A PROECT REPORT

ON
A DETAILED STUDY ON EFFECTIVE RETENTION STRATEGIES
FOR EMPLOYEES AT IBM

Submitted in Partial fulfilment of the requirements

for the award of the Degree of

PGDM (HUMAN RESOURCE MANAGEMENT)

UNDER GUIDANCE OF
MUKUL MUDGAL

SUBMITTED TO:

INSTITUTE OF MANAGEMENT & TECHNOLOGY

CENTRE DISTANCE LEARNING GHAZIABAD (U.P.), 2020

NAME: AMRIT RAJ

ROLL NO: 18A1016363

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2
 DECLARATION BY THE STUDENT

I AMRIT RAJ bearing Reg. No. 18A1016363 hereby declare that the Project entitled “A
DETAILED STUDY ON EFFECTIVE RETENTION STRATEGIES FOR
EMPLOYEES AT IBM” has been prepared by me towards the partial fulfillment of
requirement of PGDM (HUMAN RESOURCE) Degree under the guidance of MUKUL
MUDGAL

I also declare that this project report is my original work and has not been previously
submitted for the award of any Degree, Diploma, Fellowship, or other similar titles.

PLACE: NEW DELHI

DATE: 27th Feb 2021

AMRIT RAJ
18A1016363

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 ACKNOWLEDGEMENT

Many persons have contributed to make this project report on “A DETAILED STUDY ON
EFFECTIVE RETENTION STRATEGIES FOR EMPLOYEES AT IBM” a reality. I
would especially like to express my appreciation to MUKUL MUDGAL for his unstinted
support, encouragement and his painstakingly and meticulous effort towards developing this
project.

I acknowledge the help and cooperation received from the faculty members of IBM, Several
colleagues and students have contributed directly and indirectly to the contents of this
project, as they had given me numerous ideas. Their criticism gave me the much-needed
hints about the areas that needed elaboration and amendments and also to present them with
greater clarity.

Finally, I wish to express my sincere thanks to all my family members, especially my Parents
for their constant moral support and Encouragement.
I would Welcome Constructive Suggestions to improve this project report, which can be
implemented in my further attempts.

Thanking you!

AMRIT RAJ
18A1016363

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 CONTENTS

Chapter Title Page No

1 Introduction 08-31

Credit Appraisal 08

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Credit Risk Management
Credit Management techniques 19

2 Company Profile 29-40

Introduction to Company 30

Vision and Mission 34

Key competitors 35

SWOT Analysis of ICICI 36

Porter’s Five Forces Analysis 38

3 Literature Review 41-47

4 Need, Scope and Objectives of the study 48-49

5 Research Methodology 50-55

Methodology 51

Data Collection 51

Sampling 52

Nature of research 53

Research tools applied 54

Limitations 55

6 Data Analysis ,Interpretation and Findings 56-73

7 Recommendations and Suggestions 74-75
8 Conclusions 76-77
9 Bibliography and Questionnaire 78-84

Questionnaire
Bibliography

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ABSTRACT

Employee retention is a process in which the employees are encouraged to remain with the
organization for the maximum period of time. 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.

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 Blog
Online and Earn Money.

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EXECUTIVE SUMMARY

In today’s scenario retaining the employees in the organization is becoming a challengeable

job. Hiring knowledgeable people for the job is essential for an employer. But retention is
even more important than hiring. The employees are valuable assets to the organization so it
is the responsibility for the organization to develop the strategies in order to retain the
employees. Employee attrition may be due to various factors such as lack of growth
opportunities, dissatisfaction with the working environment, lower pay etc... 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 organization to retain their best employees. The
organization should satisfy the needs and wants of the employees working in the
organization which helps in reducing employee turnover. Employee retention greatly
constitute for the growth of the organization.

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
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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

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 CHAPTER 1

INTRODUCTION

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INTRODUCTION

DEFINITION
“Employee retention is a process in which the employees are encouraged to remain in the
organization for the maximum period of time.”
Employee Retention involves taking measures to encourage competent employee to remain
in the organization for the maximum period of time. Corporate are facing a lot problem in
employee retention these days. Hiring knowledgeable people for the job is essential for an
employer. But retention is even more important than hiring. There are many organizations
which are looking for such employees.

ABOUT EMPLOYEE RETENTION

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.

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. Employee
retention matters as organizational issues such as training time and investment; lost
knowledge; insecure employees and a costly candidate search are involved. Hence failing to
retain a key employee is a costly proposition for an organization. Various estimates suggest
that losing a middle manager in most organizations costs up to five times of his salary.
Intelligent employers always realize the importance of retaining the best talent. Retaining
talent has never been so important in the Indian scenario; however, things have changed in
recent years. In prominent Indian metros at least, there 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.

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In fact, some reports suggest that attrition levels in IT companies are as high as 40 per cent.
The only way out is to develop appropriate retention strategies. Though BPO industry shoots
ahead at 40 to 50 per cent a year, it is now losing 35 to 40 per cent of its 350,000-odd
employees as well. In India there are few sectors where the attrition level is much larger
compared to other sectors? For example: IT sector and BPO. Whereas there are organizations
like Air India, HAL, DRDO, BARC where the attrition is nearly 5% or less than that.

HISTORY OF RETENTION
“Today’s workplace is not the workplace of a generation ago. Fifty years ago, most workers
fit into a similar mould: male, full-time, eight to five, blue collar, hourly wage workers who
had learned most of the skills on the job. Then, for those lucky enough to find a niche in a
large company, the expectation of continued employment and steady advancement made a
homogeneous pattern of work an ideal arrangement”
Drucker (1992) says, “All organizations now say routinely, ‘People are our greatest asset.’
Yet few practice what they preach, let alone truly believe it. Most still believe, though
perhaps not consciously, what nineteenth-century employers believed: people need us more
than we need them”
During the past two decades, businesses have had to adopt the new realities of the
Information Age-while being expected to follow old ‘rules of the business game’ set in the
long-gone Industrial Age. The Industrial Age valued people as physical assets – bought and
sold as extensions of machines. Only organizations that transcend that approach have become
leaders in the Information Age. Organizations ill-equipped to manage change have had a
tumultuous time in transitioning from one age to the next.
1990’s…By the mid 1990’s; however, doubts were emerging about whether downsizing was
the route to success that it was first thought”. “The downsizing environment in the 1980’s
and early 1990’s further discouraged some companies from investing in Succession
management. As a result, many companies developed severe bench strength problems and
are now facing a shortage in top management successions”.
The demand for high-caliber managerial talent is growing. The late 1990’s through the year
2000 was a period of extraordinary economic growth as against a backdrop of sustained
economic growth, new economy companies proliferated creating millions of new jobs, and
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rewriting the rules of recruiting and retention. New competitors vied daily with traditional
companies for key skills-not only technological savvy but also more traditional marketing,
finance, and partnership building expertise. Exacerbating this explosion in demand was a
projected tightening of supply in key segments of the labor pool. The result: an employment
market where demand far outweighed supply and where employers no longer ‘held all the
cards.’
Due to a growing imbalance between an expanding demand for talent and the limited supply,
we reached the other extreme in the pendulums swing. Employees became ‘Free agents’
more concerned, some would argue, with their own employability and personal gain than
with long-term job security - or their employer’s success”. To understand the importance of
retention in today’s world of the twenty-first century, it helps to look at the factors
throughout the several decades that have led to the issue of retaining employees. This will
help to explain how the problem evolved and the importance of retaining top talent for
organizations.
Retention cannot be solved in the usual sense. There can be no silver bullet program or set of
programs that will bind employees to the organization in the presence of attractive
opportunities elsewhere. Employers can and should work hard to eliminate problems in the
workplace that might drive their valued employees into the arms of competitors. But, as
noted earlier, most people who quit do so to take jobs elsewhere, and dissatisfaction with
current jobs drives turnover only when other positions are available. The “pull” of
alternatives is the major driver of turnover, not just as the “push” of problems in the current
workplace. The growing need to find talent in the outside market will become the main driver
of the retention problem, although employers exacerbate the problem by focusing employee
attention on the labour market and giving them more information on other jobs, increasing
the likelihood that they will leave.

REASONS TO RESIGN
People tend to leave organizations for a variety of reasons. The most common amongst them
are:
 Job Role Mismatch – If there is a selection fault that has occurred – and if the job
and the person are not matching to each other, then it is likely the candidate will leave
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 the organization. The expectations problem could be on either side – the candidate as
well as the organization. This problem could also come from there being a mismatch
in terms of experience and qualifications of the person and the job analysis
 No proper growth opportunities – Some organizations do not grow at the rate they
are expected to grow – neither do they go downwards. People who like to function in
challenging environments and are more effective in companies which offer them
rapid growth opportunities, tend to leave companies which are slow-growing. Also,
some organizations do not enhance skills of people through good training programs.
People actually like to develop themselves and if they are not provided opportunities
to do so, they might leave.
 Lack of appreciation – If the feedback system of the organization does not allow
appreciation of work, or commendations, people tend to get frustrated with the
company. By nature, a human being wants to hear good things about himself. When
he knows that he is performing well, but does not get timely appreciation from the
company, he looks out for other opportunities.
 Lack of trust and support – If the culture of the company is not transparent, and the
management lacks trust in employees, and does not support its people, then people
look out for other opportunities. When people give their full efforts to a company,
they expect that the company should also trust them and support them wherever
required. If that does not happen, people start thinking negatively about the company.
 Work life imbalance – If the company does not encourage a positive balance
between personal and professional life of the employee, people will not be happy.
 Personal issues – There could be personal issues for people leaving a company,
especially for women – relocation of spouse, childbirth, emergency in the family
requiring their presence at home etc. Once women move away from mainstream
work-life, it becomes difficult for them to come back into it.
 Salary & Compensation – The last but not the least – salary and compensation can
be a factor for leaving an organization – if a person thinks he is not paid enough by
the organization, he will look out for another job with higher salary.

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FACTORS THAT AFFECT EMPLOYEE RETENTION
Most managers understand the importance of employee retention and its impact on the
overall health and vitality of an organization. The importance of retaining top organizational
talent will only increase over the coming years as the massive cohort of baby boomers begin
to reach retirement age making it easy for younger employees to find work.
In a previous article we identified some useful tips to help improve employee retention in
your organization. Given the importance of employee retention, we have compiled another
list of 10 important factors that can affect employee retention in your organization.

1. Shorten the feedback loop – Do not wait for an annual performance evaluation to
come due to give feedback on how an employee is performing. Most team members
enjoy frequent feedback about how they are performing. Shortening the feedback
loop will help to keep performance levels high and will reinforce positive behavior.
2. Offer a competitive compensation package – Any team member wants to feel that
he or she is being paid appropriately and fairly for the work he or she does. It is also
important to research what the regional and national compensation averages are for
that particular position. You can be sure that if your compensation package is not
competitive, team members will find this out and look for employers who are willing
to offer more competitive compensation packages.
3. Work – Life Balance – Family is incredibly important to team members. When work
begins to put a significant strain on one's family no amount of money will keep an
employee around. Stress the importance of balancing work and one's personal life.
Small gestures such as allowing a team member to take an extended lunch once a
week to watch his son's baseball game will likely be repaid with loyalty and extended
employment with an organization.
4. Beware of burnout – Staff adequately to reduce the amount of unwanted overtime a
team member must work. Some employees enjoy the extra money that accompanies
overtime hours, while others would rather spend their time with their families or
doing other activities they enjoy. Burnout can be a leading cause of turnover.
Recognize the warning signs and give employees a break when they need it.
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5. Provide opportunities for growth – Offer opportunities for team members to
acquire new skills and knowledge useful to the organization. If an employee appears
to be bored or burned out in a current position offer to train this individual in another
facet of the organization where he or she would be a good fit. Nobody wants to feel
stuck in their position will no possibility for advancement or new opportunities.
6. The ability to provide input– Everybody has opinions and ideas, some are better
than others. However every team member wants to feel that their input is welcome
and will be taken seriously without ridicule or condescension. Some of the greatest
ideas can come from the most unlikely of places and people.
7. Management must take the time to get to know team members – It's not a big
surprise that one of the greatest complaints that employees express in exit interviews
is a feeling that management didn't know they existed. Nobody wants to feel like just
another spoke in a big wheel. The time spent by management getting to know team
members is well invested and can eliminate the headaches caused by having to
continually hire and re-train new employees.
8. Provide the tools and training an employee needs to succeed – Nothing can be
more frustrating to an employee than a lack of training or the proper tools to
successfully complete his or her duties. You wouldn't try to build a house without a
hammer, so why should an office job be any different? Providing a team member
with the tools and training she needs to be successful shows a commitment and
investment in that employee and will encourage the team member to stay with the
organization.
9. Make use of a team member's talents, skills, and abilities – All team members
have knowledge, skills, and abilities that aren't directly related to their job
description, but are still useful to an organization. Utilizing a team member's talents
in areas other than their current position will indicate to an employee that
management appreciates and recognizes all that an employee has to offer to the
organization. This can also provide work variety and helps to break up the everyday
grind of work.
10. Never threaten a team member's job or income – While threatening an employee
with termination or demotion might seem like a surefire way to get the results needed
15
 from him or her, doing so will likely cause the employee to leave the organization.
Put yourself in the employee's shoes, what is the first thing you would do if your job
was threatened? Odds are you would probably update your resume and start checking
for open job postings expecting the worst.

REASON FOR EMPLOYEE TO COME TO THE ORGANISATION

 Pay,
 Location,
 Benefits,
 Advancement Possibilities,
 Job Security,
 Nature Of Work,
 Personal/Family Time.

REASONS FOR EMPLOYEE TO STAY WITH THE ORGANISATION

 Confidence Factor-they believe in potential success/leadership strategies
 Emotional Factor- (Huge) contribution, recognition, appreciation
 Trust Factor- 2 ways- promises/commitments kept (strong link to loyalty)
 Fit Factor- Values/ethics are a good fit
 Listening Factor- Are they heard and valued?

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EMPLOYEE RECOGNITION INCREASES RETENTION
It seems that now more than ever employee recognition is limited at best in many
organizations. Unfortunately many managers don't understand the importance of recognizing
a team member's hard work and a job well done. Many might even ask why they should
recognize their employees when they are "just doing their job."
Recognizing an employee's performance reinforces positive behavior and encourages
additional positive behavior. When a business leader understands the power of recognizing
his or her employees the culture of an organization reacts to this recognition and moves in a
positive direction helping to retain more employees. Employee recognition can be as simple
or as extravagant as one desire. The following is a short list of simple ways to recognize team
members for a job well done and improve retention in your organization.
 A simple "thank you" or "nice job" given in regular frequency can significantly boost
team morale. Often times a team member will greatly appreciate the time you spent to
find him at his desk and deliver the message in person.
 Send a thank you card or e-card. Also photocopy the thank you and document the
reason for the recognition in the employee's file.
 Movie tickets, gift certificates, or an engraved gift are excellent rewards for an
employee who has excelled or put in the extra effort to make a project happen.
 Recognize the team member's contribution in front of members of management. This
can reduce the tendency for employees to feel that their supervisors take all the credit
for their hard work.
 Recognize loyalty and exceeding expectations. Mention the team member's hire
anniversary, large contract won, or surpassing of a sales goal in the company
newsletter or at a staff meeting.
 Know how to recognize your staff. Not all staff members want to be singled out at a
gathering of hundreds of fellow team members, while for others it would make their
week.

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STUDY SUGGESTS EMPLOYEES LEAVE BOSSES, NOT JOBS
Careful selection of employees and managers can have a huge impact on your employee
retention efforts and employee turnover costs at your organization. It has been said more than
once, and for good reason, that employees leave their bosses - not their jobs. A Florida State
University study scheduled for full release in the fall 2007 issue of Leadership Quarterly
confirms this. The study shows that 40% of employees work for bad bosses based on survey
results. The reasons that Employers score poorly are varied and many:
 39% of workers said their supervisor failed to keep promises.
 37% indicated their supervisor failed to give credit when due.
 31% said their supervisor gave them the "silent treatment" during the past year.
 27% report their supervisor made negative comments about them to other employees
or managers.
 24% indicated their boss invaded their privacy.
 23% said their supervisor blamed other to cover up personal mistakes or minimize
embarrassment.

So what does this all boil down to? The effects of having bad bosses in your organization can
be devastating. High turnover, poor employee morale, employee theft, diminished customer
service, substandard employee performance, lower production, and an organizational culture
of fear and mistrust can all be blamed in part on poor bosses and managers.

The costs of having poor managers and bosses can be incredible. Consider the cost of
employee turnover, which is different for all industries and positions, but has been roughly
estimated at $15,000 - $17,000 per employee in low to moderately skilled positions. Having
a manager who drives potentially valuable employees from your organization can have a
huge impact on your bottom line, and your customers.

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RETENTION MANAGEMENT
Retention management is a highly topical subject and an important dilemma many
organizations might face in the future, if not facing it already. We believe that the leader
plays a key role in employee retention and retention management. The concept of retention
management can both have a narrow, and a broader significance. Both parts of its
significance are generally included in this thesis. The background of the thesis present a few
articles that discuss issues that makes it important for the organization, and the leaders, to
work hard with retention management. The research is based on the leaders in the Finnish
case company Tradeka. Following key questions are intended to be answered: What are the
consequences between leaders actions and employees retention? Which is the leader’s role
when it comes to retaining employees?

EMPLOYEE RETENTION STRATEGIES

The basic practices which should be kept in mind in the employee retention strategies are:
1. Hire the right people in the first place.
2. Empower the employees: Give the employees the authority to get things done.
3. Make employees realize that they are the most valuable asset of the organization.
4. Have faith in them, trust and respect them.
5. Provide them information and knowledge.
6. Keep providing them feedback on their performance.
7. Recognize and appreciate their achievements.
8. Create an environment where the employees want to work and have fun. These
practices can be categorized in 3 levels:
a) Low
b) Medium
c) High level.

LOW LEVEL EMPLOYEE RETENTION STRATEGIES

 Appreciating and recognizing a well done job
 Personalized well done and thank-you cards from supervisors
 Congratulations e-cards or cards sent to spouses/families
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 Voicemails or messages from top management
 Periodic days off for good performance
 Rewards (Gift, certificates, monetary and non-monetary rewards)
 Recognizing professional as well as personal significant events
 Wedding gifts
 Anniversary gifts.
 New born baby gifts
 Scholarships for employee’s children
 Get well cards/flowers
 Birthday cards, celebrations and gifts
 Providing benefits
 Home insurance plans
 Legal insurance
 Travel insurance
 Disability programs
 Providing perks: It includes coupons, discounts, rebates, etc
 Discounts in cinema halls, museums, restaurants, etc.
 Retail store discounts
 Computer peripherals purchase discounts
 Providing workplace conveniences
 On-site ATM
 On-site facilities for which cost is paid by employees
 Laundry facility for bachelors
 Shipping services
 Assistance with tax calculations and submission of forms
 Financial planning assistance
 Casual dress policies
 Facilities for expectant mothers
 Parking
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  Parenting guide
MEDIUM LEVEL STRATEGIES FOR EMPLOYEE RETENTION
 Appreciating and recognizing a well done job
 Special bonus for successfully completing firm-sponsored certifications
 Benefit programs for family support
 Child adoption benefits
 Flexible benefits
 Dependents care assistance
 Medical care reimbursement
 Providing conveniences at workplace
 Gymnasiums
 Athletic membership program
 Providing training and development and personal growth opportunities
 Sabbatical programs
 Professional skills development
 Individualized career guidance

HIGH LEVEL STRATEGIES

 Promoting Work/Life Effectiveness
 Develop flexible schedules
 Part-time schedules
 Extended leaves of absence
 Develop Support Services
 On-site day care facility etc.
 Understand employee needs: This can be done through proper management style and
culture
 Listen to the employee and show interest in ideas•
 Appreciate new ideas and reward risk-taking
 Show support for individual initiative

21
  Encourage creativity
 Encouraging professional training and development and/or personal growth
opportunities: It can be done through:•
 Mentoring programs
 Performance feedback programs
 Provide necessary tools to the employees to achieve their professional and personal
goals
 Getting the most out of employee interests and talents
 Higher study opportunities for employees
 Vocational counseling
 Offer personalized career guidance to employees
 Provide an environment of trust: Communication is the most important and effective
way to develop trust.
 Suggestion committees can be created
 Open door communication policy can be followed

Regular feedbacks on organization’s goals and activities should be taken from the employees
by:
 Management communications
 Intranet and internet can be used as they provide 24X7 access to the information
Newsletters, notice boards, etc.
 Hire the right people from the beginning: Employee retention is not a process that
begins at the end. The process of retention begins right from the start of the
recruitment process. The new joinees should fit with the organization’s culture. The
personality, leadership characteristics of the candidate should be in sync with the
culture of the hiring organization. Referral bonus should be given to the employees
for successful hires. They are the best source of networking. Proper training should be
given to the managers on interview and management techniques. An internship
program can be followed to recruit the fresh graduates.

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RETENTION SUCCESS MANTRA

1. 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.
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.
2. 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.
3. 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.
4. 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
23
 important factor in 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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 they show a positive attitude toward the organization and express a
commitment to remain with the organization. Employee satisfaction also comes with
24
 high engagement levels. So, organizations should aim to maximize the engagement
among employees.
10. 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.
11. 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.
12. 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.
13. 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. 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.

MANAGING EMPLOYEE RETENTION

The task of managing employees can be understood as a three stage process:
1. Identify cost of employee turnover: The organizations should start with identifying
the employee turnover rates within a particular time period and benchmark it with the
competitor organizations. This will help in assessing the whether the employee retention
25
 rates are healthy in the company. Secondly, the cost of employee turnover can be
calculated. According to a survey, on an average, attrition costs companies 18 months’
salary for each manager or professional who leaves, and 6 months’ pay for each hourly
employee who leaves. This amounts to major organizational and financial stress,
considering that one out of every three employees plans to leave his or her job in the
next two years.
2. Understand why employees leave: Why employees leave often puzzles top
management. Exit interviews are an ideal way of recording and analyzing the factors
that have led employees to leave the organization. They allow an organization to
understand the reasons for leaving and underlying issues. However employees never
provide appropriate response to the asked questions. So an impartial person should be
appointed with whom the employees feel comfortable in expressing their opinions.
3. Implement retention strategy: Once the causes of attrition are found, a strategy is to
be implemented so as to reduce employee turnover. The most effective strategy is to
adopt a holistic approach to dealing with attrition.

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. Employees are chosen for retention bonuses based on their
contributions to management and the generation of revenue. 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
26
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.

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.
1. 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.
2. 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.
3. 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.
4. 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 beforehand that their requirements cannot be fulfilled. Don’t
show them an unrealistic picture.
5. 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.
6. 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
27
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. 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:
1. 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.
2. 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.
3. 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.
4. 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.
5. 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 overburdened.

28
 6. 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 more honest and candid with their
opinions. Provide opportunities within the company for career progression and cross-training.
Offer attractive, competitive benefits.
1. 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 affect the person being recognized, but others in the organization
as well. 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
no valued performance can contribute to turnover. Recognition for a job well done fills
the employees' need to receive positive, honest feedback for their efforts.
2. 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.
3. 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,
29
 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 (St.
Amour, 2000).

GUIDELINE FOR REWARDS AND RECOGNITION

In designing 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 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. 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.
 Formal recognition program can be used with success. First Data Resources, a data
processing services company that employees more than 6,000 individuals in Omaha,

30
Nebraska, use a formal recognition program (Adams, Mahaffey, and Rick, 2002).
Rewards are given on a monthly, quarterly, and yearly basis, and range from
Nebraska football tickets, gift certificates, pens, plaques, mugs, and other items. One
of the most popular awards at First Data is called the "Fat Cat Award" that consists
of: $500 gift check

31
 CHAPTER 2

COMPANY PROFILE

32
INTRODCTION TO COMPANY

International Business Machines Corporation or IBM, is an American multinational

technology and consulting corporation, with headquarters in Armonk, New York, United
States. IBM manufactures and markets computer hardware and software, and offers
infrastructure, hosting and consulting services in areas ranging from mainframe computers to
nanotechnology.[3]
The company was founded in 1911 as the Computing Tabulating Recording Company (CTR)
through a merger of three companies: the Tabulating Machine Company, the International
Time Recording Company, and the Computing Scale Company. CTR adopted the name
International Business Machines in 1924, using a name previously designated to CTR's
subsidiary in Canada and later South America. Security analysts nicknamed IBM Big Blue in
recognition of IBM's common use of blue in products, packaging, and logo.
In 2012, Fortune ranked IBM the #2 largest U.S. firm in terms of number of employees
(433,362), the #4 largest in terms of market capitalization, the #9 most profitable, and the
#19 largest firm in terms of revenue. Globally, the company was ranked the #31 largest in
terms of revenue by Forbes for 2011. Other rankings for 2011/2012 include #1 company for
leaders (Fortune), #1 green company worldwide (Newsweek), #2 best global brand
(Interbrand), #2 most respected company (Barron's), #5 most admired company (Fortune),
and #18 most innovative company (Fast Company).
IBM has 12 research laboratories worldwide and, as of 2013, has held the record for most
patents generated by a company for 20 consecutive years. Its employees have garnered five
Nobel Prizes, six Turing Awards, ten National Medals of Technology, and five National
Medals of Science. Notable inventions by IBM include the automated teller machine (ATM),
the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the
Universal Product Code (UPC), the financial swap, SABRE airline reservation system,
DRAM, and Watson artificial intelligence.
IBM is a global IT manufacturing and consulting company, with 335,000 employees across
nearly every industrialized country in the world. Once largely focused on the sale of
mainframes and related software contracts, IBM has evolved into lucrative technology and
business consulting, supported by a wide range of IBM software platforms and products.
33
Figure 1 shows IBM’s value system in the marketplace, demonstrating a reliance on
knowledge-based transformation and processes. Products such as hardware and software are
either sold outright, or used (along with competitor’s products) as a basis for consulting
engagements.
IBM is a global technology and innovation company that stands for progress. With
operations in over 170 countries, IBMers around the world invent and integrate hardware,
software and services to help forward-thinking enterprises, institutions and people
everywhere succeed in building a smarter planet.
IBM has been present in India since 1992. The diversity and breadth of the entire IBM
portfolio of research, consulting, solutions, services, systems and software, uniquely
distinguishes IBM India from other companies in the industry.IBM India's solutions and
services span all major industries including financial services, healthcare, government,
automotive, telecommunications and education, among others. As a trusted partner with
wide-ranging service capabilities, IBM helps clients transform and succeed in challenging
circumstances.
IBM has been expanding its footprint in India - and has a presence in over 200 cities and
towns across the country - either directly or through its strong business partner network. IBM
India has clearly established itself as one of the leaders in the Indian Information Technology
(IT) Industry - and continues to transform itself to align with global markets and geographies
to grow this leadership position. Widely recognized as an employer of choice, IBM holds
numerous awards for its industry-leading employment practices and policies.

34
VISION AND MISSION STATEMENT

Mission Statement:
IBM’s mission statement is “to lead in the creation, development, and manufacture of the
industry’s most advanced information technologies, including computer systems, software,
networking systems, storage devices, and microelectronics. And our worldwide network of
IBM solutions and services professionals translates these advanced technologies into
business value for our customers. We translate these advanced technologies into value for our
customers through our professional solutions, services and consulting businesses
worldwide.” The company outlines all the operations that it capitalizes on to define its
position in the information technology. It also points at its commitment to ensuring that these
operations are run in such a way that they add value to the lives of its clients. The mission
statement gives rise to the following major points.
 Leadership in Information technology: The mission statement by IBM reiterates its
leadership responsibilities within its sector. The company holds this as an important
duty ever since it was founded, and it has done its best to achieve it through various
operations. Some of these include overseeing the design and development of tech-
related products and other components. In fact, the first section of the mission
statement outlines some of these efforts. Others are breakthroughs that IBM has
stimulated in the information technology are defined in the ‘Our Industries’ section.
The variety and comprehensiveness of the impacts the company has on various sub-
areas affirm its leadership in the sector and places it above IBM competitors.
 Networking the world: In this second factor, IBM focus is on the workforce that it
has brought together and the difference it creates in the overall success of the
company. IBM stresses that these diverse professionals are the source of the value
that the consumers enjoy. Essentially, IBM shows that it is an inclusive company that
pools its experts from the larger global market, something that also makes its products
fit for global consumption as they are sensitive to global needs improvement of life.
The emphasis placed on professional solutions at IBM demonstrates how serious the
company is when it comes to leaving an impact on the users of its products and

35
 services. That is why IBM leaves nothing to chance by ensuring that its business is
value-oriented and that this value is customer –leaning.

Vision Statement:
IBM’s vision statement is “to be the world’s most successful and important Information
Technology Company. Successful in helping out customers apply technology to solve their
problems. Successful in introducing this extraordinary technology to new customers.
Important, because we will continue to be the basic resource of much of what is invested in
this industry.” IBM uses the keyword ‘successful’ throughout its vision statement to signify
its developmental journey. The company considers maintaining a consistent winning
trajectory a critical element of its business profile for stamping its leadership position in the
information technology sector. The vision statement has the following factors:
 Best global giant: The first factor in IBM’s vision statement is all about the
influential position the company fights to occupy. IBM wants to rival all other
information technology companies to the top seat. The company has been doing this
through progressive success and well-strategized business branding. Today, IBM has
demonstrated it is the ideal company every other business and customer should be
looking out for with its advanced products and related systems such as the internet of
things, security, mobile and automation, all with immeasurable potential to impact
lives of people.
 Improving communities: IBM simply looks to apply its complex products to make
the world better in this factor of its vision statement. For instance, the company
indicates that introducing extraordinary technology is one of its primary visions, and
these inventions all seek to make life easier and societies better. The same case
applies to the impact the activities of the company are poised to have on the general
business landscape.

CORE VALUES
IBM’s core values comprise “diversity and inclusion, innovation, being yourself, and
focusing on change.” Although the company has not clearly defined its core values, these can
be drawn from the culture created at IBM.
36
IBM calls its workforce IBMers, and the company considers embracing experts from a varied
background the source of its rich culture. Drawing knowledge from across the globe is IBM’s
source of innovation especially when these individuals “bring their full self” to the purpose
of the company. The integration of these values promotes the ability to take on chance, and
thrive in it, just as IBM is best known for.

KEY COMPETITORS
 Accenture
 Wipro
 TCS
 Infosys
 Hewlett Packard
 Xerox

37
SWOT ANALYSIS
Strengths:
 IBM is the globes’ 3rd biggest technology corporation and the world’s 2nd most
valuable brand.
 It is one of the few IT companies with a constant history dating earlier to the 19th
century.
 IBM had many spin-offs and acquisitions some noticeable are: SAP and Levono.
 IBM is ranked number one hosted company in Western Europe.
 The company is highly innovative.
 IBM has diversified workforce and flexible culture, which allow employees to have
open forums for innovations and different ideas.
 IBM has very competitive work force; it has 5 noble price winners9 national medals
of technology and 5 national medals of science.
 IBM is diversified into the business of computer hardware and software,
infrastructure services, consulting services and hosting services.

Weakness:
 IBM works in a reactionary mode, relying on supplier end-of-quarter information
EMS self-reporting.
 It has the world’s most complex supply chain system.
 It does not have sustainable in-house supply chain system.
 IBM relied on partners’ and suppliers’ reports and management systems.
 The company’s product innovation and time limit add significantly to employee
burnout.
 The company’s sales of system and service segments are declining.
 Total assets are steadily decreasing.

38
Opportunities
 Increasing customers’ awareness of new technology around the globe is a good
opportunity.
 Video game market revenue is predictable to arrive at $66 billion in 2012, as
compared to $12 billion in 2008.
 The growth rate of Information Technology Markets in India, Russia, China, and
Brazil is more than the global growth rate.
 Cheaper worldwide telecommunication costs unlock new markets because large
number of people is attached to the Internet.
 Mobile phone markets are growing in developing countries therefore new software
for mobiles could be introduced.
 Improving economic conditions after the financial crises 2007-10 will increase the
purchasing power of consumers which will ultimately boost the revenues of the
company.

Threats
 To maintain one of the most complex and largest supply chains in the globe.
 IBM is facing strong rivalry from the various local as well as multinational
companies such as Microsoft, Dell, etc.
 The bargaining power of buyers is high because many alternative products are
available to buyers.
 Most of the countries are going for technological development. IBM may face
government laws and regulations in different countries.
 Increasing Cybercrime is also creating problems for the success of company.
 Life cycle of Technology is becoming shorter day by day.

39
PORTER’S FIVE FORCES ANALYSIS
1) Threat of new entrants: This force determines how easy (or not) it is to enter a
particular industry. If an industry is profitable and there are few barriers to enter, rivalry
soon intensifies. When more organizations compete for the same market share, profits
start to fall. It is essential for existing organizations to create high barriers to enter to
deter new entrants. Threat of new entrants is high when:

 Low amount of capital is required to enter a market;

 Existing companies can do little to retaliate;

 Existing firms do not possess patents, trademarks or do not have established brand
reputation;

 There is no government regulation;

 Customer switching costs are low (it doesn’t cost a lot of money for a firm to switch to
other industries);

 There is low customer loyalty;

 Products are nearly identical;

 Economies of scale can be easily achieved.

2) Bargaining power of suppliers: Strong bargaining power allows suppliers to sell higher
priced or low quality raw materials to their buyers. This directly affects the buying firms’
profits because it has to pay more for materials. Suppliers have strong bargaining power
when:

 There are few suppliers but many buyers;

 Suppliers are large and threaten to forward integrate;

 Few substitute raw materials exist;

 Suppliers hold scarce resources;

 Cost of switching raw materials is especially high.

40
3) Bargaining power of buyers: Buyers have the power to demand lower price or higher
product quality from industry producers when their bargaining power is strong. Lower
price means lower revenues for the producer, while higher quality products usually raise
production costs. Both scenarios result in lower profits for producers. Buyers exert strong
bargaining power when:

 Buying in large quantities or control many access points to the final customer;

 Only few buyers exist;

 Switching costs to other supplier are low;

 They threaten to backward integrate;

 There are many substitutes;

 Buyers are price sensitive.

4) Threat of substitutes: This force is especially threatening when buyers can easily find
substitute products with attractive prices or better quality and when buyers can switch
from one product or service to another with little cost. For example, to switch from coffee
to tea doesn’t cost anything, unlike switching from car to bicycle.

5) Rivalry among existing competitors: This force is the major determinant on how
competitive and profitable an industry is. In competitive industry, firms have to compete
aggressively for a market share, which results in low profits. Rivalry among competitors
is intense when:

 There are many competitors;

 Exit barriers are high;

 Industry of growth is slow or negative;

 Products are not differentiated and can be easily substituted;

 Competitors are of equal size;

 Low customer loyalty.

41
Although, Porter originally introduced five forces affecting an industry, scholars have
suggested including the sixth force: complements. Complements increase the demand of the
primary product with which they are used, thus, increasing firm’s and industry’s profit
potential. For example, iTunes was created to complement iPod and added value for both
products. As a result, both iTunes and iPod sales increased, increasing Apple’s profits.

42
 CHAPTER 3

LITERATURE REVIEW

43
LITERATURE REIEW
The literature clearly indicated that there are six keys to retaining personnel. They are
recruiting, communications, training, job satisfaction, pay, and benefits.

Recruiting: The effort to retain the best personnel begins with recruiting. Attracting and
retaining the best people are not two different things, but is the same thing. Both require
creating and maintaining a positive reputation, internally as well as externally. Employers
must be honest with the recruit about the beliefs, expectations, organizational culture,
demands, and opportunities within the organization. By representing the organization
realistically, a department will attract those who will be content working within the culture

(Marx,1995). Denton (1992, p.47) follows this up by stating that, “the better the match
between recruits and the organization the more likely you are to retain them.” Lynn (1997)
believes that you must take time during the hiring process to make wise decisions. The
employer must be candid about the working conditions, responsibilities, opportunities and
other details to reduce the chances of making hiring mistakes.

Communications: Carney (1998) believes that the key to employee retention is quite
simple: communicate, communicate, and communicate. Communication with the employees
must begin early on in the relationship. He believes that the imprinting period of a new
employee is probably less than two weeks. Employers must engage the employee early on by
sharing how important the job they do is. Lynn (1997) follows this up by stating that early on
an atmosphere of fairness and openness must be created by clearly laying out company
policies.
Taylor and Consenza (1997) indicate that it is important to communicate the values of the
organization to its employees in order to increase their level of consent, participation, and
motivation. Lynn (1997) echoes this thought by pointing out that the vision of the
organization must be shared with the employee as well as the importance the employees play
in helping fulfill it.

44
Training: As was noted earlier it is important that the employee feel like a valued member of
the organization. Training helps underscore this message. Training personnel is a way to
show you respect them and want them to grow. The department is making an investment in
the employee by offering training (Marx, 1995). Good training can de-emphasize salaries
and benefits, in part by building a positive work environment and by giving employees
advancement opportunities (Lynn, 1997). Lynn goes on to say that training helps strengthen
employee loyalty.

Job Satisfaction: While an organization must be competitive in terms of compensation and

benefits, it is the relationship with the supervisor that is often a crucial factor in determining
whether a person stays or goes (Mendonsa, 1998). Employees want more interaction with
management, more self-satisfaction on the job, more responsibility and more control over
decisions affecting them. They want their work to make a difference and want to be part of
something that matters (Taylor, 1997). Departments should encourage innovation by
soliciting the advice and input of their staff members, followed by responses to ideas,
complaints or questions (Taylor, 1997). It is difficult to keep people on the job if they have
no say in how to do it (Spragins, 1992).

Pay and Benefits: In general people think that money and benefits or lack thereof, are the
main reasons people leave their jobs, but this is not the case. While compensation and
benefits may be a key factor in the final decision-making process, a money shortage is
usually not what causes people to look in the first place (Mendonsa, 1998).

Today, changes in technology, global economics, trade agreements, and the like are directly
affecting employee/employer relationships. “Until recently, loyalty was the cornerstone of
that relationship. Employers promised job security and a steady progression up the hierarchy
in return for the employee’s fitting in, performing in prescribed ways and sticking around.
None of these assumptions apply today. Restructuring and layoffs occurring today are
expected to continue far into the future. Employees are now finding that previous job skills
are no longer valuable. They must now create new job growth possibilities, rather than
waiting on promotions to be handed out.
45
STATEMENT OF THE PROBLEM
As a person with knowledge of staff turnover and retention, the author has always brought up
to his superiors the viability of strategy formation regarding staff turnover and retention
management and at times fail to understand the reasons or logic behind certain strategic
implementations imposed on it.
By delving into this project paper, the author intends to have better insights into how staff
turnover and retention is thought up, formulated and then imparted down. The author hopes
to have an in-depth understanding as to how the staff members reconcile the need to become
more strategic with the demands of managers to carry out the traditional personnel roles.

In order to reinforce the learning objectives, two key focal issues were focused upon, i.e.
innovation and diversity. Innovation was discussed with regards to staff turnover and
retention where it was renowned for its developmental capabilities to constantly innovate.
Diversity came under strategic thinking and formation as the author considered the diverse
culture, political climate, economic surroundings, social environment, technological settings,
government policies and legal systems in order to understand staff turnover and retention.
The challenge of keeping employees: Its changing face has stumped managers and business
owners alike. How do you manage this challenge? How do you build a workplace that
employees want to remain with … and outsiders want to be hired into?
Successful managers and business owners ask them these and other questions because—
simply put—employee retention matters:

 High turnover often leaves customers and employees in the lurch; departing
employees take a great deal of knowledge with them. This lack of continuity makes it
hard to meet your organization’s goals and serve customers well.
 Replacing employees’ costs money. The cost of replacing an employee is estimated at
up to twice the individual’s annual salary (or higher for some positions, such as
middle management), and this doesn’t even include the cost of lost knowledge.
 Recruiting employees consumes a great deal of time and effort, much of it futile.
You’re not the only one out there vying for qualified employees, and job searchers
make decisions based on more than the sum of salary and benefits.
46
 CHAPTER 4

NEED, SCOPE AND OBECTIVES OF THE STUDY

47
OBJECTIVES
 To find the factors that influence employee retention and to find the factors which
motivates the employee to retain in IBM?
 To make recommendation for future research and to retain the experienced and
skillful employees within the IBM.
 To identify the factors causing dissatisfaction of the employees and to identify the
factors motivating the employees.
 To reduce the employees turn over in the organization and to identify the employee’s
expectation from the rewards and recognition system.
 To ascertain the motivational drivers that help to create a retain workplace at IBM

SCOPE:
By identifying the factors causing employee turnover, the organization can develop and
maintain the strategies that help them to retain their employees. This study helps the
management to analyze the factors that motivates the employees. By identifying the factors
of motivation management may concentrate on those motivating factors in order to create job
satisfaction. Providing job satisfaction to the employees will increase employee loyalty
which in turn helps the organization to retain their employees. The scope of the study
includes:
1. To understand the relationship between the employer and employees.
2. This study is helpful to the organization for conducting further research.
3. It is helpful for the organization to understand the employee relationship regarding
human resource practices in the organization.
4. The Management will be in a position to work out the strategies in relation to the
Human Resource Management.
5. It will help management use other available HR tools effectively.

48
NEED:
In today’s scenario employees turnover is getting increased day by day which affects the
growth of the company. Employee’s turnover causes huge loss for the company, which
invests a lot of money in training them. The study helps to identify the factors causing
dissatisfaction, to the employees and thereby reducing the employees exiting the profession.
 The Cost of Turnover: The cost of employee turnover adds hundreds of thousands
of money to a company's expenses.
 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).
 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.
 Goodwill of the company: The goodwill of a company is maintained when the
attrition rates are low.
 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
 The challenge of keeping employees: Its changing face has stumped managers and
business owners alike. How do you manage this challenge? How do you build a
workplace that employees want to remain with and outsiders want to be hired into?
 Replacing employees costs money: The cost of replacing an employee is estimated
as up to twice the individual’s annual salary (or higher for some positions, such as
middle management), and this doesn’t even include the cost of lost knowledge.
 Bringing employees up to speed takes even more time: And when you’re short
staffed, you often need to put in extra time to get the work done.

49
 CHAPTER 5

RESEARCH METHODOLOGY

50
RESEARCH METHODOLOGY:
Research methodology is a way to solve the research problem in a systematic manner. It may
understand as a science of studying how the research is done significantly. The methodology
may differ from problem to problem, yet the basic approach towards the research remains the
same. The sequence or steps followed have been explained as under: 

DATA COLLECTION
The collection of information is done through two principal sources, viz.
 Primary Data:
a) Observation
b) Personal Interviews
Interview and questionnaire have been used to conduct the study. A structured
questionnaire consisting close-ended questions have been made, which is filled by the
trainee during direct interaction with the respondents.
 Secondary Data: The secondary data will be collected from already published
sources such as pamphlets of annual reports, internal records, books, journals,
magazines, and websites.

51
RESEARCH DESIGN
Research design means a specified framework for controlling the data collection. The
research is of descriptive in nature, which could provide an accurate picture of induction
procedure conducted in the organization. Descriptive research includes surveys and fact-
finding inquiries of different kinds. The research is of Ex post facto nature in which
researcher no control over the variables has.

Sample universe
 Sampling Method: The sampling technique used in this study random sampling.
Random sampling from a finite population refers to that method of sample selection
which gives each possible sample combination an equal probability of being picked
up and each item in the entire population to have equal chance of being included in
the sample.
 Sampling unit: Employees and Managers of IBM
 Area of research: New Delhi
 Number of respondents: 50

52
STATISTICAL TOOLS USED:
The statistical tools used in this study are
1. chi- square analysis
2. Weighted average method

1. CHI - SQUARE TEST

Chi – square test is an important non – parametric test and as such no test is necessary in
respect of the type of population. We required only the degree of freedom (implicit of course
the size of the sample) for using this test. As a non – parametric test, Chi – square can be
used (i) as a test of goodness of fit and (ii) as a test of independence. Since the researcher
used test of independence only the details about test of independence is given below.

 TEST OF INDEPENDENCE: test enables us to explain whether or not

two attributes are associated. In order be may apply the chi – square test either as a
test to judge the significance of association between attributes, it is necessary that the
observe as well as theoritical or expected frequencies must be grouped in the same
way and theoritical distribution must be adjusted to give the same total frequency as
we find in case of observe distribution.
Karl Pearson developed a test for testing the significance of discrepancy between
experimental values and the theoritical values obtained under some theory or hypothesis.

This test is known as test of goodness of fit. Karl Pearson proved that statistic

= /E

O – Observed frequency
E – Expected frequency
is used to test whether difference between observed and expected frequencies are

frequent.
To find table value degree of freedom should be calculated. Degree of freedom is

calculated using the formula (r – 1) (c -1). The table value for this degree of freedom is seen
using 5% or 1% of significant level.
53
If table value is greater than calculated value, Null hypothesis is accepted or null

hypothesis is rejected. In this study the chi-square test the table value has taken @ 5% level
of significance.

2. WEIGHTED AVERAGE METHOD

Weighted average can be defined as an average whose components aggregate of the products
are divided by the total of weights. One of the imitations of simple arithmetic mean is that it
gives equal importance to all the items of the distribution. In certain cases relative
importance of all the items in the distribution is not the same where the importance of the
items varies. It is essential to allocate weight applied but may vary in different cases. Thus
weight age is a number standing for the relative importance of items.

DATA ANALYSIS & INTERPRETATION

Classification & tabulation transforms the raw data collected through questionnaire in to
useful information by organizing and compiling the bits of data contained in each
questionnaire i.e., observation and responses are converted in to understandable and orderly
statistics are used to organize and analyze the data.

54
LIMITATIONS
Every scientific study has certain limitations and the present study is no more exception.
These are:
 The time constraint may be one of the major problems.
 The lack of information sources for the analysis part.
 Selection of the people who are under consideration as sample for the study may not
be the best sample selected.
 Sample size will be limited due to the limited period allocated for the survey.
 Getting accurate responses from the respondents due to their inherent Problems,
personality traits, and mood fluctuations will be a very difficult task.
 Some respondents had to be re-contacted as per their convenience of time.
 Some data of customer is not proper. Like their contact number & address.

55
 CHAPTER 6

DATA ANALYSIS, INTERPRETATION AND FINDINGS OF THE

STUDY

56
DATA ANANLYSIS AND INTERPRETATION

PERCENTAGE ANALYSIS METHOD: It is a special kind of ration. It is used in making

comparison between two or more series of data that are used to describe relationship.
Moreover % can also be used to compare the relative terms of the distribution of two or more
series of data.
 Percentage analysis
Actual population
Simple Percentage = ------------------------ x 100
Sample size

TABLE – CLASSIFICATION OF EMPLOYEES BASED ON THEIR EXPERIENCE

S.NO Respondents Response Percentage
1 Less than 1 year 10 20
2 1-2 year 14 28
3 2-3 year 10 20
4 3-4 year 7 14
5 Above 4 year 9 18
Total 50 100

CHART – CLASSIFICATION OF EMPLOYEES BASED ON THEIR EXPERIENCE

Interpretation: It is infered that 20% of employees has experience less than 1 year, 28% of
employees has experience of 1-2 year, 20% of employees has experience of 2-3 year,and
57
14% of employees has experience of 3-4 year and 18% of employees has experience above 4
years.

TABLE –: POSITION CATEGORY

S.No Position category No. of Respondents Percentage
1 Middle Level 28 56
2 Managerial Level 22 44
Total 50 100

CHART– : POSITION CATEGORY

Interpretation: It is infered that 56% of employee belongs to Middle level and 44% of
employees belongs to Managerial level.

TABLE: SATISFACTION TOWARDS THE WORK ENVIRONMENT

S.no Response Respondents Percentage
1 Highly satisfied 10 20
2 Satisfied 22 44
3 Neutral 11 22
4 Dissatisfied 4 8
5 Highly dissatisfied 3 6
Total 50 100

CHART: SATISFACTION TOWARDS THE WORK ENVIRONMENT

58
Interpretation: From the table it is infered that 20% of employees are highly satisfied with
the work environmnent,44% of employees are satisfied with the work environmnent,22% of
employees are neutral in satisfaction with the work environmnent,8% of employees are
dissatisfied with the work environmnent and 6% of employees are highly dissatisfied with
the work environmnent.

TABLE – : OPINION ABOUT THE INCENTIVES PROVIDED

S.no Response Respondents Percentage
1 Highly satisfied 24 48
2 Satisfied 16 32
3 Neutral 7 14
4 Dissatisfied 3 6
5 Highly dissatisfied - -
Total 50 100

CHART: OPINION ABOUT THE INCENTIVES PROVIDED

59
Interpretation: From the table it is seen that 48% of employees are highly satisfied 32% of
employees are satisfied 14% or employees are neutral and 6% of employees are dissatisfied
with the incentives provided in the organisation.

TABLE: THE MANAGEMENT’S INTEREST IN MOTIVATING EMPLOYEES

S.no Response Respondents Percentage
1 Strongly agree 20 40
2 Agree 11 22
3 Neutral 14 28
4 Disagree 5 10
Total 50 100

CHART: THE MANAGEMENT’S INTEREST IN MOTIVATING EMPLOYEES

60
Interpretation: From the table it is infered that 40% of employees strongly agree,22% of
employeesagree,28% of employees are neutral and 10% of employees disagree with the
management’s interest in motivating employees.

TABLE: OPINION ABOUT THE OPPORTUNITIES FOR PROMOTION

S.no Response Respondents Percentage

1 Highly satisfied 15 30
2 Satisfied 28 56
3 Dissatisfied 5 10
4 Highly dissatisfied 2 4
Total 50 100

CHART: OPINION ABOUT THE OPPORTUNITIES FOR PROMOTION

61
Interpretation: It is clear that 30% of employees are highly satisfied,56% of employees are
satisfied,10% of employees are dissatisfied and 4% of employees are highly dissatisfied with
opportunities for growth and promotion.

TABLE : SATISFACTION REGARDING THE CAREER DEVELOPMENT

62
 S.no Response Respondents Percentage
1 Strongly agree 10 20
2 Agree 20 40
3 Neutral 15 30
4 Disagree 2 4
5 Strongly disagree 3 6
Total 50 100

CHART– 9.7: SATISFACTION REGARDING THE CAREER DEVELOPMENT

Interpretation: It is infered that 20% of employees strongly agree,40% of employees

agree,30% of employees are neutral 4% of employees are disagree and 6% of employees
strongly disagree with the career development in the organisation.

TABLE: RESPONSE ABOUT THE WELFARE POLICIES PROVIDED

S.no Response Respondents Percentage
1 Highly satisfied 24 48
2 Satisfied 17 34
63
 3 Neutral 9 18
4 Dissatisfied - -
5 Highly dissatisfied - -
Total 50 100

CHART: RESPONSE ABOUT THE WELFARE POLICIES PROVIDED

Interpretation: 48% of employees are highly satisfied,34% of employees are satisfied and
18% of employees are neutral with the welfare policies provided in the company.

TABLE: FACTORS MOTIVATING THE EMPLOYEES

S.no Factors Respondents Percentage
1 Increase in salary 8 16
2 Promotion 20 40
3 Leave 7 14

64
 4 Power 15 30
Total 50 100

CHART: FACTORS MOTIVATING THE EMPLOYEES

Interpretation:It is infered that 16% of employees are motivated by the increase in

salary,40% of employees are motivated by the promotion,14% of employees are motivated
by the leave and 30% of employees are motivated by the power.

TABLE: STRESS DUE TO OVERWORK

S. No Response No. of Respondents Percentage
1 Yes 38 76
2 No 12 24
Total 50 100

65
CHART: STRESS DUE TO OVERWORK

Interpretation: It is infered that 76% of employees accepted the fact of stress due to over
work in the company and 24% of employees does’nt accepted the fact of stress due to over
work.

TABLE: WHAT DID YOU LIKE MORE ABOUT THE COMPANY

S.no Factors Respondents Percentage
1 Compensation 12 24
2 Rewards & Recognition 8 16
3 Job security 5 10
4 Relationship 25 50
Total 50 100
66
CHART: WHAT DID YOU LIKE MORE ABOUT THE COMPANY

Interpretation:It is infered that 24% of employees like compensation,16% of employees like

rewards&recognition,10% of employees like job security and 50% of employees like
relationship in the company.

TABLE: MEDICAL FACILITIES PROVIDED IN THE ORGANISATION

S.No Response No. of Respondents Percentage
1 Yes 50 100
2 No - -
Total 50 100

CHART: MEDICAL FACILITIES PROVIDED IN THE ORGANISATION

67
Interpretation: It is infered that all the respondents are satisfied with the medical facilities
offered by the organisation.

TABLE: RESPONSE TOWARDS THE PERFORMANCE APPRAISAL SYSTEM

S.No Response No. of Respondents Percentage
1 Yes 35 70
2 No 15 30
Total 50 100

CHART: RESPONSE TOWARDS THE PERFORMANCE APPRAISAL SYSTEM

68
Interpretation: It is infered that 70% of employees are satisfied with the performance
appraisal system and 30% of employees are not satisfied with the performance appraisal
system followed in the organisation.

TABLE: OPINION ABOUT BALANCING WORK LIFE AND PERSONAL LIFE

S. No Response No. of Respondents Percentage
1 Yes 38 76
2 No 12 24
Total 50 100

CHART: OPINION ABOUT BALANCING WORK LIFE AND PERSONAL LIFE

69
Interpretation: It is infered that 76% of employees are satisfied about balancing work life
with the personal life and 24% of employees are nt satisfied in balancing the work life with
the personal life

TABLE: OPINION ABOUT GREIVANCE HANDLING SYSTEM

S.no Factors Respondents Percentage

1 Highly efficient 12 24
2 Efficient 23 46
3 Inefficient 5 10
4 Highly inefficient 3 6
5 Neither efficient nor inefficient 7 14
Total 50 100
70
CHART: OPINION ABOUT GREIVANCE HANDLING SYSTEM

Interpretation: It is infered that 24% of employees accepts highly efficient,46% of

employees accepts efficient,10% of employees accepts inefficient,6% of employees accepts
highly inefficient and 14% of employees given the opinion of neither efficient nor inefficient
for Greivance handling system in the company.

TABLE: COMPANY WELCOMES NEW IDEAS AND INNOVATION

S. No Response No. of Respondents Percentage

1 Yes 40 80
2 No 10 20
Total 50 100

CHART: COMPANY WELCOMES NEW IDEAS AND INNOVATION

71
Interpretation: It is infered that 80% of employees responded yes and 20% of employees
responded no for company’s interest in entertaining new ideas and innovation from
employees.

TABLE: OPINION ABOUT SUPERIOR SUBORDINATE RELATIONSHIP

S.no Factors Respondents Percentage

1 Highly satisfied 12 24
2 Satisfied 22 44
3 Neutral 11 22
4 Dissatisfied 5 10
Total 50 100

72
CHART: OPINION ABOUT SUPERIOR SUBORDINATE RELATIONSHIP

Interpretation: It is infered that 24% of employees are highly satisfied,44% of employees

are satisfied,22% of employees are neutral and 10% of employees are dissatisfied with
superior subordinate relationship.

STATISTICAL TOOLS

1. CHI - SQUARE TEST

SATISFACTION WITH THE WORK ENVIRONMENT

To determine whether there is significant difference between the nature of work environment
and the employee retention

73
H0 : There is no significant difference between the nature of work environment and the
employee retention
H1 : there is significant difference between the the nature of work environment and the
employee retention

S. NO Options No of respondents Percentage (%)

1 Highly satisfied 10 20
2 Satisfied 22 44
3 Neutral 11 22
4 Dissatisfied 4 8
5 Highly dissatisfied 3 6
Total 50 100
Expected Frequency = 50/5 = 10
Calculation of :

Observed Expected /E
Frequency (O) Frequency (E)
10 10 0 0
22 10 144 14.4
11 10 1 0.1
4 10 36 3.6
3 10 49 4.9
TOTAL 23

Calculated ψ^2 =

0 – Observed Frequency
E – Expected Frequency
Calculated =23

Degree of freedom = (5-1)

= 4 d.f at 5 % level of significance
Therefore, Tabulated =9.488

Since Calculated > Tabulated

74
Therefore, we reject the hypothesis.
i.e, there is significant difference between the nature of work environment and the employee
retention

CAREER DEVELOPMENT IN THE ORGANISATION

To determine whether there is significant difference between the career development of
employees and the employee retention
H0 : There is no significant difference between the career development of employees and the
employee retention
H1 : there is significant difference between the career development of employees and the
employee retention
S. NO Options No of respondents Percentage (%)
1 Strongly agree 10 20
2 Agree 20 40
3 Neutral 15 30
4 Disagree 2 4
5 Strongly disagree 3 6
Total 50 100

Expected Frequency = 50/5 = 10

Calculation of :

Observed Expected /E
Frequency (0) Frequency (E)
10 10 0 0
20 10 100 10
15 10 25 2.5
2 10 64 6.4
3 10 49 4.9
TOTAL 23.8

Calculated ψ^2 =

75
 0 – Observed Frequency
E – Expected Frequency
Calculated =23

Degree of freedom = (5-1)

= 4 d.f at 5 % level of significance
Therefore, Tabulated =9.488

Since Calculated > Tabulated

Therefore, we reject the hypothesis.

i.e, there is significant difference between the career development of employees and the
employee retention

2. WEIGHTED AVERAGE METHOD

FACTORS MOTIVATING THE EMPLOYEES

Factors Respondents (Xi) Weightage (Wi) (Wi*Xi)/ ∑Wi Rank
Increase in salary 8 2 1.6 III
Promotion 20 4 8 I
Leave 7 1 0.7 IV
Power 15 3 4.5 II
Total 50 10 14.8
Inference: From the table it is seen that most of the respondents have given first preference
to promotion, second preference to power, third preference to increase in salary and fourth
preference to leave with respect to the factors motivating them.

GREIVANCE HANDLING SYSTEM IN THE ORGANISATION

Options Respondents (Xi) Weightage (Wi) (Wi*Xi)/ ∑Wi Rank
Highly efficient 12 5 4 II
Efficient 23 4 6.1 I
Inefficient 5 2 0.66 IV
Highly inefficient 3 1 0.2 V
Neither efficient 7 3 1.4 III
nor inefficient
Total 40 15 12

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Inference: From the table it is seen that most of the respondents have rated first for Efficient,
secondly Highly efficient, third rank is for Neither efficient nor inefficient, Inefficient stands
fourth, whereas Highly inefficient stands the last that has been improved.

FINDINGS

 It is inferred that 20% of employees has experience less than 1 year, 28% of
employees has experience of 1-2 year, 20% of employees has experience of 2-3 year,
and 14% of employees has experience of 3-4 year and 18% of employees has
experience above 4 years.
 It is inferred that 56% of employee belongs to Middle level and 44% of employees
belongs to Managerial level
 From the table it is inferred that 20% of employees are highly satisfied with the work
environmnent, 44% are satisfied with the work environmnent, 22% are neutral in
satisfaction with the work environmnent,8% are dissatisfied with the work
environmnent and 6% are highly dissatisfied with the work environmnent.
77
 From the table it is seen that 48% of employees are highly satisfied 32% are satisfied
14% are neutral and 6% are dissatisfied with the incentives provided in the
organization.
 From the table it is inferred that 40% of employees strongly agree, 22% of employees
agree, 28% of employees are neutral and 10% of employees disagree with the
management’s interest in motivating employees.
 It is clear that 30% of employees are highly satisfied, 56% of employees are satisfied,
10% of employees are dissatisfied and 4% of employees are highly dissatisfied with
opportunities for growth and promotion.
 It is inferred that 20% of employees strongly agree,40% of employees agree, 30% of
employees are neutral 4% of employees are disagree and 6% strongly disagree with
the career development in the organization
 It is clear that 48% of employees are highly satisfied, 34% are satisfied and 18% of
employees are neutral with the welfare policies provided in the company.
 It is inferred that 16% of employees are motivated by the increase in salary, 40% of
employees are motivated by the promotion, 14% of employees are motivated by the
leave and 30% of employees are motivated by the power.
 It is inferred that 76% of employees accepted the fact of stress due to over work in the
company and 24% of employees not accepted the fact of stress due to over work.
 It is inferred that 24% of employees like compensation, 16% of employees like
rewards & recognition, 10% of employees like job security and 50% of employees
like relationship in the company.
 It is inferred that all the respondents are satisfied with the medical facilities offered by
the organization.
 It is inferred that 70% of employees are satisfied with the performance appraisal
system and 30% of employees are not satisfied with the performance appraisal system
followed in the organization.
 It is inferred that 76% of employees are satisfied about balancing work life with the
personal life and 24% of employees are not satisfied in balancing the work life with
the personal life

78
 It is inferred that 24% of employees accepts highly efficient,46% of employees
accepts efficient,10% of employees accepts inefficient,6% of employees accepts
highly inefficient and 14% of employees given the opinion of neither efficient nor
inefficient for Greivance handling system in the company.
 It is inferred that 80% of employees responded yes and 20% of employees responded
no for company’s interest in entertaining new ideas and innovation from employees.
 It is inferred that 24% of employees are highly satisfied,44% of employees are
satisfied,22% of employees are neutral and 10% of employees are dissatisfied with
superior subordinate relationship
 From chi-square it is found that there is a significant relationship between Work
Culture of the Company and interpersonal relationship between employees.
 From chi-square it is found that there is a no significant relationship between overall
satisfaction and Commitment towards Company.
 From chi-square it is found that there is a significant relationship between overall
satisfaction and aspects of job.

CHAPTER 7
79
 RECOMMANDATIONS AND SUGGESTIONS

SUGGESTIONS AND RECOMMENDATIONS

 The Management should take efforts in motivating the employees working in the
organization.
 The Organization should concentrate on the career development of the employees
 The job stress experienced by the employees can be reduced by increasing the
manpower in the organization.
 The management should create growth opportunities for the employees
 Grievance handling system can be made more efficient which results in increased
level of satisfaction among the employees.
 Employees should be recognized for their work. This enables a better superior-
Subordinate relationship within the organization.

80
 The management should provide a better work environment which results in job
satisfaction to the employees.

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.
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 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.

81
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. 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.

82
 CHAPTER 8

CONCLUSIONS

CONCLUSION
In order to retain the employees within the organization, their complaints should be resolved
immediately. Many complaints can become grievances if unnoticed. The Grievance Handling
system should be made more efficient in the organization. The employees are valuable assets
to the organization retaining them is considered to be more essential.. The organization has to
motivate the employees. Motivation increases performance level, it lowers employee
turnover. Motivation ensures stability of workforce and hence the stability of the
organization. The organization has to concentrate in career development of their employees.
The increased attention to and concern for individual careers generate more organizational
loyalty and therefore lower employee turnover. Organizations should proactively recognize
the benefits of understanding, managing and improving employee loyalty.
83
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. 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 manage 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.

84
 CHAPTER 9

BIBILIOGRAPHY AND ANNEXURE

BIBLIOGRAPHY
Books Referred
 Boudreau Milkovich, Human Resource Management, New Delhi, business
publications,inc:1994
 Sahu, R.K.,Training for Development, New Delhi, Excel Books,2008
 Branch, Shelly (1998, November). The new economy: You hire ‘em. But can you
keep ‘em? Fortune, 247.
 Carney, Karen (1998, November). How businesses can reduce high employee
turnover.Inc, 47.
 Denton, D. Keith (1992). Recruitment, retention, and employee relations. West
Westport, CT: Quorum
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  Lynn, Jacquelyn (1997). Hard to hold: Conquer the tight labor market by retaining
valuable workers. Entrepreneur, 34.
 Spragins, Ellen E. (1992, November). How to retain key employees. Inc., 36
 Taylor, Susan L. & Cosenza, Robert M. (1997, December). Internal marketing
can reduce employee turnover. Supervision, 3-5
 The Human Factor, Feb 2011,volume 2, issue 3
 Managing Human Resources, Tata McGraw - Bohlander, Snell, 2005
 Personnel Management by C B Mamoria.
 Research Methodology – C.R Kothari
 Statistical Method by S.P Gupta
 Human Resource Management - K. Ashwathapa
 Human Resource Management C.B.Memoria
 Research methodology C.R.Kothari
 Journals, Newspaper and Internet

WEBSITES
 www.citehr.com
 www.google.com
 www.humanlinks.com
 www.retention.naukrihub.com
 www.scribd.com
 www.hyundai-motor.com
 www.askforhrd.com
 www.orcworldwide.com
 www.entrepreneur.com
 www.employeeretentionstrategies.com
 www.bpoindia.org
 www.hrsurvey.com
 www.wikipedia.com

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  www.techrepublic.com

MAGAZINES, NEWS PAPERS & MANUALS

1) Times of India
2) Hindustan Times
3) Magazines (Published By Companies)
4) Business world
5) Business today, etc.

QUESTIONNAIRE:

1. Occupation:-
 Government Employee
 Private Employee
 Businessman
 Retired
2. Age Group
 20 - 40
 40 – 60
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  Above 60
3. Education
 Illiterate (uneducated)
 Metric/Senior Secondary
 Graduation
 Post-graduation
 Doctorate
4. Annual Household Income
 Less than 1.5 lakh
 1.5 to 3 lakh
 3 Lakh to 5 lakh
 Above 5 lakh

5. How is your relationship with the Reporting manager?

 Excellent
 Very good
 Good
 Poor
 Worst

6. Do you have Rewards and recognition on your achievements?

 Yes
 No
7. Is it important that appreciation for your work by your coworkers and supervisors?
 Yes
 No
8. Are the Facilities provided by the organization good (cafeteria, transport and other
corporate services)?
 Yes

88
  No
9. How do you rate the infrastructure and equipment provided?
 Excellent
 Very good
 Good
 Poor
 Worst
10. Does the retention bonus have any impact on the motivation levels and
performances of an associate?
 Yes
 No
11. Does Fun at work have any impact on Motivation levels of employees?
 Yes
 No
12. Do you have an opportunity to share your ideas at work?
 Yes
 No
13. Do you have any training programs conducted?
 Yes
 No
Mention the training program attended….

14. If you want to leave the organization, what would be the reason?
 Personal Reasons
 Team fitment
 Career opportunity
 Others
15. Do you feel that the company provides opportunities for your growth and development?
 Yes
 No
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16. Did any company policies or procedures (or any other obstacles) make your job more
difficult?
 Yes
 No

90