VISION STATEMENT

“Continue to remain the best Cement Corporation in

India with growth in allied areas.”

MISSION STATEMENT
To provide utmost satisfaction to the consumer through best quality
and customer care

To continuously upgrade the product through innovations and

convergence of new technology and to produce the best quality at the
lowest cost

To safeguard and enhance shareholder value

To respect the dignity of all employees and together to become

instrumental in the development of the country while protecting the
environment

To utilize the surpluses for the welfare of employees and the society at
large.

1
 CODE OF CONDUCT PHILOSOPHY

Cement Manufacturing Co. Ltd. is a professionally managed company. The company always
believes in complete transparency and discharge of the fiduciary responsibilities which has
been assumed by Directors as well as by the Senior Management Executives and/or Staff.
Therefore in order to ensure the continuity thereof though, not written but otherwise
ingrained, the Board of Directors has approved of the following Code of Conduct for all
Directors as well as for the Senior Management Executive and/or personnel and other
employees.

All the Directors as well as Senior Management Executive and/or Personnel owe to the
Company as well as to the shareholders :

1. “Fiduciary duty”

2. “Duty of skill and care”

3. “Social responsibility”

With the above objects in mind the following code of conduct has been evolved and it is
expected that all Directors as well as Senior Management Executives and/or personnel will
adhere to it.

FIDUCIARY DUTIES

All Directors as well as Senior Management Executives and/or personnel while dealing on
behalf of the company will exercise the power conferred upon him / them and fulfil his / their
duties honestly and in the best interest of the company.

DUTY TO EXERCISE POWER FOR PROPER PURPOSES

The Board from time to time shall determine the powers to be exercised by the Directors as
well as the Senior Management Executives and/or Personnel and all such powers shall be
exercised reasonably.

CONFLICT OF INTEREST

None of the Directors and/or Senior Management Executives and/or personnel will put
himself in a position where there is potential conflict of interest between personal interest and
his duty to the company. None of the Directors and/or Senior Management Executive and/or

2
personnel will exploit an opportunity arising while associated with the Company for his
personal gain either directly or indirectly.

SECRET PROFITS

The Director as well as Senior Management Executives and/or personnel while discharging
their duties in a fiduciary capacity is precluded from making any personal profit from an
opportunity which may arise being a Director and / or Senior Management Executive of the
Company and should always ensure that he is acting for and on behalf and for the good of the
Company.

DUTY OF SKILL AND CARE

Since all the Directors as well as Senior Management Executives and / or personnel are
acting in a fiduciary capacity and for the benefit of the company, being advocates of the
business of the Company, none of them will do anything which is in conflict with the interest
of the company.

ATTENTION TO BUSINESS

All Directors as well as Senior Management Executives and/or personnel will give proper
attention to the business of the company.

SECRECY AND CONFIDENTIALITY

None of the Directors as well as Senior Management Executives and/or personnel while
associated or working for the company will be entitled to disclose either directly or indirectly
or make use of the confidential information which may come in their possession while acting
on behalf of the company and shall not divulge the financial status and position of the
company to any person or persons.

INTERNAL TRADING

None of the Directors as well as Senior Management Executives and/or personnel will
directly or indirectly in the name of his family members and/or associates will indulge in any
internal trading of the company’s shares and stocks.

RISK AND PROPER PROCESS

The Senior Management personnel and/or employees are expected to keep the Directors fully
informed about the effect of the policies adopted by the company from time to time and also
regarding the risk connected with such policies.

Senior Management personnel and/or staff who have been entrusted with specific duties for
ensuring compliance of statutory requirements including the rules and regulations shall

3
forthwith comply with the same and keep the Board of directors fully informed about such
compliance or non-compliance.

Senior Management personnel will from time to time provide or cause to be provided a true
and faithful account of the company’s working and effectiveness of the procedures adopted
by the company from time to time.

All Directors as well as Senior Management Executives and/or personnel are aware that
while working with the company they have a social responsibility as well and therefore from
time to time will devote such time for the upliftment of the downtrodden, poor and needy
persons in the locality.

4
 Executive Summary

Employee retention is a process in which the employees are encouraged to remain with the
organization for the maximum period of time or until the completion of the project.
Employee retention is beneficial for the organization as well as the employee. Employees
today are different. They are not the ones who don’t have good opportunities in hand. As
soon as they feel dissatisfied with the current employer or the job, they switch over to the
next job. It is the responsibility of the employer to retain their best employees. If they don’t,
they would be left with no good employees. A good employer should know how to attract
and retain its employees.

Most employees feel that they are worth more than they are actually paid. There is a natural
disparity between what people think they should be paid and what organizations spend in
compensation. When the difference becomes too great and another opportunity occurs,
turnover can result. Pay is defined as the wages, salary, or compensation given to an
employee in exchange for services the employee performs for the organization. Pay is more
than "dollars and cents;" it also acknowledges the worth and value of the human contribution.
What people are paid has been shown to have a clear, reliable impact on turnover in
numerous studies. Employees comprise the most vital assets of the company. In a work place
where employees are not able to use their full potential and not heard and valued, they are
likely to leave because of stress and frustration. In a transparent environment while
employees get a sense of achievement and belongingness from a healthy work environment,
the company is benefited with a stronger, reliable work-force harboring bright new ideas for
its growth

5
 Chapter: 1

INTRODUCTION

6
 INDUSTRY PROFILE

CEMENT MANUFACTURING CO. LTD.

Overview: Cement Manufacturing Company Limited (CMCL) is the largest cement

manufacturer in north east India. Our plant is spread across 40 acres of land in the idyllic
town of Lumshnong, a strategic location at Meghalaya that ensures easy availability of high-
grade limestone. Our brand “Star Cement” has established itself as the most accredited brand
of the region on grounds of both quality and fair pricing.

Cement Manufacturing Company Limited is one of the most profitable cement manufacturers
in North East India.

• Because of its prudent locational advantage

• Because of its timely raw material linkage

7
 • Because of its proactive capacity expansion
• Because of its expert brand positioning
Parentage: CMCL is a 70.48% subsidiary of Century Plyboards (India) Limited.

Product: CMCL’s product range includes Ordinary Portland Cement (OPC 43-Grade) and
(OPC 53-Grade) and Portland Pozzolana Cement (PPC) in line with evolving customer
needs.

Plant: CMCL’s 0.6 MTPA integrated cement plant at Lumshnong (Meghalaya) is proximate
to key raw material reserves of limestone, coal and shale. The company also added 0.46
MTPA cement unit in Meghalaya (via its subsidiary) aggregating an installed capacity of 1.0
MTPA.

Pride: CMCL was recognized by the Meghalaya state government for its pioneering cement
plant in the backward area of Lumshnong in 2005. The company is ISO 9001:2000 certified.

Penetration: CMCL’s brand “Star Cement’ is one of the largest in the Northeastern region.
Its output is marketed through a 400 b dealer network resulting in the largest market share in
North East India. The Company’s institutional customers comprise Larsen & Tourbo,
National Hydro Power Corporation, Public Works Department, Indian Railways and Ministry
of Defence.

The plant is located at village Lumshnong, situated on National Highway 44 and 135 Kms
away from Shillong towards Silchar; in Jaintia Hills.Meghalaya.

This plant has been producing clinker from 23rd Dec.2004 and cement from 2nd Feb.2005.
This is the largest cement plant in North East India, which is shortly to be expanded to 1
Million Ton per annum capacity.

Presently CMCL is marketing super quality clinker to different grinding units located in
India, Nepal & Bhutan, along with cement of 3 types.

1. Ordinary Portland Cement 43 grade

2. Ordinary Portland Cement 53 grade
3. Portland Pozzolana Cement Part I Fly ash based

The fourth variety i.e Portland Pozzolana cement Part II. Calcined clay based will shortly to
be introduced. The company has received BIS License for the products being sold in the
market. The company has developed a good image in the Market since launch of the product
due to its superior quality. The company has also received ISO certificate.
The plant was supplied by M/S Walchandnagar, Pune.

8
DIFFERENT PRODUCT PROFILE
Product: CMCL’s product range includes Ordinary Portland Cement (OPC 43-Grade) and
(OPC 53-Grade) and Portland Pozzolana Cement (PPC) in line with evolving customer
needs.

Products

Ordinary Portland Cement 53 & 43 Grade

OPC 53 is a higher strength cement to meet the needs of the consumer for higher strength
concrete. As per BIS requirements the minimum 28 days compressive strength of 53 Grade
OPC should not be less than 53 Mpa. For certain specialized works, such as prestressed
concrete and certain items of precast concrete requiring consistently high strength concrete,
the use of 53 grade OPC is found very useful. 53 grade OPC produces higher-grade concrete
at very economical cement content. 53 Grade OPC can be used for the following
applications.

RCC works(preferably where grade of concrete is M-25 and above) Precast concrete items
such as paving blocks, tiles building blocks etc.Prestressed concrete components Runways,
concrete Roads, Bridges etc.purpose cement in the country today. The production of 43 grade
OPC is nearly 50% of the total production of cement in the country. The 43 grade OPC can
be used for following applications.

General Civil Engineering construction work.

9
RCC works ( preferably where grade of concrete is up to M-30)
Precast items such as blocks, tiles, pipes etc.
Asbestos products such as sheets and pipes
Non-structural works such as plastering, flooring etc.

Portland Pozzolana Cement (PPC)

The Portland Pozzolana Cement is a kind of Blended Cement which is produced by either
intergrinding of OPC clinker along with gypsum and pozzolanic materials in certain
proportions or grinding the OPC clinker, gypsum and Pozzolanic materials separately and
thoroughly blending them in certain proportions. Pozzolana is a natural or artificial material
containing silica in a reactive form. It may be further discussed as siliceous and aluminous
material which itself possesses little, or no cementitious properties but will in finely divided
form and in the presence of moisture, chemically react with calcium hydroxide at ordinary
temperature to form compounds possessing cementitious properties. It is essential that
pozzolana be in a finely divided state as it is only then that silica can combine with calcium
hydroxide (liberated by the hydrating Portland Cement) in the presence of water toform
stable calcium silicates which have cementitious properties. The pozzolanic materials
commonly used are:

Volcanic Ash
Calcined clay
Fly Ash
Silica Fumes

10
The Indian Standards for Portland Pozzolana Cement have been issued in two parts based on
the type of pozzolanic materials to be used in manufacturing of Portland Pozzolana Cement
as given below:

IS 1489 (Part 1) 1991, Portland Pozzolana Cement ? specification (fly ash based)
IS 1489 (Part 2), Portland Pozzolana Cement ? specification (Calcined clay based)
The quality of flyash or calcined clay to be used in manufacturing of PPC is also specified by
BIS in the following standards:
IS 3812 1981 - specification for flyash as pozzolana and admixture
IS 1344 1981 - specification for calcined clay pozzolana

The Portland Pozzolana Cement is ideally suited for the following construction.

Hydraulic structures
Mass concreting works
Marine structures
Masonry mortars and plastering
Under aggressive conditions.
All other application where OPC is used.

11
 FROM THE DIRECTORS’S DESK

Shri Sajjan Bhajanka (Chairman) is a Commerce Graduate from

Dibrugarh University, Assam. He has business and industrial experience of more than 25
years in the fields of Plywood, Ferro Silicon, Granite, export and import. He is the Managing
Director of Century Plyboards (I) Limited, the largest producer of plywood, laminates and
block-boards in India. Mr. Bhajanka is also the Chairman of Shyam Century Ferrous Ltd.,
one of the leading manufacturers of Ferro Silicon in India. Mr. Bhajanka is the President of
the Federation of Indian Plywood and Panel Industry and All India Veneer Manufacturers
Association. He is also a member of Governing Boards like Indian Plywood Industries
Research and Training Institute, Bangalore and Bharat Chamber of Commerce. He is a
promoter Director and also the Chairman of Cement Manufacturing Company Ltd.

Mr. B. Bhusan Agarwal, is a commerce graduate by qualification, he is

the main driving force behind the Shyam Group of Kolkata. Shyam Group of Kolkata is a
very well reputed business house, which is the leader in steel manufacturing in the secondary
sector in Eastern India. Mr. Agarwal is the Managing Director of M/s Shyam Sel Ltd., which
has a number of Mini Steel Plants and Steel Rolling Mills in West Bengal. He is also a
Director in M/s Shyam Ferro Alloys Ltd. and Shyam Century Ferrous Ltd., both of which are
successfully manufacturing Ferro Alloy products. His vision, foresight and ability to execute

12
projects in the fastest manner with minimum cost implication, has been instrumental in the
group’s foray into Ferro Alloys. He has also carved out expansion plans for various units of
the group and is putting up captive power plants. He has built a good reputation in the
industry and government circles in Eastern India. He is also attached with various social
organizations and industrial chambers. He is a promoter Director of Cement Manufacturing
Company Ltd.

Shri Sanjay Agarwal (Director Marketing), is a Commerce Graduate

from Calcutta University. He has business and industrial experience of about 15 years. He is
the Dy. Managing Director of Century Plyboards (India) Limited. He is the driving force
behind the successful marketing of 'Century PF' Brand and its distribution besides his
contribution to general management aspects of the company. He is also a promoter Director
of Cement Manufacturing Co. Ltd.

Mr. Sajjan Kumar Bansal, is a commerce graduate. He is an

experienced industrialist, who played a key role in building up the brand name “BANSAL”
and making it a front ranking player in the steel tube industry. Mr. Bansal has the credential
of successfully implementing a number of projects. He is also a promoter director of M/s
BMW Industries Limited, a reputed Company which manufactures the products like Black
and Galvanized Steel Tubes/Poles, PVC Pipes, LPG Cylinders, Tubular and High Mast
Poles, Transmission and Telecommunication Microwave Towers and accessories. An active
social worker, Mr. Bansal is the Vice-President and one of the founder members of the
renowned NGO, Friends of Tribal Society.

13
 Mr. Prem Kumar Bhajanka, is a well-known industrialist having an
experience of more than 20 years. He is the Managing Director of M/s Century Panels Pvt.
Ltd., which manufactures veneer, plywood, block boards and flush doors. Mr. Bhajanka is
also the promoter director of M/s Namchic Tea Estate Pvt. Ltd. and M/s. Lal Pahar Tea
Estate Pvt. Ltd., which are having tea estates in NE region.

Mr. Rajendra Chamaria, is a Commerce graduate. He is a partner in

Nefa Udyog, Banderdewa, and Arunachal Pradesh. Nefa Udyog Ltd., is engaged in the
business of timber in a large scale in the state of Arunachal Pradesh. Mr. Chamaria is also a
Director in M/s Donypolo Udyog Ltd. The company deals in concrete business i.e.
manufacturing different types of concrete sleepers. He is also a promoter Director of Cement
Manufacturing Company Ltd.

Mr. S. B. Roongta, has an experience of more than 40 years in the

Cement Industry. He is an engineer by qualification and was the Ex-President of Satna
Cement Work, a unit of Birla Corporation Ltd. He has excelled in carrying out various
technological developments and innovations at all the plants he has worked with. He is a
Managing Director at Cement Manufacturing Company Limited and is responsible for
project planning, selection of process and Machinery, Techno economic evaluation,
execution, erection and commissioning, production and maintenance of dry process cement

14
plant. He has written many articles on various aspects in the Cement Industry, which have
been published at the National and International level. He has also held a number of honorary
posts in Corporate Institutional Organizations and Govt. Institutions.

Mr. Pankaj Kejriwal, is a Chemical Engineer by profession from

(UDCT, Mumbai) which is a renowned institution of India. He started his career with
Technimont ICB, Mumbai, a leading consultancy firm for chemical industries. He then
joined as Executive Director in M/s Avanti Ampoules Pvt. Ltd., which is engaged in the
business of manufacturing glass ampoules for all the major pharmaceutical companies of the
country. From 1999 he associated himself with M/s Barak Valley Cements Ltd., a Rotary
Kiln Cement Plant situated at Badarpur Ghat, Dist. Karim Ganj, Assam. In 2002, he joined
M/s Cement Manufacturing Co. Ltd. as an Executive Director and played a major role in
conceptualizing, erection and commissioning of the plant in a record time of 18 months. He
has made a significant contribution to the company in achieving higher outputs and making it
the largest manufacturer of cement in the entire North East.

Ms. Payal Bhajanka, is a commerce graduate from Lancaster

University, UK. After completing her degree in Business administration, she worked as a
financial consultant for a year for a reputed consultancy firm in Kolkata. She is now an
executive director in Cement Manufacturing Company Limited and is instrumental in the
project planning of the various expansion activities of the company.

15
 ONGOING PROJECTS

Cement Manufacturing Company Limited has committed itself to expand and reach new
horizons so that it can make the most of economies of scale and make available its products
to its esteemed customers at a lower price.

Project 1

Company : Cement Manufacturing Company Limited (CMCL)

Grinding Unit, Chamata Pathar, Kamrup District, Assam

• Environment Clearance of the project by Ministry of Environment and Forests, Govt. of

India, New Delhi

• Six monthly compliance report of the stipulated conditions in the Environment Clearance

Project 2

Company : Star Cement Meghalaya Ltd. (SCML)

• Environment Clearance

Constitution: Subsidiary of CMCL

Project : Setting up a 5300 TPD Cement Clinkerization unit for manufacturing of Clinker in
Lumshnong, Meghalaya with an annual capacity of 1.75 million Tons.

For increasing the cement clinker manufacturing capacity, SCML is setting up a 5300 TPD
Clinkerisaton Unit at Lumshnong, Meghalaya. The clinker to be produced by this unit shall
be transferred to CMCL’s proposed grinding units at Guwahati and Siliguri (as mentioned
below) which will be adjacent to the main markets.

The company is guided and technically assisted by reputed technical consultant viz. M/s
Holtec Consulting Private Limited, Gurgaon (HOLTEC) which is the leading and most
reputed technical consultants in the cement industry and has set up more than 300 cement
plants in India and abroad. The existing cement plants of CMCL have also been set up under
technical assistance from Holtec.

16
Considering substantial energy saving, SCML has opted for the Vertical Roller Mill (VRM)
technology for the proposed clinker unit. The unit will enjoy the benefit of proximity of high
quality raw materials viz limestone and coal. The project is located adjacent to our existing
cement plant which will facilitate use of existing infrastructure, social amenities like
residential colony, dispensary, shopping complex, guesthouse, school etc. As per North
Eastern Industrial and Investment Promotion Policy (NEIIPP), 2007, the unit will be eligible
for Excise Duty Exemption, Income tax exemption, Capital Investment Subsidy, Interest
Subsidy, Comprehensive Insurance and Transport Subsidy. The Clinkerization unit of SCML
is scheduled to commence commercial production from April 2010.

Project 3

Company : Cement Manufacturing Company Limited (CMCL)

Project : Setting up a 4848 TPD Grinding unit in Guwahati with an annual capacity of 1.6
million Tons.

CMCL also proposes to set up a Grinding unit of 1.6 million tons capacity in Guwahati,
Assam. The Guwahati Grinding Unit site is located at Chamata Pathar, Mouza Sonapur, Dist
Kamrup on the national highway NH-37 connecting Guwahati and lower Assam. The project
site is located at 42 km from Guwahati and 97 km from Shillong. The nearest airport is
Guwahati, which is at a distance of about 45 km from the plant site. The site is well
connected by road from Guwahati. Digaru is the nearest broad gauge railway station of North
Eastern railway at about 3 km distance from the plant site. We propose to develop our own
railway siding by taking a branch line of 2 km length from the existing main track. The
Grinding unit at Guwahati would bring CMCL closer to its largest market viz. Assam which
is currently accounts for almost 50% of the sales. The Units would also cater to neighboring
states like Arunachal Pradesh and Nagaland. This will result in substantial savings in freight
cost.

Project 4

Company : Meghalaya Power Limited (MPL)

Constitution: Subsidiary of CMCL

Project : Setting up a Power Plant of (8*1 MW) & (43*1 MW) capacity power plant in
Meghalaya.

17
Meghala Power Limited (MPL) is setting up an Independent power plant to cater to the
power requirement of “STAR CEMENT”. In Phase-I, MPL intends to set up a 8*1 MW
thermal power plant. The entire cement mill power demand will be met with the new
Thermal power plant and the balance power will be exported to Meghalaya State electricity
board (or) Power grid corporation Limited by stepping up to 132 KV from 11 KV generation
level. With captive generation of power, the company will enjoy a cost advantage in its
power cost savings. In turn the production cost of cement also will be reduced. MPL had
already engaged M/s.ARK Engineering and Consultancy, Trichy to study and submit the
detailed project report and Engineering consultancy services for the proposed Independent
power plant. Phase- I is in its final stages of completion and intends to start generation of
power from April’2009. In Phase-II, the company will set up a 43 MW thermal power plant
Power generated from Phase-II of the project will be used to cater to the power requirement
of the group concern.

Project 5

Company : Cement Manufacturing Company Limited (CMCL)

Project : Setting up a 4848 TPD Grinding unit in Siliguri with an annual capacity of 1.6
million Tons.

Siliguri Grinding Unit site is located near Mohit Nagar Railway Crossing and about 2 km
from Haldibari Road. The plant is well connected by road from Siliguri which is about 15 km
from the site. Raninagar is the nearest railway station of North Eastern Railway at about 15
km distance from the site. The nearest airport is at Bagdogra, which is at a distance of about
12 km from the site. The grinding unit at Siliguri in West Bengal would bring the company
closer to cement deficit states like West Bengal, Bihar, Jharkhand and Sikkim and also help it
to capitalize on any export opportunity to Bhutan. By transporting clinker from SCML to
grinding unit in Siliguri, a substantial savings would be there in freight cost of clinker as
compared to that of cement. Similarly instead of transporting fly ash/slag to all the way to
Lumshnong, Meghalaya, it will now be transported to the nearest grinding units, thus
resulting in substantial savings in the freight cost.

18
 AWARDS RECEIVED

Cement Manufacturing Company Limited has received UDYOG RATNA AWARD in the
year 2010, for its optimum performance.

CMCL was recognized by the Meghalaya state government for its pioneering cement plant
in the backward area of Lumshnong in 2005. The company is ISO 9001:2000 certified. The
company is also certified with OHSAS(Occupational Health and Safety Management
System) Certificate. The company is also certified with EMS(Environmental Management
System) Certificate.

QUALITY MANAGEMENT SYSTEM (ISO 9001 : 2000) :

The Management System ( ISO - 9000) provides guidelines to ensure the effectiveness and
efficiency of a quality management system and improvement in the performance of an
organization. Organization and employees are benefited by Quality Management System .

QMS - Benefits :

 Uniformity of documentation and systematically defined the activities to obtain a

desired results.
 Better working conditions and enhance job satisfaction.
 Increase effectiveness in the use of the organization’s resources to enhance
customer satisfaction and understanding customer needs & expectations.
 Establish a clear vision of the organization’s future and set challenging goal and
targets
 Provide required resources to employees, training, and freedom to act with
responsibility and accountability.
 Establish a trust and eliminate fear. Inspiring, encouraging and recognizing
employee’s contribution.
 Employees at all levels are motivated & committed within the organization.
 Employees evaluate their performance against their departmental ‘s objectives
and targets and contribute continual improvement in the organization.
 Continual improvement of products, processes and systems in the organization.
 Fulfillment of legal and regulatory requirements

19
ENVIROMENTAL MANAGEMENT SYSTEM ( ISO : 14001) :

Environment, it means surrounding in which an organization operates, including Air, Water,

Land, other natural resources, Flora, Fauna, Human and inter – relations among these.
Organization and employees are benefited by Environmental Management System (EMS).

EMS - Benefits :

 Uniformity of documentation and statement of Environmental Policy, Objectives and

Targets.
 Reduced environmental impacts.
 Better environment for surrounding livings of all around.
 Improved health and safety environment
 Enhance effectiveness conversation of natural resources by utilization of industrial
wastes in process.
 Regulatory set and review objectives and targets for Continual improvement in
productivity , work environment.
 Establish, implement and maintain procedure to identify potential environmental
accidents and emergency situations.
 Increase involvement of employees and business associates for a clean and green
environment.
 Enhance corporate image.
 Easy to Fulfillment of compliance with all environmental legislation and regulations
applicable to plant operations.

OCCUPATIONAL HEALTH & SAFETY MANAGEMENT SYSTEM

( OHSAS -18001) :

This system ensures safety of all operational activities not only the safe and sound
environment in the organization . it also ensures health hazards to the people working in and
around. Safety activities, monitoring and structured preventive action plan through OHSMS
results in Zero accident.

OHSMS – Benefits :

 This system ensures minimize injury and ill health

 Minimize hazards & risks due to effectiveness of risk control measures.
 Easy to comply all applicable legal and corporate requirements.
 It continually improve occupational health & safety performance by involving and
training human resources.
 Public demonstration of due diligence.
 Positive response from potential customers.
 Enhance corporate image

20
 CUSTOMER SERVICE

Effective Quality Control is only half the story behind the wide spread acceptance enjoyed by
our brand. The other half of the credit belongs to our Technical Service Cell, an integral part
of our plant & marketing. Besides organizing various meets and attending to customer
inquiries, the cell shares with the marketing division the responsibility of elevating the brand
image in the eyes of the consumers. The specific functions being:

• Providing technical backup to consumers.

• Assisting customers on technical issues relating to architectural, structural and
general civil engineering
• Conducting technical seminars.
• Conducting awareness programs.
• Continuous analysis of market feedback leading to continuous improvement in
quality and production.
• Educating field staff & marketing force about product & application.
• Ensuring compliance with Quality Management System ISO 9001 – 2000.

We at Cement Manufacturing Company Limited care for your building and that’s the reason
we have a full-fledged Technical Services Cell at your service always. For any technical
assistance please feel free to contact us at our offices.

21
Guwahati : 2nd Floor, Mayur Garden
Opposite Rajiv Bhavan
G.S. Road, Bhangagarh
Guwahati – 781 005.
Phone – 0361-2462215,2462216, 2462513

Jorhat : C/o A.R.Agencies (Shiv Center)

R.M.Road, Jorhat - 785 001
Phone: 0376-2322887

Shillong : Lummawrie Hill

Laitumkhrah
Shillong – 793003
Phone: 0364-2220170

Agartala : M/s Parashmani Enterprises,

66/A, Central Road, Agartala
Pin: 799102
Phone:: 0381-2381312

Tezpur : Kamarchubri,
P.O.: Tezpur
Dist:- Sonitpur, Assam
Phone:

Dibrugarh : C/o Associated Flour Mills Ltd.

A.T. Road,
Dibrugarh – 786 001
Phone : 0373-2303593

Silchar : Chirukandi, Ramnagar

Tarapur
Silchar – 788003
Phone:

Nagaon : Premier Roller Flour Mill, Old A.T.Road

P.o:-Haibargaon
Nagaon-782 002, Assam.
Phone : 03672-225700

Badarpur: M/s Barak Cold Storage Pvt. Ltd.

Multipurpose Cold Storage Facility
Malua, Badarpur
Dist: Karimganj - 788001
Phone:

22
Aizawl: Bara Bazar, Dawrpuri
Aizawl
Pin: 796001
Phone : 09436140032

Byrnihat: M/s Mittal Gram Bhander

Vill: Barni
Sonapur
Pin: 782402
Phone:

Kalain: Main Road, Part-3, J.B.Road

P.O:- Kalain
Dist: Cachar, Assam
Phone : 03845283202

23
 CHAPTER- 2

Human Resource Department in CMCL

Human Resource Department in CMCL

24
HR Manager is one of the most important key to open a lock hanging on the door of success
in an organization. If an HR Manager is efficient enough to handle and to take out best from
his team members any organization and can achieve more from his target goals. HR manager
plays an very important role in hierarchy, and also in between the higher management and
low level employees. Stated below are major responsibilities of HR Department:-

A. Recruitment of employees:

The HR department looks over the filling up of the vacant positions in the organizational
structure. For this purpose the department gives advertisement in the newspaper and over the
internet. The department is has also tie up with the government employee exchange and there
fore the department receives applications from the applicants. The eligible candidate’s forms
are selected and they are called for interview process. The candidates are then provided with
recruitment form which contains some additional questions to judge the candidate. The
questions are as follows:

The recruitment form contains all the basic questions regarding the details of employee itself
and the qualification he has acquired and the experience he has gained from the past
company as all the companies have the same recruitment form but few additional questions
were included in this recruitment form which attracted my vision are as follows:

1) Any serious illness during last 5 years?

This will provide the company with the details of the employee that whether he is having any
particular disease which can affect his working ability and reduce is efficiency at work. This
also provide the company with the knowledge that if he is carrying any particular disease and
is the disease is contagious and can affect other employees working in the company.

2) How long was this illness?

The duration of the illness is also a major factor. If the employee suffers from a particular
disease which takes long time to get cured than that particular employee is a burden for the
company as he will be on medical leave for most of the time and the company has to bear the
loss and will also have to provide him with medical treatement.

3) How many attempts were required to pass the examination

This is also a major factor for a particular company. Every individual has a degree now days
but it is necessary to know that how many attempts he has taken to complete his degree
because many talented employees may due to certain reason cannot complete there degree at
single attempt but due to this factor they are rejected from that particular company and many
applicants have completed there degree in more than one attempts and to hire these kind of
individuals is not beneficial for the company as there basic knowledge is not good regarding
the subject.

4) Whether the applicant was ever convicted by court? And the details of it.

25
This is also crucial for the company to know that whether the applicant was involved in any
kind of antisocial activities or not. Now days it has become common that the employees
supplies the companies confidential documents to any competitor company or is involved in
any antisocial activities and it is the duty of the company to restrict this kind of employees in
getting into the company.

After the selection of the employee the HR manager decides the salary of the employee
according to the experience and qualification of the candidate and is provided with the
joining letter.

When a new employee is hired he is kept under as a trainee and he is not entitled for any
leave for the next six months.

The employee is given a punching card of the records of his maintenance. The employee has
to punch the punching card at the time office while entering into the company. Where the
punching machine records the attendance of the employee and the data is stored into the time
office. After the punching time is over report is generated regarding the attendance of
employees in every department. This report is send to the H.O.D of every department to
make it sure that the employees present at there respective departments and no false
attendance have been made. The attendance is also recorded into the MASTER 16 register.

The time office also keeps the record of the total employees working in the organization. The
total employees working in C.M.C.L. is 794 according to the last months record. The
employees recruited this month will be added to the next months list. Out of 794 employees
138 employees are casual and the details of the employees are as follows:

MANAGER - 165

STAFF - 120

TRAINEE - 30

WORKER - 341

The HR department has to do following things:

26
27
 CHAPTER-3

AMMENDMENT OF RULES IN C.M.C.L

FACTORIES ACT

28
Provisions regarding health
Section 11- Cleanliness

Sufficient number of workers are employed for cleaning in and around the factory
premises so that there is no accumulation of dust and the dirt and effluvia is disposed off
according to the government norms. All the work rooms are cleaned daily with phynile.

Section 12- Disposal of waste and effluents

All the waste and effluents are properly stored in air tight containers and these
containers are sent for recycle if it is possible otherwise disposed off in an isolated area as
per the government norms. No waste product is throne into the water body therefore
minimizing the amount of contamination of water and preserving the environment.

Section 13- Ventilation and Temperature

There is proper arrangement of ventilation. The factory is set up at such a location

that no dust or fumes are carried towards the colony area the travel towards the opposite
direction. Proper arrangements of fans and coolers are placed in the factory to keep the
temperature at the desired quantity.

Section 14- Dust and Fumes

The factory has adopted latest technological advancement in the dust control
technique that is REVERSE AIR BAG HOUSE which maintains the emission of the harmful
gases to minimum and as per government norms.

The factory has also installed ESP(electro static presipitator) and 24 Bag Filters to
minimize the emission of dust and fumes.

Section 15- Artificial Humidification

The company has made proper arrangements for humidification and is maintained as
per the government norms.

The water used for artificial humidification is taken from RO water plant set up by
the factory itself so that the employees receive pure water.

Section 16- Over Crowding

The factory is established such that the employees working in the factory have
sufficient work space which has to be maintained under the factory’s act.

Section 17- Lighting

29
 The factory has its own power supply so that there is always power supply in the
factory premises and adequate number of lighting arrangements have been made so that
workers can easily work during the night shifts.

Section 18- Drinking water facility

Proper drinking water facility have been maintained in the factory premises and all
the dinking water places have been properly mentioned as “drinking water”. The water
provided for drinking is supplied from RO water plant set up by the company with an
investment of 22Lakh through which water is purified.

Section 19- Latrines & Urinals

Each and every department has its own latrine and urinal facility which is properly
monitored and is cleaned with proper cleansing agent at regular intervals. And proper
distance is maintained from the drinking water facility.

Section 20- Spittoons

Adequate number of spittoons are placed at every spot so that the factory premises
can be maintained clean. Persons if found spitting other than spittoons are charged with fine
as per the government norms.

Provisions for Welfare

Section 42- Washing facility

Adequate number of washing facility is provided to the workers for cleaning

themselves and the washing facility is set up as per the government norms.

Section 43- Facility for storing and drying clothes

The workers are provided with lockers so that they can keep there valuables there
safely.

Section 44- Facility for sitting

There are proper sitting facility for the workers at the time of lunch or break.

Section 45- First aid appliances

30
 There are 6 different first aid appliances so that proper medical facility can be
provided to the injured worker.

Many employees have been provided with the first aid training so that they can
provide the injured worker with immediate medical treatment and a ambulance room is also
made for providing proper medical facility.

Section 46- Canteen

The factory has made one canteen for the use of workers in which proper sitting
arrangement with drinking water facility is maintained and the workers are provided food at
minimum cost.

Section 47- Shelter, Rest rooms & Lunch room

The workers are provided with shelter, rest room & lunch room so they can relax at
free time and can have there food with proper capacity.

Section 48- Crèches

There are no crèches as there are no such woman workers working in the factory.

Working Hours of Adults

Section 51- Weekly Hours

No worker is allowed to work for more than 48 hours in a week.

Section 52- Weekly Holidays

Every worker is given one day leave in a week after he has worked for 6 days.

Section 53- Compensatory Holiday

If the worker has to work for the day of his leave due to any reason what so ever he is
compensated with one day leave on any day of his next 6 working days with a prior
information to the department head.

Section 54- Daily Hours

Daily working hours do not exceed 9 hours in a day and if exceeded the worker is
given overtime.

Section 55- Intervals for Rest

31
 The workers are provided 1 hour interval for rest after working for 5 hours.

Section 56- Spread Over

Spread over is maintained as per the rules in the factory’s act 1948.

Section 57- Night Shifts

The workers working in the night shifts are not allowed to work at the day shifts for
that day in which he has completed is shift.

Section 59- Extra Wages for Overtime

The workers are paid double than the normal rate of wages.

Section 60- Restriction on Double Employment

Proper records are maintained so that no worker is allowed to work at two company
at a single day.

Other ACT’s applied in the company:

CONTRACT LABOUR(REGULATION & ABOLITION)ACT, 1970 & RULE

EMPLOYEE’S PROVIDENT FUNDS & MMISC. PROVISIONS ACT, 1952 & THE
SCHEMES.

EMPLOYMENT EXCHANGES(COMPULSORY NOTIFICATION OF VACANCIES)

ACT, 1959 & THE RULES

INDUSTRIAL DISPUTES ACT, 1947

STANDING ORDERS ACT, 1946 & THE RULES

MATERNITY BENEFIT ACT, 1961

MINIMUM WAGES ACT, 1948

PAYMENT OF BONUS ACT, 1965 & THE RULES

PAYMENT OF GRATUITY ACT, 1972 & THE RULES

PAYMENT OF WAGES ACT, 1936

WORKMEN’S COMPENSATION ACT, 1923

ANNUAL LEAVE WITH WAGES

32
For Managers the annual leave with wages is 45 days.

PL – 30 days

CL – 7 days

SL – 8 days

Total = 45 days

For Staff and Workers the annual leave with wages is 30 days.

PL – 15 days

CL – 7 days

SL – 8 days

Total = 30 days

SALARY STRUCTURE

The salary structure in the following:

Basic

HRA

Transportation (if applicable)

Personnel Allowance

Contingency Allowance

Health Allowance

Medical Allowance

Extra Working Allowance

Deductions made in the salary

Providend Fund (if applicable)

Indemeenty (if applicable)

Star Club (if applicable)

REGISTERS MAINTAINED UNDER FACTORY LAW

33
It is obligatory on the part of the management to maintain the following registers with upto
date entries:

• Muster Roll in Form No.22;

• Register of adult workers in Form No.11;

• Register of leave with wages in Form no.14;

• Register of accident or dangerous occurrence in Form no.23;

• Inspection book containing Form No.6, 28 and 29;

• Overtime register in Form no.9 in respect of exempted workers and corresponding

duplicate copy of the overtime slip;

Health register in Form no.16 in respect of factories involving hazardous processes and
dangerous operations.

OTHER WELFARE AMINITIES PROVIDED TO THE EMPLOYEES

1) Full furnished Accommodation as per grade of employees.

2) Travelling Allowance.

3) Medical Facility (free for first three days).

4) Club.

5) Loan as per grade of the employee.

6) Vehicle for going to Guwahati.

7) Free stay at Guwahati guest house.

8) Free RO water for the consumption of the employees.

9) Vehicle for local marketing.

10) Free communication facility as per the grade of the employee

11) Bonus (past two years company has paid 15% bonus)

12) Educational Loan as per the grade of the employee.

13) Primary Education facility to the employees children.

34
 CHAPTER-4

BASIC THEORITICAL CONCEPTS AND

CONTEXTS OF THE TOPIC

What is Employee Retention?

35
Employee retention is a process in which the employees are encouraged to remain with the
organization for the maximum period of time or until the completion of the project.
Employee retention is beneficial for the organization as well as the employee.

Employees today are different. They are not the ones who don’t have good opportunities in
hand. As soon as they feel dissatisfied with the current employer or the job, they switch over
to the next job. It is the responsibility of the employer to retain their best employees. If they
don’t, they would be left with no good employees. A good employer should know how to
attract and retain its employees. Retention involves five major things:

1. Compensation
2. Environment
3. Growth
4. Relationship
5. Support

Employee retention would require a lot of efforts, energy, and resources but the results are
worth it.

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
o House rent allowance
o Dearness allowance
o City compensatory allowance

36
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 employee’s 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 about
employees and its families.
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.

Organization 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

37
 • 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

• Learning environment: It includes continuous learning and improvement of the individual,

certifications and provision for higher studies, etc.

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

O Flexible hours

O Telecommuting

O Dependent care

O Alternate work schedules

O Vacations

O Wellness

• 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.

38
 Growth and Career

Growth and development are the integral part of every individual’s career. If an employee
can not foresee his path of career development in his current organization, there are chances
that he’ll 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 he’s not satisfied with his growth, he’ll 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, they’ll leave
the organization for better jobs. Organization should not limit the resources on which
organization’s success depends. These trainings can be given to improve many skills like:

• Communications skills
• Technical skills
• In-house processes and procedures improvement related skills
• C or 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.

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
employee’s 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.

39
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 he’ll 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 he’ll
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 employee’s 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.

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.

40
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:

 By providing feedback

 By giving recognition and rewards

 By counseling them

 By providing emotional support

41
 NEED FOR THE STUDY
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. It’s 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 employee built
for the company are severed, which could lead to potential customer loss.

4.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.

5.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.

6.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

42
 STATEMENT OF PROBLEM
Talent is an in-demand commodity these days for almost everyone. As organizations work to
recruit new employees and retain existing ones they are discovering that there are no quick
and easy answers for success. Therefore, the imperative for organizations to treat the
management of their people assets as importantly as their financial or customer assets is
growing.

Today’s CEO knows that in the 21st century, human capital is a major strategic asset and a
key to competitiveness. Indeed, in a recent study, top executives from 1,000 leading
companies said their greatest staffing concern was retention, and they said so during the
current recession. These CEOs understand that good workers can find better jobs in any
economy.

43
 CHAPTER-5

QUESTIONNAIRE

44
Q.1- Which sector of the employees mostly needs the employee retention schemes?

Response of Executives

bottom level upper level

0% 13%

middle level
87%

45
Q.2- Is exit interview conducted by the company?

Response of Executives

7% 20%
always
27% very often
fairly often
13% sometimes
never
33%

46
 0
1
2
3
4
5
6
7
8

5
for money
7

for location

for poor
1

performance
appraisal
Q.3- Why the employees leave the company?

for working
2

environment

for
0

accomodation
facility

47
response of employees
Q.4- Is the performance appraisal scheme affects the employee retention in the
organization?

Response of employees

not effective
very effective
0%
sometimes effective 20%
33%

effective
47%

Q.5- If the employee have freedom to operate at work?

Response of employees

0%
20%

47%
48
13%
Q.6- If the management is providing their employees with strong social security?

4
response of employees
3

0
always very often fairly often sometimes never

Q.7- If an employee is provided with Competitive Rewards for their performance?

4
response of employees
3

0
always very often fairly often sometimes never

49
Q.8- Whether the employees are given challenging work assignments in the organization?

response of employees

0%
20%
27%
always
very often
fairly often
sometimes
never
20% 33%

Q.9- How often is the training program provided to the employees?

12

10

6 employee's view

0
frequently occasionally once never

50
Q.10- How is the morale of the employees in the organization?

employees response

fair poor excellent

0% 7% 7%

good
33%

very good
53%

Q.11- How often does the management takes feedback from its employees?

response of employees

0%
20%

40% always
very often
fairly often
sometimes
never
33%
7%

51
 CHAPTER-6

EMPLOYEE RETENTION STRATEGIES

52
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 and respect them
5. Provide them information and knowledge.
6. 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.

53
 CHAPTER-7

Retention Success Mantra

54
Transparent Work Culture

In today’s fast paced business environments where employees are constantly striving to
achieve business goals under time restrictions; open minded and transparent work culture
plays a vital role in employee retention.Companies invest very many hours and monies in
training and educating employees. These companies are severely affected when employees
check out, especially in the middle of some big company project or venture. Although
employees most often prefer to stay with the same company and use their time and
experience for personal growth and development, they leave mainly because of work related
stress and dissatisfactions.More and more companies have now realized the importance of a
healthy work culture and have a gamut of people management good practices for employees
to have that ideal fresh work-life. Closed doors work culture can serve as a deterrent to
communication and trust within employees which are potential causes for work- Related
apathy and frenzy.

A transparent work environment can serve as one of the primary triggers to facilitate
accountability, trust, communication, responsibility, pride and so on. It is believed that in a
transparent work culture employees rigorously communicate with their peers and exchange
ideas and thoughts before they are finally matured in to full-blown concepts. It induces
responsibility among employees and accountability towards other peers, which gradually
builds up trust and pride. More importantly, transparency in work environment discourages
work-politics which often hinders company goals as employees start to advance their
personal objectives at the expense of development of the company as a single entity.

Quality Of Work

The success of any organization depends on how it attracts, recruits, motivates, and retains its
workforce. Organizations need to be more flexible so that they develop their talented
workforce and gain their commitment. Thus, organizations are required to retain employees
by addressing their work life issues. The elements that are relevant to an individual’s quality
of work life include the task, the physical work environment, social environment within the
organization, administrative system and relationship between life on and off the job.

The basic objectives of a QWL program are improved working conditions for the Employee
and increase organizational effectiveness. Providing quality work life involves taking care of
the following aspects:Occupational health care: The safe work environment provides the
basis for the person to enjoy working. The work should not pose a health hazard for the
person. The employer and employee, aware of their risks and rights, could achieve a lot in
Their mutually beneficial dialogue.

Suitable working time: Organizations are offering flexible work options to their employees
wherein employees enjoy flexi-timings for dedicating their efforts at work. Appropriate
salary: The appropriate as well as attractive salary has always been an important factor in

55
retaining employees. Providing employees salary at par with the other counterparts of above
that what competitors are paying motivates them to stick With the company for long. QWL
consists of opportunities for active involvement in group working arrangements or problem
solving that are of mutual benefit to employees or employers, based on labor management
cooperation. People also conceive of QWL as a set of methods, such as autonomous work
groups, job enrichment, and high-involvement aimed at boosting the satisfaction and
productivity of workers. It requires employee commitment to the organization and an
environment in which this commitment can flourish. Providing quality at work not only
reduces attrition but also helps in reduced absenteeism and improved job satisfaction. Not
only does QWL contribute to a company's ability to recruit quality people, but also it
enhances a company's competitiveness. Common beliefs support the contention that QWL
will positively nurture amore flexible, loyal, and motivated workforce, which are essential in
determining the company's competitiveness.

Supporting Employees

Organizations these days want to protect their biggest and most valuable asset and they want
to do this in a way that best suits their organizational culture. Retaining employees is a
difficult task. Providing support to the employees acts as a mantra for retraining them.
Employers can also support their employees by creating an environment of trust and
inculcating the organizational values into employees.

The management can support employees directly or indirectly. Directly, they provide support
in terms of personal crises, managing stress and personal development. Management can
support employees, indirectly, in a number of ways as follows:

Manage employee turnover: Employee turnover affects the whole organization in terms of
productivity. Managing the turnover, hence, becomes an important task. A proactive
approach can be adopted to reduce attrition. Strategies should be framed in advance and
implemented when the times arrives. Turnover costs should also be taken into consideration
while framing these strategies.

Become employer of choice: What makes a company an employer of choice? Is the benefit it
offers or the compensation packages it gives away to its employees? Or is it measured in
terms of how they value their employees or in terms of customer satisfaction? Becoming an
employer of choice involves following a road map which tells where to go as a brand.

Engage the new recruits: The newly hired employees are said to be least engaged in the
organization. Keeping them engaged is an important task. The fresh talent should be utilized
to maximum before they start feeling bored in the organization.

Optimize employee engagement: An organization’s productivity is measured not in terms of

employee satisfaction but by employee engagement. Employees are said to be engaged when

56
they show a positive attitude toward the organization and express a commitment to remain
with the organization. Employee satisfaction also comes with high engagement levels. So,
organizations should aim to maximize the engagement among employees.

Coaching and mentoring: Employees whose work performance suffers due to poor
interpersonal relationships or because of lack of interpersonal skills should be provided
proper coaching by their superiors. Planed coaching sessions help an individual to work
through issues, maximize his potential and return to peak performance.

57
Feedback
Feedback acts as a channel of communication between the employee and his manager. The
amount of information employees receive about how well or how poorly they have
performed is what we call feedback. It is a dialog between a manager and an employee which
acts as a way of sharing information about the performance. It suggests where the employee
performance is effective and where performance has to improve.Managers can provide either
positive feedback or negative feedback to employees. This feedback helps the employee
assess his performance and identify the improvement areas.Positive feedback communicates
managerial satisfaction. Positive recognition for good performance boosts up morale of
employees and results in performance improvement to a higher productivity level. It is
believed that positive feedback is the only type of feedback that generates performance above
the minimum acceptable level. Negative feedback obviously communicates manager’s
dissatisfaction. However, negative feedback sometimes make employee to put more efforts to
improve his performance. But such times are very rare. Moreover this improvement is short
term. Some managers do not provide any kind of feedback to their employees. Due to no
feedback, employees may assume that they are performing productively or they may feel that
the manager is satisfied with their performance. Studies reveal the performance tends be
same or even decreases if no feedback is provided.Thus, feedback is necessary because:

It builds trust and enhances communication between manager and employee.

It gives managers and employees a way to identify and discuss skills and strengths.

Positive feedback leads to employee retention and Retention.

It helps in identifying performance areas that need improvement and specific ways to
improve them. It acts as an opportunity to enhance performance by identifying resources for
skill development. It is an opportunity for managers and employees to assess and identify
career and advancement opportunities. It helps employees to understand the effectiveness of
their performance and contributes to their overall knowledge about the work Managers have
tendency to ignore good performances of their employees. Providing no feedback may
demotivate employees and may lead to employee absenteeism. Input from manager’s side is
necessary as it help employees to improve their performance and increase productivity.

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Communication between Employee and Employer
Communication is a process in which a message is conveyed to the receiver by the sender.
The message may be or may not be in a common format or language that both the sender and
receiver understand. So there is a need to encode and decode the message in the process.
Encoding and decoding also helps in the security of the message. The process of
communication is incomplete without the feedback. Communication is the solution to almost
everything in this world. Same applies to employee retention also.

Straight-from-the-shoulder communication is what the employees need from their employers.

Employees look for organizations where communication and process are transparent.
Nothing is hidden and shared with the employees.

There are 3 categories of employees:

A: Who will leave their current employer in 3 years of their employment

B: Who have a probability of leaving their current employer in next 3 years

C: Who will stay with their current employer in the next 3 years

Category A: These are the employees who lack communication with their employers.
Category C: These are the employees who have proper, well structured communication with
their employers.

Communication is also the way to win the employees trust in the organization. Employees
trust the employers who are friendly and open to them. This trust leads to employee loyalty
and finally retention. Employers also feel that the immediate supervisors are the most
authenticated and trusted source of information for them. So the organizations should hire
managers who are active communicators. Communication mediums

Open door policy: Organizations should support open door policies so that the employees
feel comfortable and are able to express their doubts and feeling to their employers.

Frequent meetings and Social gatherings

Emails, Newsletters, Intranet and many more

So there should be effective communication across the organization and this communication
should be two-way. Communication alone can lead to unimaginable heights of employee
retention.

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Importance Of Employee Retention
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.

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.

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 employee built for the
company are severed, which could lead to potential customer loss.

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.

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.

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

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What Makes Employee Leave?
Employees do not leave an organization without any significant reason. There are certain
circumstances that lead to their leaving the organization. The most common reasons can be:

• Job is not what the employee expected to be: Sometimes the job responsibilities don’t
come out to be same as expected by the candidates. Unexpected job responsibilities
lead to job dissatisfaction.

• Job and person mismatch: A candidate may be fit to do a certain type of job which
matches his personality. If he is given a job

• which mismatches his personality, then he won’t be able to perform it well and will
try to find out reasons to leave the job.

• No growth opportunities: No or less learning and growth opportunities in the current

job will make candidate’s job and career stagnant.

• Lack of appreciation: If the work is not appreciated by the supervisor, the employee
feels de-motivated and loses interest in job.

• Lack of trust and support in coworkers, seniors and management: Trust is the most
important factor that is required for an individual to stay in the job. Non-supportive
coworkers, seniors and management can make office environment unfriendly and
difficult to work in.

• Stress from overwork and work life imbalance: Job stress can lead to work life
imbalance which ultimately many times lead to employee leaving the organization.

• Compensation: Better compensation packages being offered by other companies may

attract employees towards themselves.

• New job offer: An attractive job offer which an employee thinks is good for him with
respect to job responsibility, compensation, growth and learning etc. can lead an
employee to leave the organization.

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

1. Identify cost of employee turnover.

2.Understand why employee leave.

3.Implement retention strategies

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.

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.

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 organization’s reward strategy
reflects the employee drivers.

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How 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.

Retention Bonus

Higher attrition rates within a particular industry have forced companies to use some
innovative strategies to retain employees. Retention Bonus is one of the important tools that
are being used to retain employees. Retention bonus is an incentive paid to an employee to
retain them through a critical business cycle. Retention bonuses are becoming more common
in the corporate world because companies are going through more transitions like mergers
and acquisitions. They need to give key people an attractive incentive to stay on through
these transitions to ensure productivity.

Retention bonuses have proven to be a useful tool in persuading employees to stay.A

retention bonus plan is not a panacea. According to a survey, non-management employees
generally receive about 10 percent of their annual salaries in bonuses, while management and
top-level supervisors earn an additional 50 percent of their annual salaries. While bonuses
based on salary percentages are the generally used, some companies choose to pay a flat
figure. In some companies, bonuses range from 25 percent to 50 percent of annual salary,
depending on position, tenure and other factors. Employees are chosen for retention bonuses
based on their contributions to management and the generation of revenue. Retention
bonuses are generally vary from position to position and are paid in one lump sum at the time
of termination. However, some companies pay in installments as on when the business cycle
completes. A retention period can run somewhere between six months to three years. It can
also run for a particular project. A project has its own life span. As long as the project gets
completed, the employees who have worked hard on it are entitled to receive the retention
bonus. For example, the implementation of a system may take 18 months, so a retention
bonus will be offered after 20 months. Although retention bonuses are becoming more
common everywhere, some industries are more likely than others to offer them.
Retail/wholesale companies are the most appropriate to implement stay-pay bonuses,
followed by financial service providers and manufacturing firms. Companies of all sizes use
retention bonus plans to keep knowledge employees retained in the company. To retain its
key senior employees post merger with EDS Corporation, Mphasis is providing cash
component based retention bonus plan for its employees. This is mainly to retain good
employees and provide them a cash incentive to keep them motivated.

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Hire Right Talent

Employee retention starts with recruitment. Early departures arise from the wrong
recruitment process. Here are a few ways to ensure how to hire the right talent for a particular
job.

Hire appropriate candidates. Hire candidates who are actually suitable for the job. For this
the employer should understand the job requirements clearly. Don’t hire under qualified or
clearly overqualified candidates.

Provide realistic job preview at the time of hiring: Mostly employees leave an organization
because they are given the real picture of their job responsibilities at the time of joining.
Attrition rate can be reduced if a right person is hired for a right job. Realistic preview of the
job responsibilities can be given to the employment seekers by various methods like
discussions, trial periods, internships etc.

Clearly discuss what is expected from the employee: Before joining the organization, tell the
candidate what is expected from him. Setting wrong expectations or hiding expectations will
result in early leaving of employees.

Discuss what the expectations of the employees are: Ask employees what they expect from
the organization. Be realistic. If their requirements can be fulfilled only then promise them.
Or tell them before hand that their requirements can not be fulfilled. Don’t show them an
unrealistic picture.

Culture fit: Try to judge individual’s capability to adapt to the organization’s culture. A
drastic change in the culture may give a culture shock to the candidate.

Referrals: According to the research, referred candidates stay longer with the organization.
There is a fear of hampering the image and reputation of the person who referred the
candidate.

Manager Role in Retention

When asked about why employees leave, low salary comes out to be a common excuse.
However, research has shown that people join companies, but leave because of what their
managers’ do or don’t do. It is seen that managers who respect and value employees’
competency, pay attention to their aspirations, assure challenging work, value the quality of
work life and provided chances for learning have loyal and engaged employees. Therefore,
managers and team leaders play an active and vital role in employee retention.

64
Managers and team leaders can reduce the attrition levels considerably by creating a
motivating team culture and improving the relationships with team members. This can be
done in a following way:

Creating a Motivating Environment: Team leaders who create motivating environments are
likely to keep their team members together for a longer period of time. Retention does not
necessarily have to come through fun events such as parties, celebrations, team outings etc.
They can also come through serious events e.g. arranging a talk by the VP of Quality on
career opportunities in the field of quality. Employees who look forward to these events and
are likely to remain more engaged.

Standing up for the Team: Team leaders are closest to their team members. While they need
to ensure smooth functioning of their teams by implementing management decisions, they
also need to educate their managers about the realities on the ground. When agents see the
team leader standing up for them, they will have one more reason to stay in the team.

Providing coaching: Everyone wants to be successful in his or her current job. However, not
everyone knows how. Therefore, one of the key responsibilities will be providing coaching
that is intended to improve the performance of employees. Managers often tend to escape this
role by just coaching their employees. However, coaching is followed by monitoring
performance and providing feedback on the same.

Delegation: Many team leaders and managers feel that they are the only people who can do a
particular task or job. Therefore, they do not delegate their jobs as much as they should.
Delegation is a great way to develop competencies.

Extra Responsibility: Giving extra responsibility to employees is another way to get them
engaged with the company. However, just giving the extra responsibility does not help. The
manager must spend good time teaching the employees of how to manage responsibilities
given to them so that they don’t feel over burdened.

Focus on future career: Employees are always concerned about their future career. A
manager should focus on showing employees his career ladder. If an employee sees that his
current job offers a path towards their future career aspirations, then they are likely to stay
longer in the company. Therefore, managers should play the role of career counselors as
well.

How to Improve Employee Retention

People want to enjoy their work so make work fun and enjoyable.

Understand that employees need to balance life and work so offer flexible starting times and
core hours. Provide 360 feedback surveys and other questionnaires to foster open
communication. Consider allowing anonymous surveys occasionally so employees will be

65
more honest and candid with their opinions. Provide opportunities within the company for
career progression and cross-training. Offer attractive, competitive benefits and 401(k)s.

Organizations should target job applications for employees who have characteristics that fit
well with the organizational culture. Upon conducting an interview, seek out traits, such as
loyalty. Also, ask the potential employee what motivates them on the job. Having more
information about the potential employee’s expectations can help retain them, should they
get hired into the company.

Rewards and Recognition

Employees want to be recognized for a job well done. Rewards and recognition respond to
this need by validating performance and motivating employees toward continuous
improvement. Rewarding and recognizing people for performance not only affects the person
being recognized, but others in the organization as well.

Through a rewards program, the entire organization can experience the commitment to
excellence. When the reward system is credible, rewards are meaningful; however, if the
reward system is broken, the opposite effect will occur. Employees may feel that their
performance is unrecognized and not valued, or that others in the organization are rewarded
for the wrong behaviors. Unrecognized and nonvalued performance can contribute to
turnover. Recognition for a job well done fills the employees' need to receive positive, honest
feedback for their efforts.

Need for Rewards and Recognition

Recognition should be part of the organization's culture because it contributes to both

employee satisfaction and retention. Organizations can avoid employee turnover by
rewarding top performers. Rewards are one of the keys to avoiding turnover, especially if
they are immediate, appropriate, and personal. A Harvard University study concluded that
organizations can avoid the disruption caused by employee turnover by avoiding hiring
mistakes and selecting and retaining top performers.

One of the keys to avoiding turnover is to make rewards count. Rewards are to be immediate,
appropriate, and personal. Organizations may want to evaluate whether getting a bonus at the
end of the year is more or less rewarding than getting smaller, more frequent payouts.
Additionally, a personal note may mean more than a generic company award. Employees
should be asked for input on their most desirable form of recognition. Use what employees
say when it comes time to reward for performance.

66
Designing a Rewards and Recognition Solution

In designing a rewards and recognition program, the following guidelines should be

considered.

Rewards should be visible to all members of the organization.

Rewards should be based on well-defined, credible standards that have been developed using
observable achievements.

Rewards should have meaning and value for the recipient.

Rewards can be based on an event (achieving a designated goal) or based on a time frame
(performing well over a specific time period).

Rewards that are spontaneous (sometimes called on-the-spot awards) are also highly
motivating and should also use a set criteria and standard to maintain credibility and
meaning.

Rewards should be achievable and not out of reach by employees.

Nonmonetary rewards, if used, should be valued by the individual. For example, an avid
camper might be given a 10-day pass to a campsite, or, if an individual enjoys physical
activity, that employee might be given a spa membership. The nonmonetary rewards are best
received when they are thoughtfully prepared and of highest quality. Professionalism in
presenting the reward is also interpreted as worthwhile recognition.

Rewards should be appropriate to the level of accomplishment received. A cash award of

Rs500 would be inappropriate for someone who just recommended a process that saved the
organization a million rupees. Determining the amount of money given is a delicate matter of
organizational debate in which organizational history, financial parameters, and desired
results are all factors. Recognition for a job well done can be just as valued and appreciated
as monetary awards.

Professional portrait of the employee

Appreciation letter from the CEO and senior management

E-mails, phone calls, and notes from peers

In addition to nonmonetary rewards, employees can be rewarded using money in numerous

ways. Cash is a welcome motivator and reward for improving performance, whether at
formal meetings or on the spot. Variable bonuses linked to performance are another popular
reward strategy. Profit sharing and pay-for-skilis are monetary bonus plans that both
motivate individuals and improve goal achievement. Small acts of recognition are valuable

67
for employee daily Retention. Sometimes a personal note may mean more than a generic
company award. In one survey, employees cited the following as meaningful rewards (Moss,
2000):

Employee of the month awards Years of service awards

Bonus pay (above and beyond overtime) for weekend work

Invitations for technicians to technical shows and other industry events

Meaningful and Retention Rewards

What gives meaning to rewards and recognition? What makes them effective? First, rewards
and recognition should be based on a clear set of standards, with performance verifiable or
observable. The standards for the reward should also be achievable. If the reward is based on
an unachievable result, such as a production goal that is beyond employees' power, then those
employees will not be motivated. Meaningful rewards and recognition that are achievable
have the greatest impact.

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CHAPTER-8

FINDINGS

69
FINDINGS

• It is found out that, 80% of respondents think that the main need of employee retention is to
the middle level management. And it is very important to retain the middle level
management employees as the serve link between the top level and the middle level
management. The remaining 20% respondents have a view that the top level management
also need employee retention schemes.

• It is found out that, only 20% of respondents think that the company always take exit
interview, this percentage should increase as it is very important to know the root cause of
the employees leaving the organisation.

• It is found out that, 47% of respondents leave the organization due to its location, as this
factor cannot change but the second factor is money which comprises 33% so this factor can
be changed and the management should take necessary steps towards solving this problem.

• It is found out that, 47% of respondents feels that performance appraisal schemes affects
the employee retention in the organization therefore proper care should be taken while doing
performance appraisal.

• It is found out that, 47% of respondents are satisfied with the freedom to operate at work is
also an essential factor if the employees are not allowed to do so there output will decrease.

• It is found out that, 40% of respondents are satisfied with strong social security provided by
the management to the employees is very low as security is one of the major factors due to
which employees leave the organization. If they are not feeling socially secure in the
organization then there productivity will also decrease.

• It is found out that, 40% of respondents are recognized by superiors and are provided with
competitive rewards for their performance in the organization, this is very low if the
employees are given such rewards this increases the moral and also increases their
productivity.

• It is found out that, 33% of respondents feel that they are given challenging work
assignments this also plays major role in developing knowledge of the employees and
provides better chance for growth in the organization.

• It is found out that, 73% of respondents feel that the training program is occasionally
provided to the employees, the technology is getting advance day by day so as the new
machinery in the organization therefore proper training should be provided to the employees
to increase there knowledge and productibility.

70
• It is found out that, 53% of respondents feel that the morale of the employees in the
organization is very good this factor needs to be increased.

• It is found out that, 40% of respondents feel that management always takes feedback from
its employees this should be increased to much higher level as it is very important to know
the feedback of the employees so that some changes can be made.

• From weighted Average analysis it is found that mostly middle level management needs the
employee retention schemes in the organization.

• From weighted Average analysis it is found that fairly often the company takes exit
interviews from the employees.

• From weighted Average analysis it is found that employees feel that employees always
have freedom to operate at work.

• From weighted Average analysis it is found that respondents feel that performance
appraisal schemes only affects the employee retention in the organization.

• From weighted Average analysis it is found that most of the employees are occasionally
provided with training program.

• From One Run Test it is found that the samples are taken randomly.

71
 CHAPTER-9

SUGGESTIONS

72
SUGGESTIONS

Employee should be provided with proper training.

Employee should be appreciated for good work.

Employee should be motivated to welcome the change.

Exit interview should be conducted for improvement.

More efforts should be given for providing strong social security to the employees.

Always feedback should be taken from the employees and effective measures should be
taken.

If any changes are brought in to software or any module is added then proper training should
be given.

73
CHAPTER-10

Conclusion

74
Conclusion

Retention is an important concept that has been receiving considerable attention from
academicians, researchers and practicing HR managers. In its essence, Retention comprises
important elements such as the need or content, search and choice of strategies, goal-directed
behavior, social comparison of rewards reinforcement, and performance-satisfaction. The
increasing attention paid towards Retention is justified because of several reasons. Motivated
employees come out with new ways of doing jobs. They are quality oriented. They are more
productive. Any technology needs motivated employees to adopt it successfully. Several
approaches to Retention are available. Early theories are too simplistic in their approach
towards Retention. For example, advocates of scientific Management believe that money is
the motivating factor. The Human Relations Movement posits that social contacts will
motivate workers. Mere knowledge about the theories of Retention will not help manager
their subordinates. They need to have certain techniques that help them change the behavior
of employees. One such technique is reward. Reward, particularly money, is a motivator
according to need-based and process theories of Retention. For the behavioral scientists,
however, money is not important as a motivator. Whatever may be the arguments, it can be
stated that money can influence some people in certain circumstance. Being an outgrowth of
Herzberg’s, two factor theory of Retention, job enrichment is considered to be a powerful
motivator. An enriched job has added responsibilities. The makes the job interesting and
rewarding. Job enlargement refers to adding a few more task elements horizontally. Task
variety helps motivate job holders. Job rotation involves shifting an incumbent from one job
to another.

75
 CHAPTER-11

Recommendations

76
Recommendations

1. Develop an attractive employee value proposition.

An employee value proposition means that your company has something attractive to offer
that is perceived as valuable to an employee. as an employer, you must understand what
makes your organization attractive to potential recruits and current employees. Branding
yourself as an employer of choice is not just a slick set of marketing tactics. The best
advocates for an employer’s brand are its current employees. What messages do they send to
others about their employer? Are they honestly saying and believing that,

“This is a great place to work.”

2. Create a total reward structure that includes more than compensation.

Every company should have all the normal compensation mechanisms common to their type
of employment. yet, total rewards packages go far beyond money. While money might
temporarily retain employees, it does not always equate with engagement. People want a
chance to make a difference and realize themselves. That self-realization is multi-
dimensional and different for each employee. The total reward structure should include, in
addition to compensation, support for employees to attain their personal objectives aligned
with the goals of their organization.

3. Give feedback on employee performance on a regular basis.

Most managers and employees are not enamored with the performance appraisal process in
their organization. yet, an effective performance management process serves many purposes.
Ongoing performance feedback allows employees to better know where they stand, gives
them a formal means to provide input, indicates that their managers pay attention to them and
that their performance matters. This feedback contributes to employee engagement and
retention.

4. Be flexible in terms of work-life balance.

Workers more and more value a balance between work and life. They want more flexible
ways to engage with their employer. To attract and retain workers with different work and
career expectations, organizations have to be more flexible in structuring work and its

77
expectations. It calls for a different managerial mindset and practices that involve letting go
of old ways of controlling workers’ time and attendance in favor of result criteria such as
output, productivity and quality.

5. Create a culture of engagement.

Employees have become more connected with others in the organization (and the broader
supply-and-customer chain) through project-based team work and process management
activities. Employees are shifting their loyalty to people, teams and projects and away from
company loyalty. It is organizations that create the culture and climate that allow people,
processes and projects to become fully connected and engaged with one another. Engaged
employees are more likely to stay with their employer.

6. Train managers to be effective.

Exit interviews consistently show that “poor and bad” management practices greatly
contribute to an employee’s decision to leave a company. It is imperative to provide
supervisors and managers with adequate tools to become effective managers since we cannot
assume that these competencies are innate. Professor Patrick Connor, recently retired after
teaching 25 years at the atkinson Graduate school of Management, is famous among MBA
students and alumni for his ‘Connorisms.’He told them, “your employees do not work for
you, they work for themselves.” When I teach my students about managing organizations, I
have them reflect on what really matters to employees and what they are constantly asking of
their managers and their organizations. In the end, what employees expect of their managers
is fairly simple: Can I trust you? are you committed to excellence? Do you care about me?
What people constantly ask of their organization is: Do you tell the truth? Do you keep
promises? Do you act fairly? Do you respect me? Managers and organizations that keep these
questions in mind will have a competitive advantage over others in retaining their employees.

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 CHAPTER-12

BIBLIOGRAPHY

79
BIBLIOGRAPHY

BOOKS

• Human Resource Management C.B.Memoria

• Research methodology C.R.Kothari

• Journals, Newspaper and Internet

80