of data he wants to collect.

Primary data are those which are collected a fresh and for the first time and thus

happens to be original in character. The secondary data are those which have already

been collected and processed through statistical process.

Both ¶questionnaire method· and ¶personal interview method· were used to collect

the data. The questionnaire was the primary tool and it was backed by the personal

interview. This technique was adopted as the study required the use of a number of

open-ended questions and the questionnaire method does not warrant too many of

them. Hence for a meaningful and comprehensive study, this combination of methods

was considered necessary.



40

CHAPTER 2

ANALYSIS

2.1 ANALYSIS OF THE METHODOLOGY

CHI ² SQ UARE ANALYSIS:

The chi-square test is one of the simplest and most widely used non-parametric tests

in statistical works. The Greek letter "X" was first used by Karl Pearson in the year

1990.

The quantity Chi-square describes the magnitude of the discrepancy between the

theory and observation. With the help of chi-square test one can find out whether two

or more attributes are associated or not. Suppose one has 'N' number of observation

classified according to some attributes. It may be asked whether the attributes are

related or independent. In order to test whether or not the attributes are associated,one takes the Null hypothesis that there is no association in the attributes under the

study or, in other words the two attributes are independent.

If the calculated value of chi-square is less than the table value at a certain level of

significance (generally 5%), which infers that the results of the experiment provides

no evidence for doubting the hypothesis, that the attributes are not associated hold

good.

On the other hand, if the calculated value of chi-square is greater than the table

value at a certain level of significance, it can be inferred that the results do not

support the hypothesis or in other words, the attributes are associated. It should be

noted that Chi-square is not a measure of the degree or form of relationship. It

CH.2 - ANALYSIS

2.1 ANALYSIS OF THE METHODOLOGY



41

should be noted that Chi-square is not a measure of the degree or form of

relationship. It should be noted that Chi-square is not a measure of the degree or

form of relationship. It tells us whether 2 principles of classification are not

significantly related, without reference to any assumption concerning form of

relationship.

The procedure for finding the independence of rows and columns, criteria of

classification is summarized as follows:

Ho - The rows and columns classification are independent

H1 - The rows and column classification are dependent Where,

Chi-Square = L (Oij - Eij ) 2i EijOij - Number of sample element observed to belong to the ith row and

jth column

Ri - Total observed number in the ith row.

Cj - Total observed number in the jth column

Eij - (Ri x Cj/ n and there are v=(r-1)(c-1) degree of freedom

Acce ptance region R :If calculated Chi-square lesser than or equal to table value of Chi-

square, than accept Ho

Rejection region R :

If calculated Chi-square greater than or equal to table value of

Chi-square, than reject Ho



42

CHI-SQ UARE: ORIENTATION & CONFLICT

Null Hypothesis H 0 = Attributes are Independent.

Degrees of Freedom (d.f.) = (r-1) (s-1)

Where r number of rows

s number of columns

The number of degrees of freedom is (2-1) (5-1)= (1) (4) 4

Expected frequency for 34

Calculation of ] 2

Str

¡

¢ l£ ¤

¢ r¥ ¥

¤

¢ r ¥ ¥

¦

¥ it §

¥ r¤

¢ r¥ ¥ ¦

r ¨ is© ¢ r¥ ¥

¨ is© ¢ r ¥ ¥

Str

¡

¢ l£ ¨ is©

¢ r ¥ ¥

t © l

Ori

t ti

fli ! t

" #

$

#

t © l"

% # &

#

(O-E)2

E

1 22 17 25 1.47

2 146 89 3249 36.51

3 12 48 1296 27.00

4 10 32 484 15.13

5 10 14 16 1.14

6 12 17 25 1.47

7 32 89 3249 36.51

8 84 48 1296 27.00

9 54 32 484 15.13

10 18 14 16 1.14

1 6 2 . 4 9

Observed

Frequency (O)

Expected

Frequency (E)(O-E)

2Sl. No.

34 X 200

400= 17



43

Calculated ] 2 = § (O-E)2 = 16 2.49

Tabulated value of ] 2 at 5% level (0.05)

for 4 degree of freedom 9.4 88

Since Calculated ] 2 at 5% level (0.05) > tabulated ] 2

We reject the null hypothesis; the attributes are inter-dependent.

E



44

CHI-SQ UARE :

SUPERIOR SUB-ORDINATE RELATIONSHIP& COMMUNICATION

Null Hypothesis H 0 = Attributes are Independent.

Degrees of Freedom (d.f.) = (r-1) (s-1)Where r number of rows

s number of columns

The number of degrees of freedom is (2-1) (3-1)

= (1) (2) 2

Expected frequency for 34

Calculation of ] 2

Str '

( gly)

gr0 0

)

gr0 0

1

0 it 2

0 r)

gr0 0 1

'

r 3 is4

gr0 0

5

'

t4

lSupe ri 6 r Sub -

6 r 7 i 8

9 t e R e l 8

@ @

A B

C

B D E E

F

6

G G un iH 9 ti 6 nI P

C C

P B

C

A P

5

' t 4 l C

B D D

C

E D D

Q

A P

162 200

39482

(O-E)2

E

1 88 82 36 0.44

2 96 106.6 112.36 1.05

3 16 11.17 23.33 2.09

4 74 79.77 33.29 0.42

6 114 103.4 112.36 1.09

10 6 10.83 23.33 2.15

7.24

ObservedFrequency (O)

Expected Frequency(E) (O-E) 2Sl. No.



45

Calculated ] 2 = § (O-E)2 = 7.24

Tabulated value of ] 2 at 5% level (0.05)

for 4 degree of freedom 5.991

Since Calculated ] 2 at 5% level (0.05) > tabulated ] 2

We reject the null hypothesis; the attributes are inter-dependent.

E



46

SWOT ANALYSIS:

The Indian passenger car market has experienced a total renovation, with nearly

every automaker setting up shop in the sub continent. The variant offered has not

only provided consumers ¶choice· but also increased the marketability of the

products.

Hyundai Motor India Limited has been in the forefront of the automotive revolution

sweeping the country, giving the Indian customer the power of choice , value , and

truly world class quality and after sales service . All of Hyundai's brands in India, the

Santro , the Accent and the Sonata , have become synonymous with superior

performance and reliability and have emerged as best sellers in their segments fortwo years in a row. India's premium sedan segment is only about 20 months old and is

estimated at about 5,000 units a year. All models in the segment are priced at over 1

million rupees. Hyundai Motor India limited dominates this premium sedan segment

with 42% sales i.e. 2100 units. Today Hyundai Motor India limited is poised for its next

phase of growth, to not only put Hyundai in more Indian homes than any other

carmaker, but also put India on the global export map. Hyundai Motor India limited is

a fine example of Indo-Korean partnershi p - a union that combines Indian skill and workmanshi p with Korean design and technology to produce world class cars - A

partnership that is committed to developing the face of the Indian auto industry and

its economy.



47

STRENGTH

Unlike other competitors, HMC's unique - strategy of introducing the latest

technology in India has proved it to be the II largest Car manufacturing Company in

India. With - its Xing, it has introduced the latest technology in car manufacturing and

style keeping other competitors at bay.

Hyundai achieved 2 0,00,000 th car on Nov 2008 , in a short span of 10 Years .

Santro sales accounted for 8,573 units (including exports of 1,699 units), a 40 per cent

increase, while the Accent accounted for 2,551 units (including exports of 601 units),

a 39 per cent growth.

The company had received overwhelming response from customers in India and

distributors in Europe for Santro Xing, which was launched on May 22, 2003.

During the last fiscal year, April'02 to March'03 Hyundai Motor India exported 8,000

cars mainly to the South East Asian and African markets.

The firm recorded combined sales of 111,051 vehicles during the last fiscal year to

March 2007. The company's total production capacity was recently increased to

350,000 cars a year.

During the last fiscal year Hyundai Motor India earned revenues of 40 billion rupees

(850 million dollars). In 2002 HMIL clocked Rs 4,000 crore turnover which is likely to

increase to Rs 5,300 crore in the current year.



48

OPPORTUNITIES

Hyundai of Korea is planning to shift its production base for Santro to India by the

middle of this year, following which India will be the global base for sourcing the

vehicle.

HMIL hope to ex port around 20,000 Santro to Europe this year against a total export

target of 30,000 vehicles. The company was also considering the possibility of scaling

up its research and development (R&D) initiatives in India. They have enough scope

for enhancing R&D activities in India. However, at present HMIL have provision for

limited R&D.

HMIL has targeted a 25 p er cent market share by 2005. The company also hopes to

sell around 1.5 lakh passenger cars in 2003-04 against 1.12 lakh units sold in the

previous year.

HMIL's installed capacity stands at 3.5 lakh unit cars a year, which is being increased

to 5 lakh at an investment of Rs.1000 crore by the II part of 2007.

Hyundai proposed to invest $ 180 million in India within three years to enhance its

plant's annual production capacity, to 350,000 cars.

Their plan is to ex port 70,000 cars by 200 5 to the Western Euro pe and North

American markets , and make India as Global hub after Korea for Hyundai.



49

THREATS

General Motors Corp, the world's largest auto-maker will launch two new cars in India

next year (names yet to be released) to help boost its share of a market predicted to

be one of the world's fastest growing this decade.

Foreseeing enormous potential in the South Asian country's car market, which GM

thinks will grow by eight to nine percent annually this decade plans to launch

additional vehicles in 2003, at least two new cars.

GM's new model will compete with other premium sedans such as the Sonata from

Hyundai , the Mondeo from Ford , the Accord from Honda , the Octavia from Skoda Auto and Daimler Chrysler's Mercedes Benz C-class. Renault Nissan starting to

manufacture the car from the year 2007, factory constructed near Hyundai.

Ford spent Rs. 17 billion building an assembly plant near Chennai, which currently

operates at only 40 per cent capacity. In January, Ford said it will begin making

engines for the Ikon, the only model it now makes in India, through a tie-up with

Hindustan Motors Ltd. The first Ikons with locally made engines are expected to rollout next January, boosting the share of locally made parts in the car to over 90 per

cent from 75 now, which will there by decrease the cost of production.

Ford could introduce new models, including the rapidly growing hatchback segment,

or a sports utility vehicle or mini-van.

India's largest car maker Maruti Udyog increased its market share to an impressive 60

percent in May this year after a spurt in sales of its entry level 'Maruti 800'. Even

'Omni' van overcame sluggish sales and grew 13 per cent in May 2003, Maruti's

cumulative (April-May 2003) sales jumped by 39 per cent as compared to the same

period last year.



50

Country's biggest carmaker Maruti Udyog Ltd on JUNE 15, 2003 launched two

international two-door limited editions of its premium small car 'Zen'. 'Zen' is the

highest selling premium car of Maruti. The company sold 4,384 units of 'Zen' in the

year 2003, which contributed to over 11 per cent of the total sales Maruti at 39,178

units in May'03.

Recently Tata Motors launched Rs. 1 Lakh Car ¶NANO·; it tends to reduce the car

prizes of all other car manufacturing companies.



51

RANKINGWEIGHTED AVERAGE METHOD: Overall

Orientation ² 5*162 + 4*372 + 3*38 + 2*10+10= 2442

Interpersonal Reln. ² 5*36 + 4*53 + 3*10 = 422

Sup. Subord. Reln. ² 5*38 +4*56 + 3*6 = 432

Problem Mgmt. ² 5*35 + 4*27 + 3*5 = 298

Communication ² 5*41 + 4*52 + 3*7 = 434

Decision Making ² 5*9 + 4*45 + 3*11 + 2*2 = 262

Risk Taking ² 5*26 + 4*31 + 3*5 + 2*2 = 273

Innovation ² 5*44 + 4*39 + 3*12 + 2*3 + 1*1 = 419

Conflict Mgmt. ² 5*5 + 4*9 + 3*28 + 2*19 + 1*5 = 188

Strongl R S

greeS

greeT

eitU

erS

greeT

or DisagreeDisagree Strongl R

Disagree

( V ) (W

) ( X ) ( Y ) ( ` )

Ori a b t c ti d b 162 372 38 10 10

Ib t a rp a rs d b c l e e l c ti d sf

ip 36 53 10 0 0

Sg pe ri d r Sg

h

- d ri

i b c t e e e l b . 38 56 6 0 0

p r d

h

lemq

anagement 35 27 5 0 0

Commun ir at ion 41 52 7 0 0

Dec isionq

ak ing 9 45 11 2 0

e isk Tak ing 26 31 5 2 0

Innovat ion 44 39 12 3 1

Con fli ctq

anagement 5 9 28 19 5

Facto rs



52

Inference (s): Orientation tops the list of motivators followed by effect

communication and relationships. Orientation scores clearly exemplifying the

managements commitment to build nurture a working organisation.

RANK I NG W EI G HTED AVERAG E METHOD: EXECUTIVES

Fac t o r S c o re s R an k

O r ien t at ion 2 44 2 I

C o m m un ic at io n 43 4 II

Su p e rio r S u b -or d ina te R eln . 43 2 III

Int e rp e rs on al R e lat io sh ip 42 2 IVInn o va tio n 41 9 V

P ro b lem M an ag e m en t 29 8 V I

R isk T ak in g 27 3 V II

D e c is ion M a k ing 26 2 V III

C o nf lic t M an ag e m en t 18 8 IX

Stronglys gree

AgreeNe it

t

e r Agree Nor

u

isv greeDis v gree

Stron glyDis v gree

(w

) (4 ) (x

) (2 ) ( y )

Ori en t � ti � n 56 124 12 4 0

Int e r pe rs � na l R e lati � s�

ip 56 116 24 0 0

Supe ri � r Sub - � r�

ina t e R e ln . 68 110 16 2 0

�

r � blem �

ana gemen t 60 58 14 0 0

�

� mmun i� ati � n 86 96 14 0 0

Dec isi � n �

ak in g 20 76 34 2 0

R isk �

ak in g 42 64 12 8 0

Innova ti on 80 84 20 8 2

Con flict �

ana gemen t 8 22 60 38 4

�

ac tors



53

Orientation ² 5*56 + 4*124 + 3*12 + 2*4 = 820


Sup. Subord. Reln. ² 5*68 +4*110 + 3*16 + 2*2 = 832

Problem Mgmt. ² 5*60 + 4*58 + 3*14 = 574

Communication ² 5*86 + 4*96 + 3*14 = 856

Decision Making ² 5*20 + 4*76 + 3*34 + 2*2 = 510

Risk Taking ² 5*42 + 4*64 + 3*12 + 2*8 = 518

Innovation ² 5*80 + 4*84 + 3*20 + 2*8 + 1*2 = 814

Conflict Mgmt. ² 5*8 + 4*22 + 3*60 + 2*38 + 1*4 = 388

Inference (s): Among Executives Communication has gained pre-dominance over

relationships & Orientation; executive correspondance is a matter of pride at HMI.

F ac t o r Sc o r e s R an k

C ommun ic�

t i on 85 6 ISupe rio r S ub -or d ina te � e ln . 83 2 IIOr ien t a t i on 82 0 II IIn t e rpe rs on a l � e la t i o s � ip 81 6 I

�

Inno va ti on 81 4 VP rob lem

�

an a gemen t 57 4 V I� isk

�

a kin g 51 8 V IIDe cision

�

a king 51 0 V IIIC on flict

�

an a gemen t 38 8 I�



54

RANK I NG W EI G HTED AVERAG E METHOD:

J R. MAN AG EME N T

Orientation ² 5*34 + 4*140 + 3*18+ 2*10+10 = 814


Sup. Subord. Reln. ² 5*86 + 4*114 + 3*4 = 898

Problem Mgmt. ² 5*84 + 4*44 + 3*8 = 620

Communication ² 5*104 + 4*94 + 3*6 = 914

Decision Making ² 5*12 + 4*104 + 3*14 + 2*4 = 526

Risk Taking ² 5*62 + 4*52 + 3*14 + 2*4 = 568

Innovation ² 5*92 + 4*78 + 3*26 + 2*6 = 862

Conflict Mgmt. ² 5*20 + 4*18 + 3*60 + 2*30 + 1*4 = 416

StronglyAgree

AgreeNeither AgreeNor Disagree

DisagreeStronglyDisagree

(5 ) (4 ) (3 ) (2 ) (1 )

Orientation 34 140 18 10 10

Inter p ersonal Relatioshi p 78 106 20 0 0

Su p erior Sub-ordinate Reln . 86 114 4 0 0

Problem Management 84 44 8 0 0

Communication 104 94 6 0 0

Decision Making 12 104 14 4 0

Risk Taking 62 52 14 4 0

Innovation 92 78 26 6 0

Conflict Management 20 18 60 30 4

Factors



55

Inference (s): The middle management (Jr. Mgmt Cadre) have also preferred effective

communication followed by relationships and innovation.

RANK

I NG

W

EI G

HTED AVERAG

E METHOD:

N ON EXECUTIVES

Orientation ² 5*72 + 4*118 + 3*8 = 856


Sup. Subord. Reln. ² 5*72 + 4*110 + 3*16 = 848

Problem Mgmt. ² 5*66 + 4*58 + 3*8 = 586

Communication ² 5*56 + 4*122 + 3*20 = 828

F a c t o r S c o r e s R a n k

C o m m un ic a t i o n 9 1 4 I

Su p e ri o r S u b - o r d ina t e � e ln . 8 9 8 II

In t e rp e rs on a l � e la t i o s � ip 8 7 4 II I

In n o va ti o n 8 6 2 IV

O r i en t a t i on 8 1 4 VP ro b lem � a n a g em en t 6 2 0 V I

� is k

a k in g 5 6 8 V I I

D e c i s i on � a k in g 5 2 6 V II IC o n f l i c t � a n a g em en t 4 1 6 I

S t r o n g l yA g r e e

A g r e e N e i t h e r A g r e eN o r D i s a g r e e

D i s a g r e e S t rong lyD i s a g r e e

(5 ) (4 ) ( 3 ) (2 ) (1 )

O r ien ta t io n 7 2 1 1 8 8 0 0

I n t e r p e rs o n a l R el a t io sh i p 8 2 9 8 1 6 0 0

Su p e r i o r Sub -ord in a te R e l n . 7 2 1 1 0 1 6 0 0

P rob le m M an ag em en t 6 6 5 8 8 0 0

C om m u nic atio n 5 6 1 2 2 2 0 0 0

D e c i s i o n Ma k i n g 2 0 9 0 1 6 6 0

R isk T akin g 5 2 6 8 4 0 0

I n n o v a t i o n 9 0 7 2 2 8 2 3

C o n f l i c t M an age m en t 2 1 6 4 8 46 2 0

F ac tors



56

Decision Making ² 5*20 + 4*90 + 3*16 + 2*6 = 520

Risk Taking ² 5*52 + 4*68 + 3*4 = 544

Innovation ² 5*90 + 4*72 + 3*28 + 2*2+3 = 829

Conflict Mgmt. ² 5*2 + 4*16 + 3*48 + 2*46 + 1*20= 330

Inference (s): Non Executives have ranked Orientation first followed by relationship;

showing priority to continued training & exposure.

Factor Scores Rank

Orientation 856 I

Interpersonal Relatioship 850 II

Superior Sub-ordinate Reln. 848 III

Innovation 829 IV

Communication 828 V

Problem Management 586 VI

Risk Taking 544 VII

Decision Making 520 VIII

Conflict Management 330 IX



57

2.2 EXISTING SYSTEM

Existing Attrition Analysis system is very simple and too short. From this analysis its

very tedious to take decision to retain the employees.

The attrition is calculated by using the following formula in the existing system,

No. of em p loyees Resigned Attrition Rate = --------------------------------- X 100

Total Man power

For Example:

289Attrition Rate = ------------------ X 100

5258

= 5.50 %

In the existing attrition analysis system having simple Tabular column based reports.

There is no graphical representation and there is no pie chart.

CH.2 - ANALYSIS

2.2 EXITING SYSTEM



58

Designation Attrition Analysis Ratio :



59

Month wise , Category wise , Division wise and Location wise Attrition Ratio



60

2.3. NEED FOR THE CHANGE IN SYSTEM

Executive Res pondents Analysis :

1. The majority of the respondents [Strongly Agree ² 4 0% ; Agree ² 42 %] feel that

Innovation reduces em p loyee turnover .

2. Orientation ² 6 2% , Inter personal Relationshi p ² 5 8%, Superior Sub-ordinate

Relationshi p ² 55 %, Communication ² 4 8% have been ranked by the respondentsas important indicators in checking attrition.

3. Decision Making ² 3 8%, Risk Taking ² 32 % ; respondents agree these two

parameters also have an im pact in bringing down attrition .

4. However the respondents feel the Conflict has minimal effect on attrition

[Conflict ² 11 % Agree & 4% Strongly Agree] .

5. It·s also evident that the respondents have clearly correlated Orientation ,

Inter personal Relationshi p & Superior Sub-ordinate relationshi p as effective

tools in bringing down the level of attrition .

CH.2 - ANALYSIS

2.3 NEED FOR THE CHANGE IN SYSTEM

N o. % N o. % N o. % N o. % N o. % N o. % N o. % N o. % N o. %

tr

gl Agreej

k l m

j

k l m k m n o k n m k o n l o l l m o m o

Agree l o k l k

j

m

j j j

m l

k o m

k n m k o n l m o o l l l

.Agree

.Disagree l k l o l k m o

o

n o

l k l k n

Disagree o l l l m o m o n m

tr

gl Disagree l o l

Risk Taking Detail

Orientation

C o n s o l i d a t e d

Innovation Conflict Co uni DecisionSup-Sub Reln Prob Mg t InterPer.Reln



61

6. Communication resolves Conflict , hel ps Decision Making and thereby facilitates

better relationships; the hypothesis has been validated by the respondents figured

out.

J r . Management Res pondents Analysis :

1. The majority of the respondents [Strongly Agree ² 43 % ; Agree ²57 %] feel that

Superior Sub-ordinate Relationshi p reduces em p loyee turnover .

2. The respondents feel that [Strongly Agree ² 4 6% ; Agree ² 39 %] Innovation

reduces em p loyee turnover .

3. Orientation ² 75 %, Inter personal Relationshi p ² 53 %, Communication ² 47 % have

been ranked by the respondents as important indicators in checking attrition.4. Decision Making ² 52 %, Risk Taking : Strongly Agree ² 31 % and Agree - 26% ;

respondents agree these two parameters also have an impact bringing down

attrition.


[Conflict ² 9 % Agree & 10% Strongly Agree] .

6. It·s also evident that the respondents have clearly correlated Orientation ,

Inter personal Relationshi p , Su perior Sub-ordinate relationshi p , Communication

and Innovation as effective tools in bringing down the level of attrition.

7. Superior Sub-ordinate relationshi p resolves Conflict , hel ps Innovation and there

by facilitates better relationships the hypothesis has been validated by the

respondents figured out.

No. % No. % No. % No. % No. % No. % No. % No. % No. %

Strongl y

gree 34 17 78 39 86 43 84 42 104 52 12 6 62 31 92 46 20 10

Agree 150 75 106 53 114 57 44 22 94 47 104 52 52 26 78 39 18 9

N.Agree N.DisA 18 9 20 10 4 2 8 4 6 3 14 7 14 7 26 13 60 30

Disagree 0 0 0 0 0 0 0 0 0 0 4 2 4 2 6 3 30 15

Strongl yDisagree 0 0 4 2

Risk Taking Innov ati on C onflict

C o n s o l i d a t e d

Sup-Sub Reln Pr ob Mgmt C ommuni Decisi onOrientati on InterPer .RelnDetail



62

Non Executive Res pondents Analysis :

1. The majority of the respondents [Strongly Agree ² 41 % ; Agree ² 49 %] feel that

Inter personal Relationshi p reduces em p loyee turnover .

2. The respondents feel that [Strongly Agree ² 3 6% ; Agree ² 55 %] Superior Sub-

ordinate relationshi p reduces employee turnover.

3. Orientation ² 59 %, Communication ² 6 1%, Problem Management ² 29 % have been

ranked by the respondents as important indicators in checking attrition.

4. Decision Making ² 45 %, Risk Taking ² 34 % and Innovation ² 3 6% respondents

agree these parameters also have an impact bringing down attrition.


[Conflict ² 8% Agree & 1% Strongly Agree] . 6. It·s also evident that the respondents have clearly correlated Orientation ,

Inter personal Relationshi p , Su perior Sub-ordinate relationshi p , Communication

and Innovation as effective tools in bringing down the level of attrition.

7. Inter personal relationshi p resolves Conflict , hel ps Better Communication ,

Innovation and there by facilitates better relationships the hypothesis has been

validated by the respondents figured out.


Stron ly ree 72 36 82 41 72 36 66 33 56 28 20 10 52 26 90 45 2 1

ree 118 59 98 49 110 55 58 29 122 61 90 45 68 34 72 36 16 8

N. ree N. isa ree 8 4 16 8 16 8 8 4 20 10 16 8 4 2 28 14 48 24

isa ree 0 0 0 0 0 0 0 0 0 0 6 3 0 0 2 1 46 23

Stron ly isa ree 3 2 20 10

Orientation Inter z er.{ eln | up-| ub { eln z rob} gmt ~ ommuni ecision { isk aking Innovation ~ onflict

o n s o l i d a t e d

etail



63

Overall Res pondents Summary :

1. Orientation [Strongly Agree ² 27 % & Agree ² 6 5%] has been accorded top priority

by the respondents as a sure measure to check attrition.

2. The Marketing & Sales division stands apart [Executives ² 77%, Jr. Management ²

71% and Non Executives ² 50%]


Str

gl

Agree

�

�

� �

�

�

�

� � �

�

Agree�

�

�

�

�

�

�

�

�

� �

�

�

�

.Agree�

.DisA

�

�

� �

�

�

�

�

�

�

�

�

Disagree�

�

�

Str gl DA� � � � � � � � � � � � � �

�

DecisionSup-Sub Reln Innovation Conflict

O v e r a l l

Detail Orientation InterPer.Reln Risk Taking Prob Mg t Co uni

M a r k et i n g & S a l e s D i v i s i o n ( O ri e n t a ti o n )

17 %

77 %

0 0

25 %

71 %

4%0 0

7%

50 %

0 0 0

50 %

%

%

%

%

%

%

%

%

%

%

P e r c e n

t a g e

( % )

E XE 17% 77% 7% 0 0

JE X25% 71% 4% 0 0

NE X 50% 50% 0 0 0

S trongly A gree A greeN � A g re e N �

DisagreeDis agree S trongly Dis agree



64

3. Executives cadre feel Orientation [Agree ² 77%] in the Marketing & Sales division

Orientation has checked attrition to a great extent.

4. Relationshi ps [both Inter personal Relationshi p & Intra Personal Relationshi p] have been equally rated as both the cause and check for employee turnover.

Superior Sub-ordinate Relationship Cadre wise analysis.

Executives Cadre (Orientation)

61 %

11 %6 %

0%

40%

2%0%0% 0% 0%

77%

7%

0% 0%

1 7%

52%

5%

33%

6 7%

1 7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

P e r c e n

t a g e

( % )

Adm i � i�

�

�

�

i

� P �

duct i

� P �

curement Mktg &

les

Administration 1 7% 61 % 11 % 6 % 0%

P roduction 40% 52% 5% 2% 0%

P rocurement 33% 6 7% 0% 0% 0%

M ktg

ales 1 7% 77% 7% 0% 0%

S trongly Agree Agree N . Agree N .

isagree

isagree S trongly

isagree

Analysis : Inter personal

elationshi p - adre wise

28%

58%

0% 0%

53%

1 0%

0% 0%

12%

39%

49%

8%

0% 0%

41 %

0%

1 0%

2 0%

3 0%

4 0%

5 0%

6 0%

7 0%

P e r c e n

t a g e % )

EXE 28% 58% 12% 0% 0%

JEX 39% 53% 10% 0% 0%

EX 41% 49% 8% 0% 0%

ª trongl y«

gree«

gree

.«

gree

.¬

isagree¬

isagree ª trongl y¬

isagree



65

5. Decision Making aids in bringing down attrition . Jr. Management and Non

Executive cadres have been attributed effective Decision Making as im portant to

Orientation [J r . Management ² 52 % Agree ; Non Executive cadre ² 45 % Agree]

6. Problem Management and Risk Taking though being marked as vital parameters;

are low in terms of marketability compared to Orientation, Interpersonal

A nalysis: S uperior S ub-ordinate

elations®

ip -¯

adre ° i se

34%

55%

1 % 0%

57%

2%0% 0%

±

%

43%

55%

±

%

0% 0%

3 6 %

0²

1 0²

2 0²

3 0²

4 0²

5 0²

6 0²

P e r c e n

t a g e

³

%´

Eµ

E 34¶

55¶

8¶

1¶

0¶

JEµ

43¶

57¶

2¶

0¶

0¶

NEµ

36¶

55¶

8¶

0¶

0¶

Stron · ly¸

· re e¸

· ree N.¸

· ree N.¹

is a · re e¹

is a · ree Stro n · ly¹

is a · re e

A na lys i s : Dec i s ion Making - J r. Mg º t. & N o n»

xecutive cad re

52 %

0%

7%

2%

45 %

0%

1 0%

¼

% 3%

0%

1 0%

20 %

30 %

40 %

50 %

6 0%

P e r c e n

t a g e

³

%´

J ½ X 6 % 5 2 % 7 % 2% 0 %

N E X 1 0 % 4 5 %¾

% 3% 0 %

Strongly A g r e e Ag ree N . A g ree N . D isa g re e D isa g re e S tro ng ly D isag re e

6 %



66

Relationships & Communication . [ Risk Taking ² 31 % Agree & Problem

Management ² 27 % Agree]

7. The majority [Strongly Agree ² 41 %, Agree ² 52 %] , app reciate communication

where Non Executive cadre fairing better.

A n a l y s i s : ¿ r o b l e À Á g À t Â Ã is k Ä a k i n g

30Å

29Å

7Å

0Å

42Å

22Å

4

Å

0Å

33Å

29Å

4

Å

0Å

21Å

32Å

6Å

4

Å

31Å

26Å

7Å

2Å

26Å

34Å

2Å

0Å

0%

5%

1 0%

1 5%

20 %

25 %

30 %

35 %

40 %

45 %

Æ

e r c e n

t a g e

Ç

%È

É

robl em Ê

g m t. 3 0% 2 Ë

% 7% 0 % 4 2% 2 2% 4% 0% 3 3% 2 Ë

% 4 % 0 %

R isk Ì aking 2 1 % 3 2% 6 % 4 % 3 1 % 2 6 % 7% 2% 2 6 % 34 % 2 % 0 %

Í

trongly

Agr ee

EX E

Agr ee

Î

. Agr ee N .Ï

isagr eeD isagr ee

Í

trongly

Agr ee

JE X

Agr eeN. Agr ee N.

D isagr eeD isagr ee

Í

trongly

Agr ee

N EX

Agr eeN . Agr ee N.

D isagr eeD isagr ee

A nalys i s : Ð om m u nica t ion Ñ

v e ra l l v s Non E xe c u ti v e ca d r e

52 %

0%

7%

0%

61 %

0%

28 %

1 0%0%

0%

1 0%

20 %

30 %

40 %

50 %

6 0%

70 %

Ò e r c e n

t a g e

Ó

%Ô

Ov e ral l 4 1 % 52% 7% 0% 0%

N EX Õ a d r e 28 % 61 % 1 0% 0% 0%

Ö trongly A gr ee A gr ee N . A gr ee N . D isagr ee D isagr eeÖ trongly D isagr ee

4 1 %

C a d r e w is e ×

C o m m u n i c a t i o nØ

48Ù

47Ù

61Ù

J E X

N E X

E X E



67

8 . Respondents feel Conflict at the workplace has less bearing on employee turnover

[Neither Agree Nor Disagree ² 2 8%, Disagree ² 19 %]

9. Structured Orientation aids better Relationshi ps.

Inference (s) : Orientation ² 65% Agree and Interpersonal Relationship ² 53% Agree

shows that Orientations aids better Interpersonal Relationship.

Ana l Ú s i s : Co n fl i c t Û

anage m Ü n t - C adre wi se

4%

11%

19%

Ý

%

9%

Þ ß

%

1à

%

Ý

%

Þ ß

%

1ß

%8%

Ý

4% Ý Þ

%

1ß

%

1%ß

%

à

%

1ß

%

1à

%

Ý ß

%

Ý à

%

Þ ß

%

Þ à

%

á

â

r c e n

t a g e

ã % )

E XE 4% 11% 30% 19% 2%

JE X 10% 9% 30% 15% 2%

NE X 1% 8% 24% 23% 10%

Strong l ä

å

gree Agree N.Agree N. D i æ ç gree D iæ ç gree S trong lä D iæ ç gree

A n al è s i s : O r i é n t a ti o n v s I n t é rp ers o n al ê

é l a ti o n sh i p

27 %

6 ë

%

1%ì

%6%

ë

í

%

1ì

%

ì

%ì

%

í

6%

ì

%

1ì

%

20 %

í 0 %

40 %

ë

0 %

6 0 %

70 %

î

ï

r c e n

t a g e

ð

% )

O r ientat ion 27% 65% 6% 1% 0%

Interpersona l Re lat ionsh ip 36% 53% 10% 0% 0%

Strong lñ A gree A gree N.Agree N.Disagree

Disagree Strong lñ

Disagree



68

10 . Better Communication facilitates Good Relationshi p.

Inference (s) : Better Communication ² 52% Agree and Interpersonal Relationship ² 53%

Agree shows that Better Communication facilitates Good Interpersonal Relationship.

11. Effective Decisions defuses Conflicts .

Inference (s) : Decision Making ² 45% Agree and Conflict Management ² 9% Agree & 28%

Strongly Agree shows that Effective Decisions defuses Conflicts.

A n a l y s i s : B e t te r C oò ò u n i c a t i o n v s I n t e r p e r s o n a l R e l a t i o n só i p

4 1 %

52 %

0 % 0 %

7 %

53 %

1 0 %

0 % 0 %

3 6 %

0 %

1 0 %

2 0 %

3 0 %

4 0 %

5 0 %

6 0 %

P e r c e n

t a g e

ô

%

C o m m u n i c a t io n 41 õ 52 õ 7 õ 0 õ 0 õ

In t e rp e r s o n a l R e l a t i o n s h i p 36 % 5 3% 10 % 0 % 0 %

S tr o n g ly A g r e e A g r eeN . A g r e e N .

D i s a g r eeD i s a g r ee

S tr ongly

D i s a g r ee

Analysis : Effectiveö

ecision M aking defuses ÷ onflicts

9%

45%

2%0%

11 %

9%

2 ø

%

19%

5%5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

P e r c e n

t a g e

ù %

ú

D ec is iû n Ma k ing 9% 45% 11% 2% 0%

Co nf lict s 5% 9% 28% 19% 5%

S tr o ng lü Agree AgreeN. Agree N.

D isagreeD isagree S tr o ng lü D isagree



69

12. Right Decisions avoids Risks .

Inference (s) : Decision Making ² 45% Agree and Risk Taking ² 31% Agree shows thatRight Decisions avoids Risks.

13. Executive Decisions are app reciated and followed by subordinates .

Inference (s) : Executive Decision Making ² 38% Agree and Superior Sub-ordinate

Relationship ² 56% Agree shows that Executive Decision Making are appreciated andfollowed by subordinates.

A n a l ý s i s : þ i g h t Dÿ c i s i o n s a v o i d s þ i s k s

9%

4 5 %

2%0 %

11 %

1%

5 %2 %

0 %

26%

0 %

5 %

1 0 %

1 5 %

20 %

25 %

0 %

5 %40 %

45 %

50 %

¡

¢

r c e n

t a g e

£

D e c is io n M a k in g 9 % 4 5 % 1 1 % 2 % 0 %

R is k T a k in g 2 6 % 3 1 % 5 % 2 % 0 %

S tr o n g l¤ A g r e e A g r e eN .A g re e N .

D is a g re eD is a g r e e S t r o n g l¤ D is a g re e

A nalysis : Execut ive¥

ecis ion M aking vs S u p e r i o r S u b - o r d i n a t e¦

ela t ions§

ip

1 0%

3¨

%

1 % 0%

1 7%

5 6 %

6 %

0% 0%

3¨

%

0%

1 0%

20%

30%

40%

50%

6 0%

P e r c e n

t a g e

© %

Ex ecut ive D ec is io n Mak ing 10% 38% 17% 1% 0%

S u er io r S ub- o rd inate

Re lat io nsh ip

38% 56% 6% 0% 0%

S tr o ng l A gree A greeN . Agree N.

D isagreeD isagree

S tr o ng l D isagree



70

14. Communication effects Decisions .

Inference (s) : Better Communication ² 38% Agree and Decision Making - 45% Agreeshows that Communication effects Decision Making.

15. Problem Management survives on good Superior- Subordinate Relationshi p.

Inference (s) : Problem Management ² 27% Agree & 35% Strongly Agree ; Superior Sub-

ordinate Relationship ² 56% Agree shows that Problem Mgmt. Survives on good

Superior Sub-ordinate Relationship.

A n a l y s i s : C o m m u n i c a t i o n E ff e c ts D e c i s i o n

a k i n g

1 0%

3

%

1 % 0%

1 7%

45 %

11 %

2%0%

9%

0%

5%

1 0%

1 5%

20 %

25 %

30 %

35 %

40 %

45 %

50 %

e r c e n

t a g e %

C o m m n ic a t ion 10 38 17 1 0

D e c is ion M a k ing 9 45 11 2 0

S tr on g l A g r e e A g r eeN . A g r ee N .

D is ag r eeD is ag r ee S tr on g l D is ag r ee

Anal ! s i s :"

r o bl # m $

anage m # nt v s %

uper i o r %

ub-o rd i nat # &

# l a ti o nsh i p

27 %

0 % 0 %5 %

'

5 %

5 6%

6%

0 % 0 %

'

8%

0 %

1 0 %

20 %

'

0 %

40 %

50 %

6 0 %

(

)

r c e n

t a g e

0

% )

P rob lem Management 35% 27% 5% 0% 0%

Super ior Sub-ord inateRe lat ionsh ip

38% 56% 6% 0% 0%

Strong l1 Agree AgreeN.Agree N.

DisagreeDisagree

Strong l1 Disagree



71

2.4 P ROPOSED SYSTEM

Fundamental analysis is done using data collected to determine the characteristics of

the sample. Analysis is the computation of certain measures along with searching

patterns of relationship that exist among data groups. The collected data are

tabulated and analysed with the help of basic statistical measures. The analysed data

are then interpreted by drawing inferences from the processed facts with the help of

theoretical explanation. Interpretation thus establishes explanatory concepts, which

provides for better understanding of research findings.

The attrition is calculated from the following formula:

[No. of Emp loyees Left during the Year* 100 ] /

[Emp loyees on Record at the Beginning of the Year + No. of Emp loyees J oined

during the Year + No. of Emp loyees Left during the Year + Emp loyees on Record at

the end of Year] / 1 00

Designation wise :

CH.2 - ANALYSIS

2.4 PROPOSED SYSTEM



72

Among the Designation the Asst. Managers has the maximum Attrition followed by

Technical Associates, Managers, Sr. Engineers and Business Associates .

Category Wise :

Among the category the Executive category has the maximum Attrition followed by

Jr. Executives & Non Executive cadre.

Division Wise :

Among the Divisions the Procurement division has the maximum Attrition followed by

other division. But as per Total Manpower Production division has the maximum

attrition compared with other divisions.



73

Experience Wise :

Among the Employees, minimum 5 years experienced employees are leaving the

company followed by 6 to 10 Years experienced employees. Executives cadre has the

maximum attrition compare with other categories. This could be the lack of

compensation benefits, lack of interest and too far off plant location.

From the Exit interview Analysis, we can understand the reasons for leaving.

Career Opp ortunity :



74

Growth Opp ortunity :

The growth opportunity is very slow in the present promotional process and some

employees were expected the job rotation.

J ob Satisfaction Level (1 -5)

Job S i f i on l l

35%37 2

3

%

6%

13%

Le 4 e 5 - 1

Le 4 e 5 - 2

Le 4 e 5 - 3

Le 4 e 5 - 4

Le 4 e 5 - 5

According to job satisfaction level, only the 6% of relieved employees voted to the

low level and maximum employees were in level three. Level ² 1 is low and Level ² 5

high level.



75

Location Wise :

Among the Locations, minimum employees are leaving the company from factory

compared with other locations. North Regional Office (New Delhi) has the maximum

attrition level.

Month Wise :

Among the all months, minimum employees are leaving the company in April

compared with other months. Most of people are relieved in the May month after the

compensation revision.



76

Findings

Rate of attrition depends on the number of employees and it does not reveal the

actual facts. If the industry has 200 employees and 20 goes out, the rate ofattrition will be 10% where as if the same number goes out in the industry where

2000 are employed the rate will be 1 %.

The rate of attrition in Hyundai Motor India Ltd. is very low right from the

commencement with an average of only 3.47%.

The rate of attrition was maximum in 1999 with 6.96% and started declining from

then to reach only 0.61% in the current year.

Reasons for low rate of attrition:

1. Management initiatives centre around people; where the individual employee

stands integral even to the most trivial decisions. Be it welfare, compensation

or recognition; HMI has always provided an ambience for belongingness,

growth and development.

2. The average attrition rate (3.47%) showcauses the efforts to imbibe a sense of

togetherness amongst employees.

3. Hyundai gives a very sound compensation package along with its excellent

welfare and other benefits, which is one of the reasons for the low rate of

attrition.

4. It is not having even a single trade union till now which shows the harmonious

relation between the management and the workforce.



77

5. Employees are very well recognized and rewarded which makes them feel

proud to be HYUNDIANS.

6. Employee commitment level is too high.

7. Most of the employees are fresher who make proper utilization of the good

training facilities Hyundai provides for their career development and

knowledge enhancement.

8. Maximum attrition is recorded from the Production division which is at a very

high demand in today's market.

9. With the increase in the years of service the attrition number is decreasing

which shows the managerial excellence of Hyundai which is providing for

employees faster growth in their personal and professional career.

10. Number of employees are separated in less than one year indicates the reason

may be due to the location of the plant and lack of interest in learning more.

11. Most of the employees left the organisation for better opportunities outside

after equipping themselves with required knowledge by working at Hyundai.

12. Among the people who left the organisation maximum are the executives

followed by junior executives, which shows that professionals from Hyundai

have great demand in the market.

13. Orientation [Strongly Agree ² 27% & Agree ² 65%] has been accorded top priority

by the respondents as a sure measure to check attrition.



78

The Marketing & Sales division stands apart [Executives - 77%, Jr. Management

² 71% and Non Executives ² 50%]

Executives cadre feel Orientation [Agree ² 77%] in the Marketing & Sales

division Orientation has checked attrition to a great extent.

14. Relationships [both Interpersonal Relationship & Intra Personal Relationship]

have been equally rated as both the cause and check for employee turnover.

15. Decision Making aids in bringing down attrition. Jr. Management and Non

Executive cadres have been attributed effective Decision Making as important

to Orientation [Jr. Management ² 52% Agree ; Non Executive cadre ² 45% Agree]

16. Problem Management and Risk Taking though being marked as vital

parameters; are low in terms of marketability compared to Orientation,

Interpersonal Relationships & Communication. [Risk Taking ² 31% Agree &

Problem Management ² 27% Agree]

17. The majority [Strongly Agree ² 41%, Agree ² 52%], appreciatecommunication where Non Executive cadre fairing better.

Better Communication ² 52% Agree and Interpersonal Relationship ² 53% Agree

shows that Better Communication facilitates Good Interpersonal Relationship.

18. Respondents feel Conflict at the workplace has less bearing on employee

turnover [Neither Agree Nor Disagree ² 28%, Disagree ² 19%]

19. Problem Management ² 27% Agree & 35% Strongly Agree ; Superior Sub-ordinate

Relationship ² 56% Agree shows that Problem Mgmt. Survives on good Superior

Sub-ordinate Relationship.



79

Suggestions :

1. Continuous motivation in the workplace through planned programs ² recreational

and rewards.

a) Organising periodic training programs

b) Encouraging learning through sponsorship and internship

c) Rewarding performance immediately and appropriately through

recognition awards and citation.

2. Effective and clear Career Progression chart to be drawn at the time of inception

itself; where both the individual employees as well as his superior is made aware

of their roles and responsibilities.

3. Shift Timings and distance have been major concerns at the Executive Level. The

Management may come up with flexible alternatives such as providing

accommodation closer to the workplace.

4. Retention of Talent through customised progression both in future career plans

and compensation (though Attrition Rate stands at 3.47%).

5. Skill development activity and job rotation/enrichment to prevent monotony and

work stress.



80

CHAPTER 3

PRESENT CONDITIONS WITH SPECIAL REFERENCE TO THE ORGANISATION / INDUSTR Y CONCERN

Attrition In Manufacturing And Service Sectors :

´ Att r iti on spr e ad in g t o t rad iti onal sect ors as we llµ

ATTRITION is not just rampant in the BPO sector, but it is fast catching up in other

traditional sectors such as manufacturing and engineering, public sector undertakings

and services.

According to an Emp loyee Vulnerable Study by NFO India , employees in thetraditional sectors are most dissatisfied and would switch jobs at the first available

opportunity. However, employees belonging to new-age sectors such as financial

services, insurance and banking, FMCG and white-goods, IT and telecom seem to be

relatively more satisfied.

Mr. Gautam Nath, Director-Corporate Services for NFO, said the "possible

vulnerability" of white-collar workers should ring alarm bells for HR heads. The major

pitfalls for the manufacturing sector were found to be lack of growth opportunities,

dissatisfaction with job content, inadequate emphasis on policies and systems and

interpersonal relationships.

CH 3 - PRESENT CONDITIONS WITH SPECIAL REFERENCE TO THEORGANISATION / INDUSTRY CONCERN



81

"There is a crying need for com panies to engage the em p loyees ' interest by

creating a conducive environment for growth, learning, bolster ¶we-feeling· and

compensate as per industry standards," said Mr. Nath. "After all, the hidden costs

incurred in attracting the right workforce and on-the-job training, is phenomenal.

Also, if we take into account client business that goes away, each time we lose a key

performer," added Mr. Nath.

NFO randomly polled over 200 corporate executives from some leading companies in

Delhi, Mumbai and Bangalore. It is aimed at understanding motivation levels of

employees, reasons for high degree of employee turnover in certain sectors and

factors that keep the interest level of employees going.

For many service sectors, within their aggregate attrition numbers there are hidden

problem areas of attrition. Sometimes these are associated with particular products,

service functions, or customer segments. Frequently, and with the greatest negative

impact, these problems particularly hurt retention among the highest value

customers.

Information Technology Sector

Fas t G ro win g H ard w ar e a nd Sof tw ar e C om pa ny

Com pe ll in g Bus ine ss N ee d:

The organization began to experience heightened attrition among its sales force. The

relationships, technical skills, and creative problem- solving methods which

characterized the Field Organization became highly attractive as the marketplace for

such services dramatically expanded in the mid- and late ¶90s. Mature competitors, as

well as start ups, began to raid the company's top talent.



82

When attrition in one mission-critical field group hit 25%, customers began to

complain the loss of continuity and talent was seriously affecting service levels.

IT·s Integrated Solution :

Result: One year later, attrition in the critical group had been reduced from 25% to

15% and overall attrition in the field workforce had been reduced from 18.5% to

11.7%.

Wireless Telecom Com pany

Com pe ll in g Bus ine ss N ee d:

Telecommunications deregulation created an explosion of competition both for

market share and for the engineering, IT, and customer service talent required to

make growth possible. This company's business plan called for high growth rates in the

face of tough competition. In addition, the organization's primary focus was metro

cities, where the talent wars of multinationals made employee retention especially

difficult. IT employee retention had become a particular problem, with attritionrunning at 32%.

IT· s Inte gra te d Sol uti on:

Regular employee satisfaction surveys were instituted, along with a more focused Exit

analysis .

Departmental management teams participated together in the Retaining To p Talent TM workshop in order to build collective ownership for follow-up on individual

retention action plans.

Result : Over 24 months, IT attrition decreased by nearly half to 17%.



83

Networking Com pany Growing Q uality Through Acquisitions

Overall attrition hovered at 24% -even higher in the engineering and sales groups.

Stock options were under water for many employees. 76% of those leaving were rated

top performers, who often joined competitors within the first 18 months of

employment. Consequently, key projects faced indeterminate delays.

HR Ma nag e rs & Ser vice He ads -

1. Designed an exit data analysis methodology tailored to the company.

2. Identified the top factors contributing to attrition in the organization.

3. Consulted with an internal senior team to set retention goals andaccountabilities.

4. Conducted Retaining To p Talent TM interventions by business unit,

including European and Asia-Pacific operations.

5. Provided a summary of data gathered during the Retaining Top Talent intervention

and recommendations for further actions to the senior team.

Result : Within 12 months, overall attrition declined to 17%. In addition, thepercentage of those leaving who were top performers fell to 57%. Key engineering

product development projects were back on schedule.

Financial Services Com pany : Call Center Operations

In three of the company's hardest-hit call center operations, unwanted attrition

averaged more than 75% per year in 1999. The centers employed over 3,000

employees in geographies that were rapidly becoming call center spot hot spots

Almost 70% of the attrition occurred within the first 10 weeks of employment.



84

IT·s Integrated Solution :

In a drive to differentiate the company and become an "em p loyer of choice" in the

local labor market, all managers and supervisors in these three most challenging

locations participated in Retaining To p Talent . Managers focused on the factors

within their control which could make the call center a great place to work for all

employees.

In addition, improvements were made in selection processes and in su pp orting new

em p loyees as they adapted to call center requirements and practices.

Result : Call center non-exempt turnover for these three locations dropped from anaverage of75% in 1999 to an average of 49.6% in 2000. During the same year, attrition

for other non-exempt employees in locations not implementing Retaining Top TalentTMdeclined only 1% to 54%.

Service Sector : H os p ital Attrition

DBMs tu dy of em ploy ee a tt r iti on a nd r etenti on:

Pharmacists, technologists/radiologists, educators/trainers, and therapists are leaving

hospitals in droves. In fact, the turnover rate among these workers tops 20 percent,

according to a study conducted by DBM, a global human resource consulting firm.

The DBM study, "Hos p ital Attrition Benchmark Study 200 2", was conducted with 44

medical and surgical hospitals in the U.S. to obtain voluntary attrition and retention

benchmarking data for fiscal year 2001. As reported by the UPI, the extreme urgency

and dramatic challenges hospitals face was also evident in a University of

Pennsylvania survey showing that one in four nurses intends to quit within the next

year.



85

"The projected workforce shortages, combined with an increased demand for

healthcare services, are already at a crisis level," said Joan Luciano, Ph.D., author of

the study. "Hospitals are beginning to implement retention strategies, but this will be

an ongoing priority as the need for an adequate number of healthcare workers

increases."

Other key findings of the DBM study include :

The total attrition rates for male and female employees were close with an

average male rate of 15.2 percent versus a female rate of 14.6 percent

The highest regional attrition rate in the country occurred in the Southeast where

the attrition rate for males was 28.2 percent and the female rate was 24.3 percent The lowest attrition rate in the country occurred in the Great Lakes region where

the female rate was 10.5 percent and the male rate was 11.7 percent.

The "Hospital Attrition Benchmark Study 2002" is available from DBM's Retention

Services Practice.

Measures To Curb Attrition

1. Emp loyee Stock Op tion Plans :

Employee Stock Option plans has been in existence in India for over a decade. The

focus on stock plans however began in the early nineties with the growth in stock

prices and the IT Industry. The earliest large schemes were that of Wipro, Infosys and

Mastek. It was however only since 1996 that the true value of these schemes began

to be understood by both employees and companies. Hence the number of IT

com panies offering ESOP p lans is still well below 50%.

A large number of companies however are now realizing the potential of ESOP as an

effective retention tool while making the market bears the costs. The success of the



86

stock p lans of major com panies like Infosys , Satyam , Hughes , HCL Technologies

have made it possible to make total compensation inclusive of stock on par with

international compensation levels.

ESOP schemes as yet do not have any tax advantage for either the employer or

employee in India. The government has however in the last year clarified several key

aspects of stock plans in terms of SEBI guidelines for issue and administration,

perceived corporate governance issues, tax clarifications and accounting guidelines.

US practice in this respect has been a major guide especially since many Indian

companies would like to register on US exchanges.

We have summarized the existing practices on ESOP schemes and the emergingtrends. Issues such as non-compete clauses have also become common as part of such

schemes. However we find that most companies find the pressure to give stocks

widely due to the hype on ESOP a major issue in deciding on their approach to

implementing such plans. The volatility in the stock markets both domestically and

the inexperience with ESOP has posed many thorny issues in recent months.

Until recently most companies did not have to deal with stock plans being "under water" , that is, market prices being below issue prices. Since compensation was seen

to be clearly traded off by stock, employee communication has not always been clear

on this aspect resulting in disappointments. The need for addressing employee

communication with more care is a learning that most companies shared.

The issue of dealing with complex issues such as taxation in several countries of such

plans, coverage of NRIs, foreigners, repatriation issues etc have been faced by

companies in implementation. The plans increasingly therefore are beginning to

capture all elements of international plans.

Multinational companies have extended their international stock plans to employees.

These include both stock option plans and in very few cases Employee Stock purchase



87

plans. Most stock option plans implemented in India have been "cash less" exercise

plans. Overall multinational plans have not been as valuable as the local plans due to

the higher market increases of local IT stock in recent times.

2. Reducing Attrition Through Emp loyee Self Esteem :

Literature in HR is replete with theories on motivation, team building, and leadership

to name a few of the commonly spoken jargons. Trust, openness, autonomy, strategic

collaboration, pro-activity, benchmarking and career development are some other

buzzwords prevalent in the field of HR. But surprisingly self-esteem or "positive self

regard" seems to be referred only while studying The Maslow 's Hierarchy in the

subject of Organizational Behavior taught in B-schools . But what often goesunnoticed is that even Maslow himself has referred to the concept of "Self-Esteem" as

an important step to achieving "Self-Actualization" without which the concept of

"motivation" is not complete, towards which organization strategies seem to have

converged. Off-late driving the "new-economy" organizations in a frenzy, is the

growing malaise of the " ra te of em ploy ee tu r nove r " , which I felt can be correlated

to the presence of lo w se lf e s teem . It thus becomes worthwhile to have a deep look

on this concept and its implications in both individual and corporate contexts.

Conce p t of Self-Esteem :

"Self-Esteem" which is a positive self-regard emerges from the concept of "self' which

is an important dimension of personality. It means we regard ourselves highly. If we

do that we expect more out of ourselves. It is a process, which often results in more

impressive achievements arising out of greater expectations out of ourselves. It is in

this sense that it becomes an auspicious circle of 'expectations' and ¶achievements· to

further ¶expectations·.

This growth process results in more aggressive goals, greater expectations and hence

more impressive achievements. If we start believing in whatever has been said till



88

now; we cannot help but come to conclusions that those person we follow

passionately, gladly and zealously have made us feel like somebody .It was not merely

because they had the job (assignments) or the power«, somehow make us feel terrific

to be around them .

Experts have said that positive self-belief and regard seems to exert its influence by

creating in others a sense of confidence and high expectations High self esteem is

perhaps a common ingredient in all great personalities, and it definitely has a trickle

down effect on the whole society. Let's not forget the wise words "failure is not a

crime , aiming low is".

According to Transactional Analysis (TA) human beings have three ego states namely,parent, adult and child. All interpersonal human behavior is sought to be explained as

transactions out of these ego states of interacting individuals. Reinforcement of the

adult states can make individuals more rational and balanced in behavior leading to

greater effectiveness of mutual relationships.

A high self esteem or positive self regard can indeed help in reinforcing the adult

state in individuals. But it should be mentioned here that if not properly understoodand nurtured, excessive positive self-regard could also be dysfunctional. It can lead

to arrogance and therefore can result into what is known as TA parlance., a wrong

kind of behavioral transaction. As Freudian psychoanalysis says it can also make one

rise in his "IQ " and reinforce 'su perego ' and 'ego '. If degenerated high self-esteem

can result in snobbish behavior, on the other hand if properly harnessed, self-esteem

can help in submitting undesirable traits into useful one, and help the individual

organization and society.

Thu s spok e the le gen ds «

Napolean observed about his soldiers that, "They are able because they think they

are able" .



89

In Indian context, Swami Vivekananda has repeatedly emphasized the importance of

self-esteem. He said " Ma n i s the in f inite dr e a me r dr e a min g f inite dr e a ms " after

gauging the common man's low self-esteem during the nineteenth century when the

country was still reeling under the British rule.

If we study the national corporate scene today, we will find an increasing number of

Indian organizations are constantly trying to become and project themselves as truly

"world class knowledge companies" (few have already set the benchmarks) through

which they are trying to constantly enhance " the self-esteem " of their employees.

Se lf E s teem a nd Em ploy ee Tu r nove r As the struggle for reducing the employee attrition rates in the knowledge-based

organizations intensifies, the rise in methods to increase the self esteem of the

employees can well be the answer for HR executives all over the world. The few

measures to raise the self-esteem of the employees suggested are:

Recognizing the contributions of outstanding achievers will induce

others to try hard.

Criteria for selecting outstanding achievers should be transparent.

Effective HR measures in the areas of training, career development etc, equip the

workforce better on the professional front and also increases their self-esteem,

confidence, morale and motivation.

Excerpts from Jerry Minchinton's "52 W AYS OF RAISING YOUR SELF- ESTEEM" are also

very relevant:

Focus on your strengths and not on your weakness.

Others should be treated as equals, regardless of their status in the Society.



90

Be positive. Master the art of positive thinking.

Don't worry much about impressing others; they are probably trying to impress

you.

If you are relaxed you are more expected to come out better.

Try to accept and appreciate yourself as you are. Remember if you

Underestimate yourself others will do the same to you.

The need of the hour is not only to enable the employees to grow in the 'learning

organizations ' the concept of which, is fast attaining celebrity status in this age of

"knowledge economy" but also to take care that the employee has substantial growth

in his "self-esteem" without which, I fear, all the retention policies of the

organizations will meet a sorry fate.

3. Kicking Retention Strategies In To High Gear :

The new age economy, with its attendant paradigm shifts in relation to the human

capital, in terms of its acquisition, utilization, development 'and retention, has placed

a heavy demand on today's HR professional. Today HR is expected to comprehend,

conceptualize, innovate, implement and sustain relevant strategies and contributeeffectively towards giving the corporation its winning edge. With a dynamically

changing and volatile demand-supply equation, especially against erratic attrition

trends and cutthroat competition no longer restricted to local or regional boundaries,

a need for strategizing and putting in place a robust mechanism for attracting and

retaining top talent becomes vital for the company's very survival and growth.

The new age workforce comprises mostly of knowledge workers, who are techno

savvy, aware of market realities, are materially focused and have higher propensity to

switch jobs. They prefer to experiment and explore new opportunities, are high risk

takers with higher aspirations and expectations and generally have a totally different

mind-set about job and careers.



91

In the current scenario, does supply really outstrip demand? Supply of what and

demand of what? What kind of people get the pink slip and whom do the companies

ring fence? In any organization the employees may be broadly classified into four

broad categories in terms of their performance and potential. There are people who

are woefully inadequate in both dimensions, which we may call 'Strugglers ' and there

are the 'under- performers ', whose performance falls below their potential. Thisconstitutes about one fifth of the total human capital at our disposal and these

people obviously qualify to be the first candidates for the pink slip.

The other two segments comprise of the 'solid pro's and the 'stars' who are at the

higher end of the performance continuum. The former may be relatively lower in

their potential as compared with the latter, but contribute immensely to the

company's overall performance. We could call this as the "talent" segment. This is the

segment we do not want to lose. We've got to protect this group from the pull of all

non-retentive forces and that needs effective retention strategies that have to be

kicked into high gear.

Under

Performers (1 0 -20 %)

STAR S

(15 -30 %)

SOLID PRO·s

(5 0 -60 %)

Strugglers

(5 -10 %)

HIGH

HIGHLOW

P O

6

E N 6

I

A

Performance

Exhibit I



92

Retention strategies have to be viewed holistically against the total systemic

framework of talent management that encompasses the 'talent', the 'corporation' and

the 'environment'. Attrition and retention should be seen as reciprocal phenomena,

which have an inverse relationship with each other. Recruitment and needs for

downsizing must also be considered in conjunction. An understanding of the inherent

considerations of an individual who wishes to join a company and continue to stay,

and potential compulsions, which push him away, would help.

The company's brand image crowns the list of the priorities for the job seeker; other

important considerations being; the pay package and other pecuniary benefits, the

class and quality of people that work in the company, the challenges of the job and

attractiveness of the position & designation, the opportunities for career growth andprofessional development and the kind of technology, he would be exposed to.

Dissatisfaction in any of these aspects causes severe cracks to appear in the bonding.

Anxieties and apprehensions arising from restructuring, movements, marginalization,

power politics, change of boss, change of tasks and responsibilities, mergers and

acquisitions etc. could be instrumental in taking decisions to leave. Other factors

could be to explore better prospects elsewhere, to start one's own venture, to take up

higher studies or certain private compulsions.

From the company's perspective, its brand equity, philosophy, vision, mission,

culture, values and ecology have a direct bearing on talent attraction and retention.

Other company related attributes that impact employee retention include high

demand on performance, need for new competencies, broader, deeper and diverse

job expectations, need for re-skilling and re-deployment, career offerings and growth

prospects, goal & role clarity, policies & processes and organizational communication.

Putting in place an effective sensing mechanism to gauge comfort, contentment and

commitment levels becomes a pre-requisite to designing and implementing any

worthwhile retention strategy. Many such instruments have evolved over the years

and include,



93

Whatever may be the instrument, whether used singly or in combination the success

depends on collection and collation of unbiased responses, cataloguing of direct and

proximate clues, their effective analysis and drawing sound inferences.

In order to appreciate the push and pull effect on the individual in the context of

attrition and retention a qualitative force field listing may be helpful. While on the

one hand, a compelling brand image, astute leadership within the organization, an

enduring culture and an environment that is trusting, caring and nurturing, credibility

, transparency, empowerment, responsiveness and creative policies on compensation,

recognition etc would exert a positive influence on the subject talent, on the other

hand, compliance, control, rigid power structure, knee-jerk changes, unexciting and

drab jobs, unjust discrimination, unrealistic deadlines, lure of lucre and poaching

would be debilitating.

employee

satisfaction surveys

or anization climate

audits

open forums

one-to-one sessions

exit interviews

ex-employee

interviews

rape vines

informal social

interactions

Brand image

7 alented 7 op

Enduring Environment - trusting,carin 8 nurturin

9 redibility

7 ransparency

Empo@ erment

A esponsivenes

A ecognition

9 ompensation

ATTR I T IVE R E T E N T IVE

9 ompliance

9 ontrol

R igid P o @ er

Knee-J erk

Unexciting

Unjust

B iscriminatio

Unrealistic B eadlines

Lure of

P oac C

ing

THE RELEVANT FORCE FIELD

Exhibit II



94

The retention strategies should be designed such that the retentive forces are

maximized and the debilitating forces minimized. Retention strategies should not be

orchestrated in isolation but must form part of the overall strategies for strengthening

the pull on the talent, which in fact include sourcing, staffing and development

strategies in addition. A robust sourcing strategy is crucial to the exercise since the

type of people one selects should not only fit into the job in terms of skill set but

should match the company culture in terms of attitude, personality and commitment.

An effective selection process ensures the entry of the right kind of people into the

organization, with the desired loyalty and sense of belonging that goes a long way in

restricting attrition in the long run.

The first step for individual companies is to develop detailed profiles of the kind ofpeople they are after by analyzing the job profiles, career paths, background and

experience of their current high performers. Once we know what we are looking for,

there are a number of routes we can take. Some get what they need largely through

acquisitions, which is fine if acquisitions are an intrinsic part of corporate strategy.

Some "outsource" by picking up people they believe are better trained elsewhere.

Those who can attract the best college graduates and excel at early development,

"insource", instead. While in the first case one gets ready -made talent and benefitsfrom their instant utilization, in the latter instance, one can shape the raw talent in

the mould of one's unique culture and work ethos. A judicious mix of campus hires

and lateral hires often works. Other sources could be from project trainees and

interns, from business associates on contract or even through retainership of free-

lancers.

Some strategies will be more effective for some companies than others. For example,

companies having a slower growth rate, have fewer opportunities to develop people

through rotation, so they will tend to get talent in from the outside. But while each

company will gravitate naturally toward a dominant sourcing method, no company

should rely exclusively on one strategy. Talent winners recruit continuously rather

than strictly on as required basis just to fill up vacancies. One should continuously



95

scan the environment and bring in the talent whenever one finds it. Talent scouting

in fact could be a constant sourcing activity. Although the dominant strategy could

be to spot talent early and develop it within, regular lateral hires is a good, way to

accommodate rapid growth especially at middle or senior level, refresh the gene pool

and calibrate the internal talent standard. Fitting a talent to the job is traditional but

there may be a need to design a job around the talent as the nucleus.

Similarly it is a conventional approach to view manpower needs as a derivative of the

business needs. But when it comes to rare talent, it may be worthwhile to build and

articulate one' business around the talent at one's disposal.

Aggressive development strategies complement the retention strategies in a big way.Providing opportunities to the employee for both professional and career growth and

giving the due priority to this important activity makes the company's position in the

market for talent attractive and compelling. Well -articulated strategies in the

context of sourcing and development augment the retention strategies in crafting a

powerful employee value proposition that remains central to the problem of

attraction and retention of top talent.

At the heart of the matter remains a basic question, ¶Why would a talented person

want to work here? ' Organizations with superior employee value propositions have a

compelling answer to this question. A McKinsey study (199 8 ) that studied 77

companies from a variety of industries to investigate talent problems, suggests that

creating a winning value proposition means tailoring a company's 'brand ' and

'p roducts· - the jobs it has to offer -to appeal to the specific people it wants to find

and keep. It also means paying what it takes to attract and retain strong performer -

the 'price'. Looking at the retention problems against the perspective of enduring

employee value propositions about these three dimensions, namely.

Once we are clear about the talent segment that we wish to attract and retain, we

would have to ensure that our brand is tailored to that segment. No brand can be

transformed over night, since it is a continuous, evolutionary and slow process. But



96

there may be a need for some companies that have deep rooted beliefs, mind-sets

and culture, which have not kept pace with time, to review their traditional image

and perhaps shed it off in preference to a contemporary, more vibrant disposition.

The objective should be to make it a compelling place for employees, customers and

investors. This is intrinsically linked with its business and the products it offers: the

jobs. With 'great jobs ', the brand would automatically take care of itself because the

top talents joining the company for the great jobs, would reinforce the values that

the company is seeking to build. To the brand dimension, that qualifies the company

as a 'great com pany ' several components contribute. In order of priority these are,

values and culture

quality of management exciting challenges

strong performance

industry leadership

talent of existing people

development opportunities

inspiring mission

enjoyable work atmosphere and job security

The attributes that were identified in the context of 'product' -'great jobs' include

freedom and autonomy, exciting job challenge, career advancement and growth and

fit with the boss.

A rule of thumb : ' A great job is that which consists of at least 80% of things that

an em p loyee would love doing .' As for the 'price', money may not be the prime

determinant but it does matter. Money alone cannot make a great employee value

proposition, but it can break one. Under the dimension of compensation and lifestyle,

the determinants identified include differentiated compensation, high total pay

packages, geographic location, respect for lifestyle and acceptable pace and stress.



97

The ability to define, develop and deliver a winning employee value proposition

should be at the core of all retention strategies particularly for large companies

facing challenges from a multitude of smaller companies as employers. The lure of

the latter in terms of excitement, flexibility, impact (a big fish in a small pond ),

reward and even equity ownership has to be countered with a stronger proposition

bolstered by the formers magnitude of impact (big fish in a big pool ), depth (vast

resources to take risks and to support big decisions) and variety (large spectrum of

expertise and experience to be shared).

All retention strategies must be built around a compelling, distinctive and exciting

employee value proposition. For the sake of clarity we may envisage these strategies

in three distinct yet overlapping domains: cultural, transformational andtransactional. First of all let us dwell upon the cultural aspects as relevant to the

issues under consideration.

Culture is somewhat like "the operating system" of the organization. It drives the

organization and its actions. It guides how employees think, act and feel. It is

dynamic and fluid, and it is never static. Some aspects of culture are visible and

tangible and others are intangible and unconscious. Some of the most visibleexpressions include the architecture and decor, the clothing people wear, the

organizational processes and structures, and the rituals, symbols and celebrations.

Other concrete manifestation of culture are found in commonly used language and

jargon, logos, brochures, company slogans, as well as status symbols such as cars,

window offices, titles, and of course value statements and priorities. An outsider can

often spot these artifacts easily upon entering an organization. For insiders,

however, these artifacts have often become part of the background.

Essentially organizational culture is seen in two broad dimensions. The hard

dimensions relate to the functional, technical and control aspects, while the soft

aspects deal with inspiration, emotion, energy, enthusiasm, collaboration and



98

camaraderie, openness, sense of belonging, etc. A culture that is open, trusting,

nurturing; authentic as well as empowering tends to attract and retain top talent.

Transformational strategies that impact retention in good measure

Encompass

Mentoring

Coaching

Counseling

Competency

Performance development programmes

Retraining

Re-skilling Redeployment

Job rotation

Challenging assignments

Job enrichment

Knowledge building

Knowledge sharing culture

Innovative, dynamic and competitive compensation strategies, various welfare

initiatives, social & community activities, workload balancing, effective work-life

integration, reward & recognition, establishment of good communication & feedback

network, etc. form the transactional strategies. Anti poaching measures may also

find their place in this category. Although technology based defenses against an

aggressive e-recruiter like various e-security mechanisms work for some time, the real

potent measures are inherent in enhanced job satisfaction and strengthened

relationships within the organization.

If one examines the entire life cycle of an employee within an organization, starting

from recruitment till su perannuation through phases of induction, settling down,

contribution, growth, maturity and rise to top levels, the retention strategies have to



99

be selectively and appropriately applied to the phase to which the employee belongs.

While transformational strategies like mentoring, coaching, training, etc. are

eminently suitable for people in induction, settling down and growth phases, fulfilling

the higher order needs, ego gratification, etc. should be predominantly successful for

senior positions. Cultural strategies, however, are over pervasive across all phases.

In order to be able to orchestrate and implement effective retention strategies, the

first step should be to understand the scope of the retention problem that is unique

to one's organization. The target group, which is crucial to the company's operations

and success, should be identified and the strategies are directed appropriately. It is a

paradox that the companies, which invest heavily in recruitment and development

and make a good job at that, are prone to more risk of poaching. A sound sensing andtracking system to assess the volume and causes of attrition by performance level

could be useful. The ability to identify good performers, who are prone to leave for

any job or management, related issues and timely intervention to address these

issues, could be effective.

Creating and delivering a great employee value proposition is clearly the best way to

retain the people. This would encompass building and sustaining a compelling brandimage with an appealing culture and inspiring values, tailored to the talent segment

that one seeks to attract and retain, offering great jobs and career opportunities,

building an effective learning framework, investing in work place infrastructure,

moving on poor performers, instituting effective reward and recognition programmes,

putting in place innovative compensation schemes. But most importantly, when the

organization is successfully able to convey the message that it cares for employees,

retention works best.



100

CHAPTER 4

SUMMAR Y, CONCLUSION AND SUGGESIONS

4.1 SUMMAR Y OF THE SYSTEM

Em ploy ee a tt r iti on i s a cos t ly d ilemm a for all orga niz a ti ons . In today's taxing

business climate, managing company's competent and skilled human capital is vital forsuccess. Is your approach to recruiting and retention aligned with your company's

strategic goals? This article explores the prime factors for employee attrition and

some retention strategies and processes that will help drive long-term tangible

business benefits.

Companies usually turn to increasing the compensation for employees to retain them.

This however is no longer helpful in solving the problem as the skilled work force has

many opportunities which masses of them give predilection to. According to a studyby Ipsos ²Reid , 30% of employees plan to change jobs in the next two years. Most

leaving employees seek opportunities that allow them to use and develop their skills.

Leaving employees want more meaning in their work meaning challenging the

challenges. They often indicate that they want to use their qualities and skills in

challenging teamwork led by capable leaders.

Managerial staff cite "career growth" and "leadership" as the major factors that

influence attrition and retention, together with "opportunities for management""ability of top management" "use of skills and abilities" and "work / family balance"

Professional employees cite concerns about "supervisory coaching and counseling,"

"company direction" and "interesting work" Clerical employees voice concerns such as

"type of work," "use of skills and abilities" and "opportunity to learn" Hourly employees

CH.3 ² SUMMARY, CONCLUSION AND SUGGESTION

4.1 SUMMARY OF THE SYSTEM



101

notice whether they are treated with respect, their "management ability" and

"interesting work"

Employee attrition rate can be never being entirely eradicated. It can only be

influenced to keep it in control. The business model on which a subsidiary operationruns is significant in achieving this. Outsourcing higher end responsibilities that offers

challenging tasks to the employees goes a long way in helping.

The Exit Interviews for key performers of the organization were Analysed through

language processing tools. The results were:

� Overall, job dissatisfaction levels are high at all facilities, in all job classifications

and among both new and lateral recruits.

� Employees between 2 to 5 years of service and more than 10 years of service have

higher dissatisfaction levels than those with less than 2 years of service.

� Pay, work schedule, mandatory overtime, designation levels, opportunities for

advancement, and benefits were most frequently cited as issues the key performer's

wanted to change about their jobs.

� When asked what incentives motivated them, pay and benefits was not frequentlycited but majority of the respondents said that the liking for their work and the

interest.

� Respondents also frequently cited communication as a significant factor. Many key

employees expressed a desire for more two-way flow of information and a voice in

decision-making.

� They wanted a forum for sharing their ideas for system improvement. Some

expressed the perception that inmates have a voice in the system but the staff does

not, and expressed a desire to see administrative staff make a visit the facilities

during second and third shifts.



102

� Perceived lack of recognition was also cited as a contributor to low job satisfaction.

Some respondents described a climate where bad performance was recognized but

good performance was not. Several employees expressed a sense that their work is

not valued, nor is it considered a skilled role. Other workplace climate issues that

were often cited as contributing to poor performance were lack of teamwork, back

biting and favoritism. The phrase ´good old boy systemµ came up in several narrative

responses.

� Though job dissatisfaction seems to be the norm, there was considerable variability

among facilities in terms of the issues that were cited as contributing to job

dissatisfaction, especially compensation.



103

4.2 SCOPE OF THE SYSTEM

Why do they come«?

Pay, location, benefits, advancement possibilities, job security, nature of work,

personal/family time.

Why do they stay?

Retention ( or the Opposite )

- Confidence Factor-they believe in potential success/leadership

strategies

- Emotional Factor- (Huge) contribution, recognition, appreciation

- Trust Factor- 2 ways- promises/commitments kept (strong link to

loyalty)

- Fit Factor- Values/ethics are a good fit

- Listening Factor- Are they heard and valued?

Retention Strategies are now recognized as mandatory in many industries -

Leadership is critical! "Best Practices" Does Senior Management - support (with skill),

hire, manage, recognize, communicate, include, reward and make people feel

significant.

´ A strong retention strategy becomes a powerful recruitment tool! ´

Retention Factors :

CH.4 ² SUMMARY, CONCLUSION AND SUGGESTION

4.2 SCOPE OF THE SYSTEM



104

Compensation & Benefits (Money can not be ignored!), Clear business goals (where do

I fit in), well defined jobs, rewards & recognition, strong in communication, "Well

trained" management/leaders.

Does ´Cultureµ Support: innovation-risk taking (freedom from fears to try new

innovative approaches - without Put Downs) encourage creativity, supportive

accountability (Culture is made up of: Organizational Values, how we define

ourselves, how we interact, what is acceptable (and what is not.))

Getting em p loyees to ´ fall in love µ with your com pany :

1. Capture the Hearts of your workforce with: Compelling

vision/Balance/Celebration- Fun

2. Open Communication : Internal listening is a priority, multiple lines of

communication (various channels). This is essential for managing change in a

positive way with less sabotage, anger, resistance, and fear.

3. Create partnershi ps: Squash status barriers/Open the books/pay for performance(not titles), share the "bad" times the "good" times.

4. Drive Learning : "Guarantee Employability", Encourage Life Long Learning (Train

outside of job description). Loyalty comes from trusting your employees to

develop their skills for the good of the company and for their needs for personal

growth and satisfaction.

5. Emanci pate Action : Freedom to Fail, reduce bureaucracy and challenge the"status quo". Breathe life into your organization. Do not let your employees

stagnate.

For additional information on retention or copies of the executive summaries on

Hiring Winners or Keys to Retention based on information gathered from executive



105

interviews, contact L. John Mason, Ph.D. at the Stress Education Center -Dstress.com

(707) 795-2228 or [email protected]

Dr. L. John Mason co-founded the Stress Education Center in 1978. He is the best

selling author of Guide to Stress Reduction and Stress Passages: Surviving Life's

Transitions Gracefully. As art Executive Coach, consultant, and trainer, John works

with executive management teams to leverage their strengths and create superior

performance.

WHAT IS AN EXIT INTER VIEW?

In human resource terms, an exit interview is a survey that is conducted with an

employee when he or she leaves the company. The information from each exit

interview is used to provide feedback on why employees are leaving, what they liked

about their employment and what areas of the company need improvement. Exit

interviews are most effective when the data is compiled and tracked over time.

How are Exit Interviews conducted?

The exit interview may be conducted through a variety of methods. Some of the

methods include: in-person, over the telephone, on paper, and through the Internet

such as with Nobscot's Web Exit, exit interview management system.



106

Why Exit Interviews are essential?

´ The real value of an exit interview is in the information one can obtain to

protect the com pany and save a lot of time , trouble and ex penses later µ

- writes E J Sarma .

Understanding why your employees leave is almost as important as understanding why

they stay. Some would say it is even more important. An employee's real reasons for

leaving can be revealed in exit interviews. Interviews that are conducted by the

human resources department or other company employees at time of resignation may

or may not produce accurate and legitimate answers. Most departing employees are

reluctant to reveal important demotivators because they do not want to bum their

bridges. They may not want to offend the management at that sensitive time of

saying good-bye.

An experienced third party, a consultant or firm that specializes in conducting these

sensitive interviews and collecting a wealth of invaluable inputs, can often

accomplish effective and productive exit interviews. The information gathered in thisprocess could guide corporate management in making changes that will reduce future

turnover, as well as potentially solve other problems in the organization.

What is the best way to process an em p loyee 's exit?

HR always recommends an exit interview. The process is predictably simple

while most people think it's a big waste of time. If a person resigns, you already knowwhy he is leaving. But mostly the stated reasons are far from true, most resignation

state personal reasons or better prospects. If one is being discharged, he will be angry

and won't tell anything useful anyway. Why bother then?



107

There are a lot of good reasons to bother-administration; protection and good

management practice are among them. From an administrative standpoint alone, an

exit interview provides an opportunity to get needed information (like where to send

the employee's settlement cheque, TDS certificate, retrieve company property (keys,

mobile, swipe cards credit cards, laptops, etc.,), clear up any outstanding issues like

expense advances and deliver required information.

Administrative details are important, but the real value of an exit interview is in the

information one can obtain to protect the company and save a lot of time, trouble

and expense later. For example, it is not uncommon for an employee to resign, or be

discharged for a reason, but when tactfully handled can reveal the real reasons in an

exit interview. For instance, recently when I had handled an exit interview, a verysenior executive told me that he is quitting because he is pretty annoyed with the

CEO's arrogance and style.

In a broader perspective, exit interviews provide information about overall

management style of the company. An employee who is discharged may not be happy

about it, and his or her comments will have a negative slant. But there's usually

plenty of truth to be learned as well. In one case we had observed that onedepartment had a high turnover and exit interviews reflected problem areas like

partisan attitude of the supervisor. Consistently high turnover in certain positions can

be an indicator that the job or the work is not defined properly, thus, the wrong

people are being hired. Reasons for voluntarily separation may be valid, like lack of

benefits or low pay or even unsatisfactory designations, improper grades, etc. Some

thoughts about how you say good-bye to employees, whatever is the reason for their

exit, salvage some credibility. If it's a discharge, you'll want to do damage control as

much as possible. Recently, two people who were asked to go within two months of

joining told me how brutal the HR general manager was in handling the exits.

Depressed and victimized they felt more angry and vengeful for the simple reason

that the HR was even forcing the person to interview candidates on the very morning

when he was told to go.



108

Treating people as human as possible is a good management practice and that

dictates he or she be treated with professional courtesy and respect. Conduct the exit

meeting as privately as possible. Taking a more positive view of the exit-this is also

the time when many employees are willing to point at deficiencies in the company,

comments such as , "poor management or su pervision" , "com p lete lack of

su pervision and su pp ort" , "poor communications" , etc . , have come quite often

when I had handled exit interviews. Any company management that is honest with

itself will use these responses to look into the claims and make corrections where the

allegations are found or known to be true.

While handling exit interviews handle the employee in simple, direct terms and

discuss under what circumstances the decision has been made or try and figure outwhat triggered the decision to quit. It is invariable that something snapped inside.

Without a debate on the merits, gather all required information and record and do

paperwork and handle the exit with the final settlement check, so that whatever

suspicion the person has is nullified. Whether the separation is voluntary or not, HR

has to make sure that the employee leaves without any incident. Exit interview and

counseling can avoid much of unpleasantness; someone who can handle the person at

times of emotional disturbance is only the HR person.

Exit is just as important as the procedures one uses while hiring. Handled in a

professional way, exit practices can be constructive, useful and improve your work

environment and above all add to retention.



109

Pros and Cons of each method of Exit Interviewing :

In- Person Exit Interviews

With in-person exit interviews, HR representative meets individually with each

terminating employee.

Pros

Can provide information regarding benefits and retrieve company property

during the exit interview

Gives a personal touch to each employee

Can probe for more infom1ation on each exit interview question

Cons

Employees may be afraid to share sensitive or negative information during an

in- person exit interview.

For larger companies, it may be too time consuming to exit interview every

employee.

It's difficult to track information received verbally during an exit interview.

Tele phone Exit Interviews

Telephone Exit Interviews are conducted over the telephone by a HR Representative

or an outside third party consultant.

Pros

Can probe for more information on each exit interview question

Can enter data into a tracking system while conducting the exit interview

Easier to schedule than in-person exit interviews



110

Cons

Time consuming if done in-house by an HR Representative

Expensive if done with an outside consultant

Employees often reluctant to verbally share sensitive or negative information

Paper and Pencil Exit Interviews

Paper and Pencil Exit Interviews are usually conducted by a form that is given to the

employee on their last day or mailed to the employee's home.

P ros

Takes less time to provide an exit interview form compared with conducting anin person or phone exit interview

Employees can share information on paper that they may be reluctant to say In

person

C ons

Return rates for Exit Interview Forms average just 30-35%

Difficult and time consuming to compile and track the data from paper andpencil exit interviews

Online Exit Interview Management Systems

Pros

Employee self -service so easy for HR to administer

Employees comfortable sharing information by computer so more honestresponses

Information automatically compiles and tracked Reports available at a click of

a button

Participation rates (for Web Exit customers) double that for paper and pencil

exit interviews



111

Exit Interviews conducted by over 90% of com panies

According to a study by the Society of Human Resource Management, over 90% of

companies conduct exit interviews. Exit interviews are one of the most widely used

methods of gathering employee feedback.

Exit Interviews Vs Emp loyee Satisfaction Surveys

One of the benefits of exit interviews over employee satisfaction surveys is that exit

interviews are conducted when an employee is leaving. This difficulty the urgency in

which a company must act on the feedback provided in the exit interview. With

employee surveys, it's imperative to act on the results of the employee satisfaction

surveys as quickly as possible. Once you provide employees the opportunity to tell you

where the problems are, they expect immediate action on those problems. With exit

interviews, you have a greater opportunity to review the data and look for trends over

time. Employers can take action on problem areas as they see fit without causing

further concern among employees.

Post Emp loyment Exit Interviews

One of the newest fads is conducting the exit interview after the employee has been

gone from the company for 3 or 6 months. The theory behind this exit interview

strategy is that employee will have a better perspective on things once he or she has

had a chance to reflect on hi-s or her employment. Therefore, the employee is

expected to provide more valuable information in an exit interview if it is held six

months after employment. In research that Nobscot has conducted, this theory has

yet to hold up. The majority of companies that have tried these kinds of Post-

Employment exit interviews found that the results were similar to the exit interviews

conducted immediately upon termination. Additionally, it's difficult and time

consuming to reach employees this far after employment has discontinued.



112

Generally, you can expect to get the most valuable information by conducting the

exit interview a few days before or after an employee leaves the company. The

employee's employment experiences are fresh in his or her mind and the employee is

usually happy to express their final thoughts before leaving the company.

How to conduct In- Person Exit Interviews

1. Have exit interviews done by a third party (HR or other) and not with the

supervisor in attendance. The goal is to get honest communication. The plusses

AND the minuses. With the Supervisor in attendance, chances are slim that the

exiting employee will speak up on any important issues.

2. Conduct exit interviews for areas/departments where you "smell" trouble. If there

happens to be a lot of turnover in one area, that's a red- flag to start exit

interviewing ALL departing employees from that area. (You may want to even

interview non-departing employees as well).

3. Have questions pre-planned. You should have a standard list of questions that you

ask on each exit interview. Find out what they liked best and least, how they

would rate their supervisor, the compensation, benefits, etc. Give them the

opportunity to offer suggestions for improvement.

4. Take information received seriously, but with a grain of salt. Don't allow one

negative employee to disrupt your whole organization. Look for patterns in exit

interview responses. Share the information tactfully with Supervisors. Make action

plans to verify serious issues. Work on improving the negatives.

5. Don't let the ex-employee go on and on and on. The exit interview should take 15-

20 minutes. You don't get any more info by hearing the employee whine about

every last detail. Just like an employment interview, learn how to get theinformation that you need, and send them on their way.

6. Thank them for their service. One small step that you can make on behalf of your

company is to think them for what they have done during their employment. Many

employees are never thanked. It means a lot.



113

Turnover Prediction Mapp ing

You don·t have to have a crystal ball to predict future turnover. If you conduct both

employee satisfaction surveys and exit interviews, you can create a customized map

that tells you exactly which areas within your organization can expect future turnover

and what the cause of that turnover will be.

Coordinating Your Surveys and Exits

The first step is identifying what items cause turnover for your organization. Turnover

is unique to each organization so items that may cause turnover in one company,

mayor may not cause turnover in your company. Before you can begin to identify your

turnover stimulators, you need to coordinate your employee survey process with your

exit interview process. You'll need a consistent set of questions that will be asked inboth surveys and exits. The questions should cover all areas including Environment,

Management, the Company, Compensation, etc. The questions should be quantifiable

by having employees rate the items on a numerical scale (Ex. 1-5). Be sure to

keep your rating system consistent so that one side of the scale is always the

favorable side and the other side is the unfavorable side. Have employees provide

demographic information such as department, location and job classification. Once

you have a sufficient number of completed surveys and exit interviews you can beginthe analysis process.

Identifying Turnover Stimulators

Identifying turnover stimulators is a simple matter of comparing your exit interview

results to your employee survey results. Use the average ratings for all of the

employees who have completed the exit interview thus far and the average rating of

all the employees who have completed the satisfaction survey. Go through each

question one-by-one and look for areas where the average rating on the exits issignificantly less than the average ratings on the surveys. Tag these questions as

Turnover Stimulators.



114

4.3 SUGGESTIONS 1. ASSUMPTIONS:

Money (including com pensation , benefits and stock op tions ) was the most

frequently mentioned aspect of the retention programs.

Second was the executive/management team, both in the tone they set by example

and in their communication to the organization as a whole.

The third was the opportunity for, growth, both through the challenge of work

assignments and individual development.

Two elements comprised the fourth aspect: the work environment in general, and the

trust existing between people in the organization.

2 . F UTURE RETE N TION PROG RAMS AN D PROG RAMS I N DEVELOPME N T

Future programs focused on money with benefit im provements in the lead

twice as often as any element

Creating growth opp ortunities , including mentoring was the next element

of importance

Four elements tied for the third most-often noted aspect of a future or

planned retention program:

- Work environment issues

- Including job customization

- Flexibility and

- Team building

CH.4 - SUMMARY, CONCLUSION AND SUGGESIONS

4.3 SUGGESTIONS



115

Executive-management skills and team development

Employee focus including survey follow-up and recognition programs

What excites me about coming to work! ...

When executives talked about what kept them involved in their jobs, opportunity

including the challenge of the work and opportunity for creating results was far and

away the most engaging aspect. Developing work-related skills for success was key.

Executive/management behavior, such as providing personal and professional

development was second in terms of importance. Common themes were: They let

Supportive executive and management behavior that allows employees to takeownershi p of their jobs , success and careers ; and Team environment in which

everyone coming to work is supported in being their best .

Implicit in our survey results is the idea that successfully taking a risk which can have

a significant impact on their organization is one of the core reasons our interviewees

are excited about coming to work every day. Inherent in successful risk-taking are all

three of the above retention concepts.

Develo p em p loyees , build teams and grow your business«

Com pensation systems can create barriers and disincentives , but they cannot

create motivation, involvement, and continuous improvement or loyalty. In the long

term even the lure of stock options alone will not create the kind of personal

motivation that retains individuals, builds teams and sustains an organization over

time.

Next Steps, guiding management behavior that encourages ownership and building

team environments. A strong sense of Opportunity for Growth and Development is

reinforced through mapping future organizational needs, recognizing strengths, and



116

developing a plan for skill development that meets organizational and individual

needs. Management behavior that instills a sense of ownership includes involving

employees in projects that matter (i.e . , cost reductions , continuous im provement ,

or client satisfaction ), following up on employee input and encouraging employees to

take ownership of their careers. Team environments are built by accepting employees

as equals, rewarding positive attitudes, communication and commitment, and

providing opportunities for team success. Creating opportunities for risk taking while

minimizing the risks of failure also builds team environments.

Many of these retention techniques are interrelated. For example, aligning

individual, team and organizational goals can enrich nearly every task with purpose.

Ensuring that all employees have an opportunity to develop the skills crucial to theirpersonal and professional success supports a team environment where learning is

expected and risk taking is supported.

Social / community building activities was the fourth element of importance to the

individuals we interviewed; vision/mission/values was noted nearly as many times.

Employee focus, including recognition was next, and was followed closely by Moneycompensation, bonus, and options.

In general organization's principal retention tools are ranked order and categorized in

groupings based on the levels of their employee motivation. Some of them are as

follows:

Money (com pensation , op tions , benefits )

Executive / management behavior

Opp ortunities for growth



117

The aspect of their work:

Opportunities for growth & development

Executive / management behavior

Team-based Work environment

It's worth noting that Money (compensation, options, bonus) was a distant seventh.

1. What is good for the Goose is good for the Gander!

Should such a gap exist between how we retain our employees and what keepsus coming to work everyday? One overriding conclusion that we draw is the

need to question some of our assumptions about assumed difference between

executive level and other employees. What commonalties involve everyone in

the work place?

2. Top three ways to retain key employees.

Once we develop a compensation system that is fair, equitable, and

competitive in the market, the attention needs to be on employees as people.

Opportunities for growth & development;

STEPS F OR RETAI N I NG K EY PERSONN EL

Have you ever lost key personnel to other companies? Was it expensive to find and

train replacements? Could you have prevented the loss and at the same time created

a policy that actually helps to attract the best and the brightest candidates?Retention has become an essential business strategy for companies that wish to

remain productive into the future. The following article reflects information gathered

from recently conducted executive leadership interviews that were conducted in two

critical areas. What strategies and techniques do companies use to Hire Winners? and

How do companies retain there key personnel?



118

Save Money on Personnel Turnover and Increase Productivity «

Retaining key personnel is critical to long term success of an organization. A

Retention Strategy has become essential if your organization is to be productive over

time and can become an important part of your hiring strategy by attracting the bestcandidates who know of your track record for caring for employees. In fact, some

companies do not have to recruit because they receive so many qualified unsolicited

submissions due to their history of excellence in employee retention.

How do you get your employees to "Fall in Love" with your organization? This is a

great question. Some recently conducted research lists these Top Ten Strategies:

TOP 1 0 RETENTION TIPS

1 . T r e a t yo ur em ploy ee s like yo u t r e a t yo ur mos t v al uabl e c lient s.

It is cheaper to keep your good employees than it is to hire and train new ones.

Your top 20-25% should be courted as you would court and then service your

top customers.

2 . G et yo ur em ploy ee s t o " Fall in Love " ' with yo ur orga niz a ti on .

Communicate your Vision in a compelling way. Show everyone the role they

have to contribute to this vision. Create opportunities for people to connectwith each other for support and to improve communication in work teams.

3 . St ro ng r etenti on s t ra te gie s b ec ome s t ro ng r ec r uitin g ad v a nt ag e s.

4 . Retenti on i s much m or e e ff ective when yo u put the r ight pe rso n int o the r ight

j ob. K now the j ob! K now the em ploy ee a nd thei r motiv a ti ons.

Half of the Fortune 500 companies are now using assessments to more fullyunderstand each job and the soft skills that are required for top production

within their specific company culture. These benchmarked skills are then

compared against qualified applicants to help determine who will be successful

in the position and fit well within their company's culture. These assessments

are also used as a powerful professional development tool to enhance the



119

training of continuous life-long learning (which is another powerful retention

strategy.) Advanced Fibre Communication is beginning to use this assessment

process in hiring.

5 . Mone y is im por t a nt b ut it i s not the only r e aso n pe opl e s t ay with a n

orga niz a ti on .

If your compensation plan is in the top 20-30% of your industry, then money will

often not be the reason why people leave.

6 . Em ploy ee c ommittee s t o he lp d eve lop r etenti on s t ra te gie s is a ve ry e ff ective

s t ra te gy.

Get their input! Ask, what do people like about working here? What would youlikechanged to make your company a better place to work?

Some companies, such as Advance Fibre Communication (AFC), have

recognized that the special engineers and technical experts that are the

cornerstones of their business, require special attention. Victoria Perrault, VP

of Administrative Services for AFC, says that her company has identified the

top 25% of their staff and caters to these special people by meeting their

financial requirements and looking for the best package of benefits that these

people will find most positive as incentives to stay. They even have employee

committees that work as "focus groups" to determine why people stay at AFC

and what they might want to see changed to make AFC an even better place to

work.

7. Lead e rs hi p mu s t b e d ee ply inve s te d in r etenti on .

Management must be skillful communicating company policies in a way that

creates "buy-in" from their staff and be open to employee input. Help

create "ownership" in your employees.



120

The companies with the best retention percentages are the same companies

that are actively committed to retention. They know that is costs less to

keep good people than to continuously have to replace unsatisfied

employees and managers.

8 . Rec og niti on, in v ar ious for ms , i s a po we rf ul r etenti on s t ra te gy.

It does not have to cost a lot. US Dept. of Labor -46% of people leave their jobs

because they feel unappreciated.

9 . Remem b e r th a t the " F un Fa ct or " is ve ry im por t a nt t o ma ny em ploy ee s.

Greg Peters, Past President and CEO of Mahi Networks in Petaluma, is one

of many executives who reported that retention is often related to

interpersonal connections and amount of FUN in work teams. The FUN

Factor is part of the generation of workers that use activities as stress

management in highly charged production environments where long hours

are required. Greg has encouraged Ping-Pong tournaments and basketball

leagues for interpersonal interaction, fun, and stress management. Thoughnot everyone can participate in physical activities, this sets the tone in a

culture based on competition, health/well-being, and interactions that are

inclusive beyond work.

10 . K now the t r en ds in b ene f it pa ckag e s. Do yo ur b e s t t o off e r the one s yo ur

em ploy ee s nee d.

Consider offering the best of the rest.

Results from retention surveys bear consideration.

This previous retention survey illuminates major factors in retention:



121

Conclusion :

Retaining talent has always been a task every HR Manager would tread. Attrition

across sectors and organisations has been an equally stressful aspect to deal with.

The study was envisaged to find out the causes for em p loyee turnover analyse the

areas of concerns and provide pragmatic solutions to check it. Though the attrition

rate is below industrial standards; it is impedient to check ´ talent drain µ, since it is

found that the rate of trainees and less than 2 years experience have topped in

attrition.

A well integrated system that aims at providing an ambient and receptive workplace,recreational activity, social space, reliable measuring and rewarding systems and

adequate avenues for growth are fundamental in checking attrition.

Below I am suggesting some of the measures, doing so will enable you to create a

work environment that gets employees excited about the company and eager to

produce results.

1. Set clear ex pectations .

Just like the company, each employee needs a clear focus, especially during volatile

or uncertain times. When employees see the economy turn sour or cutbacks occur,

they naturally fear any change that could affect their own future. To keep those fears

from surfacing, continually communicate with your employees and state your

expectations of them. Tell them what you want, what they did right, what you expect

of them, and how you will measure their progress.

2. Show res pect .

These days we needs employees who can run 100 meter races rather than marathon,

that means we need people who can deliver immediately. Therefore, your people may



122

stay up all night to finish a project, but over the long term they won·t sacrifice family

and friends for the sake of their jobs. To respect employees· time, consider flexible

work schedules. Be creative about building in the flexibility. When people feel

respected, they·ll be more loyal over the long term.

3. M ake the workday meaningful .

Employees today want more than just a job. They want to contribute to the big

picture and help the company sustain it through the tough times. Therefore, leaders

need to provide challenging and meaningful work assignments that stimulate their

employees. When employees feel bored, their motivation declines and they lose focus

on how their work fits into the big picture. Delegate meaningful work wheneverpossible so employees can learn something new and feel challenged. Additionally,

provide regular development and learning opportunities.

4. Give app ro priate praise and recognition .

Recognize and celebrate even the small accomplishments, as praise and recognition

inspire people to increase productivity. Employees appreciate spontaneous and

positive recognition along the way instead of delayed recognition during a

performance review. However, as you give praise and recognition, consider the

receiver. Although praise is a great motivator, some people prefer to receive praise

privately, while others like it publicly.

One simple way to give praise and recognition is with a simple ´thank you.µ It can be

done in a moment in the hallway, by phone, or during a drop-in visit. ´Thank youµ is a

powerful phrase that can make a person feel appreciated and valued. Whatever youchoose to do, remember that rewards and recognition are great motivators, so use

them freely.



123

5. Continually coach .

To keep morale high, coach and facilitate every day. The ´I tell/you doµ method of

management simply does not work for motivating and retaining people. Instead,

become a coach to your people and encourage them to try things their own way.

Allow for mistakes to happen, as mistakes are often our greatest learning

opportunities. When people know that mistakes are understood as a part of the

experience, they·ll be more creative and take more risks. When you need to correct

employees, do so constructively by offering information on ways they can improve,

attain, and surpass desired results. Most people are grateful for constructive

feedback. It shows that you·re paying attention to their progress.

While the above guidelines won·t guarantee that valuable employees will stay withyou through good times and bad, they do increase your chances for leading,

motivating, and retaining key people when your company needs them the most. By

partnering with your employees and creating a work environment that·s enjoyable,

meaningful, and focused, your company can accomplish great results, even during

uncertain times.



BIBLOGRAPHY

Books :

y Managing Human Resources, Tata McGraw - Bohlander, Snell, 2005

y Human Resource and Personnel Management,

Fourth edition, Tata McGraw - Hill Publishing

K. Aswathappa, 2005

y Managing Human Resources,

Prentice Hall of India - Luis R Gomez Mejia,David

Balicin, Robert L Cardy,05

International Human Resource Management 2nd edition Routledge

BIBLIOGRAPHY

retention strategy to reduce attrition

Documents