CHAPTER - I

1.1 INTRODUCTION

LABOUR TURNOVER

Definition

Labour turnover is concerned with movements of individuals into jobs

(hiring) and out of jobs (separations) over a particular period.

Labour turnover is the sum of job turnover, which relates to the expansion

and contraction of establishments or firms, and the movement of workers into and

out of ongoing jobs in establishments or firms. Workers leave firms and firms hire

other workers to replace them, regardless of whether the firm itself is growing or

declining.

Labour turnover is an important parameter indicating the over all health of

any industry or an establishment in terms of wages, industrial relations, working

conditions and other welfare facilities provided by the employers to the workers.

Higher rate of Labour Turnover indicates lack of stability in the labour force,

which in turn, may not be considered to be conducive to the productivity of labour.

For higher productivity of labour, it is essential that labour force remains stable

over a period of time.  Labour Turnover measures the extent of change in the work

force due to accession (total number of workers added to employment) or

separation (severance of employment at the instance of workers or employers)

during a particular period of time. 

 Statistics relating to the rate of accession and separation in respect of

directly employed regular workers, their average number in employment and the

1

percentage of factories reporting labour turnover during the year 2000 have been

presented.

 Labour Turnover in States

 State-wise labour turnover among directly employed regular workers is

presented in Table 3.1.1. It may be seen from the Table that at all India level, the

rate of accession during the year 2000 was 12.68 percent, whereas overall

separation over the same period was 15.14 percent.  Thus, there was 2.46 percent

more separation than accession during the year, indicating, thereby, a decrease in

overall employment during the year. 

 The lowest and highest rates of accession during the year 2000 at State

level are observed to be 1.23 percent in Jharkhand and 32.18 percent in Uttar

Pradesh, respectively.  Similarly, the lowest and highest rates of separation during

the year were observed in Tripura at 3.00 percent and Andaman & Nicobar Islands

at 37.81 percent, respectively.

 Labour Turnover in Industries

      Industry-wise labour turnover among directly employed regular workers

during the year 2000 is given in Table 3.1.2. The highest rate of accession at 85.56

percent was recorded in the industry group ‘014-Agricultural and animal

husbandry service activities, except veterinary activities’, whereas, the lowest rate

of accession at 1.62 percent was recorded in the industry group ‘353–Manufacture

of aircraft and space craft’.

  Highest rate of Separation was also recorded in the industry group ‘014-

Agricultural and animal husbandry service activities, except veterinary activities’

at 91.77 percent. On the other hand, the lowest rate of separation was reported in

2

the industry group '232-Manufacture of refined petroleum products' at 3.87

percent.

Dealing with labour turnover

Areas commonly in need of attention may include:

recruitment and selection

induction and training

pay and grading

communication and consultation

management and supervision

disciplinary and grievance procedures

working conditions

employee involvement.

The costs of replacing and retaining staff

The main costs of high rates of labour turnover are

replacement costs (i.e. recruiting and interviewing new employees)

transition costs (including induction programmes and training

costs)

indirect costs (possible involving a loss of customer service whilst

new workers are trained and gain relevant work experience).

As any other thing the labour turnover has its advantages and

disadvantages. The labour turnover has a large list of disadvantages, and where

there is a large rate of this affect it results in a serious sign of unstability that is

caused by employees leaving their jobs maybe because of lack of job satisfaction

or bad management. Due to this result the company management must stop and

think seriously what is happening and what can be done to improve. Another

3

disadvantage is when the employees leave and have to be replaced by others, to

recruit new staff and give the necessary training may be very costly to the

company because the production will decreased during this time. This may result

as an unaccounted expense. Another disadvantage is the bad image of the

company because when there is a lot of labour turnover there will be less people

who will apply within the company.

Some advantages of labour turnover are that unwanted employees who are

not doing their job well or do not fit for post, the firm can dismiss them because if

the targets are not reached the company does not need inefficient employees. With

this labour turnover the company will start with enthusiastic employees who are

willing to do their job well and can increase production. From previous labour

turnover the management can learn from these experiences and so can do and take

actions to improve the standards of the firm.

Benefits of labour turnover

Labour turnover does not just create costs. Some level of labour turnover is

important to bring new ideas, skills and enthusiasm to the labour force.

A "natural" level of labour turnover can be a way in which a business can

slowly reduce its workforce without having to resort to redundancies (this is often

referred to as "natural wastage".

4

1.2 INTRODUCTION OF THE PROJECT

Finding out the turnover of employees in the manufacturing industries with

reference to LUCAS TVS Padi, is the theme of the project.

About the automobile industries:

A well developed transport network indicates a well developed economy.

For rapid development a well-developed and well-knit transportation system is

essential. As India's transport network is developing at a fast pace, Automobile

Industry is growing too. Also, the industry has strong backward and forward

linkages and hence provides employment to a large section of the population. Thus

the role of Automobile Industry cannot be overlooked in Indian Economy. All

kinds of vehicles are produced by the Automobile Industry. It includes the

manufacture of trucks, buses, passenger cars, defense vehicles, two-wheelers, etc.

The industry can be broadly divided into the Car manufacturing, two-wheeler

manufacturing and heavy vehicle manufacturing units.

High labour turnover is costly, lowers productivity and morale and tends to

get worse if not dealt with.

What is labour turnover?

Labour turnover is the total movement of employees in and out of an

organisation. However, the term is commonly used to refer only to 'wastage' or the

number of employees leaving.

5

Patterns of labour turnover

The biggest proportion of leavers tends to be among those who have

recently joined an organisation. Longer serving employees are more likely to stay,

mainly because they become used to the work and the organization and have an

established relationship with those around them.

Establishing the reasons for labour turnover

The causes of labour turnover are more likely to be brought directly to

management's attention where there is effective consultation with employee

representatives. The views of individuals should also be obtained by asking

existing employees what they like and dislike about the job and asking leavers

why they are leaving. This may be done systematically through the use of opinion

surveys, questionnaires and exit interviews.

6

1.2.1 NEED OF THE STUDY

Measuring labour turnover

To analyze the date collected and finding suggestions to improve the

weakness.

To be eye opener for everyone in LUCAS TVS as follows:

For LUCAS TVS management

To drive a future plan of action regarding to reduce attrition.

To find the scale of labour turnover and the reasons

comprising of it.

For LUCASTVS employees:

Concern for self-improvement in order to reduce attrition.

Commitment to work and regular work attendance.

For Researchers:

To gain an insight about employees problems and its future

trends.

The study also includes probable combat measures.

7

1.2.2 OBJECTIVES OF THE STUDY

Primary objective:

1. To find out the labour turnover rate

Secondary objectives:

To find out whether employees are satisfied with their job.

To analyze the prevailing working condition which influence turnover.

To analyze the various personal factors of the employees which influence

turnover rate

To study how the mode of conveyance is responsible for turnover

To suggest various remedial measures to control attrition rate.

8

1.2.3 SCOPE OF THE STUDY

The researcher has made an elaborate study to find out the reason for

absenteeism authorized leave facilities, attendance incentives, & other labour

welfare facilities which are being provided by the organization under study. The

researcher, at the outset has made an in-depth study to analyze the causes for the

“absenteeism” in spite of leave facilities offered by the organization. Moreover the

study had revealed certain major internal and external (family related) causes,

which are responsible for attrition. Further the researcher has suggested certain

recommendation if they implement, it will help the organization to overcome

frequent ‘absence’ by employee atleast in the future.

9

CHAPTER - II

2. COMPANY PROFILE

2.1 INCEPTION

About the Company….

Lucas - TVS was set up in 1961 as a joint venture of Lucas Industries plc.,

UK and T V Sundaram Iyengar & Sons (TVS), India, to manufacture Automotive

Electrical Systems. One of the top ten automotive component suppliers in the

world, Lucas Varity was formed by the merger of the Lucas Industries of the UK

and the Varity Corporation of the US in September 1996. The company designs,

manufactures and supplies advanced technology systems, products and services to

the world's automotive, after market, diesel engine and aerospace industries.

The combination of these two well-known groups has resulted in the

establishment of a vibrant company, which has had a successful track record of

sustained growth over the last three decades.TVS is one of India's twenty large

industrial houses with twenty-five manufacturing companies and a turnover in

excess of US$ 1.3 billion. The turnover of Lucas-TVS and its divisions is US$ 233

million during 2003-2004.

Incorporating the strengths of Lucas UK and the

TVS Group, Lucas TVS has emerged as one of the

foremost leaders in the automotive industry today.

Lucas TVS reaches out to all segments of the

automotive industry such as passenger cars,

commercial vehicles, tractors, jeeps, two-wheelers

and off-highway vehicles as well as for stationary

and marine applications. With the automobile

Mannur site

10

industry in India currently undergoing phenomenal changes, Lucas-TVS, with its

excellent facilities, is fully equipped to meet the challenges of tomorrow.The TVS

Group, with a turnover of over one billion dollars, is the largest manufacturer of

automotive components in India. The group produces auto electricals, diesel fuel

injection systems, braking systems, automotive wheels and axle fasteners, powder metal

components, radiator caps, two wheelers and computer peripherals. Backed by five

service and distribution companies with an extensive network across the country, the

group has the largest distribution network for automotive products in India.     

About the QUALITY ASSURANCE….

"Lucas TVS is committed to achieving ever increasing levels of customer

satisfaction through continuous improvements to the quality of the products and

services. It will be the company's endeavour to increase customer trust and

confidence in the label 'Made in Lucas TVS'."

Quality is no longer an option but a basic requirement in today's world. At

Lucas TVS, quality in inbuilt in every phase of manufacture. The company's

quality assurance measures stand on the foundation of a solid belief - that quality

11

begins and ends with the customer. This commitment forms the backbone of its

approach to Quality Assurance.

Lucas TVS has adopted a prevention-oriented quality policy though

ingrained with the traditional ideas of quality control. Everyone from the highest

levels of the organisation to the lowest practice quality control both as an

individual and as a team.

An effective Quality Control System has resulted in the recognition of the

company's outstanding achievements in the various fields. Lucas-TVS was

awarded the ISO 9001 certified by BVQI in December 1993. The company

reached a further milestone when it recently received a certificate of recognition

from BVQI for QS 9000 for Auto Electricals.

WELFARE SERVICES PROVIDED LUCAS TVS:

Services

Canteen

Medical center

Issue of welfare items

Reimbursement

Birthday presentation

Long service awards

Family relief fund

Insurance of marriage gift

Special occasion or function

Incentive for family planning

Redressal – employee grievances

Procedure-accident report

Education awards

Suggestion scheme

Loans, advances and allowance

12

Medical

Marriage

Education

Housing

Issue of cycle advance

Medical insurance scheme

Personal accident coverage

Retirement benefit

Industrial accident

Sickness benefit

About the People….

Human resource is an asset never disclosed in a company's balance sheet.

At Lucas-TVS, employees are considered partners in progress. Trust and

confidence in their abilities are an important part of the Lucas-TVS philosophy.

Employee participation takes place at almost every level of the organisation.

Lucas-TVS recognises that in a fast changing world, constant updating of

knowledge is vital. Thus its management style sets great store by employee

involvement and actively encourages participation and commitment. The company

strives to optimise HRD contribution to the its growth.

Small Group Activity (SGA) has become a

vibrant force with about 85 groups functioning

continuously with one group meeting every week

to present its achievements. The Suggestion

Scheme has evoked tremendous response since

its initiation in 1973.

13

To hone the skills of its employees, the company operates a well-equipped

training centre, which features a multi skill workshop, a product knowledge centre,

CNC training and computer facilities. Individual skills are fine tuned through

specialised courses, both within the country and abroad.

About the Customers…

CUSTOMERINTERNATIONAL COLLABORATOR

Cars

Maruti Udyog Suzuki, Japan

Hindustan Motors Isuzu, Japan. Mitsubishi, Japan 

TATA Engineering and Locomotive Company

 

General Motors, India General Motors, USA

Ford India Ford, UK

Daewoo Motors Co., India Daewoo, Korea

Ind Auto Fiat, Italy

Hyundai Motors, India Hyundai Motors, Korea

Light Commercial Vehicles

TATA Engineering & Locomotive Company

 

Bajaj Tempo Daimler Benz, Germany

Mahindra & Mahindra Peugeot, France

Mahindra Nissan Nissan, Japan

Swaraj Mazda Mazda, Japan

Eicher Motors  Mitsubishi, Japan

Heavy commercial vehicles

TATA Engineering & Locomotive Company

Daimler Benz, Germany. Cummins, USA

Ashok Leyland Iveco, Italy. Hino, Japan

Tractors

Mahindra & MahindraInternational Harvestor Corporation, UK

14

Tractors and Farm Equipments (TAFE) Massey Ferguson, UK

Escorts Ursus, Poland. Ford, UK

HMT Zetor, Czechoslovakia

Eicher Tractors Good Earth, Germany

Punjab Tractors   

Gujarat Tractors Zetor, Czechoslovakia

L&T Tractors Johndeer, USA

Greaves Tractors Same, Italy

Earth Moving Equipment

Hindustan Motors Caterpillar, USA

Bharat Earth Movers Ltd.(BEML) Komatsu, Japan

Stationary / Marine Engines, Gensets

Cummins India Cummins, USA

Tata Cummins Cummins, USA

Simpsons Perkins, USA

Ruston and Hornsby Ruston & Hornsby, UK

Kirloskar Oil Engines  

Greaves Lombardini, Italy

Ashok Leyland BLMC, UK 

EXPORT  CUSTOMERS COUNTRY

Helwan Diesel Engg Company Egypt

Lucas Electrical, UK UK

Delco Remy USA

Prestolite Electric Ltd USA

After Market USA / UK

2.2 TYPE OF INDUSTRY

15

India Automobile Industry

Following India's growing openness, the arrival of new and existing

models, easy availability of finance at relatively low rate of interest and price

discounts offered by the dealers and manufacturers all have stirred the demand for

vehicles and a strong growth of the Indian automobile industry.

The data obtained from ministry of commerce and industry, shows high

growth obtained since 2001- 02 in automobile production continuing in the first

three quarters of the 2004-05. Annual growth was 16.0 per cent in April-

December, 2004; the growth rate in 2003-04 was 15.1 per cent The automobile

industry grew at a compound annual growth rate (CAGR) of 22 per cent between

1992 and 1997. With investment exceeding Rs. 50,000 crore, the turnover of the

automobile industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of

the auto-component sector, the automotive industry's turnover, which was above

Rs. 84,000 crore in 2002-03, is estimated to have exceeded Rs.1,00,000 crore

( USD 22. 74 billion) in 2003-04.

Automobile Dealers Network in India. In terms of Car dealer networks and

authorized service stations, Maruti leads the pack with Dealer networks and

workshops across the country. The other leading automobile manufactures are also

trying to cope up and are opening their service stations and dealer workshops in all

the metros and major cities of the country. Dealers offer varying kind of discount

of finances who in tern pass it on to the customers in the form of reduced interest

rates.

16

Major Manufacturers of Automobiles in India

01. Maruti Udyog Ltd.

02. General Motors India

03. Ford India Ltd.

04. Eicher Motors

05. Bajaj Auto

06. Daewoo Motors India

07. Hero Motors

08. Hindustan Motors

09. Hyundai Motor India Ltd.

10. Royal Enfield Motors

11. Telco

12. TVS Motors

13. DC Designs

14. Swaraj Mazda Ltd

17

2.3 BRANCHES/NETWORK

LUCAS-TVS has branches at:

AUTO ELECTRICAL PLANT-Padi, Chennai.

AUTO ELECTRICAL PLANT-Rewaru, Chennai.

AUTO ELECTRICAL PLANT-Pondicherry

2.4 PRODUCT/SERVICES

18

Lucas-TVS manufactures the most comprehensive range of auto electrical

components in the country. A range which continues to set standards in the

industry. The products are designed to meet the demands of vehicle manufacturers

both in India and worldwide. With the emission standards in India becoming

increasingly stringent, Lucas-TVS has ensured that each of its products is

manufactured to meet global standards.

Lucas-TVS Product Range for Indian Market

Lucas-TVS Product Range for US/European Market

Starter Motor

Alternator

Headlamp

Small MotorWiper MotorBlower MotorFan Motor

Dynamo Regulator

Dynamo

Ignition Coil

Distributor

Diesel fuel injection

Starter Motor

Alternator

Small Motor14W Wiper MotorWindShield Wiper Motor (GM Range)LRW Products

Dynamo Regulator

Dynamo

   

Auto ElectricalsTelco VehiclesAshok Leyland VehiclesSuzuki Vehicles

About the Clients…

COMPANY PRODUCTS

19

Manufacturing companies

Axles India Ltd. Automotive axles

Brakes India Ltd. Hydraulic brakes & clutch actuation systems

India Nippon Electricals Ltd.

Magnetos, Two/Three wheeler ignition systems

Lakshmi Auto Components Ltd.

Engine/transmission components

Lucas-TVS Ltd.Auto electricals/Diesel fuel injection equipment

TVS Srichakra Ltd. Automotive tyres

Sundaram Brake Linings Ltd.

Brake linings & clutch facings

Sundaram Clayton Ltd. Air brakes

Sundaram Fasteners Ltd. High tensile fasteners, cold extruded products, sintered components, intelligent systems, radiator caps

Sundaram Textiles Ltd. Yarn

Turbo Energy Ltd. Turbo chargers

TVS Interconnect Systems Limited.

Electronic connectors

TVS Electronics Ltd. Computer peripherals

TVS Sewing Needles Ltd. Sewing needles

TVS Motor Company Limited.

Two wheelers

TVS Cherry Limited.

Precision miniature, sub-miniature, selector switches, hall effect sensors, key switches and advanced performance/special purpose keyboards.

Wheels India Ltd. Automotive wheels

Distribution companies

India Motor Parts & Accessories Ltd.

Distributors of automotive components

20

Lucas Indian Service Ltd. Distributors of auto electrical and auto components, Fuel Injection Equipment, LISPART & Batteries.

T V Sundaram Iyengar & Sons Ltd.

Distributors of passenger cars, commercial vehicles, automotive spare parts

Other companies

Southern Roadways Ltd. Freight services

Sunco Machines Ltd. Precure tyre retreading equipment

Sundaram Industries Ltd. Tyre retreading, coach building, rubber components

DEMING AWARD FOR LUCAS-TVS

21

Chennai, 9 October 2004: Lucas-TVS, a TVS group company, has bagged

the prestigious Deming Application Award for the year 2004. This was announced

by the Deming Prize Committee of Japanese Union of Scientists and Engineers

(JUSE).

Lucas-TVS, with manufacturing facilities at Padi (Chennai), Pondicherry

and Rewari (Haryana), is the first and the only Auto Electrical Company from

India to receive this coveted award. The award ceremony will be held on 9th

November 2004 at Tokyo, Japan.

Lucas-TVS launched the Japanese Total Quality Management (TQM)

movement during 1998. TQM is a vehicle to continuously improve all the

Management Processes with Customer Focus in terms of Quality, Cost, Delivery

and Service and the process motivates teamwork among all employees, promotes

total employee involvement in achieving the company’s objectives.

Lucas-TVS is the largest manufacturer of Auto Electricals in India catering

to all segments of Auto Industry, which includes Cars, Utility Vehicles,

Commercial Vehicles, Tractors and Two wheelers. The core competence of the

company is its capability to design and develop products to the new variants and

vehicles with its in house R&D facilities.

22

The company is a pioneer in launching various manufacturing systems to

respond to the customer requirements and brought in many change programmes

and other contemporary practices. Its focus on customer, continuous improvement

and employee involvement has always been commendable. Lucas-TVS is a TS

16949 and ISO 14001 certified company.

The Deming Certification process is rather stringent and involves audits in

two stages by an independent team from Japan. The initial process begins with the

company submitting that it be considered for the award. The company’s various

TQM processes were subjected to diagnostic audit during December 2003. The

final audit was held on 19th and 20th August 2004 by JUSE, which is an apex

organisation for awarding Deming Application Prize and it was confirmed on 6 th

October 2004 that Lucas-TVS has won the Deming Application Prize for the year

2004.

23

2.5. MARKET SHARE

Lucas Indian Service, a subsidiary of Lucas-TVS was established in 1930

and is primarily engaged in sales and service of auto electricals and fuel injection

equipment manufactured by Lucas-TVS. It additionally handles several other

manufacturer's products of a wide variety. With four regional offices located in the

metros and 22 branches covering every major state in the country, it also

manufactures a few products in its factory.

The company's extensive distribution network comprising over 2000 outlets

spans the entire length and breadth of the country. Further, in its efforts to become

a leading auto-ancillary distribution house, Lucas Indian Service is continuously

on the look out for tie-ups with reputed companies for marketing their products.

Its unique strength lies in its network of branches and a host of service

dealers developed over the last six and half decades. To support Lucas-TVS FIE

Division, the company is in the process of setting up a network of service dealers,

whose workshops will measure up to international standards.

24

2.6 FUTURE PLANS

Automobile industries in India is currently under going phenomenal

changes with so many new fuel efficient vehicles being launched and old vehicles

being improved and reequipped to compete with the new comers. LUCAS-TVS

with its excellent facilities fro product development, quality assurance, training

and manufacturing is fully equipped to meet\ the challenges of tomorrow.

CHAPTER - III

LITERATURE REVIEW

25

“Employee turnover” as a term is widely used in business circles. Although

several studies have been conducted on this topic, most of the researchers focus on

the causes of employee turnover but little has been done on the examining the

sources of employee turnover, effects and advising various strategies which can be

used by managers in various organizations to ensure that there is employee

continuity in their organizations to enhance organizational competitiveness. This

paper examines the sources of employee turnover, effects and forwards some

strategies on how to minimize employee turnover in organizations.

INTRODUCTION

Organizations invest a lot on their employees in terms of induction and

training, developing, and retaining them in their organization. Therefore, managers

at all costs must minimize employee’s turnover. Although, there is no standard

framework for understanding the employees turnover process as whole, a wide

range of factors have been found useful in interpreting employee turnover.

Therefore, there is need to develop a fuller understanding of the employee

turnover, more especially, the sources- what determines employee turnover,

effects and strategies that managers can put in place minimize turnover. With

globalization which is heightening competition, organizations must continue to

develop tangible products and provide services which are based on strategies

created by employees. These employees are extremely crucial to the organization

since their value to the organization is essentially intangible and not easily

replicated. Therefore, managers must recognize that employees as major

contributors to the efficient achievement of the organization’s success. Managers

should control employee turnover for the benefit of the organization success. The

literature on employee turnover is divided into three groupings: sources of

employee turnover, effects of turnover and the strategies to minimize turnover.

26

Definition

Employees’ turnover is a much studied phenomenon But there is no

standard reason why people leave organization. Employee turnover is the rotation

of workers around the labour market; between firms, jobs and occupations; and

between the states of employment and unemployment. The term “turnover” is

defined as: the ratio of the number of organizational members who have left

during the period being considered divided by the average number of people in

that organization during the period. Frequently, managers refer to turnover as the

entire process associated with filling a vacancy: Each time a position is vacated,

either voluntarily or involuntarily, a new employee must be hired and trained. This

replacement cycle is known as turnover. This term is also often utilized in efforts

to measure relationships of employees in an organization as they leave, regardless

of reason.

“Unfolding model” of voluntary turnover represents a divergence from

traditional thinking focusing more on the decisional aspect of employee turnover,

in other words, showing instances of voluntary turnover as decisions to quit.

Indeed, the model is based on a theory of decision making. The image theory

describes the process of how individuals process information during decision

making. The underlying premise of the model is that people leave organizations

after they have analyzed the reasons for quitting. Baech argues that individuals

seldom have the cognitive resources to systematically evaluate all incoming

information, so individuals instead of simply and quickly compare incoming

information to more heuristic-type decision making alternatives.

Sources of employee turnover

Job related factors

27

Most researchers have attempted to answer the question of what determines

people's intention to quit by investigating possible antecedents of employees’

intentions to quit. To date, there has been little consistency in findings, which is

partly due to the diversity of employed included by the researchers and the lack of

consistency in their findings.

Therefore, there are several reasons why people quit from one organization

to another or why people leave organization. The experience of job related stress

(job stress), the range factors that lead to job related stress (stressors), lack of

commitment in the organization; and job dissatisfaction make employees to quit.

This clearly indicates that these are individual decisions which make one to quit.

They are other factors like personal agency refers to concepts such as a sense of

powerlessness, locus of control and personal control. Locus control refers to the

extent to which people believe that the external factors such as chance and

powerful others are in control of the events which influence their lives. argue that

employees quit from organization due economic reasons. Using economic model

they showed that people quit from organization due to economic reasons and these

can be used to predict the labour turnover in the market. Good local labour market

conditions improve organizational stability. Large organizations can provide

employees with better chances for advancement and higher wages and hence

ensure organizational attachment. Trevor (2001) argues that local unemployment

rates interact with job satisfaction to predict turnover in the market. Role stressors

also lead to employees’ turnover. Role ambiguity refers to the difference between

what people expect of us on the job and what we feel we should do. This causes

uncertainty about what our role should be. It can be a result of misunderstanding

what is expected, how to meet the expectations, or the employee thinking the job

should be different. Insufficient information on how to perform the job adequately,

unclear expectations of peers and supervisors, ambiguity of performance

evaluation methods, extensive job pressures, and lack of consensus on job

28

functions or duties may cause employees to feel less involved and less satisfied

with their jobs and careers, less committed to their organizations, and eventually

display a propensity to leave the organization. If roles of employees are not clearly

spelled out by management/ supervisors, this would accelerate the degree of

employees quitting their jobs due to lack of role clarity.

Voluntarily vs. involuntary turnover

There are some factors that are, in part, beyond the control of management,

such as the death or incapacity of a member of staff. Other factors have been

classed as involuntary turnover in the past such as the need to provide care for

children or aged relatives. Today such factors should not be seen as involuntary

turnover as both government regulation and company policies create the chance

for such staff to come back to work, or to continue to work on a more flexible

basis.

Organizational factors

Organizational instability has been shown to have a high degree of high

turnover. Indications are that employees are more likely to stay when there is a

predictable work environment and vice versa. In organizations where there was a

high level of inefficiency there was also a high level of staff turnover. Therefore,

in situations where organizations are not stable employees tend to quit and look

for stable organizations because with stable organizations they would be able to

predict their career advancement. The imposition of a quantitative approach to

managing the employees led to disenchantment of staff and hence it leads to

labour turnover. Therefore management should not use quantitative approach in

managing its employees. Adopting a cost oriented approach to employment costs

increases labour turnover. All these approaches should be avoided if managers

29

want to minimize employee turnover an increase organizational competitiveness in

this environment of globalization. Employees have a strong need to be informed.

Organization with strong communication systems enjoyed lower turnover of staff.

Employees feel comfortable to stay longer, in positions where they are involved in

some level of the decision-making process. That is employees should fully

understand about issues that affect their working atmosphere. But in the absence

openness’ in sharing information, employee empowerment the chances of

continuity of employees are minimal. Costly et al. (1987) points out that a high

labour turnover may mean poor personnel policies, poor recruitment policies, poor

supervisory practices, poor grievance procedures, or lack of motivation.

All these factors contribute to high employee turnover in the sense that

there is no proper management practices and policies on personnel matters hence

employees are not recruited scientifically, promotions of employees are not based

on spelled out policies, no grievance procedures in place and thus employees

decides to quit noted that pay and pay-related variables have a modest effect on

turnover. Their analysis also included studies that examined the relationship

between pay, a person’s performance and turnover. They concluded that when

high performers are insufficiently rewarded, they quit. If jobs provide adequate

financial incentives the more likely employees remain with organization and vice

versa. There are also other factors which make employees to quit from

organizations and these are poor hiring practices, managerial style, lack of

recognition, lack of competitive compensation system in the organisation and toxic

workplace environment.

Effects of employee turnover

30

Employee turnover is expensive from the view of the organization.

Voluntary quits which represents an exodus of human capital investment from

organizations and the subsequent replacement process entails manifold costs to the

organizations. These replacement costs include for example, search of the external

labour market for a possible substitute, selection between competing substitutes,

induction of the chosen substitute, and formal and informal training of the

substitute until he or she attains performance levels equivalent to the individual

who quit. Addition to these replacement costs, output would be affected to some

extend or output would be maintained at the cost of overtime payment. The reason

so much attention has been paid to the issue of turnover is because turnover has

some significant effects on organizations. Many researchers argue that high

turnover rates might have negative effects on the profitability of organizations if

not managed properly. Turnover has many hidden or invisible costs and these

invisible costs are result of incoming employees, co-workers closely associated

with incoming employees, co-workers closely associated with departing

employees and position being filled while vacant. And all these affect the

profitability of the organization. On the other hand turnover affects on customer

service and satisfaction. This clearly demonstrates that turnover affects the

profitability of the organization and if it’s not managed properly it would have the

negative effect on the profit. Research estimates indicate that hiring and training a

replacement worker for a lost employee costs approximately 50 percent of the

worker’s annual salary– but the costs do not stop there. Each time an employee

leaves the firm, we presume that productivity drops due to the learning curve

involved in understanding the job and the organization. Therefore, if employee

turnover is not managed properly it would affect the organization adversely in

terms of personnel costs and in the long run it would affect its liquidity position.

However, voluntary turnover incurs significant cost, both in terms of direct costs

(replacement, recruitment and selection, temporary staff, management time), and

also (and perhaps more significantly) in terms of indirect costs (morale, pressure

31

on remaining staff, costs of learning, product/service quality, organisational

memory) and the loss of social capital.

Strategies to minimize employee turnover

Strategies on how to minimize employee turnover, confronted with

problems of employee turnover, management has several policy options viz.

changing (or improving existing) policies towards recruitment, selection,

induction, training, job design and wage payment. Policy choice, however, must

be appropriate to the precise diagnosis of the problem. Employee turnover

attributable to poor selection procedures, for example, is unlikely to improve were

the policy modification to focus exclusively on the induction process. Equally,

employee turnover attributable to wage rates which produce earnings that are not

competitive with other firms in the local labour market is unlikely to decrease

were the policy adjustment merely to enhance the organization’s provision of on-

the job training opportunities. Given that there is increase in direct and indirect

costs of labour turnover, therefore, management are frequently exhorted to identify

the reasons why people leave organization’s so that appropriate action is taken by

the management. Extensive research has shown that the following categories of

human capital management factors provides a core set of measures that senior

management can use to increase the effectiveness of their investment in people

and improve overall corporate performance of business. Employee engagement,

the organization’s capacity to engage, retain, and optimize the value of its

employees hinges on how well jobs are designed, how employees'time is used, and

the commitment and support that is shown to employees by the management

would motivate employees to stay in organization’s.

Knowledge accessibility, the extent of the organisation’s

“collaborativeness” and its capacity for making knowledge and ideas widely

32

available to employees, would make employees to stay in the organisation.

Sharing of information should be made at all levels of management. This

accessibility of information would lead to strong performance from the employees

and creating strong corporate culture. Therefore; information accessibility would

make employees feel. That they are appreciated for their effort and chances of

leaving the organisation are minimal. Workforce optimization, the organisation’s

success in optimizing the performance of the employees by establishing essential

processes for getting work done, providing good working conditions, establishing

accountability and making good hiring choices would retain employees in their

organisation. The importance of gaining better understanding of the factors related

to recruitment, motivation and retention of employees is further underscored by

rising personnel costs and high rates of employee turnover. With increased

competitiveness on globalizations, managers in many organizations are

experiencing greater pressure from top management to improve recruitment,

selection, training, and retention of good employees and in the long run would

encourage employees to stay in organisations.

Job involvement describes an individual’s ego involvement with work and

indicates the extent to which an individual identifies psychologically with his/her

job. Involvement in terms of internalizing values about the goodness or the

importance of work made employees not to quit their jobs and these involvements

are related to task characteristics. Workers who have a greater variety of tasks tend

stay in the job. Task characteristics have been found to be potential determinants

of turnover among employees. These include the five core job characteristics: skill

variety, which refers to the opportunity to utilize a variety of valued skills and

talents on the job; task identity, or the extent to which a job requires completion of

a whole and identifiable piece of work - that is, doing a job from beginning to end,

with visible results; task significance, which reflects the extent to which the job

has a substantial impact on the lives or work of other people, whether within or

33

outside the organisation; job autonomy, or the extent to which the job provides

freedom, independence, and discretion in scheduling work and determining

procedures that the job provides; and job feedback, which refers to the extent to

which the job provides information about the effectiveness of one’s performance.

Involvement would influence job satisfaction and increase organizational

commitment of the employees. Employees who are more involved in their jobs are

more satisfied with their jobs and more committed to their organization Job

involvement has also been found to be negatively related to turnover intentions.

Job satisfaction, career satisfaction, and organisational commitment reflect a

positive attitude towards the organization, thus having a direct influence on

employee turnover intentions. Job satisfaction, job involvement and organisational

commitment are considered to be related but distinguishable attitudes. Satisfaction

represents an affective response to specific aspects of the job or career and denotes

the pleasurable or positive emotional state resulting from an appraisal of one’s job

or career. Organisational commitment is an affective response to the whole

organisation and the degree of attachment or loyalty employees feel towards the

organisation. Job involvement represents the extent to which employees are

absorbed in or preoccupied with their jobs and the extent to which an individual

identifies with his/her job.The degree of commitment and loyalty can be achieved

if management they enrich the jobs, empower and compensate employees

properly.

Empowerment of employees could help to enhance the continuity of

employees in organisations. Empowered employees where managers supervise

more people than in a traditional hierarchy and delegate more decisions to their

subordinates. Managers act like coaches and help employees solve problems.

Employees, he concludes, have increased responsibility. Superiors empowering

subordinates by delegating responsibilities to them leads to subordinates who are

more satisfied with their leaders and consider them to be fair and in turn to

34

perform up to the superior’s expectations. All these makes employees to be

committed to the organization and chances of quitting are minimal.

Conclusions

Therefore, if the above strategies are taken into account the business would

be able to survive in a dynamic environment by treating their employees as one of

their assets which needs a lot of attention. Employees are the backbone of any

business success and therefore, they need to be motivated and maintained in

organisation at all cost to aid the organisation to be globally competitive in terms

of providing quality products and services to the society. And in the long-run the

returns on investments on the employees would be achieved. Management should

encourage job redesign-task autonomy, task significance and task identity, open

book management, empowerment of employees, recruitment and selection must be

done scientifically with the objective of retaining employees. Managers should

examine the sources of employee turnover and recommend the best approach to

fill the gap of the source, so that they can be in a position to retain employees in

their organisation to enhance their competitiveness in the this world of

globalization. Managers must understand that employees in their organizations

must be treated as the most liquid assets of the organization which would make the

organisation to withstand the waves of globalization. This asset needs to be

monitored with due care, otherwise their organizations would cease to exist.

Employees should be given challenging work and all managers should be hired on

the basis of know how by following laid down procedures of the organization and

this would make organisation to have competent managers at all levels of

management and hence good supervision. Pay and pay-related variables have a

great effect on employee turnover. Management must compensate employees

adequately. They should pay employees based on their performance and in

addition they should given employees incentives like individual bonus, lump sum

35

bonus, sharing of profits and other benefits. Hence, if these are put in place they

would minimize employee turnover.

CHAPTER - IV

4.1 RESEARCH METHODOLOGY

36

RESEARCH DESIGN:

“ A Research Design is purely and simply the framework or plan for the study

that guides the collection of the data.”

Fundamental to the study of any formal research project is sound research

design.

A good research design has the following characteristics namely

1. Problem definition

2. Specific methods of data collection and analysis

3. Time required for research project

4. Estimate of expenses to be incurred

Types of Research Design:

1. Exploratory Research Design

2. Descriptive Research Design

3. Casual or Experimental Research Designing

In this study, the researcher has adopted Descriptive Research Design.

Descriptive Research Design:

A Descriptive Research Design is the one that simply describes something

such as demographic characteristics of certain people who use something.

The descriptive study we typically concern with determining frequently

with which something occurs or how two variables vary together. This study is

37

typically guided by an initial hypothesis. A descriptive study requires a clear

specifications of who, what, when, where, why and how aspects of the research.

Period of study: Period of study is 45days.

TOTAL POPULATION:

The total universe or population is the specific group of people, firm,

conditions, etc., which form the pivotal point of research

Therefore, the total population (employees) of the company is 3500.

SAMPLING PROCEDURE:

Convenience sampling:

The methodology adopted in this study is convenience sampling. As the

name implies, the sample is selected because they are convenient to the researcher.

A convenience sample is used when you simply stop anybody in the street

who is prepared to stop, or when you wander round a business, a shop, a

restaurant, a theatre or whatever, asking people you meet whether they will answer

your questions.

SAMPLING UNIT

A survey is conducted in LUCAS-TVS, PADI, CHENNAI.

SAMPLE SIZE:

The sample size for the survey is 100.

38

DATA COLLECTION:

In this present study both primary and secondary data are used.

DATA: Raw facts are referred to as data.

TYPES OF DATA:

There are two types of data

Primary data

Secondary data

Primary data:

Primary data is information obtained from original sources by the

researcher. A structured questionnaire was prepared to collect relevant primary

data.

QUESTIONNAIRE METHOD:

The questionnaire is a sheet or sheets of paper containing questions

relating to certain specific aspect, regarding which the researcher collects the data.

The questionnaire is given to the respondent to be filled up. Sometimes,

questionnaire is also in the form of files generated through computer. This is

usually called as soft copy of questionnaire.

A questionnaire consists of a number of questions printed or typed in a

definite order on a form or set of forms. The questionnaire is mailed to

39

respondents who are expected to read and understand the question itself. The

respondents have to answer the questions on their own. In order to make the

questionnaire effective and to ensure the quality to the replies received, a

researcher should pay attention to the question to the question sequence in

preparing the questionnaire.

Secondary data:

Data, which are collected already and published or unpublished. Such a

source is used to save the time and cost in compiling the data relating to the past.

There are several methods under which the secondary data has been collected.

They are

Books

Journal

Websites

ANALYSIS:

The collected data were analyzed by applying percentage method, chi-

square test.

40

4.2 LIMITATIONS OF THE STUDY

The study has been conducted with the particular reference to employees of

LUCAS TVS at Padi Branch.

Sample size was limited as the workers were to be interviewed while at

work.

The time duration for the study was less.

The findings of the study cannot be applicable to any other organization

i.e., as the study was carried out at LUCAS TVS at Padi. The findings and

suggestions are confined only to this organization.

Some of the answers given by the respondents may be based.

4.3 STATISTICAL TOOLS FOR ANALYSIS

41

Percentage analysis:

Percentage analysis can be calculated as follows:

First the frequency (i.e) no. of responses is noted in a tabular form, then the

percentage is calculated by dividing the frequency by total number of respondents

multiplied by 100. Then the values are noted in column as valid percent.

Statistical tools:

This collected data has been subjected to analysis by using appropriate tool.

1. Chi-square test:

The objective of the chi-square test is to determine whether real or significant

different exist among the various group. Chi-square test involves compared of

expected frequency (Ei) with observed frequency. To determine whether the

different between the two in greater than which might occur by chance. There are

five steps in using chi-square test.

a) The different between each observed frequency and each Expected

Frequency.

b) The differences are squared.

c) Each squared different is divided by it least expected frequency.

d) Their quotient are added together to obtain the computed chi-square values.

e) This computed value is compared to the tabulated chi-square.

If the computed chi-square value is greater than the tabulated chi-square

value at the predetermined level of significance and degree of free, the hypothesis

rejected. On the other hand if calculated chi-square value is less than the tabulated

value, the hypothesis is accepted.

The formula is

=[ (Oi-Ei)-0.5]^2

42

CHAPTER - V

DATA ANALYSIS AND INTERPRETATION

TABLE No. 1

YEARS OF EXPERIENCE ATTAINED IN THE COMPANY

Particulars No.of respondents Percentage

<1yr 6 6

1-3 yrs 24 24

3-6 yrs 2 2

6-9 yrs 68 68

>9 yrs 0 0

TOTAL 100 100

INFERENCE:

The years of experience of workers for 6-9 years is 68% and for 1-3 years is 24%.

43

CHART No. 1

0

10

20

30

40

50

60

70

Years of experience attained in the company

<1 year

1-3 years

3-6 years

6-9 years

>9 years

<1 yr 1-3yrs 3-6yrs 6-9yrs >9yrs

INFERENCE:

The years of experience of workers for 6-9 years is 68% and for 1-3 years is 24%.

44

TABLE No. 2

THE FACTOR THAT TRIGGERED TO LEAVE THE COMPANY

Particulars No.of respondents Percentage

Personal 20 20

Benefits-salary, incentives 18 18

Less growth opportunity 38 38

Attitude of supervisors 6 6

Health 18 18

TOTAL 100 100

INFERENCE:

The factors that triggered to leave the company for 38% of the respondents

is of less growth opportunities and 20% of the respondents think its Personal and

18% of workers responded as Benefits-Salary, Incentives and Health.

45

CHART No.2

INFERENCE:

The factors that triggered to leave the company for 38% of the respondents

is of less growth opportunities and 20% of the respondents think its Personal and

18% of workers responded as Benefits-Salary, Incentives and Health.

0

5

10

15

20

25

30

35

40

The factor that triggered to leave the company

Personal

Benefits-salary,incentivesLess growthopportunitiesAttitude ofsupervisorsHealth

personal benefits-salary

incentives

less growth

opportuni

attitude of supervisors

health

46

TABLE No. 3

OVERALL OPINION OF EMPLOYEES ABOUT THE ORIENTATION PROCESS

Particulars No.of respondents Percentage

Excellent 2 2

Very Good 26 26

Good 48 48

Fair 24 24

Poor 0 0

TOTAL 100 100

INFERENCE:

About the orientation process conducted 48% of the respondents believe

that there is a good orientation and 26% employees say that very good whereas

24% of the respondents say that its fair.

47

CHART No. 3

0

10

20

30

40

50

Orientation process

Excellent

Very Good

Good

Fair

Poor

excellent verygood good fair poor

INFERENCE:

About the orientation process conducted 48% of the respondents believe

that there is a good orientation and 26% employees say that very good whereas

24% of the respondents say that its fair.

48

TABLE No. 4

OPINION OF EMPLOYEES ABOUT THEIR TREATMENT IN THE COMPANY

Particulars No.of respondents Percentage

Excellent 2 2

Very Good 20 20

Good 48 48

Fair 30 30

Poor 0 0

TOTAL 100 100

INFERENCE:

About the treatment in the company 48% of the employees say that they are

treated good and 30% of the employees say that they are treated fairly and 20% of

the employees say that they are treated very good.

CHART No. 4

49

0

510

152025

3035

4045

50

Treating employees Fairly

Excellent

Very good

Good

Fair

Poor

excellent very good

good fair poor

INFERENCE:

About the treatment in the company 48% of the employees say that they are

treated good and 30% of the employees say that they are treated fairly and 20% of

the employees say that they are treated very good.

50

TABLE No. 5

OVERALL MORALE OF EMPLOYEES

Particulars No.of respondents Percentage

Excellent 0 0

Very good 22 22

Good 68 68

Fair 10 10

Poor 0 0

TOTAL 100 100

INFERENCE:

68% of the respondents say overall morale is good and 22% of the

respondents say morale is very good.

51

CHART No. 5

0

10

20

30

40

50

60

70

Overall Morale

Excellent

Very good

Good

Fair

Poor

excellent very good good fair poor

INFERENCE:

68% of the respondents say overall morale is good and 22% of the

respondents say morale is very good.

52

TABLE No. 6

SATISFACTION REGARDING FOOD FACILITIES PROVIDED IN THE COMPANY

Particulars No.of respondents Percentage

Highly satisfied 58 58

Satisfied 32 32

Neither satisfied nor dissatisfied 7 7

dissatisfied 3 3

Highly dissatisfied 0 0

TOTAL 100 100

INFERENCE:

Among the food facilities provided 58% of respondents are highly satisfied

with food facilities and 7% of respondents are neither satisfied nor dissatisfied

with food facilities.

CHART No. 6

53

0

10

20

30

40

50

60

Satisfied with food facilities Provided in the company

Highly Satisfied

Satisfied

Neither satisfied nordissatisfied

Dissatisfied

Highly dissatisfied

highly satisf ied satisf ied neutral dissatisf ied highly dissatisf ied

INFERENCE:

Among the food facilities provided 58% of respondents are highly satisfied

with food facilities and 7% of respondents are neither satisfied nor dissatisfied

with food facilities.

54

TABLE No. 7

EMPLOYEES LIKES WHICH IS LEAST ABOUT THE COMPANY

Particulars No.of respondents Percentage

Shifts 26 26

Salary 34 34

Attitude of supervisors 30 30

Management 10 10

TOTAL 100 100

INFERENCE:

About the likes of respondents least in the company 34% of the employees

say they like salary and 30% of the employees say they like attitude of supervisors.

CHART No. 7

55

0

5

10

15

20

25

30

35

Like least about the company

Shifts

Salary

Attitude ofsupervisors

Management

shifts salary managementattitude of

supervisors

INFERENCE:

About the likes of respondents least in the company 34% of the employees

say they like salary and 30% of the employees say they like attitude of supervisors.

TABLE No. 8

ONE FACTOR THAT EMPLOYEES LIKE MOST ABOUT THEIR JOB

56

Particulars No.of respondents Percentage

Training 22 22

Friendly Atmosphere 26 26

Project 24 24

Team Work 24 24

Technology 4 4

TOTAL 100 100

INFERENCE

One factor that respondents like most about their job is friendly atmosphere

which 26% of the total employees.

CHART No. 8

57

0

5

10

15

20

25

30

One factor you like most about the job

Training

Friendly atmosphere

Project

Team work

Technology

training project technologyfriendly

atmosphereteam w ork

INFERENCE

One factor that respondents like most about their job is friendly atmosphere

which 26% of the total employees.

TABLE No. 9

58

ONE FACTOR THAT EMPLOYEES LIKE LEAST ABOUT THEIR JOB

Particulars No.f respondents Percentage

Salary 14 14

Attitude 10 10

Stress 48 48

Employee Care 14 14

Growth Opportunities

14 14

TOTAL 100 100

INFERENCE:

One factor that employees like least about their job is stress and

respondents for that is 48%.

CHART No. 9

59

0

10

20

30

40

50

One factor that you like least about the job

Salary

Attitude

Stress

Employee care

Growth opportunities

salary attitude stressemployee

caregrow th

opportunities

INFERENCE:

One factor that employees like least about their job is stress and

respondents for that is 48%.

TABLE No. 10

60

OPINION OF EMPLOYEES REGARDING MEDICAL FACILITIES PROVIDED BY THE ORGANIZATION INCASE OF MINOR INJURIES

Particulars No.f respondents Percentage

Yes 72 72

No 28 28

TOTAL 100 100

INFERENCE:

Among the total respondents 72% of them say that proper medical facilities

provided by the company for injuries and 28% of the respondents say that proper

medical facilities are not provided by the company.

CHART No. 10

61

0

20

40

60

80

Whether medical facilities are provided by the organization incase of minor injuries

yes

no

YES NO

INFERENCE:

Among the total respondents 72% of them say that proper medical facilities

provided by the company for injuries and 28% of the respondents say that proper

medical facilities are not provided by the company.

TABLE No. 11

62

OPINION ABOUT EMPLOYEES WORK PRESSURE LEVEL

Particulars No.f respondents Percentage

Heavy 28 28

Achievable 36 36

Normal 36 36

TOTAL 100 100

INFERENCE:

Among the total respondents work pressure level is achievable and normal

and 36% of respondents agree to it and 28% of the respondents feel that work

pressure is heavy.

CHART No. 11

63

0

5

10

15

20

25

30

35

40

Opinion about work pressure level

heavy

achievable

normal

heavy achievable normal

INFERENCE:

Among the total respondents work pressure level is achievable and normal

and 36% of respondents agree to it and 28% of the respondents feel that work

pressure is heavy.

TABLE No. 12

64

OPINION OF EMPLOYEES ABOUT ATTRITION REGARDING SHIFT BASIS

Particulars No.of respondents Percentage

First Shift 34 34

Second Shift 66 66

TOTAL 100 100

INFERENCE:

Among the total respondents 34% of them say attrition is because of first

shift and 66% of the respondents say it is because of second shift.

CHART No. 12

65

0

10

20

30

40

50

60

70

Is the attrition is mostly because of the shift basis

First Shift

Second Shift

first shift second shift

INFERENCE:

Among the total respondents 34% of them say attrition is because of first

shift and 66% of the respondents say it is because of second shift.

TABLE No. 13

66

OPINION ABOUT EMPLOYEES WAGE RELATED TO WORK

Particulars No.of respondents Percentage

More than enough 0 0

Sufficient 62 62

Insufficient 38 38

TOTAL 100 100

INFERENCE:

62% of the respondents among the total say that wage related to work is

sufficient and 38% of them say that wage related to work is insufficient

CHART No. 13

67

0

10

20

30

40

50

60

70

Opinion about your wage related to work

More than enough

Sufficient

In sufficient

more than enough sufficient insuff icient

INFERENCE:

62% of the respondents among the total say that wage related to work is

sufficient and 38% of them say that wage related to work is insufficient

68

TABLE No. 14

OPINION OF EMPLOYEES ABOUT THE ATTENDANCE INCENTIVES

Particulars No.of respondents Percentage

Yes 78 78

No 22 22

TOTAL 100 100

INFERENCE:

78% of the total respondents say that attendance incentives is provided by

the organization and 22% of the respondents say that it is not provided.

CHART No. 14

69

0

20

40

60

80

Whether attendence incentives is provided by the organization

yes

no

YES NO

INFERENCE:

78% of the total respondents say that attendance incentives is provided by

the organization and 22% of the respondents say that it is not provided.

TABLE No. 15

70

OPINION OF EMPLOYEES ABOUT ATTRITION DUE TO HEAVY WORKLOAD

Particulars No.of respondents Percentage

Strongly Agree 22 22

Agree 52 52

Neutral 24 24

Disagree 2 2

Strongly Disagree 0 0

TOTAL 100 100

INFERENCE:

Attrition occurs due to heavy workload and 52% of the total respondents

agree to that and 24% of the respondents say that it is neutral

CHART No. 15

71

0

10

20

30

40

50

60

Do you agree that the attrition occurs due to heavy workload

Strongly Agree

Agree

Neutral

Dissagree

Strongly Dissagree

strongly agree agree neutral dissagree

strongly disagree

INFERENCE:

Attrition occurs due to heavy workload and 52% of the total respondents

agree to that and 24% of the respondents say that it is neutral

TABLE No. 16

72

THE RELATIONSHIP BETWEEN EMPLOYER AND EMPLOYEES WILL REDUCE ATTRITION.

Particulars No.of respondents Percentage

Strongly Agree 30 30

Agree 52 52

Neutral 16 16

Disagree 2 2

Strongly Disagree 0 0

TOTAL 100 100

INFERENCE:

Among the total respondents 52% of them agree that the relationship

between employer and employee will reduce attrition and 30% of the respondents

strongly agree that the relationship between employer and employee will reduce

attrition.

CHART No. 16

73

0

10

20

30

40

50

60

The relationship between employer and employee will reduce attrition

Strongly agree

Agree

Neutral

Disagree

Strongly disagree

strongly agree

agree neutral disagreeStrongly

dissagree

INFERENCE:

Among the total respondents 52% of them agree that the relationship

between employer and employee will reduce attrition and 30% of the respondents

strongly agree that the relationship between employer and employee will reduce

attrition.

TABLE No. 17

MOST LIKE ABOUT THE COMPANY

74

FACTORS STRONGLY AGREE

AGREE NEUTRAL DISSAGREE STRONGLY AGREE

Gained Knowledge, Technology, Networking

0 42 54 4 0

The Work/ Open culture was best

4 40 52 4 0

The Employee care was excellent

0 66 34 0 0

Strongly Agree : 5Agree : 4Neutral : 3Dissagree : 2Strongly Dissagree : 1

CALCULATION:Gained Knowledge, Technology, Networking=(0*5) + (42*4) + (54*3) + (4*2) + (0*1)/100 = 3.38

The work/ Open culture was best=(4*5) + (40*4) + (52*3) + (4*2) + (0*1)/100 = 3.44

The Employee care was excellent=(0*5) + (66*4) + (34*3) + (0*2) + (0*1)/100 = 3.66

INFERENCE:

Majority of employees feel that employee care was excellent.

TABLE No. 18

SUPERVISOR CARE TOWARDS EMPLOYEES

75

FACTOR ALWAYS USUALLY SELDOM NEVERListened to suggestions

6 54 45 0

Treated you fairly

0 64 36 0

Gave performance feedback

6 58 32 4

Coached Trained and developed you

2 58 38 2

ALWAYS : 4USUALLY : 3SELDOM : 2NEVER : 1

CALCULATION:Listened to suggestions=(6*4) + (54*3) + (45*2) + (0*1)/100 = 2.76

Treated you Fairly=(0*4) + (64*3) + (36*2) + (0*1)/100 = 2.64

Gave performance feedback=(6*4) + (58*3) + (32*2) + (4*1)/100 = 2.66

Coached , Trained and developed you=(2*4) + (58*3) + (38*2) + (2*1)/100 = 2.6

INFERENCE

Majority of employees suggestions were taken into considerations by the supervisors.

CHI SQUARE TEST

TABLE No. 19

76

RELATIONSHIP BETWEEN EMPLOYER AND EMPLOYEE ATTRITION WITH RESPECT TO WORK EXPERIENCE

Null Hypothesis(H0):

There is no significant difference between employer and employee attrition

with respect to work Experience.

Alternate Hypothesis(H1):

There is significant difference between employer and employee attrition

with respect to work Experience.

PARTICULARS STRONGLY AGREE

AGREE NEUTRAL DISSAGREE STRONGLY DISSAGREE

TOTAL

<1YEAR 4 2 0 0 0 61-3 22 32 12 2 0 683-6 4 14 6 0 0 246-9 0 2 0 0 0 2>9 YEARS 0 0 0 0 0 0

TOTAL 30 50 18 2 0 100

S.NO Oi Ei (Oi-Ei)^2/Ei

1. 4 1.8 2.6882. 2 3 0.3333. 22 20.4 0.1254. 32 34 0.1175. 12 12.24 0.0046. 2 1.36 0.3017. 4 7.2 1.4228. 14 12 0.3339. 6 4.32 0.65310. 2 1 1

6.976

77

Degree of Freedom = 16;

Level of significance is at 5% ;

Calculated value of X = 6.976

Table Value X = 26.296

Calculated value < Table value

Hence Null Hypothesis is accepted.

INFERENCE:

There is no significant difference between employer and employee attrition

with respect to work experience

CHAPTER - VI

6.1.1FINDINGS

78

After the detailed study, the collected information and data was analyzed. A

lot of valuable findings were found common towards at LUCAS TVS are as

explained below.:

68% of the respondents are having 6-9 years experience and 24% of

respondents are having 1-3 years experience

38% of the respondents prefer less growth opportunity and 20% of the

respondents triggered Personal reasons and only 18% of respondents

triggered Benefits- salary, Incentives and health to leave the company.

48% of the respondents believe that the orientation process in the

organization is good and 26% of respondents says very good and 24%

respondents says fair.

48% of the respondents are treated good and 30% of the employees treated

fairly and 20% of the employees are treated very good.

68% of the respondents say that the overall morale is good.

58% of the respondents are highly satisfied with food facilities provided

and 7% of respondents neither satisfied nor dissatisfied and no respondent

is highly dissatisfied with this.

34% of the employees least like the salary and 30% of the employees least

like their attitude of superiors and 26% of the employees with their shift

pattern and only 10% of the respondents least like about their management.

One factor that most like about the job is friendly atmosphere and the

respondents are 26%.

79

48% of the respondents least like stress in their job.

72% of the respondents say that proper medical facilities are provided by

the organization incase of minor injuries where only 28% of the

respondents says that medical facilities are not provided.

Feel that work pressure is heavy.

Yes the attrition because of the shift basis and 66% of attrition because of

second shift and 34% of attrition because of first shift.

62% of them say that wage related to work is sufficient and 38% of them

say that wage related to work is insufficient.

78% of the respondents say that attentence incentives is provided by the

organization where only 22% of the respondents say it is not provided.

52% of the employees agree that the attrition occurs due to heavy workload

and 24% of the respondents say that it is neutral.

52% of the respondents agree with the relationship between employer and

employees will reduce attrition.

80

6.2 SUGGESTIONS AND RECOMMENDATIONS

An overview of the study carried out to analyze a set of characteristics that

describe organizations. The following suggestions, which can avoid attrition in the

organization, are as follows:

Transport facilities can be provided.

Work pressure can be reduced to make employees to feel

comfortable in their work.

The relationship between employer and employee should be

more so that we can reduce the attrition level in the

organization.

Work load to the employees should be reduced.

Stress in the work should be reduced.

81

6.3 CONCLUSION

In the contemporary corporate world, success of an organization comes

from its people and it is irrespective of the nature of their job. Labour Turnover

analysis is one of the factors that help the organization to achieve this success.

LUCAS TVS is one among the organizations which give atmost importance

to is people. LUCAS TVS values its human resources much more than anything,

Despite such efforts, the study indicates that for a few aspects regarding the topic

there should be a change. These findings do not hold back the labour turnover

employees prevailing in the organization. On the other hand the changes if

implemented will definitely lift up the existing position.

82

6.4 SCOPE FOR FURTHER RESEARCH

This study can act as a base for any researcher who would like to carry a

research in Labour turnover analysis. Very few dimensions have been analysed in

this study due to limited time frame. There are more dimensions like participative

management, safety, security, etc. to be analysed and this is a clear indication that

there is a great scope for further research. Moreover, present employee’s

perception is subject to variation over a period of time. This study though relevant

now may not be applicable after a period of time.

83

BIBLIOGRAPHY

Books referred:

C.R Kothari,(2002), “Research Methodology”, Vishwa Prakashan.

Gupta and Gupta,(2001), “Practical statistics” , Oscar Publications

LUCAS TVS company manuals

Websites browsed:

http://www.academicjournals.org/ajbm

http://www.lucas-tvs.com

http://www.economywatch.com

84