SUMMER INTERNSHIP REPORT

ON
EMPLOYEE RETENTION THROUGH EMPLOYEE SATISFACTION AT AMMD, ESCORTS LIMITED

SUBMITTED BY:
ADITI LOHAN PARUL SHUKLA POOJA PARUL SONI KUSHWAHA VIVEK SHARMA

ACKNOWLEDGEMENT
It has been a matter of great privilege and pleasure for me to be associated with ESCORTS LTD. (Agri Machinery group), FARIDABAD for my summer training. I here by acknowledge with due courtesy the sources consulted in the completion of my project.

I am grateful to the following for their valuable help and guidance during this project.

I pay my sincere regards to Mr. Saurabh Kapoor (Manager Human Resources) for their valuable guidance, continuous encouragement and enthusiasm in inspiring me through out the project.

Last but not the least I like to thank all the managers and other employees whose cooperation and friendly attitude made this report possible.

PREFACE

Experience is not what happens to a man; it is what a man does with what happens to him.

-- ALDOUS HUXLEY
Many students may have done work on this project in different ways/styles. I have also tried to work on this project in a different way.

It was for the first time I got the opportunity to work in such a prestigious and well known organization. And things which I have experienced in my training time are going to help me through out my life time. I have worked on this project with great enthusiasm and zeal. I have tried to cover almost all the things which I have experienced and learned from the companys management. No doubt at present working atmosphere is fine but it needs some alternations, keeping in mind this view; I have also suggested some improvements/suggestions. The title which is: EMPLOYEE RETENTION THROUGH EMPLOYEE

SATISFACTION

The main goal of our project is to find out the frequency, uses, modifications, improvements and to make a framework of employee retention strategies. It would be my great pleasure, if this project can help this company to achieve its goal higher any way.

EXECUTIVE SUMMARY
The project on employee attrition has been taken up with special focus on TBMs (Territory Business Manager) of AMMD ESCORTS INDIA LIMITED. The desire to control flee of young talent from the company was the cause why this project was undertaken. Thus it was decided to find employee satisfaction factors which have a scope of improvement. Along with that the strengths were to be found so that employees can be made aware of them. It was the past employees who separated from the organization as TBMs who were approached with an Employee Satisfaction Questionnaire. The overall process of problem solving has been named as Voice Capturing Survey (VCS). As a part of the analysis of the VCS, 27 areas for improvement were worked out. We have identified 5 strengths from Exit Interview Analysis. A framework for formulating strategies to improve on weaknesses and make employees aware of strengths has been formulated in discussion with the Project Guide. A follow up to this framework hold the key to increased employee retention.

INDEX

CHAPTER 1 : CHAPTER 2 : CHAPTER 3 : CHAPTER 4 : CHAPTER 5 : CHAPTER 6 : CHAPTER 7 : CHAPTER 8 : CHAPTER 9 : CHAPTER 10 :

INDUSTRY PROFILE COMPANY PROFILE INTRODUCTION TO THE PROBLEM EXIT ANALYSIS EXIT INTERVIEW ANALYSIS INTRODUCTION OF VOICE CAPTURING SURVEY VCS - QUESTIONAIRE ANALYSIS OF VCS FRAMEWORK FOR RETENTION STRETEGIES BIBILOGRAPHY

CHAPTER: 1

THE INDUSTRY PROFILE

INDIAN TRACTOR INDUSTRY

INTRODUCTION
India is predominantly an agricultural country. 70% of the population lives in villages and villagers depends upon agriculture for their bread and butter. Since Indian valley civilization, agriculture is the main source of income, but at that time the agriculture was manual work. Before independence Indian agriculture was in very bad situation. But since 1947, when India became independent, the farmers also became independent. They had seen many ups and downs in their income. After independence in five-year plans ,first priority was assigned to agriculture

government tried best to improve the industry but a systematic planned approach for development started in 1950, since than irrigation was recognized as key factor for agriculture. Education and research were also taken as a major initiative.

All these developments made mechanization mandatory for agriculture and imports of tractors began. Acceptance of mechanization was slow, in fiftys the use of tractor was very low. Green Revolution was the result of tractor was barely 10,000 in 1970. The industry was producing around 25,000 to 30,000 tractors. Today, India is the largest tractor market estimating 21, 85,000 tractor per annum with the annual growth of 12.3%. Today the tractor industry is of about 5,000 crores.

TRACTOR ACCORDING TO MODEL:

Financial Pattern:
The 80% of the tractor is financed through credit rates essentially through commercial banks, regional banks, rural banks and state level land development banks. The credit worthiness of the farmer is ascertained to have minimum holding of 6 areas of cultivated land to be eligible for loan. However bank can provide a loan on smaller landholding subject to farmer establishing his credit worthiness. The credit inflow since financial year 1996 is increasing support from NABARD.

HISTORICAL BACKGROUND:
Indian agricultural in the fifties followed age bound tradition and was considered backward. The country did not produce enough food grain to feed its 36 crores population and famines were recurrent features. Import of food grains became necessary to meet the short fall in domestic production, there by causing a drain on scare foreign exchange resources. It therefore became imperative to high priority to the development of agriculture.

FIRST PHASE OF DEVELOPMENT (1960-1967)

Farm mechanism made a small beginning in the first five year PLAN. Tractors were imported for introduction in isolated pockets. However acceptance of mechanization was a slow process due to lack of awareness about its economic usefulness and versatility.

The decade 1960 saw green revolution both increase in production and productivity with the parallel emphasis on industry. The birth of Indian tractor industry took place in 1959-60 when import was restricted & five manufacturing units were set up in private sector all with collaboration. It was in this background that production of tractors in the country in 1960.

NAME
M/S EICHER TRACTORS LTD. M/S HINDUSTAN TRACTORS LTD. M/S TRACTORS & FARM, EQUIPMENT LTD.(TAFE) M/S ESCORTS LTD. M/S INTERNATIONAL TRACTORS CO. OF INDIA LTS LATER RENAMED AS MAHINDRA & MAHINDRA

COLLABORATIO N
WEST GERMANY CZECHOSLOVAKIA U.K. POLAND U.K.

YEAR OF COMMENCEMENT
1959 1963 1963 1964 1965

The total indigenous production of tractors by 1965 was just 6000. The real spurt in mechanization of agriculture came in the introduction of high yielding variety (HYV) of seeds in 1966-67 and their enthusiastic adoption by farmers, particularly in the wheat growing northern region. With the successful introduction and acceptance these high quality seeds there was a upspring in the demand of tractors in 1967 and demand started multiplying at an annual rate of almost 50% (1967:18001970:33000).A natural consequent of sharp upsurge and consequent shortage was heavy price premium on tractors: Recognizing the situation, imports of tractors were liberalized and over and above the domestic production of 20000 in 1970 3000 tractors were imported.

SECOND PHASE OF DEVELOPMENT (1968-1980)

Since the pace of indigenous five tractors manufacturing units already set up far below expectation, the Government decided to provide diligence to the tractor

industry in 1968 and invites new entrepreneurs . Benefiting from this forward looking policy six more units came in during 1971-1974. These were:

NAME
M/S M/S M/S M/S M/S ESCORTS TRACTORS LTD. HMT LTD. KIRLOSKAR TRACTORS LTD. PUNJAB TRACTORS LTD. HARSHA TARCTORS LTD.

COLLABORTIO N
U.K. CZECHOSLIVAKIA WEST GERMANY INDIGENOUS USSR

YEAR OF COMMENCEMENT
1971 1971 1974 1974 1975

Not withstanding the above progress on the setting up to new units. Tractor industry ran into difficulties from 1969 onwards and by 1972 domestic tractor production stagnated at a level of 20000units primarily due to continuing of imports of tractors. Problem was further compounded by the oil crisis in 1973-74 and the resultant economic crisis and inflationary pressures, which persisted till middle of 1975. The tractor market started slowly pocking up from 1975 (31000tractors) because of relative price stability , govt. directives of the commercial banks increase rural lending expansion of rural branches of commercial banks good monsoons which resulted in bumper harvests and accelerated pace of extension of irrigation facilities . This trend continued throughout the late seventies and by 1979-80 yearly market off take had risen to a level of 62000 tractors.

THIRD PHASE OF DEVELOPMENT (1980-86)

The buoyancy in the tractor market experienced in the late seventies continued tell 1981-82 when 78000 tractors were sold. The encouraging trend led to the setting up of more for the manufacture of tractors during 1981-86. These units were:

NAME
M/S AUTO TRACTORS LTD. M/S PRATAP STEEL ROLLING MILL LTD. M/S VST TRACTORS LTD.

COLLABORATION
U.K. INDIGENOUS JAPAN

YEAR OF COMMENCEMENT
1981 1983 1986

However, the sale of tractors plummeted to a low level of 66000 tractors in the year 1982-83 in the wake of severe credit squeeze imposed by reserve bank of India.

The demand for tractors again picked up when the credit squeeze was eased and a sale of 80000units was recorded in the year 1984-85 for next year. Tractor industry stagnated causing closure of five manufacturing units as detailed below:

NAME
PINE TRACTORS LTD. HARSHA TRACTORS LTD. AUTO TRACTORS LTD. KISLOSKAR TRACTOR LTD. PRALAP STEEL ROLLING MILLS (HARYANA TRACTORS LTD.)

YEAR OF CLOSURE
1983 1987 1987 1991 1996

FOURTH PHASE OF DEVELOPMENT (1987 ONWARDS)

In the year 1987-88 the country saw a severe drought situation. This was a difficult period and it widely anticipated that crop yield would be severely affected .Under such a situation it was necessary to have provisions for supply of power, to perform farm operation, at proper time in order to fully exploit the limited moisture content left in soil. The versatility in the tractor became evident as this vehicle was used for pumping out underground water in this background tractor industry showed a remarkable growth during this period and all time high sale of 90000 tractors was recorded in the drought year (1987-88).

The growth trend appears to be continuing with relaxation of tractor financing norms, except for a 2 year slack period due to general economic slowdown and political turmoil. In fiscal 1997-98 tractors sales refaced an all time high record of 250000.This impressive growth has influenced 3 more players, as listed below, to enter the market

NAME
INTERNATIONAL TRACTORS LTD. BAJAJ TEMPO LTD. NEW HOLLAND TRACTORS (INDIA) PVT. LTD. JOHN DHEER TRACTORLTD.

COLLABORATIO N
INDIGENOUS INDIGENOUS ITALY POLAND

YEAR OF COMMENCEMENT
1997 1997 1998 2000

CHAPTER: 2

THE CORPRATE PROFILE

INTRODUCTION
For five decades Escorts in have core been in the like FOREFRONT agriculture, of the countrys &

developments.

Working

sections

transportation

construction where it has became a critical resource for engineering change, through optimum product performance.

At every step of the way, Escorts has induced the latest technology by forming alliance with the worlds most advanced engineering from inception. Escorts have finally that SUCCESS impinges on being close to customer thus every corporate endeavor address itself to the end user adjustment to ever changing markets.

To make sure the finished product delivers on its promise the company extraordinary distribution and network that stays with the customer and help him to get maximum out of the product.

Escorts have thus; build its leadership on the innovation it has created in every field of its activity. Innovation that offer greater value for money and are in every way relevant to the customers needs and environment, four India and for the world.

HISTORICAL BACKGROUND OF ESCORTS GROUP

Escorts came into being a vision that led two brothers Yudi Nanda and Hari Nanda to branch out their familys prospering transport s business and institute ventures that were to become the foundations of escorts Ltd. Escorts Agents Limited was born at Lahore on 17th October 1944 with Yudi Nanda as Managing Director and Hari Nanda as Chairman. After the owing to opportunity lying in the Indian village, Escorts (Agricultural Machinery) Ltd. was launched in 1948 with Yudi Nanda as Director. Tragically Yudi Nanda died in an accident in 1952. Then Escorts agent Ltd. And Escorts (Agricultural Machine) Ltd. Was merged in 1953 to create single Escorts agents Pvt Ltd.

SOME MILESTONES 1948 Pioneered farm mechanization in the country by launching Escorts Agricultural Machines Ltd. With a franchise from a U.S. based MINNEAPOLIS MOLINE, WISCONCIN, for marketing tractors, implements, engines and other equipments.

1958

Started importing MF tractor from Yugoslavia for marketing the same in India.

1960

A manufacturing plant was set up at Faridabad

1965 1965 1969 Got 169 Escorts signed a contract with FORD MOTOR COMPANY to manufacture Ford 3000 model tractors. Escorts Institute of Farm Mechanization (EIFM) was established at Bangalore. This training Institute is one of its kind. 1971 1st February, the first tractor FORD 3000 rolled out of the factory. The same year the turnover touched the Rs.53 million mark. 1973 1974 Escorts Tractors Limited (ETL) declared a healthy Profit Before Tax of Rs.4.725 million. Export of 400 tractors to Afghanistan - perhaps the worlds largest ever airlift of such equipment. industrial license to manufacture URSUS/ ESCORT tractors .

1975

Turnover crossed the Rs. 200 million mark for ETL. Profit After Tax Rs. 8.7 million. Maiden dividend of 10% declared. 1976

1976

FORD 3600, advancement in Farm Mechanization, was launched with fanfare to a tremendous reception. Trial production of in-plant manufacturing of engine parts (Block & Head). 1977

1977

Escorts Scientific Research Centre marked its beginning at Faridabad by developing its own Engines for E-27 and E-37. Due to constant technology absorption, indigenization level touched 72% for FORD tractors, which was a result of relentless effort in that direction.

1979

Turnover crossed the Rs. 50 crores mark. In plant facility for machining centre housing and case transmission, on built-in line concept, installed

1983

Escorts to

Tractors

Limited

(ETL)

established

state-of-the-art

research

and block

development centre to spearhead newer breakthroughs in Farm Mechanization and maintain industry leadership. Line concept introduced for engine machining. 1984 75000th tractor rolled out. A great occasion for the large family that worked for ETL. Newer challenges and frontiers were set. 1985 In keeping with the stupendous financial success, Escorts Tractors Limited (ETL) offered its first Bonus Issue (1:1).

1987

50hp FORD 3610 was launched, another leap for the Indian Farm Mechanization Industry, the farmers and the people of the land. 1988

1988 1989 1990-91 1991-92 1993 1996 1997 1998

ETLs annualized turnover crossed Rs. 100 crores. Dividend: 45% for 15 months. A MOU with CLAAS was signed for manufacturing & First Public Issue (February91) over-subscribed four times. Shares listed on Delhi and Bombay Stock Exchanges. The Crop Tiger range of Combine Harvesters was launched by Escorts Claas Ltd. FORD 3620 tractor launched Disengagement of joint venture collaboration with New Holland and launch of FARMTRAC Tractor. A Joint Venture with Italian company CARRARO was finalized to establish a company in India for manufacturing and marketing of transmission and axles. POWERTRAC series of tractors were launched. A MOU was signed with Long Manufacturing Company, USA for setting up a Joint Venture in USA.

1999

A MOU for Joint Venture with a Polish Company POL-MOT was signed for assembly, manufacturing and marketing of Farm Machinery.

COLLABORATIONS
Collaboration with international Organization of technological excellence, constant research to adopt the emerging technology to specify requirement of the market and belief in the philosophy industrial interdependence have made Escorts today one of the leading trend setters in Indias New Industrial Culture. Escorts have merged as fraternity of above 50,000 shareholders, 22,000 employees 4,000 ancillary suppliers and 1, 6000 dealers and stockiest all engaged in a large scale investment and

sustained efforts to meet the ever widening market horizons of technological competence appropriate to Indias unique changing needs.

Escorts believe in incorporating the finest existing technology to meet Indian consumers demands by collaborating with the internationally renowned companies prominent among these are:

IN GERMANY GOETZE AG MAHLE CLASS OHG KNORR BREMSE AG AUGUST BILSTEIN Piston rings and cylinder liners. GmbH Piston Harvesters Combines Railway Brake System GmbH Absorbers, Hydraulic products, Pressure IN JAPAN KAYABA INDUSTRY CO. LTD. MIKUNI SHOKO CO. and temperature switches, automatic valves Telescopic Front Forks Car Carburetors for BI-Wheelers

IN U.K. J.C.BAMFORD EXCAVATORS JCB Excavators loaders Front end Loaders, Telescopic handlers AB Road Construction Machinery

IN U.S.A HUGHESNETWORKS SYSTEMS

Vibratory Road Rollers

OVERSEAS OPERATIONS
The field of vision is not limited within the borders of India. Escorts left tracks across the globe; the products are already being marketed in Australia, Turkey, Kenya, Tanzania, South Africa, Sri Lanka, Bangladesh and Nepal. In 1998 they took Farmtrac tractors across the seas to United States. And have already captured 10 % of the market share in the 50 HP segment. In the year 2000, the updated models, 42HP, 60HP and 75HP, will make further inroads in the major markets of USA, along with the already existing 50HP tractor. The MFWD versions will soon follow these tractors. Product distribution in US is handled by Long Agribusiness LLC whose feet are firmly fixed in the tractor and equipment distribution sector. It has approximately 300 strong dealer networks, spread across eastern and south-eastern United States. Escorts have bought into the equity of Long in 1998, in order to underline our market presence. This strategic step has been taken to strengthen customer-supplier relationship. A MoU has also been signed to establish another Joint Venture in Poland to distribute and assemble products in Poland and other East European Countries. Installation of the production facilities which were in process and the commercial production commenced in April 2000. The year 2001 saw the formal product launch, in Western Europe, after the availability of MFWD versions. Product development efforts to confirm to the EEC requirements are currently being undertaken and the European homologation of its products is expected to be undertaken this year. Escorts foster a healthy sharing relationship with various manufacturing companies

from around the world and it can only lead to better customer satisfaction. Because finally it's the results on the field that matter.

ESCORTS AROUND THE GLOBE

U.S.A & Canada Distributor - Long Agribusiness LLC 111 Fairview Street, P.O. Box 1139, Tarboro, N.C. 27886 Ph : 1-252-8234151 Fax : 1-252-8234576 Email : john_cheatham@longagri.com Web : http://www.longagri.com/ Turkey Distributor - Harman Traktor Ve Becerdover Sanayi Ve Ticaret Australia Distributor - Inlon Pty Ltd. 17 Catamaran Road, Ourimbah, NSW 2258, Ph : 61-2-43891477 Fax : 61-2-43891478 Email : jjardim@inlon.bu.aust.com Web : http://www.inlon.com.au/

A.S. Vatan Cad. Ortadogu Ismerkezi No.280340 Caglayan, Istanbul Ph : 90-212-2244248 Fax : 90-212-2244251 Email : cyucesir@harmantr.com Tanzania Dealer - Noble Motors Limited P.O.Box - 20066 Dar Es Salaam Poland & other East European Countries Distributor - Pol-Mot Holdings S.A 00220, Warsaw 10 Rajcow Str. P.O.Box 61 Ph : 48-22-8310790 Fax : 48-22-8310890 Web : www.polmot.com Ghana Dealer - African Automobile Limited Mitsubishi House Winneha Road Atico Junction P.O. Box 1346 Accra Ph : 233-21-223116 Fax : 233-21-229903 Ph : 255-51-33457 Fax : 255-51-44024

CHAPTER 3:

INTRODUCTION TO THE PROBLEM

OBJECTIVES OF THE PROJECT:

To find the strengths of the organization as employees perceive it To find the employee satisfaction factors that need to be improved on To construct a basic framework towards improvement of employee satisfaction factors To construct a basic framework towards making employees aware of the strength of the organization.

INTRODUCTION TO THE PROBLEM:

Escorts is pioneer in tractor industry in India. Established in 1948 it was in monopoly for a very long time. It was in 1988 that it faced competition from other companies. It was this time that flee of talent from the company had started. Such flee of talent has been there since that time. The company has not had any employee satisfaction survey since last five years. Nevertheless the company has been working on to improve the conditions. Many formats and strategies have been prepared by middle management. But top management support needs to be more active. Many other factors have played a key role in putting Escorts in the murky waters that it finds itself in. Some of these factors are: 1. Lack of change management 2. Outdated work culture 3. Old system 4. Functional processes not updated as per present environment 5. Generation gap Companies like Hay Management were engaged as a part of employee retention strategy. The organization has been a bit negligent to track employee satisfaction. It is the TBM (Territory Business Manager) position that is pivotal in total sales achieved and exit at this level causes considerable losses to the organization in terms of talent loss and training exercises. And the number of separations is also the maximum at this level.

The exits rise in the month of February to April and then in the month of August. This exit is directly linked to appraisal process. Wherein employees decide to change the organization rather than being axed or taxed by allotment of tougher targets .They also thus avoid performing under scanner.

PROBLEM DEFINITION
STATEMENT TO THE PROBLEM The problem is of high attrition levels of the young talent in Agriculture Machinery Marketing Division (AMMD) of Escorts India Ltd (AMMD is the department of the Agri Machinery Group (AMG) segment of Escorts India Ltd) .Flee of talent has to cease. The area to be focused on is the domestic sales team covering pan India. It is the Executive Director and Chief Executive Officer Mr. Rohtash Mal who will decide about the implementation of the solution offered. The purpose of project is to carry out a research on the basis of primary and secondary data and offer the best possible solution.

NEED OF THE PROJECT 1) Although employees in Escorts are satisfied with the work culture but they still feel that the company is not paying them their full worth. But when compared with the industry data it was found that Escorts was at par or above in regard to the grade of managers who are in focus of our research. So it is imperative to make employees aware of the strength of the organization and get hold of the weaknesses and work on it. In Escorts employees have a misconception that others are paying much better salaries to their employees. This grapevine and misinformation is a considerable drawback in the system. SECONDARY DATA ANALYSIS Secondary data analysis of the separations of the AMMD was done. The data made available was necessary to find the areas which have shown high rate of attrition. Such areas were consequently focus group for the project. Attrition data was made available were for the period from April 1, 2008 to March 31, 2009. Data analysis:Total employee in the beginning of the year 165 Total employees at the end of the year 171

Total separations 52 Total voluntary resignations 35 New joining for the year are 58 Average number of employees = (165+171)/2 =168 a) Attrition rate = (Total number of voluntary resignations) ---------------------------------------------------Average number of employees = 20.83% b) Attrition rate = (Total number of separations) ---------------------------------------Average number of employees = 30.95% *100 *100

There were no deaths or retirements during the period under consideration. S.No. Attribute Category Employees in the beginning of the year 165 Employees at the end of the year 171 Total number of voluntary resignations (a) 35 Total number of employees forced to separate (b) 52

1 2

Grade Designation Table 2 S.No. 1 2

G2 TBM

Attribute Grade Designation

Category G2 TBM

Attrition rate(a)* 20.83

Attrition rate(b)** 30.95

TBM and G2 grade are correlated. All TBM are of G2 grade. All G2 grade employees in AMMD are TBM. So attrition rate for both has to be same. *Attrition rate (a):- Attrition due to employees leaving voluntarily only

**Attrition rate (b):- Attrition due to employees leaving voluntarily and removed by management

FACTORS THAT WERE CONSIDERED WHILE TAKING UP THE PROBLEM 1) Attrition rates of the tractor industry have been lower than that of Escorts. 2) The objective of the decision maker is to make the employees stay on for more than 4 years. 3) The main aim is to reduce overhead expenditure. This includes sacking of non performing employees. 4) Behavior of employees is that of full co operation towards any positive effort that the company makes. 5) Even employees want some positive change to come in the organization. 6) They have expressly stated there desires about how they wish the company to grow. 7) There is no employee retention policy in Escorts. BROAD APPROACH TO THE PROBLEM The following are the steps to the approach adopted:1. Exit analysis : Pattern of exit was found out It was made clear that which areas are showing maximum separations.

2. Exit interview analysis : Exit Interview Form is divided into 4 parts a. Exit Interview Questionnaire b. Three things I like about Escorts (Subjective Section 1) c. Three things I wish to be Improved in Escorts (Subjective Section 2) d. Three suggestions I would like to give for Improvement in Performance of the Company (Subjective Section 3) Major weakness were find out by EIQ analysis Strengths were found out by Analysis of Subjective Section 1 Weaknesses were found from the analysis of Subjective Section 2 and Subjective Section 3

3. A questionnaire was developed with special attention to the findings of Exit interview Form analysis. 4. The questionnaire was filled by respondents who belonged to the categories found critical in Exit Analysis. 5. Results were analyzed. 6. The areas that need to be improved on were found out 7. Frameworks to improve those areas were formulated. 8. Framework to make employees aware of the strengths was formulated.

ANALYTICAL MODEL FORMULATED: The analytical model formulated is named as C2A2 model. It is elaborated below: Table 3: C: C: Concentrate on employees whose flee we urgently and importantly need to stop. Capture the maximum possible information from them. Such information should cover maximum possible areas that can effect any employees A: A: performance. Annihilate all the weakness that lead to employee separations Awareness to all employees regarding the strengths of the organization.

RESEARCH QUESTIONS What are the factors necessary for employee satisfaction? Where do Escorts past employees stand in regard to each of satisfaction factor? What were the engagement levels of ex employees of the organization? To identify, what are the core strength areas of the organization according to ex employees? To identify, the areas for improvement in the organization, as ex employees perceive it?

FACTORS THAT INFLUENCED THE RESEARCH DESIGN: The project was only for two months so a project covering other departments was not feasible because of time constraints.

Employees when separating from the organization spill the beans and reflect their true opinions about the organization. So exit interview analysis will definitely give the valid data.

Past employees are in a better state to judge the old organization in a way that they can give a more learned response than the present employees. The past employees can better compare their present and past organizations and thus form a more reliable opinion about the organization. Strength of the organization can be found out when experienced people show a desire to join a particular org. The reasons that they give as an explanation to the interest they show will justify the proposed strengths of the organization and give a first hand picture of the reputation of the organization in the market.

If more time was available then a satisfaction survey of present employees could also be done If more time was available all the 71 separated employees could be considered to make analysis of the factors to be considered as necessary to work on for retention. Inadequate literature inputs and insufficient experience to formulate a questionnaire to cover the employees at a higher hierarchy. The psyche of higher level employees is different from the group chosen.

Cost: either present or past employees could be chosen and not both. Thus past employees were chose as the opportunity cost was less. Past employees provide valid opinions and since they have experienced a new org also they are a better judge.

Strength analysis by appreciative enquiry costly and time consuming so not taken up.

RESEARCH DESIGN
TYPE OF RESEARCH DESIGN:
Descriptive Research Design It was chosen because of the following reasons: In our survey we have to describe the status quo of the satisfaction levels of the population chosen. We have to find out the current status of the employee satisfaction with respect to various attributes.

INFORMATION NEEDS: Completed Exit Interview Forms: It is necessary to find out: What all factors have been rated highly or poorly by the ex employees of the organization? Ex employees here include only those who have separated from the organization between the periods April1, 2008 to March 31, 2009. Questionnaire: It is needed: To know from the past employees what employee performance factors they rate highly and which one they rate poorly. This can be found out by devising a questionnaire. To judge the engagement levels of the past performing employees*. This can again be found out by devising a questionnaire. * Past performing employees refer to the ex employees of Escorts who were rated as performers by the company. It was desirable to keep them with the company as there services were profitable.

DATA COLLECTION FROM SECONDARY RESOURCES:

Exit Interview Form: o o A total of 24 Exit Interview Forms were available. Total employee satisfaction factors covered in Exit Interview Form are 17. o o Employee rating for each of the 17 factors was collected. There were three subjective sections in the Exit Interview Form from which data was collected. These were : Three things I like about Escorts. Three things I want to improve in Escorts. Three suggestions for improvement in Escorts.

DATA COLLECTION FROM PRIMARY RESOURCES:

Questionnaire o Questionnaire was divided into three parts: 1. Part 1 clarified the goal and objective of the survey 2. Part 2 used to collect the personal information of the respondent. 3. Part 3 comprised of 40 questions. o o o A total of 40 attributes were covered in it. Rating for each of the 40 attributes was obtained. According to the rating it was possible to judge the employee satisfaction attributes as strong or weak o Engagement levels of the past employees were also known.

SCALING TECHNIQUES
Likert scale It was chosen because of the following reasons: It gives a reliable measure to the attribute being measured. It is generally used to measure the attitudes and satisfaction levels. It is easy to o o o Yes/ No scale It was chosen because for the questions covering following attributes: Image of the company Construct Administer Understand

Justification: Because the image of the company has to hold either a positive force or a negative force and so there is no in between in the same.

Escorts believe that it has a great company image. This belief has been corroborated by the employee response in the Exit Interview Questionnaire. Credit theft

Justification: It was decided to let the employee confirm that he has had any credit theft or not. The confirmation will reduce the tendency to mark the central value. The issue of credit theft is so sensitive that even small negligence by respondents can lead to distortion of results. Ordinal scale It was chosen for Q33 wherein it had to be directly asked that what employees want to be improved in training. Justification This question was one that has been incorporated after Exit Interview form analysis. Training needs were marked by 52 respondents to be either Poor or OK. 20% respondents filled up technical training in the subjective section of Exit Interview Form,Three things I want to get better in Escorts. So it was imperative to know what actually their dissent about the training incorporated was. Was it that it should be made more rigorous or eased? QUESTIONNAIRE DEVELOPMENT AND PRETESTING Questionnaire development had following stages: 1. Factors to be given importance were analyzed from EIF (Exit Interview Form). 2. Secondary research to collect all the possible attributes of employee satisfaction. Internet and Books were used for the same. 3. Brainstorming on attributes to be selected. 4. Incorporation of The Gallup Q12 Employee Engagement Survey Questionnaire in the list of proposed questions. 5. Finalization of the questionnaire.

Pretesting: Questionnaire was given for protesting to 5 ex employees. Their suggestions were solicited. The inputs that were provided were: 1) The questionnaire is too long with 49 parameters 2) Some of the statements were a little difficult to understand 3) There were a few grammatical errors. Consequent to such survey the questionnaire was presented to Project guide: The manager in charge Mr. Saurabh Kapoor has a 6 year long experience in the industry. He has been handling the employees who belong to the population chosen since last five years. Thus that gives him a clear insight to the psyche of the employees. Thus the questionnaire presented to him was scrutinized by him and thus he used his expertise to judge the questions as employees would perceive it. Appropriate changes were then made and final VCS Questionnaire was made ready.

SAMPLING TECHNIQUES
Judgmental Sampling (Purposive Sampling) Justification This method because the below listed factors are representative of the population the company is interested in retaining. The table given below shows the total number of exits belonging to a category and the corresponding number in the sample chosen. The following was the basis on which judgment for the sampling was made: Serial No. 1 2 3 4 Attribute Grade Rating Years of service in Escorts Reason for leaving Category G2 A,B & B+ Less than 4 years o For better career opportunity o For higher studies

Family problem

26 employees were selected from separations from the year April 1, 2008 to 31 March, 2009. 8 employees were chosen from employees who had separated after March 31, 2009. Of the 24 respondents 18 were from last year exit list 6 were from present year exit. 24 respondents equal 14.54% of the total TBM in AMMD 34 respondents equal 20.60% of the total TBM in AMMD Also 24 respondents equal 45.28% of the total TBM separations last year. Also 34 respondents equal 64.15% of the total TBM separations last year. Population size (Total number of separation) according to the category:Serial No. 1 2 ATTRIBUTE Grade Rating G2 A B B+ Less than 4 years For better career opportunity For higher studies Personal problem 44 34 Population size 52 Sample size 34

40

34

3 4

Years of service Reason for leaving

64

34

Sample size was 34

FIELDWORK: Field work process was that of calling up the sample chosen and follows up of the same. Telephonic interview was the process of introduction to our questionnaire.

Interview was conducted by the team working on the project. When telephonic interview was done and affirmative answer obtained the questionnaire was sent via email Then again follow up of the mailed questionnaire was done by the telephonic method only.

SPECIFIC METHOD SELECTED: E mail method was used to send the questionnaire.

Telephone method for introduction was chosen.

Follow up is done through telephone and internet.

CHAPTER 4:

EXIT ANALYSIS

Objectives
To determine the pattern of exit.

To determine the attributes and category critical towards retention. To find out the employees who would form the sample size for employee. opinion (and engagement) questionnaire (Voice Capturing Survey) Administration.

Assumptions
Reasons given for exit are true and complete. Performance rating has not been biased against separating employees. The exit pattern has not been influenced by some abnormal factor like : 1. Inflationary trends in the market. 2. Recession in the world and Indian economy. 3. Sudden downturn or upturn in the tractor market. The findings reflect true picture of the exit trend in the company.

Limitations
Only financial year 2008-09 data of exit was made available for analysis. Trends from past years could not be found because of unavailability of data.

Methodology
Serial Number 1 2 3 4 5 6 7 8 Collection of secondary data from the company database. Identification of key attributes. Attribute Grade Region Function Designation Rating Month Years of Service Reason of Exit

Tabulate and represent graphically the data for each attribute Observe the skewness of exit in each attribute Analyze the reasons for the skewness observed in each of the attribute. Determine the critical category in each attribute based on the Critical categories identified are :

Serial Number 1 2

Attribute Grade Region

Critical category G2 Secunderabad Chandigarh Bangalore Sales TBM B B+ August Within first 4 years Asked to resign Better career opportunity

3 4 5 6 7 8

Function Designation Rating Month Years of Service Reason of Exit

Determine the relevance of each category in regard to the sampling for questionnaire

Analyzing Reason of Exit

Analysis REASON ASKED TO RESIGN BETTER CAREER OPPORTUNITY FAMILY PROBLEM HIGHER STUDIES LOCATIONAL CONSTRAINTS PERSONAL PROBLEM TERMINATED NUMBER 27 33 3 1 2 3 2 71

Observation We can see clearly that employees falling in the category of asked to resign and who have left for better career opportunity are the maximum.

CHAPTER 5 :

EXIT INTERVIEW ANALYSIS

Objectives
To find the frequency of various responses to :1. Three things you like about Escorts

2. Three things you want to be improved in Escorts 3. Three suggestion you would like to give To find attributes that are falling short of employee expectations To determine the factors to be given importance while forming questionnaire To recommend an improved exit interview form. To point out the factors those need to be worked on for formulation of retention policies.

Assumptions
Employees were in a state of mind where they could express their true opinions and were not affected by factors which could lead to biasness. Employees understood the relevance of EI form and were diligent in filling them. Information gathered is the maximum possible information that could have been gathered under the circumstances. Data analyses of EI forms reflect the opinion of all the Exiting employees in the period of April 2008 to March 2009.

Sources of Data
Personnel files of the outgoing employees. Exit interviews forms filled by outgoing employees. Comments of the interviewer during the exit interview.

Limitations
Not all separated employees who were eligible for exit interview gave the exit interview. No record of conversation (minutes) of Exit interviews available for detailed analysis. Some forms were not filled under valid and appropriate supervision. 1. They were filled under the supervision of the immediate boss. 2. Supervising personnel were of the same department as that of the employee. Some exit interview forms were just sent through e-mail to be reverted back when filled and thus no interview was conducted.

Methodology
Collection and compilation of Exit Interview Forms

A total of 24 Exit Interview forms were available for the purpose Tabulation and graphical representation of data from the Exit Interview Form

Findings
The analysis has helped in finding the critical factors relevant for the formulating the retention policies and enhancing employee satisfaction. Thus critical factors refer to those employee satisfaction attributes which need to be worked on for having better retention percentage and enhancing employee satisfaction at Escorts. S.No. 1 2 3 4 5 6 7 8 9 10 11 12 Critical factors identified in the Exit Interview questionnaire : Critical Factor Identified Feedback Needs listened to Training and Development Career Building Support/Opportunities Adequate Resources Challenging/Enough Variety Work Culture Management and Supervision Work/Life Balance Communication Channels Recognition and Appreciation Cross Functional Support

CHAPTER 6:

INTRODUCTION TO VOICE CAPTURING SURVEY

VOICE CAPTURING SURVEY

Objectives
To find the engagement levels of the past employees. To obtain unbiased opinions of past employees in regard to the rating they would give to employee satisfaction factors in Escorts. To find factors to focus on for retention Corroborate the findings of Exit Interview Questionnaire

Assumptions
All primary factors leading to employee satisfaction ,in Escorts, have been covered Ex employees have filled the questionnaire diligently The employee satisfaction factors that were prevalent at the time they separated are still present in the same degree and mix. Responses are unbiased and express true opinion of employees. Ex employees were able to fully understand the meaning of each question

Limitations
Sample size limited to only 50% of exited TBM.(This sample size is equal to 25% of the total enrolled TBM as on June 1,2009) Responses collected only through electronic form Employees who were asked to resign were not considered for questionnaire because of the lack of validity of their opinions. Employees terminated were ignored fro questionnaire administration because of lack of validity of their opinions. Secondary factors that lead to employee satisfaction not included in the questionnaire. The reason for the same being keeping the questionnaire short so that the results are held to be valid. Hygiene factors not segregated.

Methodology

Brainstorming of the factors that lead to employee satisfaction Selection of the e-sat factors Special emphasis on the factors deduced as important from exit interview and exit analysis Incorporation of the Gallup Q12 Engagement Survey Questionnaire Question formulation and determining the keys Data sheet for the analysis of the questionnaire Improvement of the questionnaire Finalization of the questionnaire Sending the questionnaire to the sample chosen from Exit analysis Analyze the responses Formulation of framework

LIMIATION OF THE PROJECT

1) The time span of two months was not enough to study all the aspects of employee attrition. 2) Respondents were too busy to give enough time to talk about their experience and expectation 3) Confidentiality of certain information at some level is also major limitation of the study. 4) Sample size is not big enough to cover all sections of employees though every effort was made to make the sample as much representative as possible by covering maximum number of employees.

CHAPTER 7:

VOICE CAPTURING SURVEY QUESTIONNAIRE

VOICE CAPTURING SURVEY

A Pragati Mantra to revitalize & strengthen the bonding we all share with Escorts Section I Objective To evaluate the concerned areas for enhancement of Performance with Total Quality. Instructions for Filling-up the Questionnaire i) ii) Kindly read each question thoroughly. Bold the chosen option.

Section II EINo Name Contact Nos. Current Employer Designation E-mail ID Residential Address (Present) Section III : : : : : : :

Kindly answer each of the following questions as an expression of opinions you held as an employee of Escorts

1. When a) b) c) d) e)

I was in Escorts my subordinates gave assent to my instructions. Strongly Disagree Disagree Cannot say Agree Strongly Agree

2. Did your supervisor or someone at work, seemed to care about you as a person? a) Strongly Disagree b) Disagree c) Cannot say d) Agree e) Strongly Agree 3. Everybody in Escorts is treated with fairness. a) Strongly Disagree b) Disagree c) Cannot say d) Agree e) Strongly Agree 4. How would you rate the co-ordination of efforts within your department? a) Poor b) Below Average c) Average d) Good e) Excellent 5. How would you rate the co ordination of your department with other departments? a) Poor b) Below Average c) Average d) Good e) Excellent 6. At work, did your opinions count? a) Strongly Disagree b) Disagree c) Cannot say d) Agree e) Strongly Agree 7. How much do you think your immediate superior trusted you? (Rate on a scale of 1 to 5 where 1 is Lowest and 5 is Highest) a) 1 b) 2 c) 3 d) 4 e) 5

8. I felt valued as a member of the staff I worked with. a) Strongly Disagree

b) c) d) e)

Disagree Cannot say Agree Strongly Agree

9. Did you have the materials and equipment you needed to do your work right? a) Strongly Disagree b) Disagree c) Cannot say d) Agree e) Strongly Agree 10. Did you receive recognition or praise for doing good work? a) Strongly Disagree b) Disagree c) Cannot say d) Agree e) Strongly Agree 11. Did you know what was expected of you at work? a) Strongly Disagree b) Disagree c) Cannot say d) Agree e) Strongly Agree 12. How would you rate the communication channels/information flow channels in Escorts? (Rate on a scale of 1 to 5 where 1 is Lowest and 5 is Highest) a) 1 b) 2 c) 3 d) 4 e) 5

13. Escorts honored commitment towards employees. a) Strongly Disagree b) Disagree c) Cannot say d) Agree e) Strongly Agree 14. How would you rate the implementation of strategies, ideas and policies in Escorts? (Rate on a scale of 1 to 5 where 1 is Lowest and 5 is Highest) a) 1 b) 2 c) 3 d) 4 e) 5

15. Did you feel ease in approaching your seniors with your problems? a) Strongly Disagree b) Disagree c) Cannot say d) Agree e) Strongly Agree 16. How would you rate the role you were allowed to play in your own

career planning? (Rate on a scale of 1 to 5 where 1 is Lowest and 5 is Highest) a) 1 17. I had a) b) c) d) e) b) 2 c) 3 d) 4 e) 5

opportunities at work to learn and grow. Strongly Disagree Disagree Cannot say Agree Strongly Agree

18. Do you feel that Escorts had provided you with enough leadership opportunities? a) Strongly Disagree b) Disagree c) Cannot say d) Agree e) Strongly Agree 19. How would you rate Escorts in regard to opportunities it provided to enhance each of the following skills? (Rate on a scale of 1 to 5 where 1 is Lowest and 5 is Highest) i) Technical : a) 1 b) 2 c) 3 d) 4 e) 5 ii) Soft Skills : a) 1 b) 2 c) 3 d) 4 e) 5 iii) Persuasion skills : a) 1 b) 2 c) 3 d) 4 e) 5 20. How would you rate Escorts in mapping competitors strategy? a) Poor b) Below Average c) Average d) Good e) Excellent 21. I was satisfied with my understanding of the direction and goals of the Company? a) Strongly Disagree b) Disagree c) Cannot say d) Agree e) Strongly Agree 22. How would you rate the ability-job fit in Escorts? a) Poor b) Below Average c) Average d) Good e) Excellent 23. Are you satisfied with the image of the company? a) Yes b) No

24. How will you rate the role leadership of the top hierarchy is playing in forwarding the companys interests? (Rate on a scale of 1 to 5 where 1 is Lowest and 5 is Highest) a) 1 b) 2 c) 3 d) 4 e) 5

25. (i) Was credit theft prevalent in the company? a) Yes b) No (ii) If Yes, How often did you suffer from it? a) Never b) Rarely c) Sometimes d) Often e) Always 26. Rate the working environment in Escorts in regard to professionalism: Rate on a scale of 1 to 5 where 1 is Lowest and 5 is Highest: a) 1 b) 2 c) 3 d) 4 e) 5

27. Were you satisfied with the area / location you were assigned? (Rate on a scale of 1 to 5 where 1 is Lowest and 5 is Highest) a) 1 b) 2 c) 3 d) 4 e) 5

28. Do you think that Escorts is a learning and progressive organization? a) Strongly Disagree b) Disagree c) Cannot say d) Agree e) Strongly Agree 29. Did you ever face dilemma regarding how to prioritize your various work assignments (work competition)? a) Never b) Rarely c) Sometimes d) Often e) Always 30. Are you satisfied with the status you enjoyed in the company? (Rate on a scale of 1 to 5 where 1 is Lowest and 5 is Highest) a) 1 b) 2 c) 3 d) 4 e) 5

31. Did you feel empowered to work on your own terms? a) Never

b) c) d) e)

Rarely Sometimes Often Always to 5 in regards to feedback on c) 3 c) 3 c) 3 d) 4 d) 4 d) 4 e) 5 e) 5 e) 5

32. Rate the following on a scale of 1 Performance and Competence: i) Complete : a) 1 b) 2 ii) Timely : a) 1 b) 2 iii) Correct : a) 1 b) 2

33. What do you feel about the rigorousness of training in Escorts? a) I find it satisfactory b) Should be made more rigorous c) Should be made less rigorous

34. At Escorts did you have the opportunity to do what you could do best every day? a) Strongly Disagree b) Disagree c) Cannot say d) Agree e) Strongly Agree 35. Was there someone at work who encouraged your development? a) Strongly Disagree b) Disagree c) Cannot say d) Agree e) Strongly Agree 36. Did the mission/purpose of Escorts made you feel your job was important? a) Strongly Disagree b) Disagree c) Cannot say d) Agree e) Strongly Agree 37. Were your associates (fellow employees) committed to quality work? a) Strongly Disagree b) Disagree c) Cannot say d) Agree e) Strongly Agree

38. Did you have a best friend at work? a) Strongly Disagree

b) c) d) e)

Disagree Cannot say Agree Strongly Agree

39. In the last six months before you left Escorts did someone at work talked to you about your progress? a) Strongly Disagree b) Disagree c) Cannot say d) Agree e) Strongly Agree 40. Rate on a scale of 1 to 5 (Where 1 is Lowest and 5 is Highest) How secure were you about your job at the time you actually started to think about resigning? a) 1 b) 2 c) 3 d) 4 e) 5

THANKS

CHAPTER 8:

ANALYSIS OF VCS

Justification of data analysis:

S.No. 1 2 3 4 Method Median Mean Percentile Correlation

Following are the areas of improvement identified based on the three parameters used: S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Q.No. 3 4 5 10 12 13 14 15 16 18 19(B) 20 29 30 31 32(A) 32(B) 32(C ) 35 39 ATTRIBUTE Fairness Intra departmental co ordination Inter departmental co ordination Recognition for good work Communication channels Commitment towards employees Implementation of ideas, strategies and policies Ease in approaching seniors Career planning Leadership opportunities Opportunity to skill enhancement- SOFT SKILLS Mapping competitors strategy Work prioritization Status in the company Autonomy Feedback on performance and competenceCOMPLETE Feedback on performance and competence- TIMELY Feedback on performance and competenceCORRECT Encourage development Someone talks about progress MEDIAN 4 4 4 4 4 4 4 4 4 4 4 3.5 3 3 3.5 4 4 4 4 3 MEAN 3.38 3.58 3.63 3.5 3.75 3.83 3.71 3.67 3.54 3.5 3.71 3.54 3.29 3.54 3.5 3.83 3.61 3.61 3.5 2.88 PERCENTILE 2.09 2.23 2.26 2.13 2.34 2.36 2.29 2.25 2.16 2.18 2.32 2.2 2.09 2.19 2.15 2.31 2.16 2.16 2.15 1.75

21 22 23 24 25 26 27 28 29 30 31

1 8 9 11 19(C ) 21 22 24 26 27 37

Relationship with subordinates Valued as a member of staff Adequate resources Clarity of job Opportunity to skill enhancementPERSUASION SKILLS Understanding of direction and goal of the company Ability job fit Leadership of top hierarchy Professionalism Area/Location assigned Associates committed to quality work

4 4 4 4 4 4 4 4 4 4 4

4.04 3.96 3.79 3.58 3.83 3.96 3.92 3.83 3.88 3.88 3.79

2.56 2.47 2.38 2.89 2.41 2.46 2.44 2.41 2.4 2.39 2.39

ANALYSIS:
Following are the attributes covered in the questionnaire Given along are their corresponding scores: S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Q.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 ATTRIBUTE Relationship with subordinates Relationship with seniors Fairness Intra departmental co ordination Inter departmental co ordination Value of opinions Trust from superiors Valued as a member of staff Adequate resources Recognition for good work Clarity of job Communication channels Commitment towards employees Implementation of ideas, strategies and policies Ease in approaching seniors MEDIAN 4 4.5 4 4 4 4 4.5 4 4 4 4 4 4 4 4 MEAN 4.04 4.24 3.38 3.58 3.63 4.04 4.13 3.96 3.79 3.5 3.58 3.75 3.83 3.71 3.67 PERCENTILE 2.56 2.63 2.09 2.23 2.26 2.53 2.5 2.47 2.38 2.13 2.89 2.34 2.36 2.29 2.25

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44

16 17 18 19(A) 19(B) 19(c) 20 21 22 23 24 25(A) 25(B) 26 27 28 29 30 31 32(A) 32(B) 32(C) 33 34 35 36 37 38 39

Career planning Opportunity to learn and grow Leadership opportunities Opportunity to skill enhancement-TECHNICAL Opportunity to skill enhancement- SOFT SKILLS Opportunity to skill enhancement- PERSUASION SKILLS Mapping competitors strategy Understanding of direction and goal of the company Ability job fit Image of the company Leadership of top hierarchy Due credit for work Due credit for work Professionalism Area/Location assigned Learning and progressive organization Work prioritization Status in the company Autonomy Feedback on performance and competence-COMPLETE Feedback on performance and competence- TIMELY Feedback on performance and competence- CORRECT Rigorousness of training Opportunity to do the very best every day Encourage development Alignment of own goals with company goals Associates committed to quality work Best friend at work Someone talks about progress

4 4.5 4 4 4 4 3.5 4 4 1 4 1 5 4 4 5 3 3 3.5 4 4 4 2 4 4 4.5 4 4 3

3.54 4.46 3.5 3.88 3.71 3.83 3.54 3.96 3.92 3.83 4.5 3.88 3.88 4.46 3.29 3.54 3.5 3.83 3.61 3.61 4.08 4.08 3.5 4.21 3.79 4.08 2.88

2.16 2.8 2.18 2.44 2.32 2.41 2.2 2.46 2.44 2.41 2.83 2.4 2.39 2.8 2.09 2.19 2.15 2.31 2.16 2.16

2.55 2.15 2.63 2.39 2.56 1.75

45 S.No . 1

40

Job security

5 ATTRIBUTES

4.29

2.71 CORRELATION

Q.NO

32(A)

32(B)

Feedback on performance and competenceCOMPLETE Feedback on performance and competence- TIMELY Associates committed to quality work Feedback on performance and competenceCOMPLETE Commitment towards employees Recognition for good work Implementation of ideas, strategies and policies Due credit for work Opportunity to skill enhancementPERSUASION SKILLS

Feedback on performance and competence- TIMELY Feedback on performance and competence- CORRECT Best friend at work Feedback on performance and competence- CORRECT Value of opinions Career planning Mapping competitors strategy Associates committed to quality work Best friend at work

0.81

2 3 4

32(B) 37 32(A)

32(c) 38 32(C ) 6 16 20 37 38

0.63 0.61 0.64

5 6 7 8 9

13 10 14 25(A) 19(C)

0.69 0.68 0.65 0.61 0.61

In the questionnaire following question numbers belong to the Gallup Q12 Questionnaire: Serial number 1 2 3 4 5 6 7 8 9 10 11 12 Question number in the questionnaire 2 6 9 10 11 17 34 35 36 37 38 39

Following were the engagement score achieved:-

S.NO

EIN

ENGAGEMENT SCORE

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

74312 74013 73200 73335 73504 74085 73707 73503 73877 74144 74402 74463 73762 73662 73631 73496 73320 73747 73614 74123 74065 74456 73650 73978

3.73 2.82 3.55 4.00 3.55 4.09 4.50 4.00 3.64 3.91 3.45 2.91 3.82 2.64 2.64 3.27 2.73 4.36 4.27 3.36 4.36 4.18 4.18 3.27 3.63

OVERALL AVERAGE

Recommendation
G2 grade is the one which adds up to high attrition rate. This grade leaves the company within four years for better career opportunities hence their induction, training and retention needs attention by the top management. Such survey should be conducted every year. Results should be incorporated with any other survey done in the organization.

Follow up
Constant review and monitoring of employee satisfaction factors Critical study of the factors which do not show any sign of improvement

Formulation of a database to monitor and analyze the trends Up gradation of the questionnaire viz a viz results of exit interview analysis, the follow up exit interviews and the past employee opinion surveys. Engagement survey should be done twice a year and trends observed and formulated into a database.

CHAPTER 9:

FRAMEWORK FOR CONTROLING THE RETENTION

EMPLOYEE RETENTION:
Employee Retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee. In present scenario employees are different. They are not the ones who dont have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next job. It is the responsibility of the employer to retain their best employees. If they dont, they would be left with no good employees. A good employer should know how to attract and retain its employees. Retention involves five major things:

Compensation Environment Growth Relationship Support

Compensation

Environment

Growth

Relationship

Support

Employee Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. Corporate is facing a lot of problems in employee retention these days. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring. There is no dearth of opportunities for a talented person. There are many organizations which are looking for such employees. If a person is not satisfied by the job hes doing, he may switch over to some other more suitable job. In todays environment it becomes very important for organizations to retain their employees. The top organizations are on the top because they value their employees and they know how to keep them glued to the organization. Employees stay and leave organizations for some reasons.

The picture states the latest statement that corporate believes in Love them or Lose them The reason may be personal or professional. These reasons should be understood by the

employer and should be taken care of. The organizations are becoming aware of these reasons and adopting many strategies for employee retention .

FORMULATION OF FRAMEWORK FOR RETENTION STRETEGIES:

Following are the assumptions taken while making the framework for retention strategies: Making employees aware of strengths Following are the attributes that have been judged as strength from the analysis of Exit Interview Forms: Team Work Brand Image Product Range Dealer Network Work Culture

o o o o o

Annihilation of weaknesses Following are the attributes that have been judged as weak areas from the analysis of Voice Capturing survey responses: Q.NO. in VCS 4 5 9

S.No. 1 2 3

ATTRIBUTE Intra departmental co ordination Inter departmental co ordination Adequate resources

MEAN 3.63 3.73 3.8

MEDIAN 4 4 4

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

10 12 13 14 15 16 18 19(A) 19(B) 19(C) 20 21 22 24 26 27 29 30 31 32(A) 32(B) 32 (C) 35 37 39

Recognition Communication channels Commitment towards employees Implementation of ideas, strategies and policies Ease in approaching seniors Career planning Leadership opportunities Opportunity to skill enhancement --TECHNICAL Opportunity to skill enhancement SOFT Opportunity to skill enhancement --PERSUASION Mapping competitors strategy Direction and goal of the company Ability job fit Leadership of top hierarchy Professionalism Area/Location Work prioritization Status in the company Autonomy Feedback on performance and competence --COMPLETE Feedback on performance and competence --TIMELY Feedback on performance and competence --CORRECT Encourage development Associates committed to quality work Someone talks about progress

3.57 3.76 3.8 3.73 3.73 3.57 3.57 3.84 3.69 3.84 3.53 3.96 3.96 3.84 3.84 3.88 3.34 3.53 3.57 3.84 3.62 3.65 3.61 3.76 3.96

4 4 4 4 4 4 4 4 4 4 3.5 4 4 4 4 4 4 3 4 4 4 4 4 4 3

FRAMEWORK FOR RETENTION STRETEGIES:

S.No 1

ATTRIBUTE Adequate Resources

FRAMEWORK TO IMPROVE ON 1. Standardization and policy formulation for: IT facility Work Station Uniforms Proper sitting arrangements Stationery materials Such standardization should be of each of the: Designation Job Grade etc.

Interdepartmental co ordination

1. Circulate organizational structure to each employee of each departments 2. Job clarity should be there regarding each department to every other department. This will lead to clarity about who is responsible of what to achieve Annual Operating Plans (AOP). Desired effect: Every person will know to whom he has to contact for the work to be done. It will give transparency to employees regarding who is dealing with what. Thus will remove any ambiguity that might be affecting performance of employees.

Intradepartmental co ordination

1. The boss should be someone who is easy to approach and comfortable to talk to 2. Sharing of departmental AOP by boss with subordinates. Desired effect: 1. Efforts of each and every employee will be aligned towards common goals 2. There will be total co operation to achieve the goal and no confusions will prevail regarding the relevance and importance of tasks taken up. 3. Hierarchy to be maintained in a department. 4. Hierarchy structure to be rational Desired effect: 1) Avoidance of negative competition. 2) High acceptability of colleagues by other colleagues 5. Circulation of detail sheet of each employee covering his personal and job details Desired effect 1) Clear communication because no scope of assumptions will be there regarding what the other person is bound to do. 6. Interdepartmental audits of systems and processes. 1. Bonhomie: Birthday wishes from all colleagues. Families should visit campus on this occasion. 2. Transparency: Company aims should be made clear. Everyone should know company targets. 3. Monthly information form: Such form should include : a) Sales achieved in the month b) Person recruited c) Person separated (Exits of months) d) Number of tractors manufactured 4. Sports day activities: Wherein employees come with family. Such activities can happen once in 6 months. If AOP is achieved then only such activities should be held otherwise it should not be. Families should also be engaged in such activities. 5. Social & Cultural Programs

Employee engagement

Recognition of good work

1. Good work can include anything that leads to time and money benefits to the company.

2. Innovations on grounds other than the persons job should be recognized. Such recognition should be done in a program which may be held quarterly. 3. Introducing new ideas 4. As a recognition following may be done: i. Certificate awarded ii. Sponsorship to family dinner iii. Shirt/T shirt gifted iv. Circular with the photograph circulated 5. No interview should be done to test the achievement. 6 Communication channels 1. Internet link to be such that it updates regularly the organization chart of AMG. 2. There should be detailed list of all employees available on the internet. Commitment towards employees 1. There should be a specific date to release the standard policies, appraisals, increments. 2. Policies should be adhered to at all costs. 1. Open house sessions should be held where top level management can be approached freely by employees. Such sessions should be structured in a way that employee fills in a standardized form so that manager can get acquainted with the problem. Also the time of the meeting should be not more than 15 minutes so that only to the point discussions pursue. Format will also allow secrecy to be maintained. 1. Following forms should be given at the time of induction: i) KRA ii) JD iii) Career planning 2. Competency level of the employee should be mapped and records to be maintained. Such competency should be considered at the time of career planning. 3. Employee should be made expressly clear as to what all he needs to do to achieve certain promotions and increments. The path that he desires to follow should be made amply clear to the employee so that no confusion may occur in this regard. 4. Year by year follow up of career planning at the time of annual appraisals. 10 Leadership opportunities 1. A scheme of one day boss can be started.

Ease in approaching seniors

Career Planning

The scheme will be a learning experience for employees as well as leadership opportunity. The scheme will have seating the colleague with the boss. Wherein the colleague will refer to the boss for making decisions. This will help in getting an understanding of the working of the boss. Thus mutual confidence level of boss and subordinate will increase. 2. Internal recruitment should be preferred. Thus employees will feel that it is they who are carrying forward the company. 3. Oppurtunity to take initiatives (through Presentations). 1. As a part of HR Development subsidized training program can be arranged. 2. Daily thought of the day regarding the soft skills in accordance with the appropriate occasion should be sent via e mail to all employees. 12 Work prioritization 1. Daily tips on planning can be given to employees. 2. They should come to workplace 15 minutes before time and decide on what all tasks need to be done. Prioritize their work. They may rate the work on a scale of 1 to 10 for better convenience. 3. Formats that need to be filled by employees should be reduced. 4. The functional process should be made as short as possible with least number of steps. Effect :- The above will lead to minimization of clerical time. 14 Timely feedback 1. A half yearly feedback system should be started. 2. Such half yearly appraisals should not have any increment attached to them but should be seen as guide to the progress made.

11

Soft skill development

15

Own goals aligned with the goals of the company

1. A platform should be made wherein top management can interact with lower level as to what is it that the company wants.

2. A change of mindset can be brought by get together of customers where the dealers and the sales teams co ordinates. This respect for customer is what will align company goals with employee goals.

16

Leadership of top hierarchy

1. Frequent visit of stakeholders of the company 2. Open discussion with functional heads once in a month which will lead to assurance and confidence in employees. 3. Success of the company should be made known to all employees by the top hierarchy.

CHAPTER 10:

BIBILOGRAPHY

 BOOKS
S.NO. 1 NAME OF THE BOOK HUMAN RESOURCE MANAGEMENT SOCIAL PSYCHOLOGY AUTHOR GARY DESSLER PUBLISHER PRENTICEHALL OF INDIA PRENTICEHALL OF INDIA EDITION No. 11TH EDITION 11TH EDITION YEAR OF PUBLICATION 2008

ROBERT A. BARON DONN BYRNE NYLA R. BRANSCOMB E

2006

3 4

PERFORMANCE MANAGEMENT SYSTEM ORGANIZATIONA L BEHAVIOR

R K SAHU STEPHEN P. ROBBINS TIMOTHY A. JUDGE

EXCEL BOOKS PRENTICE HALL OF INDIA

1ST EDITION 12TH EDITION

2007 2007

HUMAN RESOURCE MANAGEMENT TEXT AND CASES

VSP RAO

EXCEL BOOKS

2ND EDITON

2005

INTERNET SITES

o retention.naukrihub.com/ o retention.naukrihub.com/retention.html
o o o www.highretention.com/ humanresources.about.com/ www.busreslab.com/tips/tipses.htm www.alphameasure.com/ bw.businessworld.in/PDF_upload/hrspecial_survey.pdf www.employeeengagement.com/ humanresources.about.com/.../ www.alphameasure.com/ www.bpoindia.org/research/attrition-rate-big-challenge.shtml en.wikipedia.org/wiki/Attrition attrition.org/ retention.naukrihub.com

o www.employeeretentionstrategies.com/ o
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