SUMMER TRAINING HELD AT SIEL CHEMICAL COMPLEX RAJPURA

STUDY PERIOD (1.6.2012 TO 15.07.12)

PROJECT REPORT ON WORKING CAPITAL MANAGEMENT

Submitted to
Mr. A D Maggu Sr. Manager (A/ F)

Submitted by
Konica Kukreja M.Com(f.m.)

PREFACE
In todays competitive world of real business finance and accounting have assumed critical importance, as finance is the real blood of the business. Every business whether it is big, medium or small needs finance day to day, to cover its daily requirements. The report has been prepared after the completion of 6 weeks summer training period. In this report brief information about accounts department & project have been included. The style adopted is simple one fully supported by diagrams at appropriate places, charts and Performa. The primary aim is to present in a simple way and to include the relevant topics. My summer training report in Siel Chemical Complex is the requirement for the successful completion of my educational course. Here I have prepared my report on the accounting aspects covered under various sections of the Accounts Department named as: Finance Section, Sales Section, Purchase Section, Contract Section and Costing Section other than Sales have been covered under the General Accounting systems. Since everyone has its own way of analyzing and interpreting the facts and figures. I have presented this report in my own humble way and spent considerable time in these sections. I also tried to prepare this report with my best experience and knowledge.

Konica Kukreja

ACKNOWLEDGEMENT

I am indebted to the Company and HRD Department, who have given me an opportunity to enlarge my knowledge, which I have gained during my six weeks training program. It was indeed a great pleasure to have a training program in the Siel Chemical Complex at Rajpura. Here I learnt the practical utilization of the knowledge in my respective field of Finance and also got the real picture of the formal and informal culture of the eminent manufacturing unit. I am extremely thankful to Mr. A D Maggu Sr.Manager (Fin. & A/cs.) for his valuable guidance. This project bears the imprint of Managers/Officers of the A/cs & Finance department. I shall remiss in my duty if I do not thank them, I pay my regards to:Mr. Amit Kumar, Mr. Khandelwal, Gurvinder Singh, Sandeep Kumar, Varinder Bhatia, S.N.Pandey, for their assistance , co-operation and encouragement offered by them. I also express my gratitude to those of my colleague trainees who have sacrificed their valuable time for assisting me directly and indirectly in my report making.

Konica Kukreja

DECLARATION

I hereby declare that the project done by me s true to my knowledge. The project duration was of 6 weeks 1.6.2012 to 15.7.12. The information collected by me is authentic and is done through data analysis and interpretation and I have a thorough by the project.

The content of this report is based on the information collected from the finance and accounts division, Siel Chemical Complex, Rajpura and also from the annual report all calculations are done as per the methodology of Siel Chemical Complex, Rajpura.

Place: Rajpura Date:

Konica Kukreja

contents
1. ESTABLISHMENT OF SIEL GROUP 2. COMPANY PROFILE, ORGANISATIONAL BREAK UP 3. MANUFACTURING PROCESS 4. INTRODUCTION TO ACCOUNTING SYSTEM 5. WORKING CAPITAL MANAGEMENT (WCM) 6. FINANCING OF WCM 7. PROFIT/LOSS A/C 8. BALANCE SHEET 9. MANAGEMENT OF CASH, INVENTORY, & RECEIVABLES 10. MIS SYSTEM 11. RESEARCH METHODOLOGY 12. SUGGESTIONS 13. BIBLIOGRAPHY

CHAPTER -1

Siel Chemical Complex A Brief

Siel CHEMICAL COMPLEX, RAJPURA

SIEL CHEMICAL COMPLEX, RAJPURA A Brief

Siel chemical complex (Earlier a Unit of Siel Limited) has floated a subsidiary company under the name and style of Siel Industrial Estate Limited for implementation of the Memorandum of understanding (MOU) between Siel Limited and Punjab Government for setting up an Industrial Estate of 1084 acres at Rajpura, District Patiala (Punjab). In terms of the MOU, Punjab Government would acquire the land and transfer unencumbered possession to the Company. The Government of Punjab has given Company possession of 540 acres. Siel Chemical Complex, a unit of Mawana Sugars Limited (formerly known as Siel Ltd.), belongs to one of the first and oldest business houses of India with a turnover of over Rs.200 crs. It is located at village Khadauli (now known as CHARATRAMPUR.) in Rajpura Town, district Patiala (Punjab) by acquiring land from Siel Industrial Estate Ltd. It is part of the overall development plan of the company to convert the entire land acquired into an industrial park. The unique technological status of Siel Chemical Complex has given it a distinctive edge, enabling it to produce a wide range of Chemicals that are vitally essential in the industry. Its vast and experienced industrial background has ensured its emergence as one of the largest integrated chemical units in India. Today, apart from manufacturing a wide range of chemicals under one roof, Siel Chemical Complex has also acquired state-of the art technology and expertise to produce and market Caustic Soda, Stable Bleaching Powder and Chlorine.From its position of leadership in the industry, with an unparalleled standard of commitment to quality and customer satisfaction, Siel Chemical Complex has expanded its operations and market to over many countries abroad

COMPANY PROFILE
MAWANA SUGARS LTD (FORMELY KNOWN AS SIEL ltd)

Siel Chemical Complex (SCC) a Unit of Mawana Sugars Ltd Siel Chemical Complex is a Unit of Mawana Sugars Ltd. (Formerly known as Siel Ltd) with a gross turnover of about Rs. 200 Crores. It is located at Village Khadauli, (Charatrampur) in Rajpura town, District Patiala (Punjab). The unique technological status of SCC has given it a distinctive edge, enabling it to produce a wide range of chemicals that are vitally essential in the Industry. Today apart from a wide range of chemicals under one roof, SCC has also acquired a State of Art Technology and the expertise to produce and market Caustic Soda and Stable Bleaching Powder. Its vast and experienced industrial background has ensured its emergence as one of the largest integrated Chemical Units in India.

SCC - AN ENVIORNMENT CARING COMPANY

SCC is an environment caring company and has taken strict preventive measures to ensure minimum harm to environment. All the process stream carrying toxic gas having hazardous impact on the atmosphere is kept under vacuum so that in case of any accidental leakage of chlorine the entire gas is sucked and taken to waste air destruction.

MAJOR BUSINESS LINES MAWANA SUGARS LTD

MAWANA SUGAR WORKS, UTTAR PRADESH Mawana Sugar Works (MSW) is located at Mawana, District Meerut, and Uttar Pradesh on Meerut-Hastinapur Road. It is about 25 kms away from Meerut. The capacity of this Unit is 12,000 TCD. (MSW) is an ISO 9001:2000 company.

TITAWI SUGAR COMPLEX, TITAWI (UTTAR PRADESH) Titawi Sugar Complex is located at Titawi, District Muzaffarnagar Uttar Pradesh on Muzaffarnagar Shamli Road. It is about 15 kms from Muzaffarnagar. The capacity of this Unit is 10500 TCD with Suphitation (DS) process.

NANGLAMAL SUGAR COMPLEX , NANGLAMAL (UTTAR PRADESH ) Nanglamal Sugar Complex (NSC) is located at Nanglamal, District Meerut, and Uttar Pradesh. It is about 35 kms away from Meerut. The capacity of this Unit is 7000 TCD.

ORGANISATIONAL BREAKUP (BUSINESS WISE)

Mawana Sugars Ltd.

SUBSIDIARIES ASSOCIATE CO.(UNITS)

1. SFSL INVESTMENTS LTD. 2. SIEL INDUSTRIAL ESTATE LTD. 3. TRANSIEL INDIA LTD. 4. SIEL FINANCIAL SERVICES 5. SIEL EDIBLE OILS LTD.

USHA INTERNATIONAL LTD.

JAY ENGINEERING WORKS LTD.

MANUFACTURING PROCESS

1.

Chlorine and Caustic Soda are produced simultaneously when electricity is used to break apart a standard table salt molecule.

2. 3. 4.

The process starts with salt being dissolved in water stream to form brine. The brine is then treated to remove any impurities. The treated brine is then fed to the Cell Room- the place where electrolytic cell resides.

5. 6.

The Cells are like big batteries with a positive Anode and negative Cathode. The electricity is passed through the brine solution. At the Anode Chlorine Gas is generated.

7. 8. 9.

The Chlorine is then cooled, dried, compressed, liquefied and stored. At the Cathode Caustic Soda and Hydrogen are generated. The Caustic Soda is forwarded to an evaporation system where the excess water is removed.

10.

The Hydrogen is normally fed to an on site boiler for stream generation.

PROCESS OF ELECTROLYSES
(Salt + treated water) Brine

(+) Purifying chemicals

Electrolyzed in cells (membrane process)

CELL HOUSE

Cell Liquor (32 to 33% Caustic Soda)

Evaporation Process Caustic Soda Lye (47.5% concentration)

Fusion House

SBP Plant Caustic Soda Flakes Hydrogen Chlorine

Burnt in
Boiler

sold in
market Acid

Hydrochloric

Liquified and sold

in the market

Organizational Structure of SCC

G.M. (works) G M (WORKS)

Engineering Department

Accounts & Finance Department

Safety &Environme nt Department

Quality Control department

Manufacturing Department

Administration Department

Material Department

Marketing Department

Head of Deptt

Managers & Subordinate

INTRODUCTION OF ACCOUNTING DEPARTMENT Organization Chart of Accounts Department

Manager (A/CS AND FIN.)

General section

Finance section

Purchase section

Service section

Contract section

Costing section

Sales section

Accounts Department in the SCC is divided into following Sections: General accounting section Purchase Section Sales Section Contract Section Service section Costing Section Finance section

General Accounting Section:

This section deals with preparation of trial balance, profit & loss account, balance sheet, audit of final accounts and analysis thereof. The other sections of the account department are also within the scope of general accounting. The balance Sheet & profit & loss account are prepared at the year-end for the purposes of statutory compliances. However, Company is also preparing quarterly Balance Sheet and Profit & Loss Account for publishing of quarterly results.

Preparation of Trial Balance, Profit & Loss Accounts and Balance Sheet The Company prepares Balance Sheet & Profit & loss account at the year-ended. However, the company is also preparing quarterly Balance Sheet and Profit & Loss Account at the end of every quarter for the purpose of publishing quarterly results. These results are required to be audited after the end of every quarter. On line system has been developed for the purpose of smooth operation of final accounting functions in the Organization. Before preparation of final accounts, it is considered whether following accounts have been completed or not: Income Vouchers: Sales Vouchers Other incomes vouchers Export Sales Provision of Duty Entitlement Pass Book (DEPB)

Expenditure Vouchers: Raw Material Consumption Vouchers Store Consumption Vouchers Power Consumption Vouchers Other Administration provisions: Insurance Repairs & Maintenance

Profit & Loss Account: Profit & Loss account depicts the result of financial operations undertaken during the year. Name of the Unit - Siel Chemical Complex Profit & Loss Account for the year ended----March 31, 2012 Amount (Rs/Lacs) Particulars For the year Ended 30.03.2012 Income Sales-Outside -Inter Unit Transfers Total sales Less : Excise duty- outside -Inter Unit Net Sales -Services Other income 67.67 62.37 20398.01 73.96 20471.97 2044.98 6.91 18420.09 23159.30 118.94 23278.24 2191.56 10.80 21075.88 For the year Ended 31.03.2011

Total

18487.76

21138.25

Expenditure Manufacturing & Other exp. Excise Duty Interest Depreciation Provision for Taxation Misc. exp. To be written off 16592.91 0 109.73 1151.12 0 0 20655.09 0 168.04 1723.29 0 0

Profit/loss before tax Fringe benefit tax Net Profit /Loss after Tax

274.00 0 274.00

(1408.17) 0 (1408.17)

Analysis of Final Accounts

Ratio Analysis Variance Analysis Ratio Analysis 1. Stock turnover ratio: This ratio tells the velocity of conversion of finished

goods into sales. This ratio has increased this year. The reason being increase in the sales volume and operational efficiency. 2. Average holding period: Shorter is the period better it is. As far as

company is concerned the ratio has showing a positive sign for the company

3.

Debtors turnover ratio: This ratio tells the frequency with which our

debtors are converted to sales. The ratio has increased this year resulting into prompt realization from debtors 4. Average collection period: The average collection period has decreased due

to the efficient performance of the collection machinery. 5. 6. G.P. ratio: This ratio has increased this year due to increased sales volume. N.P. ratio: This ratio has increased the reason being decrease in the Gross

Loss and some operational expenses e.g. interest cost. 7. Return on net worth: This ratio is calculated by dividing the PBIDT (profit

before interest and depreciation and tax} to capital employed. 8. Debt Equity ratio: It tells the proportion of owners funds and outsider

funds in the total capitalization. Variance Analysis The variance analysis is done to point out reasons of variances in the figures of current year and previous year, the reason being if there the variation is more than 10% then the reasons are to be specified for the variation. Each item of the finance statements is brought under Profit & Loss Account items

Items Sales Excise duty

Remarks - Rate Variance - Quantity Variance Varies directly with sales (volume vis a vis rate)

Stock Raw material consumption

Movement of stock - Rate variance - Quantity variance - Efficiency variance - Rate variance - Variance in production - Efficiency variance General reasons observed to be reported Varies with sales - Vales with debts - Rate of interest Value of assets

Power & Fuel

Administrative expenses Sales and distribution expenses Interest Depreciation

BALANCE SHEET ITEMS

Items Fixed Assets Investments Debtors

Remarks Deletion/Addition

Shifting of cash sales to credit sales or vice versa

Stock Loan Current Liabilities -Creditors-S.T. loans

Movement of stocks Raising/Repayment Repayment/Purchase Raising/Repayment of loan

FINANCE ACCOUNTING Finance section deals with finance accounting .It deals with: 1. Raising of finance Raising of Finance Term Debt - Presently the Company is debt free company and owes no longterm debt from any Financial Institution. Working Capital Limits - The Company is having Working Capital Facility with Punjab National Bank, New Delhi. 2. Management of finance

PURCHASE ACCOUNTING The SCC, Accounts Department has assigned this job to its Purchase Section. This section has an important task in the Organization, which directly affects the cost of product as well as quality, efficiency and prompt delivery of goods. In SCC, there is separate Purchase Dept and the responsibility for purchasing all types of material is entrusted to this dept. i.e. centralized purchasing is followed. Types of Goods Purchased Raw Materials: 1. Salt 2. Lime stone Store Items: 1. General Store General store includes 2. Packing material 3.Capital Goods Spares, Nuts, Bolts, Pipes etc. 3. Quick Lime

Packing stores includes Capital Goods includes -

Chemical, Packing material and Furnace Oil Plant & Machinery

Whatever material is purchased, the quality analysis is required so that the material is as per specification. Accordingly, the penalty is levied or bonus is paid to the supplier of the material. Accounting for Purchases Receiving of purchase order - Accounts Department receive the purchase order from the material dept. and checks that it is properly authorized and signed by the concerned authorities because this is the main document of passing MRN. Receiving of MRN - The accounts work start with the receiving of MRN from the store dept. the following documents are received by accounting department. 1. General Stores MRN 2. Packing Material MRN 3. Capital Goods MRN 4. Raw Material MRN Checking of MRN - MRN is checked with reference to: 1. Matching of quantity with invoices. 2. Verification of Gate Entry on the basis of Purchase Order. 3. Signature with Date & Time of Receipt. 4. An Invoice for which MRN is prepared is duly attached. 5. Any other document if required is also attached.

Comparison of Invoice with Purchasing Order: Rate, Quantity & Discount CST\VAT and excise duty Goods delivered with the delivered with the delivery schedule and appraisal of goods by authority. Payment Procedure 1. Creation of Advice 2. Authorization of Advice 3. Disbursement of Payment SALES ACCOUNTING: Sales are the major revenue generating activity of the company. The main focus of the management is to maintain consistent quality and to have large scale of sales. So that more profitable units exist in the company. Sales section deals with domestic as well as export sales. Export sales include Nepal and Bangladesh and business is transacted through US Dollars. Sales is divided in to two parts: Domestic Sales Export Sales Domestic Sales: Domestic Sales is generally done through dealers but sometimes the sales is made directly to the customers Export sales: Out of the total quantity sold, 10% is Export Sales is sold in the Domestic Market. The Company exports the following two products.

 Stable Bleaching Powder Caustic Soda Flakes Majority of exports are made to the countries, Malaysia, Thailand, Bangladesh, Bhutan, Nepal and Sri Lanka.

Accounting Treatment Creation of Advice Authorization of Payment Disbursement of Payment Payment of sales is in the form of Blank or Post Cheques, Demand Draft. Firstly Chemical Sales Department receives the payment. After receiving the payment forwards the payment advise on the online system to the Accounts Department and advice is created than authorized, finally ready for disbursement. Here 99.0% Domestic Sale is through Ex-factory Sale.

CONTRACT ACCOUNTS Contract Section deals with contract accounting. Related with either along with or not the material required for service. This section deals with service contracts of both revenue & capital nature. The main activities undertaken here are: passing of different MRNs, making of payment, deduction of TDS, deduction of work tax and depositing it with government.

TYPES OF CONTRACT Service contracts for: - Security - Labour - Facility such as Bus Service

 Lease Contracts Capital Contracts Accounting Treatment Passing of Bill Authorization of Bill Payment Advice (BPA) Payment of bill after deduction of TDS

SERVICE ACCOUNTING Service Section deals with the services related to employees. This section does the accounting work relating to preparation of pay roll of Workers and Staff, Reimbursement of Expenses made by employees expenditures relating to organizational schemes and statutory obligations regarding the employees. The main functions of this section are performed as under: Wages & Salary Administration All types of payment handling of Employees Handling of Operational Expenses Employee Provident Fund & Employee Pension Scheme All types of expenses relating to Employees Wages & Salary Administration In SCC laborers are paid wages on monthly basis and there is guarantee of minimum wages under minimum Wages Act 1948, incentive are also provided to laborers under productive link incentive scheme. Wages are paid on 5th of every month and salary is paid on 7th of every month.

The service accounts section handles all types of payments and bills are received and journal voucher advices or cash payment advice is prepared. e.g. Leave Traveling Allowance Local Conveyance Allowance Conveyance Allowance Entertainment Expenses Telephone Expenses Canteen Expenses Medical Expenses Any other Expenditure Operational Expenses: Expenses incurred for the welfare of the employees are accounted in the service accounts section. Festival Expenses Library Medical Annual Sports Daughter Marriage Fund Interest @ 8.5% p.a.

Employee Provident Fund/Employee Pension Scheme It is compulsory deduction of 12% from the basic pay of the employee towards the Provident Fund. The employer contributes an equal amounts which is divided into two parts. EPF - 8.33% EPS 3.67%

Payment Procedure Verification of bills Advice creation Authorization of bills Disbursement of bills

COST ACCOUNTING The Costing Section is maintaining the records of productions as well as sales as required in the Cost Audit process and involved in controlling the overheads with budgets and also responsible for Management Information System. The Costing Section in SCC is compulsory under Costing and MIS. Following are the objectives of maintaining of Costing Section. To fulfill the Statutory Compliance. To control the cost i.e. to measure the measure the efficiency of organization and cost center wise. To ascertainment the cost To reduce the cost To present the cost data to management as and when required

Function Performed by Costing Department Preparation of monthly income & expenditure statement Statement of production/sales/stock To make out the cost each product-caustic flakes, SBP, sodium hypo chlorine Quarterly reports

INTRODUCTION

The advancement in science and technology has further influenced the business environment globalization has made the business scenario more competitive. The captains of the industries have to keep themselves abreast with changing environment. The modernization has brought in many changes in HRM and HRD there by enhancing the scope and responsibility of HR executive/manager. The HR is most precious asset of an organization which has direct influence on functional as well as product ional aspect of the company. The subject as such or dealing with the HR may appear simpler but human beings are complex creatures. Thus, demanding a great deal of attention in dealing. There are various theories, strategies on HRM/HRD. Accordingly there numerous function of HR executive likes manpower planning, recruitment, selection, induction and retention of the best employee. The retention of suitable employee goes way in enhances the knowledge resource of the organization. This in the broader sense implies motivation and retention of the talent by understanding employees aspiration, needs and providing him the opportunities for his development and prosperity. Such employees will place any organization at the advantageous position in the competitive market. It therefore, merits proper strategy and policy so that the entire process of acquiring knowledge resource becomes cost effective. The

different organization may have there own ways to implement such policies but importance of retentions is critical to every organization.

RETENTION (Love them or loose them)

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 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.

Retention involves five following major things

Compensation

Growth and career

Support

Relationship

 Environment

1.Compensation
Compensation constitutes the largest part of the employee retention process. The employees always have high expectations regarding their compensation packages. Compensation packages vary from industry to industry. So an attractive compensation package plays a critical role in retaining the employees. Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options, bonuses, vacations, etc. While setting up the packages, the following components should be kept in mind:

Salary and monthly wage: It is the biggest component of the compensation package. It is also the most common factor of comparison among employees. It includes
o

Basic wage House rent allowance Dearness allowance City compensatory allowance

Salary and wages represent the level of skill and experience an individual has. Time to time increase in the salaries and wages of employees should be done. And this increase should be based on the employees performance and his

contribution to the organization.

Bonus: Bonuses are usually given to the employees at the end of the year or on a festival.

Economic benefits: It includes paid holidays, leave travel concession, etc.

Long-term incentives: Long term incentives include stock options or stock grants. These incentives help retain employees in the organization's startup stage.

Health insurance: Health insurance is a great benefit to the employees. It saves employees money as well as gives them a peace of mind that they have somebody to take care of them in bad times. It also shows the employee that the organization cares about the employee and its family.

After retirement: It includes payments that an Employee gets after he retires like EPF (Employee Provident Fund) etc.

Miscellaneous compensation: It may include employee assistance programs (like psychological counseling, legal assistance etc), discounts on company products, use of a company cars, etc.

2.Growth and Career

wth and development are the integral part of every individuals career. If an employee can not foresee his path of career development in his current organization, there are chances that hell leave the organization as soon as he gets an opportunity.

The important factors in employee growth that an employee looks for himself are:

Work profile: The work profile on which the employee is working should be in sync with his capabilities. The profile should not be too low or too high. Personal growth and dreams: Employees responsibilities in the organization should help him achieve his personal goals also. Organizations can not keep aside the individual goals of employees and foster organizations goals. Employees priority is to work for themselves and later on comes the organization. If hes not satisfied with his growth, hell not be able to contribute in organization growth.

Training and development: Employees should be trained and given chance to improve and enhance their skills. Many employers fear that if the employees are well rained, theyll leave the organization for better jobs. Organization should not limit the resources on which organizations success depends. These trainings can be given to improve many skills like:

Communications skills Technical skills In-house processes and procedures improvement related skills

customer satisfaction related skills Special project related skills

Need for such trainings can be recognized from individual performance reviews, individual meetings, employee satisfaction surveys and by being in constant touch with the employees.

3.Support
Lack of support from management can sometimes serve as a reason for employee retention. Supervisor should support his subordinates in a way so that each one of them is a success. Management should try to focus on its employees and support them not only in their difficult times at work but also through the times of personal crisis. Management can support employees by providing them recognition and appreciation.

Employers can also provide valuable feedback to employees and make them feel valued to the organization. The feedback from supervisor helps the employee to feel more responsible, confident and empowered. Top management can also support its employees in their personal crisis by providing personal loans during emergencies, childcare services, employee assistance programs, counseling services, et al.

Employers can also support their employees by creating an environment of trust

and inculcating the organizational values into employees. Thus employers can support their employees in a number of ways as follows:

ognition and rewards

4.Relationship

Sometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization. The management is sometimes not able to provide an employee a supportive work culture and environment in terms of personal or professional relationships. There are times when an employee starts feeling bitterness towards the management or peers. This bitterness could be due to many reasons. This decreases employees interest and he becomes de-motivated. It leads to less satisfaction and eventually attrition. A supportive work culture helps grow employee professionally and boosts employee satisfaction. To enhance good professional relationships at work, the management should keep the following points in mind.

Respect for the individual: Respect for the individual is the must in the organization.

Relationship with the immediate manager: A manger plays the role of a mentor and a coach. He designs ands plans work for each employee. It is his duty to involve the employee in the processes of the organization. So an organization should hire managers who can make and maintain good relations with their subordinates.

Relationship with colleagues: Promote team work, not only among teams but in different departments as well. This will induce competition as well as improve the relationships among colleagues.

Recruit whole heartedly: An employee should be recruited if there is a proper place and duties for him to perform. Otherwise hell feel useless and will be dissatisfied. Employees should know what the organization expects from them and what their expectation from the organization is. Deliver what is promised Promote an employee based culture: The employee should know that the organization is there to support him at the time of need. Show them that the organization cares and hell show the same for the organization. An employee based culture may include decision making authority, availability of resources, open door policy, etc.

Individual development: Taking proper care of employees includes acknowledgement to the employees dreams and personal goals. Create

opportunities for their career growth by providing mentorship programs, certifications, educational courses, etc.

Induce loyalty: Organizations should be loyal as well as they should promote loyalty in the employees too. Try to make the current employees stay instead of recruiting new ones.

5. Environment

It is not about managing retention. It is about managing people. If an organization manages people well, employee retention will take care of itself. Organizations should focus on managing the work environment to make better use of the available human assets.

People want to work for an organization which provides Appreciation for the work done Ample opportunities to grow A friendly and cooperative environment A feeling that the organization is second home to the employee

Organization environment includes

Culture Values Company reputation Quality of people in the organization Employee development and career growth Risk taking Leading technologies Trust

Types of environment the employee needs in an organization 1.Learning environment:

It includes continuous learning and improvement of the

individual, certifications and provision for higher studies, etc.

2.Support environment: Organization can provide support in the form of work-life balance. Work life balance includes:
o

Flexible hours

Telecommuting Dependent care Alternate work schedules Vacations Wellness

3.Work environment: It includes efficient managers, supportive co-workers, challenging work, involvement in decision-making, clarity of work and responsibilities, and recognition. Lack or absence of such environment pushes employees to look for new opportunities. The environment should be such that the employee feels connected to the organization in every respect.

EMPLOYEE RETENTION

Retaining good employees is not as easy as it used to be. Companies need to be on top of the game when it comes to keeping them, as well as motivating them. Employee retention is simple to understand, but at the same time it can be difficult to achieve. Knowing what employees want and need is a step in the right direction. There are five main reasons that people tend to leave their organizations. Knowing these reasons is crucial to help in preventing others from leaving. Once the problems are identified, companies need to adopt several strategies that can be used to increase retention. Employee retention is keeping the employees that have already been hired. When you have hired good people, trained them, built them into high-performing teams, you don't want to loose them. Companies today invest so much time in their employees that each time one leaves; it is like they are loosing an investment. It is for this reason that employee retention had become a critical component of workforce stability. Because a company invests in their employees, each time one leaves the productivity declines. The time that is spent on training new employees could be better spent on increasing production and profit. Companies need to think about their image from the start. Make wise choices when hiring. Give prospective employees a true picture of the organization. It is important to match employee personality type to the climate and culture of the company. Once an employee has been hired, there are several different things that they want and need in order to remain loyal to the company. They include, "Clear expectations and performance measurements, time to get and give performance feedback, rewards and recognition, and challenge and growth opportunities for the future"("After the Hire - Retaining Good Employees", 1999.

There are many different ingredients that go into reducing employee turnover. There will be seven strategies focused on: money, building relationships between employers and co-workers, a fearless culture, job satisfaction, Importance of personal life. Most executives believe that money is the reason employees stay put. "It isn't that money isn't a key factor, it's just that money is merely the baseline, the foundation upon witch the house of retention must be built"("Formula for Retention", 1999). Money has always been a big factor in retaining employees, but now employees want more. Therefore, it is always easiest to start with money, because other strategies are not as easy for employees to buy into. Retention is successful when emotional bonds are built. Therefore, building relationships between employers and co-workers is important when it comes to employee retention. Emotional bonds are strengthened by employers paying attention to issues that are important to their workers. If employees feel that their employers care about what goes on in their lives, they are going to feel special. Employees want to have caring relationships with their co-workers and employers. "Being able to speak up and speak against the status quo would be possible only in a culture where there was no fear of retribution"(Stum, 1998). This is what is meant by a fearless culture. Employees should be welcomed to challenge the way things are being done. Companies need to let them know that honest and confrontational communication is welcome, and that they will not be punished for it. The point of a fearless culture is to make the employees feel a part of the company. The first step to establishing a fearless culture is to think communication. Establish team meetings regularly in order to exchange

information and develop new ideas about what should be being done within the company. Job satisfaction has been a recognized driver of organizational performance for 25 years. Money alone does not promote loyalty and seldom retains motivated employees. People want their work to make a difference and they want to be part of something that matters. Just as job satisfaction affects productivity, quality and morale, there is a strong correlation to commitment. Being placed in the right job, with the right orientation, training, tools and resources is still a key organizational success factor. Employees do not need much to feel satisfied. However, it is not just tools and resources that are needed, but self-confidence and appreciation from your co-workers and employers that aid in job satisfaction. All employees today are interested in where the company is headed. They want to believe in and have confidence about their company's future. Faith that all will be well for the company and its employees is a key factor in retention. Employees need to be sure of where the company is headed, because that gives them some sort of security in their lives. Security is important because it will help in retaining employees. The factor that most significantly affecting workforce commitment is management's recognition of the importance of personal and family life. Employees need to know that their family and personal life are important. However, this cannot only be done through programs such as childcare and financial planning. Companies need activities such as company picnics, bring your children to work day, and family

safety fairs. If employees see that the company is really making the effort, they will start to believe that the recognition of family life is really there.

IMPORTANCE OF EMPLOYEE RETENTION

Now that so much is being done by organizations to retain its employees, why is retention so important? Is it just to reduce the turnover costs? Well, the answer is a definite no. Its not only the cost incurred by a company that emphasizes the need of retaining employees but also the need to retain talented employees from getting poached.

The process of employee retention will benefit an organization in the following ways:

1. The Cost of Turnover:

The cost of employee turnover adds hundreds of thousands of money to a company's expenses. While it is difficult to fully calculate the cost of turnover (including hiring costs, training costs and productivity loss), industry experts often quote 25% of the average employee salary as a conservative estimate. 2.Loss of Company Knowledge: When an employee leaves, he takes with him valuable knowledge about the company, customers, current projects and past history (sometimes to competitors). Often much time and money has been spent on the employee in expectation of a future return. When the employee leaves, the investment is not realized. 3.Interruption of Customer Service:

Customers and clients do business with a company in part because of the people. Relationships are developed that encourage continued sponsorship of the business. When an employee leaves, the relationships that 2. employee built for the company are severed, which could lead to potential customer loss. 3. Turnover leads to more turnovers: When an employee terminates, the effect is felt throughout the organization. Co-workers are often required to pick up the slack. The unspoken negativity often intensifies for the remaining staff. 4. Goodwill of the company: The goodwill of a company is maintained when the attrition rates are low. Higher retention rates motivate potential employees to join the organization. 5.Regaining efficiency:

If an employee resigns, then good amount of time is lost in hiring a new employee and then training him/her and this goes to the loss of the company directly which many a times goes unnoticed. And even after this you cannot assure us of the same efficiency from the new employee

RETENTION MYTHS

The process of retention is not as easy at it seems. There are so many tactics and strategies used in retention of employees by the organizations. The basic purpose of these strategies should be to increase employee satisfaction, boost employee morale hence achieve retention. But some times these strategies are not used properly or even worse, wrong strategies are used. Because of which these strategies fail to achieve the desired results.There are many myths related to the employee retention process. These myths exist because the strategies being used are either wrong or are being used from a long time. These myths prevent the employer from successfully implementing the retention strategies. Let us learn about some of these myths.

1. Employees leave an organization for more pay: Money may be the motivating factor for some but for many people it is not the most important factor. Money matters more to the low-income-employees for whom its a survival issue. Money can make an employee stay in an organization but not for long. The factors more important than money are job satisfaction, job responsibilities, and individuals skill development. The employers should understand this and work out some other ways to make employees feel satisfied. When employees leave, management tries to retain them by offering more money. But instead they should try to figure out the main reason behind it. Issues that are mainly the cause of dissatisfaction are organizations policies and procedures, working conditions, relationship with the supervisor and salary, etc. For such employees, achievement, growth, respect, recognition, is the main concern. Incentives can increase productivity: Incentives can surely increase productivity but not for long term. Cash incentives, volume work targets and speed awards are old management beliefs. They can generate work speedily and in volumes but cant boost employee commitment. Rather speed can hamper the quality of work produced. What really glues employees to their work and organization is quality 2. work, meaningful responsibilities, recognition, respect, growth

opportunities and friendly supervisors. 3. Employees run away from responsibilities: It is a myth that employees run from responsibilities. In-fact employees feel more responsible if they are

given extra responsibilities apart from their regular job. Employees look for variety, greater control on the processes and authority to take decisions in their present job. They want opportunities to learn and grow. Management can assign extra responsibilities to their employees and appreciate them on the completion of these tasks. This will induce a sense of pride in the employee and will improve the relationship between the management and the employee. 4. Loyalty is a thing of the past: Employees can be loyal but what they need is an employer for whom they can be loyal. There is no reason for the employee to hop jobs if hes satisfied with the employer. 5.Taking measures to increase employee satisfaction will be expensive for the organizations: The things actually required to improve employee satisfaction like respect, career growth and development, appreciation, etc. cant be bought. They are free of cost. An employer or management that reacts well to the employees ideas and suggestions is enough for the employees to be retained.

REASONS WHY EMPLOYEES LEAVE

1. Expectations not met:

Expectations play a large part in determining whether an employee is satisfied or dissatisfied with the current state of affairs.

On joining the firm the individual will have a range of expectations covering areas such as the style of management, the working hours, holidays, pay, bonus and so on. It is not unusual for employees to leave within the first six months when they discover that things arent quite as they imagined they would be. Their expectations may have been unrealistic from day one, but each departure is yet more disruption, harming productivity, adding extra unnecessary costs and making it more difficult to reach goals for sales, revenue and profitability. Few firms seem to appreciate the importance of expectations. They dont ask candidates about their expectations, giving them the opportunity to select someone who is unlikely to be disappointed, and therefore, more likely to stay.

2. Mismatch between the person and the role

Employees who find themselves in roles that do not suit their individual strengths, tend not to stay around that long. A productive employee gets promoted into a position that requires skills that they do not possess. A role that exposes their weaknesses, and as a result, a role that they do not enjoy. Faced with the prospect of having to spend many months, perhaps years, in a job that is a struggle, a job that they find difficult, a job that is a mismatch for their specific talents, most of them choose to leave the company and go.

3. Mismatch between person and the culture of the firm

It is not so much that there is a single ideal culture, more that cultures vary, and as many departures show, not everyone is likely to be ideally suited to culture of your firm. Some workplaces are high pressured, fast paced, dynamic. Ideal for people who thrive on adrenaline, who enjoy this tempo, constantly being on the go. Others are caring, emotional, long discussions, shared views. Endless dialogue before action is taken. Everyones opinion counts. Put an employee in a culture that suits their temperament and they feel at home. It is an environment in which they can function to the best of their abilities. But put an employee in a firm whose culture does not suit their personality, their style or their approach and it rarely works. They dont settle, they under-perform, they miss the feel of previous employers where they were able to contribute more. They leave.

4. Insufficient opportunities for growth and advancement

Employees want to make progress, to get ahead. They want to make that next step up the career ladder. They think about where they would like to be in 5 years time, in 10 years time.

Their loyalty is largely to themselves, to make the most out of the natural talents, the skills, and determination they possess. They recognize the importance of building new skills, refining current ones, getting new experiences. If the opportunities arent available with their current employer, they will find look elsewhere.

5. Insufficient recognition or appreciation

The Employees that dont receive adequate recognition for their contribution, that get little appreciation for their efforts, start to wonder why they bother. And it doesnt take much to tempt them away. Employees that did not feel valued, that felt that their efforts, their hard work, was not appreciated. That their achievements, their contribution to the success of the business, was not recognised. Employees want to feel valued; as though their role is important, as though the business needs them. They want someone to say thank you. Thanks for that piece of work, thanks for helping out in a crisis, thanks for dealing with that problem.

6. Problems with direct manager

The state of the relationship between an employee and their direct manager goes a long way towards determining whether they stay or leave. Some employees stay far longer than might otherwise be expected because of the relationship they have with their supervisor. Others leave jobs in the first few months because they sense their manager is not someone that brings the best out of them. And they need to get away. Because the daily challenge of dealing with someone they dislike, someone that lacks basic people skills, is just too much to bear. Poor relationships between employees and their managers are one of the most common reasons for employee turnover.

7. Dissatisfaction with pay

Not receiving a fair salary, a fair pay rise, a fair bonus. Dissatisfaction with financial rewards is complex. Much of the dissatisfaction is due to comparisons. A previously adequate salary starts to feel insufficient when you have just learnt that a new arrival is receiving a higher wage for performing a similar role Salaries rarely remain a secret. The information leaks out. If it isnt fair, if it isnt equitable, if the procedure for determining pay settlements is tainted, employees become dissatisfied. And in time many of them leave.

8. Stress

The stress of work, the stress from working long hours, the stress related to pressure from above; employees can take only so much.

Stress drives employees into the arms of alternative employers. They simply want to get away from the workplace, from the people involved, from the firm. A stressful workplace is rarely a productive one. Attrition is high, people dont matter; there will always be someone else to fill the vacancy. And in time they too will probably leave for much the same reasons. Stressful work environments tend to be high turnover environments. If there is an alternative, people take it.

9. Lack of work life balance

Employees have responsibilities to their employer, to their families, to their friends. There are times when the demands of work require extra hours, staying late to get things finished, working during weekends to meet deadlines.

For some employees the demands of work are no longer compatible with the needs of their family, the needs that exist beyond the workplace. Perhaps they coped better when they were younger, before they got married, before they had a family. But now the arrangement just isnt practical. They need a better balance. They need to have time for themselves. Time to take care of loved ones. Free time not devoted to work.

10. Loss of confidence in the firm, particularly leadership.

Confidence matters. Companies go bust; you just need to read the papers, watch the news, to realize the risk involved.

When employees lose confidence in the firms leadership they head towards the exit door. They know that confidence matters, that seemingly invincible companies can collapse in days, if not hours. They dont want to be left without a job, should the company go under, or be taken over.

Other factors for Retention being a challenge are: A robust economy Shift in how people view their careers

 Changes in the unspoken "contract" between employer and employee Corporate cocooning A new generation of workers

EMPLOYEE RETENTION STRATEGIES

The basic practices which should be kept in mind in the employee retention strategies are:

1. Hire the right people in the first place.

2. Empower the employees: Give the employees the authority to get things done.

3. Make employees realize that they are the most valuable asset of the organization.

4. Have faith in them, trust them and respect them.

5. Provide them information and knowledge.

5. Keep providing them feedback on their performance.

7. Recognize and appreciate their achievements.

8. Keep their morale high.

9. Create an environment where the employees want to work and have fun.

These practices can be categorized in 3 levels: Low, medium and high level.

Low Level Employee Retention Strategies

Appreciating and recognizing a well done job Personalized well done and thank-you cards from supervisors Congratulations e-cards or cards sent to spouses/families Voicemails or messages from top management Periodic days off for good performance Rewards ( gift, certificates, monetary and non monetary rewards) Recognizing professional as well as personal significant events

Wedding gifts Anniversary gifts New born baby gifts Scholarships for employees children Get well cards/flowers Birthday cards, celebrations and gifts

Providing benefits

Home insurance plans Legal insurance Travel insurance

Disability programs

Providing perks: It includes coupons, discounts, rebates, etc

Discounts in cinema halls, museums, restaurants, etc. Retail store discounts Computer peripherals purchase discounts

Providing workplace conveniences

On-site ATM On-site facilities for which cost is paid by employees

laundry facility for bachelors Shipping services

Assistance with tax calculations and submission of forms Financial planning assistance Casual dress policies Facilities for expectant mothers

Parking Parenting guide

Lactation rooms Flexi timings

Fun at work

Celebrate birthdays, anniversaries, retirements, promotions, etc Holiday parties and holiday gift certificates Occasional parties like diwali, holi, dushera, etc Organize get together for watching football, hockey, cricket matches Organize picnics and trips for movies etc Sports outings like cricket match etc Indoor games

Occasional stress relievers

Casual dress day Green is the color day Handwriting analysis Tatoo, mehandi, hair braiding stalls on weekends Mini cricket in office

Ice cream Fridays Holi-Day breakfast

Employee support in tough time or personal crisis

Personal loans for emergencies Childcare and eldercare services Employee Assistance Programs ( Counseling sessions etc)

Emergency childcare services

Medium Level Strategies for Employee Retention

Appreciating and recognizing a well done job Special bonus for successfully completing firm-sponsored certifications Benefit programs for family support Child adoption benefits Flexible benefits Providing conveniences at workplace

 Gymnasiums Athletic membership program Providing training and development and personal growth opportunities Sabbatical programs Professional skills development Individualized career guidance Dependents care assistance Medical care reimbursement

High Level Strategies

Promoting Work/Life Effectiveness Develop flexible schedules Part-time schedules Extended leaves of absence Develop Support Services

 On-site day care facility etc. Understand employee needs: This can be done through proper management style and culture Listen to the employee and show interest in ideas

Appreciate new ideas and reward risk-taking Show support for individual initiative Encourage creativity

Encouraging professional training and development and/or personal growth opportunities: It can be done through:

Mentoring programs Performance feedback programs Provide necessary tools to the employees to achieve their professional and personal goals

Getting the most out of employee interests and talents Higher study opportunities for employees Vocational counseling Offer personalized career guidance to employees

 Provide an environment of trust: Communication is the most important and effective way to develop trust.

Suggestion committees can be created Open door communication policy can be followed Regular feedbacks on organizations goals and activities should be taken from the employees by:

Management communications Intranet and internet can be used as they provide 24X7 access to the information

Newsletters, notice boards, etc.

Hire the right people from the beginning: employee retention is not a process that begins at the end. The process of retention begins right from the start of the recruitment process.

The new joinees should fit with the organizations culture. The personality, leadership characteristics of the candidate should be in sync with the culture of the hiring organization.

Referral bonus should be given to the employees for successful hires. They are the best source of networking.

Proper training should be given to the managers on interview and management techniques.

An internship program can be followed to recruit the fresh graduates.

MANAGING EMPLOYEE RETENTION

The task of managing employees can be understood as a three stage process:

1. Identify the cost of employee turnover 2. Understand why employee leave 3. Implement retention strategies

1.Identify the cost of employee turnover:

The organizations should start with identifying the employee turnover rates within a particular time period and benchmark it with the competitor organizations. This will help in assessing the whether the employee retention rates are healthy in the company. Secondly, the cost of employee turnover can be calculated. According to a survey, on an average, attrition costs companies 18 months salary for each manager or professional who leaves, and 6 months pay for each hourly employee who leaves. This amounts to major organizational and financial stress, considering that one out of every three employees plans to leave

his or her job in the next two years.

2.Understand why employees leave:

Why employees leave often puzzles top management. Exit interviews are an ideal way of recording and analyzing the factors that have led employees to leave the organization. They allow an organization to understand the reasons for leaving and underlying issues. However employees never provide appropriate response to the asked questions. So an impartial person should be appointed with whom the employees feel comfortable in expressing their opinions.

3.Implement retention strategy: Once the causes of attrition are found, a strategy is to be implemented so as to reduce employee turnover. The most effective strategy is to adopt a holistic approach to dealing with attrition. An effective retention strategy will seek to ensure:

Attraction and recruitment strategies enable selection of the right candidate for each role/organization

New employees initial experiences of the organization are positive Appropriate development opportunities are available to employees, and that they are kept aware of their likely career path with the organization

The organizations reward strategy reflects the employee drivers

The leaving process is managed effectively

WAYS TO INCREASE EMPLOYEE RETENTION

Companies have now realized the importance of retaining their quality workforce. Retaining quality performers contributes to productivity of the organization and increases morale among employees.

Four basic factors that play an important role in increasing employee retention include salary and remuneration, providing recognition, benefits and opportunities for individual growth. But are they really positively contributing to

the retention rates of a company? Basic salary, these days, hardly reduces turnover. Today, employees look beyond the money factor.

employee retention can be increase by inculcating the following practices:

1. Open Communication: A culture of open communication enforces loyalty among employees. Open communication tends to keep employees informed on key issues. Most importantly, they need to know that their opinions matter and that management is 100% interested in their input. 2. Employee Reward Program: A positive recognition for work boosts the motivational levels of employees. Recognition can be made explicit by providing awards like best employee of the month or punctuality award. Project based recognition also has great significance. The award can be in terms of gifts or money. 3. Career Development Program: Every individual is worried about his/her career. He is always keen to know his career path in the company. Organizations can offer various technical certification courses which will help employee in enhancing his knowledge. 4. Performance Based Bonus: A provision of performance linked bonus can be made wherein an employee is able to relate his performance with the company profits and hence will work hard. This bonus should strictly be productivity based. 5. Recreation facilities: Recreational facilities help in keeping employees away from stress factors. Various recreational programs should be arranged. They may include taking employees to trips annually or bi-annually, celebrating anniversaries, sports activities, et al.

6.Gifts at Some Occasions: Giving out some gifts at the time of one or festivals to the employees making them feel good and understand that management is concerned about them. the

two

RETENTION MEASURES ADOPTED

IN ABC LTD.
MEASURES ADOPTED BY HR DEPT.FOR RETENTION IN ABC Ltd
An employer has to introduce suitable measure step for reducing turnover to the good employee which is best for the company though. It is not possible to re move it completely. Such step should be related to the important causes responsible for the high rate of turnover. The possible steps which company can adopt follow:-

1.Proper selection:

Right types of the people should be employed for various jobs. While assigning work to the employees, their aptitude and interests should be duly considered. This will make them feel interested in their jobs.

2.Proper Orientation:The new employees should be inducted should in such a way that their critical attitude is reduced as possible to avoid turnover form this source.

3.Better Working Condition:The main cause of the employees due to hard nature of jobs and bad working conditions. An employee can provide proper working condition so that workers may not have industrial fatigue. Similarly, It is possible to make hard job a little lighter by introducing suitable measures.

4.Provision of Transport and Housing Facilities:The main problem of employees quit due to housing, transport and other difficulties. It is possible for the employer to provide free or confessional transport facility to workers from residence to factory. This will ensure regularity of worker

5. Incentives &Bonus to regular employees:

Cash prizes may be given to those who are regular throughout the year. Workers who are regular may be given special bonus for their regularity. Regularity in attendance is given consideration while promotion. such positive measures encourage workers to be regular in their jobs.

6.Prevention of accidents:
Industial accidents may increase absenteeism. The management takes adequate safety measures to minimize industrial accidents in workshops.

7.Working environment:
The workers are provided congenial atmosphere to perform their duties. The place is properly well ventilated. The lightning system is provided, proper fans have been provided wherever required. Proper transport facilities are given

8.Canteen facilities.
The company has provided canteen for both staff &workers. The meals &tea is provided to all workers at nominal rates.

9.Medical, health &hygiene :

The company has a dispensary room to provide first aid facility to the employees in accidents cases. A well qualified doctor also visits the company 3 times in a week. The company also provided clean washrooms, changing rooms &pure drinking facilities to the employees.

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

A research design is the arrangement of conditions for the collection of data and analysis of data. Infact, reseach design is the conceptual structure within which research is conducted.

Descriptive Research Design has been used by me to solve each and every factor of given task. In the descriptive research study, the main purpose is that of formulating a problem for more precise investigation or of developing the working hypothesis forms an

operational point of view. The major emphasis is on the discovery of ideas and in sights.

DATA COLLECTION METHOD

According to the needed research for the project is both Primary and Secondary data collection methods. We have used company website and some publications on the net and information related to vroucher for secondary data collection. To ensure the accuracy of the primary data collection used is the structured interview method.

SAMPLING PLAN

Sample Size:-

100 employees

Sample unit:-

Bunge India Pvt .Ltd

Method of sampling:-

Simple random Sampling

Method of data collection:-

Primary & secondary

Research design :-

Descriptive

NEED OF

THE STUDY

NEED OF THE STUDY

Retention has become a strategic priority in many organizations. Cost reduction is the mantra of any contemporary successful business. As a competitive edge, a company management is striving to identify and capture incentives that reward expansion, production increase or investment geared to cost reduction or job retention. Many companies have off-shored operations in order to cut cost and increase profits. Finding and developing employees to fill critical positions has become essential for organizations to compete in global economic market. Companys today invest so much time in their employees that each time one leaves, it is like they are losing an investment. It is for this reason employee retention had become a critical component of workforce stability

OBJECTIVES OF THE STUDY

OBJECTIVE
To high light the necessity of retention in prevailing business environment. Analyze the existing system of retention adopted in ABC Ltd. In relation to the objective of recruitment and selection system. To identify the weakness in the system. To suggest/recommend appropriate strategies changes in existing system. To reduce employee turnover. To reduce the cost of hiring a new employee.

LIMITATIONS

LIMITATION OF THE STUDY

Various limitation of the study are statistic with regard To qualification requirement used in the project may differ from person to person. The data taken during the project study may not represent the realistic picture. Hence there may be margin of error. The information collected by me may be incomplete. Small sample size taken at convenience might have affected the result of the study. Existence of biases in the respondent mind.

GRAPHIC

REPRESENTATION

1. If you look for a new Job, (in a new company) what will be your preference? a) Career plan b) Flexible Timings c) Not improvement in position (Increase in other benefits) d) Improvement in position

70% 60% 50% 40% 30% 20% 10% 0% a) Career plan b) Flexible Timings c) Not improvement in position (Increase in other benefits) d) Improvement in position

2.How much areYou satisfied with the current job? a) Very high b) Fairely enough c) Moderate d) Very less e) Not at all

60%

50%

40%

30%

20%

10%

0% very high Fairely enough Moderate very less Not at all

3. To what extent do you feel quitting the present job will give you a satisfied job? Very high Fairely enough Moderate Very less Not at all

35% 30% 25% 20% 15% 10% 5% 0% very high Fairely enough Moderate very less Not at all

4.Are you satisfied with the Facilities provided by the organization?

a) Yes b) No

70% 60% 50% 40% 30% 20% 10% 0% Yes No

5.Are you satisfied with the working conditions with in the company?

a) Yes b) N

80% 70% 60% 50% 40% 30% 20% 10% 0% yes no

6.Do you feel that welfare measures provided by the company are satisfied?

a) Yes b) No

70% 60% 50% 40% 30% 20% 10% 0% Yes No

7. Is your work hazardous?

a) Yes b) No

80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No

8. What is the nature of your job?

a) Simple b) Difficult c) Technical

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% simple difficult technical

9.To improve your workplace environment what would you like to see your managers or executives do for you ? a) Better communication c) Show more concern b) Try new things at work d) Listen to your ideas

40% 35% 30% 25% 20% 15% 10% 5% 0% Better communication

Try new things at work Show more concern

Listen to your ideas

10.What could be done to improve retention? a) Better benefits c) Listen to employees grievances
60%

b) Pay more

50%

40%

30%

20%

10%

0% better benefits pay more listen to employees grievances

ANALYSIS & FINDINGS

ANALYSIS & FINDINGS

I have made an effort to analysis the retention system of ABC for keeping in view the policy and objectives defined by HR Department. Though, there are to categories of employees i.e. staff and workers hence different categorization like highly skilled, skilled, semi skilled and unskilled. The best retention strategies and method remains the same. In my view following salient:-

1 In ABC the manpower planning process insures that it has the right member and right kind of people and at the right time doing the work for which they are economically most useful.

2 The objectives at the spelt out as under: To carry out accurate estimate of the number of employees

To identify skills requirement

 The above is in importance with the organization rules.

3 In ABC Ltd man power planning is based on annual requirements and not like other corporate houses where the normal technique for manpower planning about three to five years.

4 The basic aim is being to attract best available manpower in the market and seek widest possible choice in selecting best candidate

5. Based on the requirements the personnel department mainly realize on advertisement consultants or references.

6. The personnel department maintain the check list of requirements of the position based on requisition to furnish by different department by own quartile. 7. The entire data is maintained by personnel department and organization of all activities like recruitment, induction is carried out by personnel department.

8. Though there is no retention strategy in written form in ABC Co Ltd. But certain measures like providing better working environment monetary benefits and medical facilities etc.

9. It has emerged from the records in ABC Company .Ltd. over a period of three years that most of the people leave the company in the staff category i.e. to in managers and above. 10. From the questionnaire part the following conclusion has been made by me The employees in the ABC Co. Ltd mostly are not very satisfied. From the data collected 60% of the workers want to go for other carrier opportunities due to not improvement in the position where as 28% of the employees fell working environment is good this shows that the most of the employees are not satisfied from there company so most of the employees are willing to shift their job. The employees think that there is less communication between workers and supervisors so they feel that they are only employees but not part of the

company they want that there salary should be paid according to work and there work should be appreciated/recognized and the employees want flexible worked hours and more employee participation

However there are two sides of every coin in the same way if the workers are less satisfied that doesnt mean they are very much willing to leave the job. The employees are happy with the benefits provided to them like Medical facilities,ESI leaves, formal family dinners, Low EMI on loans, Scholarship schemes for the wards of the employees. Last but not the least other welfare schemes.

SUGGESTIONS

SUGGESTIONS

Having gone through the concept of Retention .I have found that all the aspects have been addressed to in one form or the other but still there is a scope to improve the existing system by incorporating new methods and strategies. I have following suggestions / recommendations to make.

 For placing demand of requirements of manpower through advertisement, public consultants. It is suggested that new methods to find out talent / job seekers through internet etc. Personal data bank of ABC Ltd. should be created so that whenever there is an urgent need of talented employee he / she can be contact immediately.

The form for interview trust should also include two desire columns i.e. high skills and soft skills and interview committee should access the individual keeping in mind organization culture so that culturally fit talent is selected which will go away for long way to ensure retention.

There is a requirement to lay down retention strategy with its objectives well defined. it should written format so that this important aspect is well understood by all employees in true perspective.

Salaries , bonus , incentives and allowances keep the employees motivated and they are one of the main reasons of retention so the employees should be paid handsome salaries

 Company image should be enhanced. Regular events should be organized and other social responsibilities of business should be performed by company from time to time.

CONCLUSION

CONCLUSION

The retention of required talent is an important aspect to ensure overall development of the organization. Such employees by remain satisfied and committed to their job which enhances the productivity and overall working environment providing and edge in the competitive market. At last we can say that providing the proper facilities to the employee the problem in the organization can be solved and then they definitely stay in their jobs and remain regular in their work. The organization should also provide proper working condition to the workers. When the organization provides such facilities to the employees then the problem of attrition is checked at a large scale.

ANNEXURE

QUESTIONNAIRE

1. If you look for a new Job, (in a new company) what will be your preference? e) Career plan f) Flexible Timings g) Not improvement in position (Increase in other benefits) h) Improvement in position

2.How much areYou satisfied with the current job? f) Very high g) Fairely enough h) Moderate i) Very less j) Not at all

3.To what extent do you feel quitting the present job will give you a satisfied job?

Very high Fairely enough Moderate Very less Not at all

4.Are you satisfied with the Facilities provided by the organization?

c) Yes d) No

5.Are you satisfied with the working conditions with in the company?

c) Yes d) N

6.Do you feel that welfare measures provided by the company are satisfied?

c) Yes d) No 7.Is your work hazardous?

a) Yes b) No 8.What is the nature of your job?

a) Simple b) Difficult c) Technical 9.To improve your workplace environment what would you like to see your managers or executives do for you ?

a) Better communication b) Try new things at work c) Show more concern d) Listen to your ideas

10.What could be done to improve retention? a) Better benefits b) Pay more c) Listen to employees grievances

BIBLIOGRAPHY

BIBLIOGRAPHY

www.amritbanaspati.com www.naukrihub.com www.wikipedia.com

Shashi K Gupta and Rosy Joshi,

Organizational behavior