INTRODUCTION

1.1 ABOUT THE STUDY

Employee retention refers to the ability of an organization to retain its employees.

Employee retention can be represented by a simple statistic. However, many consider employee
retention as relating to the efforts by which employers attempt to retain employees in their
workforce.

Employee retention refers to the various policies and practices which let the
employees stick to an organization for a longer period of time. Every organization invests
time and money to groom a new jinee, make him a corporate ready material and bring him at par
with the existing employees. The organization is completely at loss when the employees leave
their job once they are fully trained. Employee retention takes into account the various measures
taken so that an individual stays in an organization for the maximum period of time.

A fringe benefit is a form of pay (including property, services, cash or cash equivalent) in
addition to stated pay for the performance of services. Some forms of additional compensation
are specifically designated as fringe benefits in the Internal Revenue Code; others, such as
moving expenses or awards, have statutory provisions providing for special tax treatment but are
not designated as fringe benefits by the Code. This publication uses the term broadly to refer to
all remuneration other than stated pay for which special tax treatment is available. The definition
of fringe benefits applies to services of employees and independent contractors; however, unless
otherwise indicated, this guide applies to fringe benefits provided by an employer to an
employee. (For a discussion of whether a worker is an employee or independent contractor, see
Publication .) Fringe benefits for employees are taxable wages unless specifically excluded by a
section of the Internal Revenue Code.
The IRC may provide that fringe benefits are nontaxable, partially taxable, or tax-
deferred. These terms are defined below. Taxable Includible in gross income unless excluded
under an IRC section. Taxable means the benefit is included in the employees' wages and
reported on Form W-2, Wage and Tax Statement, and generally is subject to Federal income tax
withholding, social security (unless the employee has already reached the current year social
security wage base limit), and Medicare. If the recipient is an employee, this amount is includible

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as wages. For example, bonuses are always taxable because no IRC section excludes them from
taxation. Nontaxable (excludable) Excluded from wages by a specific IRC section; for
example, qualified health plan benefits excludable under section 105.
Partially taxable - Part is excluded by IRC section and part is taxable. Benefits may be
excludable up to dollar limits, such as the public transportation subsidy under IRC 132.
Tax-deferred Benefit is not taxable when received, but subject to tax later. For example,
employer contributions to an employee's pension plan may not be taxable when made, but may
be taxed when distributed to the employee.
More than one IRC section may apply to the same benefit. For example, education expenses up
to Rs.5,250 may be excluded from tax under IRC 127. Amounts exceeding Rs.5,250 may be
excluded from tax under IRC 132. A benefit provided on behalf of an employee is taxable to an
employee even if the benefit is received by someone other than the employee, such as a spouse
or a child. Reg. 1.61-21(a) (4) If an employee's wages are not normally subject to social
security or Medicare taxes (for example, because the employee is covered by a qualifying public
retirement system), otherwise taxable fringe benefits are not be subject to social security or
Medicare taxes.

Employee benefits especially in British English called fringe benefits, perquisites, perqs
or perks are various non-wage compensations provided to employees in addition to their normal
wages or salaries. In instances where an employee exchanges cash wages for some other form of
benefit is generally referred to as a 'salary packaging' or 'salary exchange' arrangement. In most
countries, most kinds of employee benefits are taxable to at least some degree.

Examples of these benefits include: housing employer-provided or employer-paid, group

insurance (health, dental, life etc.), disability income protection, retirement benefits, daycare,
tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing,
funding of education, and other specialized benefits.

The purpose of employee benefits is to increase the economic security of staff members,
and in doing so, improve worker retention across the organization.

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 The term perqs is often used colloquially to refer to those benefits of a more discretionary
nature. Often, perqs are given to employees who are doing notably well and/or have seniority.
Common perqs are take-home vehicles, hotel stays, free refreshments, leisure activities on work
time stationery, allowances for lunch, and when multiple choices exist first choice of such things
as job assignments and vacation scheduling. They may also be given first chance at job
promotions when vacancies exist.

Fringe benefits are compensations made to an employee beyond the regular benefit of
being paid for their work. Some fringe benefits are fairly standard, such as offering a few days of
sick time or paid vacation time. Others can be significantly greater, and more rare. Key
executives in large companies might also enjoy fringe benefits like use of time-share
condominiums, paid continuing education, use of a company jet, use of a company credit card,
discounted or free health club memberships, and a significant amount of paid vacation.

Most people who work full time in the US could probably not get along without fringe
benefits. For example, offering health insurance to employees, where the employer pays part of
the insurance is a typical example of fringe benefits. According to the laws in some states,
companies of a certain size must offer health insurance with some sharing of payment at least to
a full-time employee. Some companies avoid this by employing more part-time workers. Most
companies, however, realize that fringe benefits like health insurance contribute to the well being
of their employees. Whenever possible, they try to offer at least partially discounted insurance to
an employee, even if they are not legally required to do so. Fringe benefits like sick or vacation
time tend to be fairly standard as well, even if an employee does not work full time. These paid
days off do tend to have a cap on them. For example, a new employee might get a weeks
vacation time to start, and eight to ten days of sick time for year. Employees entering higher-
level positions may be offered greater fringe benefits as incentive to join a company.

In fact, in fields where there is a high demand for workers, such as nursing and teaching,
some unusual fringe benefits may be offered to attract employees. Small school districts have
gotten quite creative in this respect, since teacher salaries are still relatively low. A few unusual
fringe benefits offered by school districts have been paid housing, or use of private lakes for
fishing. More likely are paid incentives for joining a teaching staff such as hiring bonuses, offers

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to fund continuing education so teachers get higher degrees and thus higher pay, or offering
mentor programs for new teachers.

Registered nurses are badly needed due to new requirements on nurse/patient ratio. This
has led to uncommonly large hiring bonuses, agreements to pay off student loans for new nurses,
and generous health insurance and time off packages. Other fields with high demands for
workers and low worker supply are likely to offer the most attractive fringe benefits packages.

Sometimes the fringe benefits turn out to be greatly needed. For example, the rising cost of
private health insurance often makes obtaining a job with a good health plan highly desirable.
Programs like 401ks can help employees save money for the future. Where job compensation is
not commensurate with money needed to live comfortably, housing allowances, or company
housing can often make the difference between being able to take a job and looking elsewhere.

Some companies also pay fringe benefits for those who work night or swing shifts. These
fringe benefits may be in the nature of a 1030% increase of base pay for working a non-
standard shift. This is called a shift differential and is quite common in the medical field and in
manufacturing.

Employee retention refers to the ability of an organization to retain its employees.

Employee retention can be represented by a simple statistic. Most people who are really good at
something, like your top employees, have a low 'pain of leaving' because they know they can
find something else quickly. What are the pains of staying that you can change in order to
increase employee retention? Get them involved and.

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 1.2 INDUSTRY PROFILE

The Indian auto ancillary industry is one of India's sunrise industries with tremendous
growth prospects. The automotive industry is an important segment of the economy in any
country as it links many industries and services. The Indian auto industry has the potential to
emerge as one of the largest in the world.

The Automobile Industry in India is one of the largest Markets in the world. It had previously
been one of the fastest growing globally growth rate. Indias passenger car and commercial
vehicle manufacturing Industry is the 6th largest in the world, with an annual production of more
than 3.9 million units in 2011.According to recent reports, India overtook Brazil and became the
6th largest passenger vehicle producer in the world, grew 16 to 18 percentage to sell around three
million units in the course of 2011-2012.In 2009,India emerged as Asias 4 th largest exporter of
passenger cars, behind Japan, South Korea and Thailand. In 2010,India beat Thailand to became
Asias 3rd largest exporter of passenger cars

Presently, India is:

The largest two-wheeler manufacturer in the world.

The largest three-wheeler market in the world.
The second-largest two-wheeler market in the world.
The fourth largest commercial vehicle market in the world.
The fifth largest commercial vehicle manufacture in the world.

The fortunes of the automotive components segment are linked to the performance of the auto
industry. The auto ancillary industry gives support to sectors such as metals that includes steel,
aluminum, copper and also to many other machine tools, plastics, rubbers, polymers, glass,
surface transport. As per Indian Suppliers report, the automotive sector in India contributes to
5% of the nations GDP and 17% of the indirect taxes as a result of which the government last
year charted a 10-year blueprint for the sectors growth. This envisages the automotive sector
output reaching a level of $145 billion accounting for more than 10% of the GDP by
2016.Indian auto industry has evolved around three major clusters: Mumbai-Pune-Nasik-
Aurangabad (west); Chennai-Bangalore-Hosur (south); and Delhi-Gurgaon-Faridabad
(north).Export-oriented companies have formed base in the west/ south regions, due to proximity
to port.

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Prospects

Looking forward, the industry displays tremendous potential in generating employment and
boosting entrepreneurship in the country. The spate of new investment plans announced by
global and domestic automobile manufacturers promises the emergence of India as a global hub
for auto components. The industry is transforming, and the boost in demand will see the
emergence of several new players in the industry. The vast market for auto components, and the
diverse products and technology involved ensures a place and role for many.

At the same time, the entry of several global automobile manufacturers will bring in more
regulation into the industry and see a pruning of the spurious market. Among the smaller players
in the unorganized segment, this implies moving away from being standalone companies, to
entering into either contract manufacturing or being ancillary units. The newly defined rules are
specialization, Development and delivery that hold the key to success in the auto component
industry.

Quality

The industry has been making rapid strides towards achievement of world-class Quality Systems
by imbibing ISO 9000/ISO14001/QS 9000/TS16949 Quality Systems. Till now 562 companies
in ACMA membership have been certified to ISO 9000, 208 companies awarded to ISO14001,
445 companies have been certified with TS16949, 99 companies have been certified with
OHSAS18001, 15 Companies have won TPM Award, 11 Companies won the Deming prize
1company won Japan Quality Medal, 1company won Shingo Silver Medallion and 3 companies
won the JIPM Excellence award.

India10 indicates that the number of firms in the component industry in 1993-94 was
around 6,350 of which 94 per cent were in the small scale. This fragmentation is partly
attributable to the regulatory environment of the past and partly to the policy of vehicle
manufacturers to have more than one vendor for the same component. The report also mentions
that in 1992, the production shares of the top three players were in excess of 75 per cent for all
product categories except transmission gears.
In response to the economic reforms initiated in 1993 and to the entry of the major auto
manufacturers into the passenger car industry, major investments in capacity were made in the

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component sector. However, the mid-size car segment, which all the global auto manufacturers
had driven into, simply failed to take off. The net result is that the component industry is
currently suffering from excess capacity (expected to be as much as 40%) created in anticipation
of increased demand. However, most autoancillary units fare better than the automotive sector
due to the fact that they are less affected by recession because of the continuing demand for spare
parts. The industry also seeks solace in the international markets during recession periods. Two
of the major charges levelled against the domestic component manufacturers are that they lack
quality consistency and delivery reliability.
According to a study done by McKinsey11 for Automotive Component Manufacturers
Association (ACMA), the rejection rate12 for Indian auto components is 2,900 parts per million
(PPM), which is more than ten times the world level of 240 PPM. The same study estimated the
sub-suppliers' rejection rate to be 31,500 PPM, unacceptable by world standards. The entry of
global vehicle manufacturers in the industry has been followed by the entry of global component
manufacturers.
For example, Ford is setting up a 100 per cent subsidiary to manufacture a million starters
and alternators per year. With many new entrants and with Denso and Mico Bosch already
present, the competition in the auto electrical component industry has become very intense. The
increasing shift towards reduction in vendor base for an automobile company is putting
enormous pressure on the chosen suppliers to make substantial financial investments in their
operations so that they are capable of delivering high quality products at low costs with greater
delivery reliability. The first plant of Vibgyor automotive plt automotive plt-TVS was
constructed at Padi in the state of Tamil Nadu in 1961. Initially there were about 25 employees.
The work-force became unionized within five years of the plant's operations and the union has
been in existence since 1965-66. During its early years (1960-71), the firm primarily. focused on
assembling kits that were procured from abroad. From 1973, indigenization was emphasized and
slowly the range of products that were offered to customers was expanded. After 1978, Vibgyor
automotive plt automotive plt-TVS started devoting more energy to absorption of technology and
initiated new product designs. Since 1983, the management has been stressing the importance of
indigenous designs. This strategic shift proved to be a turning point for the entire organization.
In 1999, the Pedi plant with about 2,850 employees is in operation on a 55-acre site. At
present, the plant produces a variety of alternators, starters, dynamos, distributors, head lamps,

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and wipers that are shipped to over 40 different manufacturers in all segments of the automotive
industry such as passenger cars, commercial vehicles, tractors, jeeps, and two-wheelers.
The Pedi plant manufactures more than 400 different end products across the different
product units and it is Vibgyor automotive plt automotive plt-TVS's largest manufacturing plant,
in terms of both volume and sales, in 1999, more than 60 per cent of their sales are from products
that are internally designed by Vibgyor automotive plt automotive plt-TVS. TVS Group is one of
India's oldest business groups. It is a giant conglomerate with presence in diverse fields like
automotive component manufacturing, automotive dealerships and electronics. Today, there are
over thirty companies in the TVS Group, employing more than 40,000 people worldwide and
with a turnover in excess of USD 2.2 billion.
TVS Group originated as a transport company in 1911. TV Sundaram Iyengar and Sons Limited
is the parent and holding company of the TVS Group. TV Sundram Iyengar and Sons Limited
have the following three divisions:

TVS and Sons: TVS and Sons is the largest automobile distribution company in India. It
distributes Heavy Duty Commercial Vehicles, Jeeps and Cars. TVS and Sons represent premier
automotive companies like Ashok Leyland, Mahindra and Mahindra Ltd., and Honda. The
company is also one of the leading logistics solution providers and has set up state-of-the-art
warehouses all over the country. TVS and Sons has also diversified into distributing a range of
Garage equipments. Sundaram Motors: Sundaram Motors distributes Heavy Duty Commercial
Vehicles, Cars, and auto spare parts for several leading manufacturers. The company is also the
dealer for Ashok Leyland, Honda, Fiat, Ford and Mercedes Benz. Madras Auto Service: Madras
Auto Service distributes automotive spare parts for all leading manufacturers. Sundram
Fasteners: The Company is the biggest maker of industrial fasteners in India. TVS Infotech
(TVSi): TVSi is an Enterprise Solutions provider for industries like Manufacturing, Automotive,
Trading & Distribution and Engineering & Construction.Sundaram Finance: The financial
services arm of the group was established in 1954. It owns majority or substantial stakes in
Royal Sundaram Alliance General Insurance Company, Sundaram BNP Paribas Mutual Fund and
Sundaram BNP Home Finance Limited. It also has subsidiaries for the distribution of financial
products, BPO and IT related fields. It has revenues of approx. Rs.600 crores in 2006-2007 with
a workforce more than 2000. It is headed by T.T.Srinivasaraghavan. Sundaram Infotech: The

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wholly owned IT Subsidiary of Sundaram Finance Ltd., sells enterprise resource management
solutions to mid-sized companies through Microsoft Dynamics (AX, NAV, CRM, and LS Retail).
Sundaram Infotech flogs vertically oriented ERP solutions in Manufacturing, Retail &
Distribution, Trading & Logistics, Automotive, New Seed (Agro) and financial services. Wheels
India The company manufacturers automotive wheels and air suspension in collaboration with
Titan Plc, UK. It had revenues of Rs.1000 crores in 2006-2007. It is headed by Mr. S. Ram.
Axles India: A subsidiary of Wheels India, the company manufactures axles used in commercial
vehicles. It is headed by S. Ram. It had revenues of Rs.300 crores in 2006-2007.

1.3 COMPANY PROFILE

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 Vibgyor automotive plt automotive plt-TVS is the leaders in Auto Electrical in India
today with 50 years experience in design and manufacturing. Vibgyor automotive plt automotive
plt-TVS is a TS16949, ISO 14001 and OHSAS Certified Company and bagged the Deming
application price from the Japanese Union of Scientists and Engineers (JUSE). The fact that
Vibgyor automotive plt automotive plt-TVS products are fitted on most vehicles produced in
India is because of the company ability to respond to changing customer needs swiftly,
effectively and consistently. The Company in-house Engineering center has been the key driving
force behind the design and development of new products. In addition to sound in-house
capabilities, Vibgyor automotive plt automotive plt-TVS have strong Technical alliances with
leading International manufactures. This has further enabled the Company to provide its
customers products incorporating the most contemporary technology.

Vibgyor automotive plt automotive plt-TVS are a part of the TVS group. It was setup in
1961 as a joint venture of Vibgyor automotive plt automotive plt Industries plc, UK and T V
Sundaram Iyengar and Sons at Chennai to manufacture automotive electrical systems.

Vibgyor automotive plt automotive plt-TVS have since inception has been maintaining its
leadership as an automobile electrical systems supplier. Vibgyor automotive plt automotive plt-
TVS manufactures a complete range of auto electrical products consisting of direct drive and
gear reduction Starters, internal and external fan alternators, wipers, fan motors, blower motors,
window lift motors, mechanical and electronic distributors, cam sensors, headlamps etc. The
Auto Electricals division now has three plants situated in Padi, Pondicherry and Rewari. The
Padi plant, which is the mother plant, manufactures all range of electrical automobile products.

ENERGY MANAGEMENT POLICY

THROUGH

We are committed to minimize the Specific Energy consumption (Electrical units per
Equivalent Starter Unit) for our products comparing to the previous year consumption.

1. Maximize the Capacity utilization.

2. Fine tuning our Operations and Maintenance continuously to achieve the above
goal.
3. Technology up-gradation with energy efficient processes and equipments.

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 4. People involvement.
5. Waste elimination.
6. Improvement in Power and Air distribution.
7. Large cell formation.
8. Process changes.
9. Setting up a system to continuously monitor the progress.

APPROACH

a. Formation of Task force team

b. Cross functional Team
c. QC story
d. Employees involvement through
e. S.G.A. (Small Group Activities)
f. Suggestion Scheme & Voluntary
g. Work Teams (5S, TPM, ENVIRO, SAFETY)
h. Energy Audits (Internal & External)

ROLE OF ENERGY MANAGER

a. Prepares Annual Plan with Targets and Budget

b. Acts as a Facilitator in implementing the Encon Projects
c. Interacts with core team members / cross functional team periodically to review
the progress
d. Constitutes a team of Auditors to monitor the Retainment of Improvements
e. Presents the achievements to Top Management.

MISSON

To be a respected supplier of global auto industry, by developing innovative products and

solutions of value to customers using contemporary technologies and creative skills and
involvement of our employees, suppliers and other partners. Through these activities Vibgyor
automotive plt automotive plt-TVS expects to contribute to auto industry and Indian society.

VISION

Dominant supplier of rotating electrical products to Indian industry. Significant supplier

of customized motors to specific non-automotive applications in India. Supplier to global car and
commercial vehicle manufacturers. Customer delight and employee's pride to build Vibgyor
automotive plt automotive plt-TVS brand. Sales turnover of 4000 crores [USD 800 Million] by
2015 and achieve stakeholder's expectations.

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"Vision without action is merely a dream

Action without vision passes the time

Vision with action can change the world"

DEVELOPMENT OF THE MAIN THEME

2.1 NEED FOR THE STUDY

In Unifront Textiles Processors employee turnover has been considerably increasing.

Around 50 new employees are trained every month.
The cost of training the new employees also seem to be very high.
The various processes by which the organization motivate the employee.
The study is carried out to find the employer employee in the management.

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 The study provides the overall view about how to retain the employees in TVs ltd.

2.2 OBJECTIVES OF THE STUDY

Primary Objective:
A study on the employee retention at Vibgyor automotive plt automotive plt TVs ltd at
Chennai.
Secondary Objectives
To study efforts made by organization to retain employee.
To study the common reasons of employee voluntarily leaving or staying in organization.

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 To study various career development programs offered by the organization.
To study the impact of induction & training programs to retain the employees.
To suggest the strategies and steps for reducing employees turnover and improving
retention.

2.3 SCOPE OF THE STUDY

The analysis has been made using the data collected from the employees of the firm
through the questionnaire.
The importance of employee retention in the firm and the cost involved in new
employees training are insisted to the firm.

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 The study aims to work on the feedback given by the employees and come up with
valuable suggestions for the improvement of retaining the employees.
The study focuses the find out the factors affecting the employee Retention and necessary
Remedial measure have to overcome this barrier.
With the data collected from the employees various suggestions and recommendations
are given to retain the employees.

2.4 LIMITATIONS OF THE STUDY

The sample size was limited to 250.

The study has been conducted on the lower level employees only.

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 Some respondents might have not responded with the actual feelings or facts in filling up
the questionnaires.

Time constraint- the duration of training was short, due to which it was difficult to collect
data.

One constraint has been regarding the cost, as study involves the collection of primary
and secondary data. Therefore, the cost incurred was much more.
Another constraint has been geographical area, which is confined only to Baddi.
Normally employees hesitate to disclose the information.

2.5 REVIEW OF LITERATURE

Literature review is the important part of any study as it enables you to find the key
aspects of the study which is taking place. There is also an academic literature on the impact of
Wal-Mart stores, focusing on the effects of Wal-Mart openings on local employment, retail prices
and sales, poverty rates, and the concentration of the retailing industry, as well as the impact on

16
existing businesses. This research is limited by three main factors: the restriction of much of it to
small regions (often even sub-areas of small states); its lack of focus on employment and
earnings effects; and its failure to account for the endogeneity of Wal-Mart locations, either at all
or (in our view) adequately.

It can give a new understanding of the historical perspective or blend new with old
account. Or it might draw the intellectual evolution of the field, including major theories or
phenomena. Sometimes depending on the circumstances.

Employee Turnover:

Employee turnover is the number of employees that a company might have to replace in a
year or any other specified period as an average of the total number of employees that
organization has. The main concern of the companies is high cost associated with employee
turnover particularly lower level of jobs has highest turnover.

Retention:

As it has been mentioned above that employee turnover incur huge cost and is very
expensive, but it is also very important o note that employee turnover is different for different
organization it means that what is acceptable or normal rate of turnover depends on the nature of
business that it does. It is not only the high turnover that is dangerous but too low rate can also
have a negative impact on the organization by creating an inactive workforce.

It is also important to note that forced retention such as a trust worthy employee or a
winning team that an employer may allow to go or even promote may result in stagnation or
de-motivation of employees.

According to Balcher, Fringe benefits are any wage cost not directly connected with the
employees productive effort, performance, service or sacrifice.

According to Cockmar, Fringe benefits are those benefits which are provided by an
employer to or for the benefit of an employee and which are not in the ofrm of wages, salaries
and time-related payments.

[http;//www.usfa.fema.gov/pdf/efop/efo29426.pdf]

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 Hicks and Wilburn (2001), studying the impact of Wal-Mart openings in West Virginia,
estimate positive impacts of Wal-Mart stores on retail employment and the number of retail
firms. They do not explicitly account for endogeneity, although they do address the issue. In
particular, they report evidence suggesting that Wal-Mart location decisions are independent of
long-term economic growth rates of individual counties in their sample, and that current and
lagged growth have no significant effect on Wal-Marts decision to enter. However, these results
come from a very small sample of 14 counties in the state (with seven Wal-Mart stores), and they
do not explicitly address endogeneity with respect to future growth. The latter, in particular,
could generate apparent positive impacts of Wal-Mart stores.

`[http;//www.citehr.com/research-review-of-literature-on-employee-retention-
page1.html?status=closed]

In more recent work, Basker (2005) studies the effects of Wal-Mart on employment (but
not earnings) using nationwide data. Basker attempts to account explicitly for endogeneity by
instrumenting for the actual number of stores opening in a county in a given year with the
planned number. The latter is based on numbers that Wal-Mart assigns to stores when they are
planned; according to Basker, these store numbers indicate the order in which the openings were
planned to occur. She then combines these numbers with information from Wal-Mart Annual
Reports to measure planned openings in each county and year. Her results indicate that county-
level retail employment grows by about 100 in the year of Wal-Mart entry, but declines to a gain
of about 50 jobs in five years as other retail establishments contract or close. In the meantime,
possibly because Wal-Mart streamlines its supply chain, wholesale employment declines by 20
jobs. Thus, on net, Wal-Mart stores appear to create 30 jobs for the host county.
The principal problem with this identification strategy, however, is that the instrument is
unconvincing. For the instrument to be valid, two conditions must hold. The first is that planned
store openings should be correlated with (predictive of) actual openings; this condition is not
problematic. The second condition is that the variation in planned openings generates exogenous
variation in actual openings that is uncorrelated with the unobserved determinants of
employment that endogenously affect location decisions. This second condition holds if we
assume, to quote Basker, that the number of planned Wal-Mart stores for county j and year t is
independent of the error term and planned Wal-Mart stores affect retail employment per

18
capital only insofar as they are correlated with the actual construction of Wal-Mart stores (2005,
p. 178). The second part of the assumption is potentially problematic; actual stores should, of
course, be the driving influence, although planned storeseven if they do not materialize or do
so only with delaymay still affect decisions of other businesses. The first part of the
assumption is a more serious concern, though, as it seems most likely that planned openings will
reflect the same unobserved determinants that drive endogenous location as are reflected in
actual openings, and we cannot think of an argument to the contrary (nor does Basker offer one).

[http;//www.citehr.com/research-review-of-literature-on-employee-retention-
page3.html?status=closed]

Another potential problem is that there is substantial measurement error regarding store
openings in Baskers data (see Appendix A). This measurement error arises because Basker (and
Goetz and Swaminathan, 2004, discussed below), had to collect information about Wal-Mart
locations and opening dates from a variety of sources including Wal-Mart editions of the Rand
McNally Road Atlas, annual editions of the Directory of Discount Department Stores, and Wal-
Mart Annual Reports, which together do not always pin down the timing of each store opening.
Basker also motivates the instrumental variable (IV) as correcting for bias from measurement
error in the actual opening dates of Wal-Mart stores. But the same argument against the validity
of planned openings as an instrument applies.

Using various data sources, Goetz and Swaminathan (2004) study the relationship
between Wal-Mart openings between 1987 and 1998 and county poverty rates in 1999,
conditional on 1989 poverty rates (as measured in the 1990 and 2000 Censuses of Population).
They also use an IV procedure to address the endogeneity of Wal-Mart entry, instrumenting for
Wal-Mart openings during 1987-1998 in an equation for county poverty rates in 1999. Their IVs
include an unspecified pull factor, access to interstate highway, earnings per worker, per capita
property tax, population density, percentage of households with more than three vehicles, and
number of female-headed households. The results suggest that county poverty rates increase
when Wal-Mart stores open, perhaps because Wal-Mart lowers earnings (although the authors
offer other explanations as well). However, why the IVs should affect Wal-Mart openings only,
and not changes in poverty directly (conditional on Wal-Mart openings), is not the slightest bit

19
clear. And it is easy to construct stories in which invalid exclusion restrictions would create
biases towards the finding that Wal-Mart openings increase poverty.

[http://www2.binghamton.edu/ccpa/public-administration/current-
students/capstone/bridget%20Riley.pdf]

According to Klaff and Churn (2001), how/what will provide the ingredients for a
successful and viable retention policy, quality of information used will also determine the
success or failure of the policy, the ability of the middle management to execute any proposed
policy matter will also be important because even if there is an ideal policy but poorly
implemented will diminish the chances of success.

[http://nda.ie/cntmgmtnew.nsf/0/6E45FDAA259C051180257825003F875B/
$File/job_retention_literature_Review.html]

According to Harrison, D and Virick M. employers need to have a prudent retention

policy realistically addressing every aspects of employee satisfaction particularly, when it comes
to highly skilled and talented staff. These are the people with more complex needs and hence
required to deal exclusively.

[http://digitalcommons.ilr.cornell.edu/egi?article=1485&context=cahrswp&sei-
redir=1&referrer=source%3Dweb%26ved%EMPLOYEE%20RETENTION%22.HTML

2.6 STATEMENT OF PROBLEM

Employee retention has gained more importance in these days. Since the problem of
employee leaving the company for various reasons has increased such as better prospectus, high
salary etc., there is a need to retain and satisfy effective employees in the organization. As the
recession played a major part in minimizing the growth of the company and its success, there has
been large amount of employee turnover in the company. This has lead to a necessity of changing

20
the present employee retention strategy or to create a new employee retention strategy. Hence the
statement of problem lies in framing a effective employee retention strategy to retain employees.

3 ANALYSIS, INTERPRETATION & CONCLUSION

3.1RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. The scope of research
methodology is wider than that of research methods. When we talk of research methodology we
not only talk of research methods but also consider the logic behind the methods we use in the
context of our research study and explain why we are using a particular method or technique.

DEFINITION OF RESEARCH:

Research is essentially an investigation, a recording and an analysis of evidence for the

purpose of gaining knowledge.
-Robert Ross
DEFINITION OF RESEARCH DESIGN:

It is The plan, structure and strategy of investigation conceived so as to obtain answers

to research questions and control variance.
-General Def

21
MEANING OF RESEARCH DESIGN:

A research design is the arrangement of conditions for collection and analysis of data in
a manner that aims to combine relevance to the research purpose with economy in procedure.

Research design is the conceptual structure within which research is conducted; it

constitutes the blueprint for the collection, measurement and analysis of data.

The type of research design used in the project was Descriptive research, because it
helps to describe a particular situation prevailing within a company. Careful design of the
descriptive studies was necessary to ensure the complete interpretation of the situation and to
ensure minimum bias in the collection of data.

DESCRIPTIVE RESEARCH:

Descriptive research includes survey and fact finding enquiries of different kinds. The
major purpose of descriptive research is description of the state of affairs, as it exists as present.

DATA COLLECTION METHOD:

PRIMARY DATA:

Questionnaires are prepared and data are collected through questionnaires. Most of the
questions are consist of multiple choices. Generally 23 questions are prepared and asked to the
employees of the Vibgyor automotive plt automotive plt TVs ltd.

SECONDARY DATA:

Secondary data are data which has been collected from the secondary source, i.e., which
is already present. Secondary data was collected from internets, various books and company
records.

QUESTIONNAIRE CONSTRUCTION:

Questionnaires were constructed based on the following types,

Close ended questions

22
 Multiple choice questions

Open ended questions.

DEFINING THE POPULATION:

The population or universe can be finite or infinite. The population is said to be finite if it
consist of a fixed number of elements so that it is possible to enumerate it in its totality. The
population is 5000.

SAMPLING TECHNIQUE:

Sampling is the selection of some part of an aggregate or totality on the basis of which a
judgment about the aggregate or totality is made.

Random sampling method has been used in this project.

SIZE OF THE SAMPLE:

For a research study to be perfect the sample size selected should be optimal i.e. it should
neither be excessively large nor too small.

Here the sample size was bounded to 250.

TOOLS USED FOR ANALYSIS:

Percentage analysis.

Chi-Square.

One Sample Run Test

Correlation Co-Efficient

23
 Anova

PERCENTAGE ANALYSIS:

One of the simplest methods of analysis is the percentage method. It is one of the
traditional statistical tools. Through the use of percentage, the data are reduced in the standard
form with the base equal to 90, which facilitates comparison.

The formula used to compute Percentage analysis is,

Relation Number
Formula: 100
W h ole Number

CHI-SQUARE TEST:

It is a measure to study the divergence of actual and expected frequencies. It is

represented by the symbol X2, Greek letter chi. It describes the discrepancy theory and
observation. The formula used is,

X2 = (O-E) ^2 / E

Where E= Row Total*Column Total/Grand Total

O=Observed frequency

E=Expected frequency

DF=Degrees of freedom i.e., DF=(r-1) (c-1)

R=Row

24
 C=Column.

One Sample Run Test:

The run test is used to determine the randomness with which the sample items have been
selected. This test can also be used to detect departures in Randomness of a sequence of
quantitative Measurements over time, caused by trends or periodicities.

Null Hypothesis:

H 0 : Defectives Generated at randomly

Alternative Hypothesis:

H 1 : Defectives Not Generated at randomly

R
Z= N (0,1)

2 n1 n 2
= +1
n1 +n 2

=
2 n1 n2 (2 n1 n 2n1n 2)
(n1 +n2 )2 (n1 +n21)

ANALYSIS OF VARIANCE (ANOVA)

Analysis of variance is an extremely useful technique concerning research. This is used

when multi sample are involved.

Anova is extremely a procedure for testing the difference among different groups of data
for homogeneity. The essence of ANOVA is that the total amount of variation in a set of data is
broken down into two types such as

ONE-WAY ANOVA
25
 TWO-WAY ANOVA

If we take only one factor and investigate the differences amongst its various categories having
numerous possible values one-way anova can be used. When we investigate two factors at the
same time then we can use two-way anova.

Steps involved in ANOVA are

1. Name of the Row samples as x1, x2, x3, x4

2. Name of the Column samples as y1, y2, y3, y4

3. Calculate the sum of all items by T = x1 + x2 + x3.

4. Correction factor CF = T

5. Calculate Total sum of squares SST = x1 + x2 + x3.

6. Sum of squares between column samples SSC = ( y1) + ( y2) + ( y3) T

n n n N

7. Sum of squares between column samples SSR = ( x1) + ( x2) + ( x3) T

n n n N

8. Calculating Residual or Error SSE = [ SST- (SSC+SSR) ]

26
 The basic principle of the Anova is to test for differences amongst the means of the
population by examine the amount of variation within the samples, relation to the amount of
variation between the samples.

3.2 DATA ANALYSIS AND INTERPRETATION

TABLE 3.2.1: AGE OF THE RESPONDENTS

S.NO. AGE NO. OF PERCENTAGE

RESPONDENTS
1. Below 20 30 12
2. 20-25 43 17
3. 26-30 55 22
4. 31-35 62 25
5. Above 35 60 24
Total 250 100

CHART 3.2.1: AGE OF THE RESPONDENTS

27
 SER IES 1
30

25
25
24
20 22

15 17

10 12

0
1 2 3 4 5

INTERPRETATION: From the above table ,it is inferred that 23% of the respondents
belong to the age group of 26-30, 25% of the respondents belong to 20-25, 18% of the
respondents belong to Below 20, 17% of the respondents belong to 31-35 and 13% of the
respondents belong to the age group of Above 35.

28
 TABLE 3.2.2 GENDER OF THE RESPONDENTS
S.NO. GENDER NO. OF PERCENTAGE
RESPONDENT
S
1. Male 210 84

2. Female 40 16

Total 250 100

CHART 3.2.2 GENDER OF THE RESPONDENTS

29
 PERCENTAGE

90
80
70
60 PERCENTAGE

50 84

40
30
20 16
10
0
Male Female

INTERPRETATION:

It is inferred that 84% of the respondents are male and 16% of the respondents
are female.

TABLE 3.2.3 MARITAL STATUS OF THE RESPONDENTS

S.NO. MARITAL NO. OF PERCENTAGE

STATUS RESPONDENTS (%)

1. Married 70 28

2. Unmarried 180 72

Total 250 100

30
 CHART 3.2.3 MARITAL STATUS OF THE RESPONDENTS

PERCENTAGE (%)

72
80
70
60
PERCENTAGE (%)
50
28
40
30
20
10
0
Married Unmarried

INTERPRETATION:

It is inferred that 28% of the respondents are married and 72% of the respondents
are unmarried.

TABLE 3.2.4 WORKING EXPERIENCE OF THE RESPONDENTS

S.NO. YEARS OF NO. OF PERCENTAGE

WORKING RESPONDENT (%)
S
1. Below 1year 30 12
2. 1-3 years 35 14
3. 4-6 years 55 22

4. 6-7 years 60 24

31
 5. Above 10years 70 28

Total 250 100

S.NO. MONTHLY NO. OF PERCENTAGE(%)

INCOME RESPONDENTS
1. Less than 10000 35 14
2. 10001-15000 50 20
3. 15001-20000 60 24
4. 20001-25000 80 32
5. More than 25000 25 10
Total 250 100
CHART 3.2.4 EMPLOYEES EXPERIENCE OF THE RESPONDENTS

PERCENTAGE (%)
40
35
30
25
PERCENTAGE (%)
20 38
15 30 32

10
5
0
Below 1year 1-3 years Above 3 years

INTERPRETATION:

It is inferred that 38% of the respondents are working from 1-3years, 30% of the respondents are
working above 3years and 32% of the respondents are working below 1year.

TABLE 3.2.5 MONTHLY INCOME OF THE RESPONDENTS

CHART 3.2.5 MONTHLY INCOME OF THE RESPONDENTS

32
 PERCENTAGE(%)
35 32
30
24
25 20
20 14
15
10 10 PERCENTAGE(%)
5
0
0
00

0
00

0
10

00

0
15

00
an

0
20
1-

00
25
th

1-
00

25
1-
00
ss

10

00

n
Le

15

ha
20

et
or
M

INTERPRETATION:
It is inferred that 32% of the respondents are earning monthly 10001-15000, 20%
of the respondents are earning monthly less than 10000, 14% of the respondents are earning
monthly 15001-20000, 24%of the respondents are earning monthly 20001-25000 and 10%of the
respondents are earning monthly more than 25000.

TABLE 3.2.6 SATISFACTION OF CURRENT JOB OF THE RESPONDENTS

S.NO. SATISFACTION NO. OF PERCENTAGE(%)

OF CURRENT RESPONDENT
JOB S
1. Yes 180 72

2. No 70 28

Total 250 100

33
 CHART 3.2.6 SATISFACTION OF CURRENT JOB OF THE RESPONDENTS

SATISFACTION OF CURRENT JOB

P
E
R 100 84
C
E 80
N
T 60
A 40
16
G
E 20
(
0
% Yes No
)
SATISFACTION OF CURRENT JOB

INTERPRETATION:

It is inferred that 72% of the respondents are satisfied about their current job and
28% of the respondents are unsatisfied about their current job.

TABLE 3.2.7 REASONS FOR RESIGNING OF THE RESPONDENTS

S.NO. REASONS NO. OF PERCENTAGE (%)

RESPONDENTS
1. Low salary 10 11
2. No personal life 19 21
3. No growth opportunities 16 18
4. Policies & procedures not 26 29
conductive
5. Uneasy relationship with peers or 19 21

34
 managers
Total 90 100

CHART 3.2.7 REASONS FOR RESIGNING OF THE RESPONDENTS

P REASONS FOR RESIGNING

E 29
21 18 21
R 30
25 11
C 20
15
10
5
E 0
N
T
A
G
E
(
%
) REASONS FOR RESIGNING

INTERPRETATION:

It is inferred that 29% of the respondents are resigning for lucrative opportunities
from other companies, 21% of the respondents are resigning for infrastructure and others,18% of
the respondents are resigning for Bad experience with peers and 11% of the respondents are
resigning for low salary.

TABLE 3.2.8 EFFECTIVELY THE TRAINING PROGRAMME OF THE

RESPONDENTS

S.NO. INITIATIVES NO. OF PERCENTAGE

RESPONDENT (%)
S
1. Yes 170 68

2. No 80 32

Total 250 100

35
 TABLE 3.2.8 EFFECTIVELY THE TRAINING PROGRAMME OF THE
RESPONDENTS

PERCENTAGE(%)

70
60
50 PERCENTAGE(%)
68
40
30 32
20
10
0
Yes No

INTERPRETATION:

It is inferred that 68% of the respondents are accepting and 32% of the respondents are not
accepting about an initiatives in their organization for retaining the employees.

TABLE 3.2.9 REASONS TO RESIGN THE JOB OF THE RESPONDENTS

S.NO. FACTORS NO. OF PERCENTAGE (%)

RESPONDENTS
1. Low Salary 24 27
2. Bad employment practices 21 23
3. Bad experience with peers 23 26
4. Lucrative opportunities from 10 11
other companies
5. Lack of social life 12 13
Total 90 100

36
 CHART 3.2.9 REASONS TO RESIGN THE JOB OF THE RESPONDENTS

FACTORS TO RETAIN EMPLOYEES

27 23 26
P
E 30
25 11 13
R 20
15
C 10
5
E 0
N
T
A
G
E
(
%
)
FACTORS TO RETAIN EMPLOYEES

INTERPRETATION:

It is inferred that 27% of the respondents are expecting salary hike, 26% of the
respondents are expecting promotion, 23% of the respondents are expecting training and
development programs, 13% of the respondents are expecting counseling and 11% of the
respondents are expecting flexible working hours.

TABLE 3.2.10 INITIATIVES FOR RETAINING OF THE RESPONDENTS

S.NO. INITIATIVES NO. OF PERCENTAGE

RESPONDENT (%)
S
1. Yes 170 68

2. No 80 32

Total 250 100

37
 TABLE 3.2.10 INITIATIVES FOR RETAINING OF THE RESPONDENTS

PERCENTAGE(%)

70
60
50 PERCENTAGE(%)
68
40
30 32
20
10
0
Yes No

INTERPRETATION:

It is inferred that 68% of the respondents are accepting and 32% of the
respondents are not accepting about an initiatives in their organization for retaining the
employees.

TABLE 3.2.11 EFFORTS DO THEY MAKE OF THE RESPONDENTS

S.NO. APPRECIATION NO. OF PERCENTAGE

RESPONDENTS (%)
1. Offer salary hike 40 16
2. Offer training and development 80 32
programs.
3. Offer a promotion 45 18
4. Provides flexible work hours 35 14
5. Opportunities for international 50 20
travel

38
 Total 250 100

CHART 3.2.11 APPRECIATION FROM SUPERIOR OF THE RESPONDENTS

PERCENTAGE (%)
35
30
25
20 32
15 18 20
10 16 14
5 PERCENTAGE (%)
0
th s s re ts
on th th Ra ge
m on on r / at r
a 3m 3m ve e
i n 2- n Ne g th
ce i n ha in
O n ce ret i ev
O n o ch
M a
n
he
W

INTERPRETATION:

It is inferred that 32% of the respondents are rewarded by once in 2-3months,

20%of the respondents are rewarded when achieving the targets, 18% of the respondents are
rewarded more than 3months, 16%of the respondents are rewarded by once in a month and 14%
of the respondents are rewarded as never/rare.

TABLE 3.2.12 REWARDED/ PRAISED BY YOUR BOSS OF THE RESPONDENTS

S.NO. SATISFACTION NO. OF PERCENTAGE (%)

LEVEL RESPONDENTS
1. Once in a month 50 20
2. Once in 2-3 months 90 36
3. More than 3 months 60 2
4. Never/Rare 35 14
5. On achieving the 15 6
targets
Total 250 100

39
 CHART 3.2.12 REWARDED/ PRAISED BY YOUR BOSS OF THE RESPONDENTS

PERCENTAGE(%)
40
35
30
25 36
20
15 20 24
10 14 6
5
0 PERCENTAGE(%)
ed ed ed ed ed
tisf tisf tisf tisf tisf
sa Sa s sa s sa s sa
ly di Di di
gh r ly
Hi no i gh
ed H
tisf
sa
er
ei th
N

INTERPRETATION:

It is inferred that 36% of the respondents are satisfied 24% of the respondents are
neither satisfied nor dissatisfied, 20% of the respondents are highly satisfied, 14% of the
respondents are dissatisfied and 6% of the respondents are highly dissatisfied about their
promotion policies.

TABLE 3.2.13PHYSICAL FITNESS OF THE RESPONDENTS

S.NO. SATISFACTION LEVEL NO. OF PERCENTAGE (%)

RESPONDENTS
1. highly satisfied 38 15
2. Satisfied 54 22
3. neutral 108 43
4. dissatisfied 40 16
5. highly dissatisfied 10 4
Total 250 100

CHART 3.2.13 PHYSICAL FITNESS OF THE RESPONDENTS

40
 PERCENTAGE (%)
43
45
40
35
30 22
25 15
20 16
15
10 PERCENTAGE (%)
5 4
0
nt
lle od d
c e Go ba Ba
d d
Ex r ba
no ry
d
goo Ve
er
ie th
N

INTERPRETATION:

It is inferred that 43% of the respondents are feeling neither good nor bad, 22% of
the respondents are feeling good, 16% of the respondents are feeling bad, 15% of the
respondents are feeling excellent and 4% of the respondents are feeling very bad about transport
facility.

TABLE 3.2.14 WORKING ENVIRONMENT OF THE RESPONDENTS

S.NO. WORKING NO. OF PERCENTAGE (%)

ENVIRONMENT RESPONDENTS
1. Very good 55 22
2. Good 51 20
3. Fair 51 20
4. Average 85 34
5. Bad 8 3
Total 250 100
CHART 3.2.14 WORKING ENVIRONMENT OF THE RESPONDENTS

41
 PERCENTAGE(%)
22
3

34
Very good
Good
Fair
Average
Bad

20
20

INTERPRETATION:

It is inferred that 34% of the respondents are feeling average, 20% of the
respondents are feeling good and fair, 22% of the respondents are feeling very good and 3% of
the respondents are feeling bad about their working environment.

TABLE 3.2.15 PROMOTION POLICIES OF THE RESPONDENTS

S.NO. SATISFACTION LEVEL NO. OF PERCENTAGE(%)

RESPONDENTS
1. Highly satisfied 45 18
2. Satisfied 80 32
3. Neither satisfied nor 66 26
dissatisfied
4. Dissatisfied 39 16
5. highly dissatisfied 20 8
Total 250 100

CHART 3.2.15 PROMOTION POLICIES OF THE RESPONDENTS

42
 PERCENTAGE(%)
32
35
26
30
25 18
16 PERCENTAGE(%)
20
15 8
10
5
0
Very good Good Neither good nor bad Bad Very bad

INTERPRETATION:

It is inferred that 32% of the respondents are feeling good, 26% of the
respondents are feeling neither good nor bad, 18% of the respondents are feeling very good, 16%
of the respondents are feeling bad and 8% of the respondents are feeling very bad about
relationship with superiors.

TABLE 3.2.16 COMPENSATION OF THE RESPONDENTS

S.NO. SATISFACTION LEVEL NO. OF PERCENTAGE(%)

RESPONDENTS
1. Highly satisfied 51 20
2. Satisfied 70 28
3. Neither satisfied nor dissatisfied 90 36
4. Dissatisfied 23 9
5. Highly dissatisfied 13 5
Total 250 100

CHART 3.2.16 COMPENSATION OF THE RESPONDENTS

43
 PERCENTAGE(%)
40
35
30
25 36
20 28
15 20
10 9 5
5
0 PERCENTAGE(%)
d

d
d

d
fe

fe
fe

fe
fe
tis

tis

tis
tis

tis
sa

sa
Sa

sa

sa
s
is

s
ly

Di

di
rd
gh

ly
no
Hi

gh
ed

Hi
sf
ati
s
er
i th
Ne

INTERPRETATION:

It is inferred that 36% of the respondents are neither satisfied nor dissatisfied,
28% of the respondents of the respondents are satisfied, 20% of the respondents are highly
satisfied, 9% of the respondents are dissatisfied and 5% of the respondents are highly dissatisfied
about compensation and promotion policies.

TABLE 3.2.17 BENEFITS PROVIDED OF THE RESPONDENTS

S.NO. SATISFACTION LEVEL NO. OF PERCENTAGE (%)

RESPONDENTS
1. Family Insurance 43 17
2. Transportation 68 27
3. Canteen facilities 92 37
4. Medical benefits 37 15
5. Recreations 10 4
Total 250 100

CHART 3.2.17 BENEFITS PROVIDED OF THE RESPONDENTS

44
 PERCENTAGE(%)
37
40
35
27
30
25 PERCENTAGE(%)
17
20 15
15
10 4
5
0
Excellent GoodNeither good nor bad Bad Very bad

INTERPRETATION:

It is inferred that 37% of the respondents are feeling neither good nor bad, 27% of
the respondents are feeling good, 17% of the respondents are feeling excellent, 15% of the
respondents are feeling bad and 4% of the respondents are feeling very bad about healthy
environment.

TABLE 3.2.18 REASONS FOR LEAVING OF THE RESPONDENTS

S.NO. REASONS NO. OF PERCENTAGE (%)

RESPONDENTS
1. Poor appraisal system 34 14
2. Work pressure 65 26
3. Lack of motivation 33 13
4. Working environment 20 8
5. Health condition 96 38
Total 250 100

CHART 3.2.18 REASONS FOR LEAVING OF THE RESPONDENTS

45
 PERCENTAGE(%)
40
35
30
25
20 38
15 26
10 14
5 13 8 PERCENTAGE(%)
0
re t
m on en on
ste su ati m i ti
sy es v n d
al kp
r oti v i ro co
n
is or f m
en th
ra al
p W ko ng
a p
La
c ki He
or or
Po W

INTERPRETATION:

It is inferred that 38% of the respondents are leaving for health condition, 26% of
the respondents are leaving for work pressure, 14% of the respondents are leaving for poor
appraisal system, 13% of the respondents are leaving for lack of motivation, and 8% of the
respondents are leaving from the job for working environment.

TABLE 3.2.19 BENEFITS TO RETAIN OF THE RESPONDENTS

S.NO. BENEFITS NO. OF PERCENTAGE (%)

RESPONDENTS
1. Holidays 55 22
2. Contacting parties 43 17
3. Secured job 80 32
4. Incentive 59 24
5. Fringe benefits 13 5
Total 250 100

CHART 3.2.19 BENEFITS TO RETAIN OF THE RESPONDENTS

46
 PERCENTAGE(%)
35
30
25
20 32
15 22 24 PERCENTAGE(%)
10 17
5 5
0
s s b e ts
ay r tie jo ntiv ef
lid a ed ce en
Ho ngp c ur In geb
cti Se in
nta Fr
Co

INTERPRETATION:

It is inferred that 32% of the respondents are accepting secured job, 24% of the
respondents are accepting incentive, 22% of the respondents are accepting holidays and 17% of
the respondents are accepting contacting parties, 5% of the respondents are accepting fringe
benefits.

3.2.22 CHI SQUARE TEST

Need for the test

To find the relationship between the experience and the opportunities providing in
organization are valued.

Null Hypothesis (Ho)

There is no significance difference between the experience and the opportunity providing
in your organization are valued.

Alternative Hypothesis (H1)

47
 There is a significance difference between the experience and the opportunity providing
in your the organization are valued.

Level of significance

=0.05

Test Statistic:

REASONS FOR Poor Work Lack of Working Health Total

LEAVING appraisa pressure motivation environmen condition
l system t

Experience
Below 1year 10 4 3 8 5 30
1-3years 13 3 10 5 4 35
4-6years 15 11 9 3 17 55
6-7years 18 5 17 16 4 60
Above10years 12 18 9 13 18 70
Total 34 65 33 20 96 250

2 2
S. No ( OI ) ( Ei ) (Oi Ei) (Oi Ei) (OiEi)
E

1 10 14.21 6.21 38.5641 2.7138

2 13 12.01 1.01 1.0201 0.0849
3 15 8.08 0.08 6.4000 0.7921
4 18 3.68 1.32 1.7424 0.4735
5 12 11.03 1.97 3.8809 0.3518
6 4 10.73 0.23 0.0729 6.7940
7 3 9.07 4.93 24.3049 2.6797
8 11 6.11 0.89 0.7921 0.1296
9 5 2.78 1.22 1.4884 0.4274
10 18 8.33 2.67 7.1289 0.8558
11 3 14.21 -5.21 27.1441 1.9102
12 10 12.01 -3.01 9.0601 0.7543
13 9 8.08 -2.08 4.3262 0.5354

48
 14 17 3.68 -0.68 0.4624 0.1257
15 9 11.03 -5.03 25.3009 2.2958
16 8 13.63 -3.68 13.1769 0.9668
17 5 11.52 -4.52 20.4304 1.7735
18 3 7.76 -2.76 7.6176 0.9816
19 16 3.53 1.53 2.3409 0.6631
20 13 10.58 -2.58 6.6564 0.6291
21 5 5.22 2.78 7.7284 1.4805
22 4 4.41 1.59 2.5381 0.5733
23 17 2.99 4.03 16.2409 5.4683
24 4 1.35 -0.35 0.1225 0.0907
25 18 4.05 2.95 8.7025 2.1487

(OiEi)2
=35 . 6973
E

The calculated value of chi-square is 61.571.

Number of degrees of freedom = (r-1) (r-1)

= (5-1) (5-1)

=16

Interpretation

The tabulated value of chi-square for 16 d.f = 35.6973

Calculated Value >Tabulated Value.

Therefore Ho is accepted.

Conclusion

Ho is accepted therefore, it is concluded that there is no significant different between the

employee experience and their reasons for leaving the organization.

49
 3.2.23 KARL PEARSONS CO-EFFICIENT CORRELATION

Need for test

To identify the organization utilizing satisfied with the level of trust on your team.

FORMULA

COMPENSATION No of respondents PROMOTION No of respondents

POLICIES
Highly satisfied 51 Highly satisfied 45
Satisfied 70 Satisfied 80
Neither satisfied 90 Neither satisfied 66
Dissatisfied 23 Dissatisfied 39
Highly Dissatisfied 13 Highly Dissatisfied 20

X Y X Y XY

50
 51 45 2601 2025 2295
70 80 4900 6400 5600
90 66 8100 4356 5940
23 39 529 1521 897
13 20 400 400 260
X=250 Y=250 X=16530 Y=14702 XY=14992

(250 )2 (250)
16530( )(14702 )
5 5

r=

(250 250)
14992
5

r = 0. 84

CONCLUSION

The value is positive. So that there is no relationship between organization utilizing

satisfied with the level of trust on your terms.

51
 3.2.24 ONE SAMPLE RUN TEST

Need for the study

To identify the organization utilizing satisfied with the proper field to execute your ideas.

FORMULA

Z = R-

YYYYYYYYYYYYYYYYYY NN YYYYYYYYYYYYYYYYYY NN

1 2 3 4

YYYYYYYYYYYYYYYYYY NN YYYYYYYYYYYYYYYYYYY NN

5 6 7 8

YYYYYYYYYY NN YYYYYYYYYY NN YYYYYYYYYY NN

9 10 11 12 13 14

YYYYYYYYYYYYYYYYYYY NN YYYYYYYYYY NN YYYYYYYYYY

15 16 17 18 19

NN YYYYYYYYYY NN YYYYYYYYYYYYYYYYYY N YYYYYY

52
20 21 22 23 24 25

Solution:

Null Hypothesis (Ho):

Ho: YES occurring at random

Alternative Hypothesis:

Ho: NO occurring at random

Level of significance:

a = 0.05

n1=176 n2= 21 R=25

= 217621 +1

176+21

= 37.96

=
2 176 21(2176 2117621)
(176 +21 )2 (176+211)

= 36.53

Z = R-

Z = 25 37.96

53
 36.96

Z = 0.33

Conclusion

The critical value of =5% level of signification is 1.96, so it concluded that the organization
utilizing satisfied with the people field to execute your ideas are occurred with the randomly.

3.2.25 ANOVA

Solution

1. The five rows do not different with respect to mean productivity (ie) Ho1:
1=2= 3= 4= 5

2. The mean productivity is the same for the five different columns.

Innovative & Family transportatio Canteen Medical recreations Total

Approachable/ insurance n facilities benefits
Qualification
Once in 13 18 5 4 23 50
month
Once 2-3 22 20 17 10 9 90
months
More then 3 10 12 11 18 7 60
months
Never/rare 9 9 15 27 20 35
On achieving 13 14 8 14 8 15
the target
Total 43 68 92 37 10 250

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 C.F = 250

25

= 62500

25

C.F = 2500

Total Sum of square

SST - CF

SST = 4305-2500

SST = 1805

Between Rows sum of square

R1 =[ 1st Row total2 / 5]+. [5th Row total2/5]-25

= R1 - CF

= 3281.2-2500

R1 = 781.2

Between Columns sum of square

R2 = [1st Column total2/5]+.. [5th column total/5]-25

= 3130 - 2500

R2 = 630

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Error sum of square

R3 = SST-R1-R2

= 1805 781.2- 630

R3 = 393.8

Sources of D.F Sum of square Mean sum of F-ratio

variation square
Rows [K-1] 474.8 781.2 F1 = 195.3
[5-1] 4 16
=4 = 195.3 = 12.21
Columns [r-1] 180.8 630 157.5
[5-1] 4 16
=4 = 157.5 = 9.84
Errors [K-1] [R-1]
[4] [4]
= 16

F 0.05 (9,84) = 3.01

F 0.05 (9.84) = 3.01

Conclusion

1. F1> F0.05 (9.84) Hence HO1 is accepted. (Ie) The 5 Rows is different with respect to
mean productivity.
2. F2> F0.05 (9.84) Hence HO2 is accepted. The mean productivity is not the same for
columns.

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 3.3 FINDINGS

From the above table, it is inferred that 23% of the respondents belong to the age group
of 26-30, 25% of the respondents belong to 20-25, 18% of the respondents belong to
Below 20, 17% of the respondents belong to 31-35 and 13% of the respondents belong to
the age group of Above 35.
It is inferred that 84% of the respondents are male and 16% of the respondents are
female.
It is inferred that 28% of the respondents are married and 72% of the respondents are
unmarried.
It is inferred that 38% of the respondents are working from 1-3years, 30% of the
respondents are working above 3years and 32% of the respondents are working below
1year.
It is inferred that 32% of the respondents are earning monthly 10001-15000, 20% of the
respondents are earning monthly less than 10000, 14% of the respondents are earning
monthly 15001-20000, 24%of the respondents are earning monthly 20001-25000 and
10%of the respondents are earning monthly more than 25000.
It is inferred that 72% of the respondents are satisfied about their current job and 28% of
the respondents are unsatisfied about their current job.
It is inferred that 29% of the respondents are resigning for lucrative opportunities from
other companies, 21% of the respondents are resigning for infrastructure and others,18%
of the respondents are resigning for Bad experience with peers and 11% of the
respondents are resigning for low salary.

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 It is inferred that 68% of the respondents are accepting and 32% of the respondents are
not accepting about an initiatives in their organization for retaining the employees.
It is inferred that 27% of the respondents are expecting salary hike, 26% of the
respondents are expecting promotion, 23% of the respondents are expecting training and
development programs, 13% of the respondents are expecting counseling and 11% of the
respondents are expecting flexible working hours.
It is inferred that 68% of the respondents are accepting and 32% of the respondents are
not accepting about an initiatives in their organization for retaining the employees.
It is inferred that 32% of the respondents are rewarded by once in 2-3months, 20%of the
respondents are rewarded when achieving the targets, 18% of the respondents are
rewarded more than 3months, 16%of the respondents are rewarded by once in a month
and 14% of the respondents are rewarded as never/rare.
It is inferred that 36% of the respondents are satisfied 24% of the respondents are neither
satisfied nor dissatisfied, 20% of the respondents are highly satisfied, 14% of the
respondents are dissatisfied and 6% of the respondents are highly dissatisfied about their
promotion policies.
It is inferred that 43% of the respondents are feeling neither good nor bad, 22% of the
respondents are feeling good, 16% of the respondents are feeling bad, 15% of the
respondents are feeling excellent and 4% of the respondents are feeling very bad about
transport facility.
It is inferred that 34% of the respondents are feeling average, 20% of the respondents are
feeling good and fair, 22% of the respondents are feeling very good and 3% of the
respondents are feeling bad about their working environment.
It is inferred that 32% of the respondents are feeling good, 26% of the respondents are
feeling neither good nor bad, 18% of the respondents are feeling very good, 16% of the
respondents are feeling bad and 8% of the respondents are feeling very bad about
relationship with superiors.
It is inferred that 36% of the respondents are neither satisfied nor dissatisfied, 28% of the
respondents of the respondents are satisfied, 20% of the respondents are highly satisfied,
9% of the respondents are dissatisfied and 5% of the respondents are highly dissatisfied
about compensation and promotion policies.
It is inferred that 37% of the respondents are feeling neither good nor bad, 27% of the
respondents are feeling good, 17% of the respondents are feeling excellent, 15% of the

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 respondents are feeling bad and 4% of the respondents are feeling very bad about healthy
environment.
It is inferred that 38% of the respondents are leaving for health condition, 26% of the
respondents are leaving for work pressure, 14% of the respondents are leaving for poor
appraisal system, 13% of the respondents are leaving for lack of motivation, and 8% of
the respondents are leaving from the job for working environment.
It is inferred that 32% of the respondents are accepting secured job, 24% of the
respondents are accepting incentive, 22% of the respondents are accepting holidays and
17% of the respondents are accepting contacting parties, 5% of the respondents are
accepting fringe benefits.

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 3.4SUGGESTIONS

Performance of workers should be recognized properly. They should be appreciated for

their work.
There should be feedback forms for supervisors as well as workers so that all come to

know about the feelings that everyone has for each another.

There should be performance appraisal quarterly. Performance of employees should be

evaluated and best employee should be chosen. And he should be given award either
monetary or non monetary.
New methods to find out talent / job seekers through internet etc. should be adopted.
Employees should be given the facility of flexible working hours.
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.
Management should understand what the employees want. They cannot be retained only
by giving them monetary benefits. Management should interview the employees time to
time.
Company should show more concern towards employees.

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 3.5CONCLUSION

The retention of required talent is an important aspect to ensure overall development of the
organization. Such employees remain satisfied and committed to their job which enhances the
productivity and overall working environment providing an 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. Employees stay in ABC Co. Ltd for 5-10 years almost. They stay because of job
security. Management said that employees stay in their company for job security. Employees are
not satisfied with career opportunities in the company. 28% stay because of working
environment. Company provides bonus and incentives to the employees. In spite of this, 37% of
employees want to leave the company. Employees said that company should show more concern
towards them. The employees think that there is less communication between workers and
supervisors. They feel that they are only employees but not a part of the company. So there
should be better communication in the company. There is lack of appreciation of workers for
their performance which demotivates them. They want that there salary should be paid according
to work and their work should be appreciated/recognized. According to employees, base of
retention is the flexible working hours. So that workers feel convenient in doing work that they
are not rigid to time. But according to management base of retention is bonus and incentives.
They think that employees can be retained by giving them bonus. In same way, they also said
that to improve retention better benefits should be provided to employees. This is the gap
between managements and workers thinking. Workers want the flexible hours and company
gives bonus to retain the employees. 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.
There are very few employees who want to leave the job. Employees are happy with the benefits,
provided to them.

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BIBLIOGRAPHY:
(A) BOOKS
1) Gupta Shashi K. & Joshi Rosy, Human Resource Management, Tata McGraw Hill,
Fourth Revised & Enlarged Edition, 2007. (Page 20.9- 20.14)
2) KOTHARI C.R., Research methodology, New Age Publishing House, Second Edition.
(B) LINKS
1) http://epa.sagepub.com/cgi/content/abstract/27/4/309
2) http://erx.sagepub.com/cgi/content/abstract/21/6/423
(C) WEBSITES
1) www.google.com
2) www.yahoo.com
3) www.jomsagepub.com

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