A Study On Employee Retention With Special Reference at Philips Electronics, Chennai
A Study On Employee Retention With Special Reference at Philips Electronics, Chennai
ABSTRACT
The research titled on “A Study on employee retention strategies with special reference to
PHILIPS ELECTRONICS INDIA LIMITED” Chennai was conducted.
Employee retention is the systematic effort to retain the current employees by providing best
policies and to recognize various expectations of the employees. The challenge is not only to
attract the talented employees and to retain them.
The objective of the study is to analyze the organizational factors influencing the employee
retention and to find individual factors leading employees to leave the organization and to
examine the necessary conditions to retain the employees.
The study has done through descriptive research method and the collection of primary data has
done through single cluster sampling method under probability sampling method. The research
design followed in this study is descriptive research.
Questionnaire is used to collect primary data and conceptual review is used for secondary data
collection through books, websites.
The data is to be analyzed with percentage analysis, chi square & one sample run test and
interpretation will be followed.
From the study, the findings shows that the respondents are not satisfied with compensation
benefits & working environment, the employees feel that their work load is high.
The company can implement better working environment to the employees; they can provide
proper job rotation to motivate them. Provide flexible work schedule to the employees.
INTRODUCTION
Effective employee retention is a systematic effort by employers to create and foster an
environment that encourages current employees to remain employed by having policies and
practices in place that address their diverse needs[1-6].
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Retention of key employees is critical to the long term health and success of any organization.
It is a known fact that retaining your best employees ensures customer satisfaction, increased
product sales, satisfied colleagues and reporting staff, effective succession planning and deeply
imbedded organizational knowledge and learning[7-10].
Employee retention matters as organizational issues such as training time and investment, lost
knowledge, insecure employees and a costly proposition for an organization.
Various estimates suggest losing a middle manager in most organizations costs up to five times
of his salary.
CONCEPT OF EMPLOYEE RETENTION:
Whenever the economy picks up, it will have positive impact on the job
market resulting in more employment options.
This would lead to high turnover rates. As more and more organizations pass through rapidly
changing complex business environment, their employees feel uncertain about the future. The
rules of the game keep changing.
The expectations of the management goals and priorities change very often. This would put
heavy pressure on the employees which leads to increased stress, demoralization, and
absenteeism, decreased productivity, this all will affect the rate of employee retention.
Since people are the most valuable assets, losing them costs money to the organization.
Surprisingly, many companies do not make any effort to reduce employee turnover or find out
why employees leave and most of them do not rely on any resources to why employee leave.
Companies increasingly finding it difficult o retain talents. Attracting the best talent is one part
where as retaining them is another challenge[11-14].
Employee retention is simple to understand, but at the same time it can be difficult to achieve.
Knowing what employees want and need is a step in the right direction. Managers must
acknowledge and accept that they are accountable for managing the factors within their control
to help to retain their most valued employees.
Intelligent employees always realize the importance of retaining the best talent. Retaining talent
has been so important in the Indian scenario.
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However, a thing is no dearth of opportunities for the best in the business, or even for the second
or the third best. Retention of key employees and treating attrition troubles has never been so
important to companies.
In an intensely competitive environment, where HR managers are poaching from each other,
organizations can either hold on to their employees tight or lose them to competition. For gone
are the days, when employees would stick to an employer fir years for want of a better choice.
Now, opportunities abound.
It is a fact that, retention of key employees is critical to the long term health and success of any
organization.
The performance of employees is often linked directly to quality work, customer satisfaction,
and increased product sales and even to the image of a company.
Whereas the same is often indirectly linked to, satisfied colleagues and reporting staff, effective
succession planning and deeply embedded organizational knowledge and learning.
Employee retention matters as organizational issues such as training time and investment, costly
candidate search etc., are involved. Hence, failing to retain a key employee is a costly
proposition for any organization[15-19].
1.2 NEED OF THE STUDY
This study focus on employee retention strategies as a predictor of company performance
rather than technology and also the extent to which people value, enjoy and believe in
what they do.
This study also focus on employee turnover and causes for the same.
It also examines the future growth and employee value proposition.
1.3 SCOPE OF THE STUDY
The study is to determine the factors influencing retention of employees in the
organization.
These researches also determine the nature of retaining employees in order to make
the employees to feel comfort.
To motivate the employees to continue to work in the same organization with full
interest and hence provide the results to the company it wanted.
1.4 OBJECTIVE OF THE STUDY
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PRIMARY OBJECTIVE
To study the employee retention strategies with reference to PHILIPS ELECTRONICS
INDIA Ltd, Chennai.
SECONDARY OBJECTIVE
To study the organizational factors influencing retention strategies
To find the individual factors leading employees to leave the organization.
To examine the necessary conditions to retain the employees
1.5 LIMITATIONS OF THE STUDY
The study was carried out only certain number of employees.
The employees were not ready to answer for few questions.
At times certain employees were not accurate in their responses.
Time is the major constraint. Given forty five days time is not sufficient to go in depth of
the study.
1.5 RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically and the methods adopted
in a research study. Methodology adopted in this period of work is descriptive type.
TYPES OF RESEAREH
The basic types of research are as follows:
DESCRIPTIVE Vs. ANALYTICAL:
Descriptive research includes surveys and fact- finding enquiries of different kinds. The major
purpose of descriptive research is description of the state of affairs as it at present. In social
sciences and business research we quite often use the term Ex post facto research for descriptive
research studies. The main characteristic of this method is that the researcher has no control over
the variables; he can only report what has happened or what is happening. Most Ex post facto
research projects are used for descriptive studies in which the researcher seeks to measure such
as, for example, frequency of shopping[20-24].
APPLIED Vs. FUNDAMENTAL RESEARCH:
Research can either be applied (or action) research or fundamental (to basic or pure) research.
Applied research aims at finding a solution for an immediate problem facing a society or an
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The primary data are those, which are collected fresh for the first time and
thus happen to be original in character. We collect primary data during the course of doing
experiments in an experimental research. In our research, data was collected through the
questionnaire method[37-41].
SECONDARY DATA
Secondary data are those are already been collected by someone else. The
secondary data are collected by analyzing various materials like company profiles, magazines,
journals, past records, reports and websites.
POPULATION SIZE
The overall population size taken in the project is 250.
SAMPLING UNIT
Management staff (MS).
SAMPLING SIZE
The overall sample size taken in the project is 150 respondents of employees.
SAMPLING INSTRUMENT
A questionnaire is a schedule consisting of a number of coherent and formulated
series of question related to the various aspects of the under study. In this method a pre – printed
list of question arranged in sequence is used to elicit response from the important.
The questionnaire has been framed by covering almost the key concept to bring about lucid
results. The questionnaire includes multiple choices, dichotomous question and open ended
question
1.5.4 SAMPLING
SAMPLING METHOD
Here the cluster sampling method is used to collect the data-using
questionnaire.
CLUSTER SAMPLING
If the total area of interest happens to be a big one, a convenient way in which
a sample can be taken is to divide the area into number of smaller non – overlapping areas and
then randomly select a number of these smaller areas (usually called clusters), with the ultimate
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sample consisting of all (or samples of) units in these small areas or clusters. Cluster samplings
are usually more reliable per unit cost.
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μv= 2n1 n2 + 1
n1+n2
2
σ v= 2n1 n2 (2n1n2-n1-n2)
(n1+n2)2 (n1+n2-1)
Z= V-μv
σv
Where,
v = number of runs
μv = mean of v-statistic
n1 = the number of first response
n2 = the number of second response
σ2v = variance of v- statistic
σv = the standard error (S.E) of the v- statistic
TESTS OF SIGNIFICANCE
HYPOTHESIS: a hypothesis is a statement about the population parameter. In other
words, a hypothesis is a conclusion which is tentatively drawn on logical basis.
TEST OF HYPOTHESIS: the testing of hypothesis is a procedure that helps us to
ascertain the likelihood of hypothesized population parameter being correct by making
use of the sample statistic.
SETTING UP OF HYPOTHESIS:
There are two types of hypothesis:
1. Null hypothesis
2. Alternative hypothesis
NULL HYPOTHESIS: the statistical hypothesis that is set up for testing a hypothesis is
known as null hypothesis. The null hypothesis is set up in testing a statistical hypothesis
only to decide whether to accept or reject the null hypothesis. It asserts that there is no
difference between the sample statistic and population parameter and whatever difference
is there, is attributable to sampling errors. Null hypothesis is usually denoted by Ho.
According to Prof. R.A. Fisher remarked, “Null hypothesis is the hypothesis which is to
be tested for possible rejection under the assumption it is true[8-11]”.
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TOTAL 6.0976
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Inference:
Hence null hypothesis (Ho) is accepted and alternate hypothesis is rejected.
Null hypothesis:
Hence, there is no significant relationship between age of the employees and
satisfaction regarding health and safety measures provided by the organization.
CHI SQUARE: 5.1
TABLE: A 5.1
Table shows that, experience of the employees and job stimulating & challenging for better
performance in the company
Observed frequency:
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Total 7.131
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Total 0.4156
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It is observed that, 47% of the samples were satisfied, 43% were highly satisfied and 2%
were dissatisfied in organization‟s working environment.
It is inferred that, 51% of the respondents were satisfied, 39% were highly satisfied and
1% were dissatisfied with the company rules and regulations.
From the study, it is observed that 54% of the respondents were strongly agreed, 21%
were agreed and 4% were strongly disagreed the facilities of HR policy of the
organization.
It is inferred that, 77% of the sample respondents were accepted and 23% were denied the
attention towards the incentives and perks offered by the company.
It is inferred that, 61% of the respondents were satisfied, 23% were highly satisfied and
16% were neutral regarding health and safety measures.
From the study, it is observed that 60% of the samples were satisfied, 22% were highly
satisfied and 1% were highly dissatisfied in encouragement to participate in training.
It is inferred that, 53% of the samples were satisfied, 19% were neutral and 2% were
highly dissatisfied regarding compensation benefits.
It is observed that, 41% of the respondents were strongly agreed, 25% were neutral and
1% were strongly disagreed the periodical rewards for performance.
It is inferred that, 87% of the respondents were accepted, 13% were denied the
recognition for the performance.
It is inferred that, 64% of the respondents were satisfied, 19% were highly satisfied and
16% were neutral regarding welfare measures provided by the company.
It is observed that, 47% of the respondents were high, 45% were neutral and 1% was very
high regarding work load.
From the study, it is observed that 64% of the respondents were agreed, 21% were
strongly agreed and 1% were disagreed the friendly approach on supervision.
It is inferred that, 65% of the respondents were agreed, 23% were neutral and 12% were
strongly agreed the friendly approach on supervision.
From the study, it is observed that 59% of the respondents were agreed, 23% were
strongly agreed and 1% were disagreed the job as stimulating and challenging for better
performance.
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It is inferred that, 45% of the respondents were strongly agreed, 37% were agreed and 3%
were disagreed the SOP for the better job.
From the analysis, it is inferred that there is no significant relationship between age of the
employees and satisfaction regarding health and safety measures provided by the
organization.
From the analysis, it is inferred that there is no significant relationship between
experience of the employees and job stimulating & challenging for better performance in
the company
From the analysis, it is inferred that there is no significant relationship between marital
status of the employees and satisfaction regarding the wealth measures provided by the
company
From the analysis, it is inferred that the responses are not random.
SUGGESTIONS
Provide mentoring and career development programme to the management staffs
Reward the employees in terms of bonus, incentives according to their performance.
Provide proper job rotation to motivate the employees.
Provide employees with work schedule which are flexible enough to suit their needs.
The management has to discuss career anchor to the employees in the organization. From
this, the management can retain the employees and develop the future plan of the
company.
CONCLUSIONS
“A study on Employee Retention Strategies in Philips Electronics India Limited”, Chennai from
the duration of three months and by analyzing the result, the conclusion arrived is that the
majority of the respondents have satisfied with health and safety measures. The study shows that
Philips Electronics should plan and implement new retention policies for improving the future
growth of the organization and to reduce the work load of the employee. The study has indicated
that most of the employee felt that their pay packages were low and they suggested to improve
work environment.
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