INTRODUCTIOPN TO HUMAN RESOURCE

MANAGEMENT

Human Resource Management is primarily concerned with the people’s dimension in

the organization. It is a crucial sub-system process of management. The success or
failure of an organization not only depends on material, machines and equipment but
also on the personnel who are put in the best efforts for an efficient performance at
job.

Human Resource Management refers to the set of activities, programs and functions
designed and carried out in order to maximize both employees as well as
organizational effectiveness. Human Resource or personnel management is the sense
of getting things done through people. It's an essential part of every manager's
responsibilitiesHuman Resource Management means employing people, developing
their resources, utilizing, maintaining, and compensating the Human Resources
resulting in creating and development of Human Relations with a view to contribute
proportionately to the organizational individuals and skills.

As organizations vary in size, aims, functions, complexity, construction, the physical

nature of their product, and appeal as employers, so do the contributions of human
resource management. But, in most the ultimate aim of the function is to: "ensure that
at all times the business is correctly staffed by the right number of people with the
skills relevant to the business needs", that is, neither overstaffed nor understaffed in
total or in respect of any one discipline or work grade.

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT:

 To create and utilize an able and motivated work force, to accomplish the
basic organizational goals.
 To establish and maintain sound organizational structure and desirable
working relationships among all the members of the organization.
 To create facilities and opportunities for individual or group development so
as to match it with the growth of the organization.

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Attrition rate is defined as the number of employees who leave a company during a
specified time period divided by the average total number of employees over that
same time period. It’s expensive, non-productive and frustrating.

Harvard Business Review article estimated the cost of turnover at around 150% of an
employee’s annual salary and could affect 40% of company profits.

A reduction in the number of employees through retirement, resignation or death “In

the best of worlds, employees would love their jobs, like their coworkers, work hard
for their employers, get paid well for their work, have ample chances for
advancement, and flexible schedules so they could attend to personal or family needs
when necessary. And never leave.

But then there's the real world. And in the real world, employees, do leave, either
because they want more money, hate the working conditions, hate their coworkers,
want a change, or because their spouse gets a dream job in another state.

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 ATTRITION

ATTRITION RATE

Attrition rate can be defined as the rate of shrinkage in size or number of the
workforce of an organization. A formula had to be devised keeping in view the nature
of the business and different job functions. Attrition rates can be calculated using a
simple formula:

Attrition = (No. of employees who left in the year / average employees in the year) x
100

Besides this, there are various other types of attrition that should be taken into
account.

These are:

•Fresher attrition that tells the number of fresher’s who left the organization within
one year.

•Critical resource attrition which tell the attrition in terms of key personnel like
senior executives leaving the organization.

•Low performance attrition: It tells the attrition of those who left due to poor
performance

ATTRITION CYCLE

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 Attrition brings decreased productivity
 People leave causing others to work harder
 This contributes to more attrition, which contributes to increased costs and
lower revenue
 This forces additional cost reduction and austerity measures
 This in turn makes working more difficult, causing the best performers with
the most external opportunities to leave.

Employee attrition, a big cause for concern for firms, ranges between 15 per cent
and 20 per cent. A company is not hurt because a certain person has left. The
company is hurt because he/she takes away certain knowledge, and there is no
ready replacement in themarket.

Attrition, as such, is not a bad phenomenon. It has been known to exist all along.
However, when jobs were scarce, the technology change was less rapid, voluntary
attrition was small and companies managed it. However, with technology
changing rapidly and manpower costs increasing, attrition is high and hurts badly.

Large players often use money power to lure talent from smaller players.
Companies also use the `location' bait to attract employees. While a certain
percentage of manpower turnover is desirable to keep fresh blood coming in, and
removing dead wood, higher percentages are definitely not good indicators of an
organization's culture and people practices.

It is a challenge to find the right talent within constraints such as location, nature
of work, compensation and benefits.

Fresh graduates joining an organization make it a point to leave within the first
year. They equip themselves not for performing their current job but for attracting
a new one. Many a time, there is migration from bigger companies to smaller
companies too, mainly because of the prestige associated with a certain project or
a particular client. In some cases, smaller companies are even better paymasters
than larger brands.

The success rates of retention programs are much higher if the management uses a
direct, employee-focused, approach and is ready to invest resources for the same.

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 NEED FOR THE STUDY

• The success of any manufacturing organization depends largely on the workers,

the employees are considered as the backbone of BSNL.
• The attrition rate of the company is 11.4%. So this study focused on why the
Attrition occurs and the possible ways to reduce it.
• The study was mainly undertaken to identify the level of employee’s attitude, the
dissatisfaction factors they face in the organization and for what reason they prefer
to change their job. Once the levels of Employee’s attitude are identified, it would
be possible for the management to take necessary action to reduce attrition level.
Since they are considered as backbone of the Company, their progression will lead
to the success of the Company for the long run.
• This study can be helpful in knowing, why the employees prefer to change their
job and which factors make employee dissatisfy.
• The need of this study can be recognized when the result of the related study need
suggestions and recommendations to the similar situation.

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 OBJECTIVES OF THE STUDY

• To know the satisfactory level of employees towards their job and working
conditions.
• To identify the factors which make employees dissatisfy.
• To find the areas where BSNL is lagging behind.
• To know the reasons, why attrition occurs.
• To find the ways to reduce the attrition in BSNL, Visakhapatnam.

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 SCOPE OF THE STUDY

• The scope of this study is confined to BSNL. with respect to the employees at all
the levels of management.
• This study can help the management to know where the company is lagging
behind and helps to improve its internal and external environment.
• The project throws light through valuable suggestion to decrease attrition level in
the organization.
• This study can help the management to find the weaker parts of the employee
feels towards the organization and also helps in converting those weaker part in to
stronger by providing the optimum suggestions or solutions.
• This study has a wider for scope in any kind of organization since “attrition” is
general one and makes the employees to put forth their practical difficulties and
need factors in the organization.
• This study can help the management to know for which the reason employees tend
to change their job, through dissatisfaction factors faced in the organization and
also helps to recover by providing the optimum suggestions or solutions.

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 METHODOLOGY

RESEARCH DESIGN

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

It constitutes the blueprint for the collection, measurement and analysis of data. As
such the design includes an outline of what the researcher will do form writing the
hypothesis and its operational implication to the final analysis of data.

TYPES OF DATA COLLECTED

Primary Data

Questionnaires are prepared and personal interview was conducted. Most of the
questions are consist of multiple choices. The structured interview method was
undertaken. The interview was conducted in English as well as in Tamil. Proper care
was taken to frame the interview schedule in such a manner it should be easily
understood in view of educational level of the employees. Generally 25 questions are
prepared and asked to the employees of the BSNL, Visakhapatnam

Secondary Data

Secondary data was collected from Internets, various books, Journals, and Company
Records.

QUESTIONNAIRE CONSTRUCTION

Questionnaires were constructed based on the following types

• Open ended questions

• Close ended questions

• Multiple choice questions

SAMPLE SIZE

Nearly 50 samples are taken in BSNL.

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 LIMITATIONS OF THE STUDY

• The size of sample size was 50 respondents only. If the sample size were more
than the results of the inferences would have been different.
• As majority of workers are from northern states, the interview was conducted in
Hindi language also.
• This study has been done based on the existing employees and not with any
Corporate Alumni’s. Because the employees may leave out of the company before
a year, so they may not know about the present situation of the company.
• The data collected in the study will be valid for few months. Hence the result
obtained might not be helpful for the management after a period of months.

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PROFILE OF TELECOMMUNICATION INDUSTRY

INDIAN TELECOMMUNICATION NETWORK:-

Alexander Graham Bell patented the first Telephone instrument capable of

practical use in 1876. This method was used in the first commercial instrument
developed by Bell in 1876. In 1878, the first telephone exchange was established at
New Haven.

In 1880, two Telephone Companies viz. The Oriental Telephone Company Ltd. and

The Anglo-Indian Telephone Company Ltd. approached the   Govt. of India for
permission the telecom network in India is the fifth largest network in the world
meeting up with global standards. Presently, the Indian telecom industry is currently
slated to an estimated contribution of nearly 1% to India’s GDP.

The Indian telecommunications network with 110.01 million connections is the fifth
largest in the world and the second largest among the emerging economies of Asia.
Today, it is the fastest growing market in the world and represents unique
opportunities for U.S. companies in the stagnant global scenario. The total subscriber
base, which has grown by 40% in 2005, is expected to reach 250 million in
2007.According to Broadband Policy 2004, Government of India aims at 9 million
broadband connections and 18 million internet connections by 2007. The wireless
subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY2004-
2005. In the last 3 years, two out of every three new telephone subscribers were
wireless subscribers. Consequently, wireless now accounts for 54.6% of the total
telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber
growth is expected to bypass 2.5 million new subscribers per month by 2007. The
wireless technologies currently in use are Global System for Mobile Communications
(GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and
5CDMA operators providing mobile services in 19 telecom circles and 4 metro cities,
covering 2000 towns across the country.

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ORIGIN:-

The history of performance appraisal is quite brief. Its roots in the early 20th century
can be traced to Taylor's pioneering Time and Motion studies. But this is not very
helpful, for the same may be said about almost everything in the field of mode huan
resources management As a distinct and formal management procedure used in the
evaluation of work performance, appraisal really dates from the time of the
SecondWorldWarnomorethan60yearsago. 

It is known todayYet in a broader sense, the practice of appraisal is a very ancient art.
In the scale of things historical, it might well lay claim to being the world's second
There is, says Dulewicz (1989), "... a basic human tendency to make judgements
about those one is working with, as well as about oneself." Appraisal, it seems, is both
inevitable and universal. In the absence of a carefully structured system of appraisal,
people will tend to judge the work performance of others, including subordinates,

The human inclination to judge can create serious motivational, ethical and legal
problems in the workplace. Without a structured appraisal system, there is little
chance of ensuring that the judgements made will be lawful, fair, defensible and
accurate. 

Performance appraisal systems began as simple methods of income justification. That

is, appraisal was used to decide whether or not the salary or wage of an individual
employee was justified. The process was firmly linked to material outcomes. If an
employee's performance was found to be less than ideal, a cut in pay would follow.
On the other hand, if their performance was better than the supervisor expected,.

These observations were confirmed in empirical studies. Pay rates were important,
yes; but they were not the only element that had an impact on employee performance.
It was found that other issues, such as morale and self-esteem,. 

As a result, the traditional emphasis on reward outcomes was progressively rejected.

In the 1950s in the United States, the potential usefulness of appraisal as tool for

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motivation and development was gradually recognized. The general model of
performance appraisal, as, began from that time.

GROWTH:

BSNL has continued its growth story ever since its formation and presently it is one
of the largest & leading public sector units in India, providing a bouquet of telecom
services: Wireline, GSM mobile, CDMA mobile, Internet, Broadband, Carrier
service, MPLS-VPN, VSAT, VoIP, IN Services, etc. BSNL has customer base of
121.65 million as on 31st March, 2013 and further plans to increase it to 189 million
with 165.47million wireless customers by March, 2017. 

New Services introduced/planned by BSNL

3G Services : BSNL has covered 1259 cities with 3G services across the country and
all 2G customer have been enabled for 3G facilities. 

Broadband services : The shift in demand from voice to data has revolutionized the
very nature of the network. BSNL is poised to cash on this opportunity & has planned
for extensive expansion of Broadband services. BSNL has increased minimum
download speed to 512 Kbps. BSNL has covered more than 1.69 lakh villages with
Broadband services. The Broadband customer base of BSNL has reaches to 10.13
Million customers in March, 2013 & further BSNL plan to increase Broadband
customer to 17.50 million by March, 2017.

Value Added Services : BSNL is focussing on provision of value added

services/features to attract high end customers and to double its revenues from VAS 

Fibre to Home(FTTH) : To meet demand for high bandwidth services, BSNL has
rolled out FTTH services (GPON & GE-PON) in 2010 for the first time in the
country. FTTH services have already been launched in more than 160 cities. 

Mobility in WLL : BSNL is planning to provide full mobility on its WLL network
from March 2010.

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Important Projects under implementation
 BSNL is augmenting its GSM Network by 15 Million lines to meet its capacity
requirement, through Phase VII GSM expansion project.
 Augmentation of broadband Network by additional 3.2 Million ports
 Migration of Wireline customers from legacy Network to Next Generation
Network (NGN).
 Augmentation of Optical Fibre network.
 Implementation of Enterprises Resource Planning ( ERP) system country vide in
BSNL
 Executing DoT’s work of building alternate communication infrastructure for
Defence(NFS).
 Executing BBNL’s part work/project of high Speed Broadband connectivity to
Panchayat (NOFN).
 6731 Base Station rural phase-II WiMax Project for 52000 CSCs covering all
Telecom Circles except Kerala &A&N.

International Long Distance

Undersea Cable : BSNL is participating/member of the following submarine cable

systems: 

Bharat Lanka Cable System: Connecting to Sri Lanka and to reach in the Pacific
direction from India. 

Europe India Gateway (EIG) Cable System: Connecting UK, Portugal, Gibraltar,
France, Libya, Egypt, Saudi Arabia, Djibouti, Oman & UAE. 

Millennium Cable System: It is joint venture with MTNL to lay Millennium Cable
System in two directions as follows:- 
 Millennium Cable Sub-System East (MCSS-E) connecting the East Coast of
India to South East Asia (Malaysia and Singapore) with optional branches to

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 Port Blair (Great Andaman Island), Bangladesh, Myanmar, Indonesia and
Thailand.
 Millennium Cable Sub-System West (MCSS-W): connecting the West Coast
of India to the Middle East (United Arab Emirates) and Djibouti with optional
branches to Pakistan, Oman and Yemen.
SEMEWE4: Connecting towards Trans-Atlantic as well as Trans-Pacific direction. 

CONTRIBUTION TO THE INDIAN ECONOMY:

Socio-economic development. This latest study reiterates communication’s growing
importance as an agent of transformation. Communication sector is predicted to
emerge as the single largest sector of India’s economy, with a 15.4% share
(equivalent to Rs.865,031 core) of GDP by 2014-15. In India’s transformation from
an agrarian to a services economy, communication is recognized as the fastest
growing sector, growing by 25.7% during 2001-08. The communication sector will
thus be one of the major drivers of the Indian economy in the next five years. Its
ranking in terms of contribution to total GDP has moved up from #17 in 1980-81 to
#8 in 2007-08 and is further expected to surpass all other sectors by 2014-15,
assuming that all other sectors grow at the average growth rates observed during
2001-08. Telecommunication sector’s share of total GDP has increased from just
0.7% in the 1980s and 1.0% in the 1990s to 3.6% during 2001-08. In 2007-08, the
sector accounted for 5.7% of GDP.

Trade, Communication and Registered Manufacturing have shown more than 10%
contribution (16.7%, 12.24% and 11.68%, respectively) to GDP growth during 2001-
2008; however, the Communication sector has outperformed the others despite its
share of total GDP being only 3.6% as against the shares of Trade (14.0%) and
Registered Manufacturing (10.2%). The communication sector has also had a
significant impact on employment in the country. The study predicts that the sector
will generate an additional 8.5 million jobs by 2014-15, taking the total number of
jobs in the sector to 10.3 million.

Thus, the communication sector will continue to be an engine of the Indian economy
over the 4/5 next years. The role of communications in accelerating socio-economic
development should not be underestimated. Communication is having a positive
impact on employment in the services and retail sectors, and helping the country to

14
emerge as a major manufacturing power. It is critical to empower every individual to
connect to people, information and services regardless of their location or income.
This is a key element in the vision of a truly inclusive knowledge society. Connected
people can create, accumulate and disseminate knowledge, eventually leading to
enhanced productivity and equitable

MAJOR PLAYERS

There are three types of players in telecom services:

 State owned companies (BSNL and MTNL)

 Private Indian owned companies(Reliance infocomtatatele services)
 Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel,
Idea Cellular, BPL Mobile, Spice Communications)

BSNL:

On October 1, 2000 the Department of Telecom Operations, Government of India

launched BSNL which is now India’s leading Telecommunications Company and the
largest public sector undertaking. It has a network of over 45 million lines covering
5000 towns with over 35 million telephone connections. The state-controlled BSNL
operates basic, cellular (GSM and CDMA) mobile, Internet and long distance services
throughout India (except Delhi and Mumbai). BSNL will be expanding the network in
line with the Tenth Five-Year Plan (1992-97). The aim is to provide a telephone
density of 9.9 per hundred by March 2007. BSNL, which third operator of GSM
mobile services in most circles, is now planning to overtake Bharti to become the
largest GSM operator in the country. BSNL is also the largest operator in the Internet
market, with a share of 21 per cent of the entire subscriber base.

BHARTI:

Established in 1985, Bharti has been a pioneering force in the telecom sector with
many firsts and innovations to its credit, ranging from being the first mobile service in
Delhi, first private basic telephone service provider in the country, first Indian
company to provide comprehensive telecom services outside India in Seychelles and
first private sector service provider to launch National Long Distance Services in

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India. Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting
investments telecommunications services. Its subsidiaries operate telecom services
across India. Bharti’s operations are broadly handled by two companies: the Mobility
group, which handles the mobile services in 16 circles out of a total 23circles across
the country; and the Infotel group, which handles the NLD, ILD, fixed line,
broadband, data, and satellite-based services. Together they have so far deployed
around 23,000 km of optical fiber cables across the country, coupled with
approximately 1,500 nodes, and presence in around 200 locations.

The group has a total customer base of 6.45 million, of which 5.86 million are mobile
and 588,000fixed line customers, as of January 31, 2004. In mobile, Bharti’s footprint
extends across 15 circles. Bharti Tele-Ventures' strategic objective is “to capitalize on
the growth opportunities the company believes are available in the Indian
telecommunications market.

MTNL:

MTNL was set up on 1st April 1986 by the Government of India to upgrade the
quality of telecom services, expand the telecom network, and introduce new services
and to raise revenue for telecom development needs of India’s key metros – Delhi, the
political capital, and Mumbai, the business capital. In the past 17 years, the company
has taken rapid strides to emerge as India’s leading and one of Asia’s largest telecom
operating companies. The company has also been in the forefront of technology
induction by converting 100% of its telephone exchange network into the state-of-the-
art digital mode. The Govt. of India currently holds 56.25% stake in the company. In
the year 2003-04, the company's focus would be not only consolidating the gains but
also to focus on new areas of enterprise such as joint ventures for projects outside
India, entering into national long distance operation, widening the cellular and
CDMA-based WLL customer base, setting up internet and allied services on an all
India basis. MTNL has over 5 million subscribers and 329,374 mobile subscribers.
While the market for fixed wire line phones is stagnating, MTNL faces intense
competition from the private players—Bharti, Hutchison and Idea Cellular, Reliance
Infocom—in mobile services. MTNL recorded sales of Rs. 60.2 billion ($1.38 billion)
in the year. 2002-03, a decline of 5.8 per cent over the previous year’s annual turnover
of Rs.63.92 billion.

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RELIANCE INFOCOMM:

Reliance is a $16 billion integrated oil exploration to refinery to power and textiles
conglomerate (Source: http://www.ril.com/newsitem2.html). It is also an integrated
telecom service provider with licenses for mobile, fixed, domestic long distance and
international services. Reliance Infocomm offers a complete range of telecom
services, covering mobile and fixed line telephony including broadband, national and
international long distance services, data services and a wide range of value added
services and applications.

Reliance India Mobile, the first of Infocomm's initiatives was launched on December
28, 2002. This marked the beginning of Reliance's vision of ushering in a digital
revolution in India by becoming a major catalyst in improving quality of life and
changing the face of India. Reliance Infocomm plans to extend its efforts beyond the
traditional value chain to develop and deploy telecom solutions for India's farmers,
businesses, hospitals, government and public sector organizations. Until recently,
Reliance was permitted to provide only “limited mobility” its basic services license.
However, it has now acquired a unified access license for 18 circles that permits it to
provide the full range of mobile services. It has rolled out its CDMA mobile network
and enrolled more than 6 million subscribers in one year to become the country’s
largest mobile operator. It now wants to increase its market share and has recently
launched pre-paid services. Having captured the voice market, it intends to attack the
broadband market.

TATA TELE SERVICES:

Tata Tele service is a part of the $12 billion Tata Group, which has 93 companies,
over 200,000 employees and more than 2.3 million shareholders. Tata Teleservices
provides basic (fixed line services), using CDMA technology in six circles:
Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat,
and Karnataka. It has over 800,000 subscribers. It has now migrated to unified access
licenses, by paying a Rs. 5.45 billion ($120 million) fee, which enables it to provide
fully mobile services as well. The company is also expanding its footprint, and has
paid Rs. 4.17 billion ($90million) to DoT for 11 new licenses under the IUC
(interconnect usage charges) regime. The new licenses, coupled with the six circles in

17
which it already operates, virtually gives the CDMA mobile operator a national
footprint that is almost on par with BSNL and Reliance Infocomm. The company
hopes to start off services in these11 new circles by August 2004. These circles
include Bihar, Haryana, Himachal Pradesh, Kerala, Kolkata, Orissa, Punjab,
Rajasthan, Uttar Pradesh (East) & West and West Bengal.

VSNL:

April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government
owned corporation - was born as successor to OCS. The company operates a network
of earth stations, switches, submarine cable systems, and value added service nodes to
provide a range of basic and value added services and has a dedicated work force of
about 2000 employees. VSNL's main gateway centers are located at Mumbai, New
Delhi, Kolkata and Chennai. The international telecommunication circuits are derived
via Intelsat and Inmarsat satellites and wide band submarine cable systems e.g. The
Indian Government owns approximately 26 per cent equity, M/s PanatoneFinvest
Limited as investing vehicle of Tata Group owns 45 per cent equity and the overseas
holding (inclusive of FIIs,ADRs, Foreign Banks) is approximately 13 per cent and the
rest is owned by Indian institutions and the public. The company provides
international and Internet services as well as a host of value-added services. Its
revenues have declined from Rs. 70.89billion ($1.62 billion) in 2001-02 to Rs. 48.12
billion ($1.1 billion) in 2002-03, with voice revenues being the mainstay.

HUTCH:

Hutch’s presence in India dates back to late 1992, when they worked with local
partners to establish a company licensed to provide mobile telecommunications
services in Mumbai. Commercial operations began in November 1995. Between
2000and March 2004, Hutch acquired further operator equity interests or operating
licenses. With the completion of the acquisition of BPL Mobile Cellular Limited in
January 2006, it now provides mobile services in 16 of the 23 defined license areas
across the country. Hutch India has benefited from rapid and profitable growth in
recent years. it had over 17.5 million customers by the end of June 2006.

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IDEA:

Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand
designs to become a national player, but in doing so is likely to become a thorn in the
side of Reliance Communications Ltd. IDEA operates in eight telecom “circles,” or
regions, in Western India, and has received additional GSM licenses to expand its
network into three circles in Eastern India -- the first phase of a major expansion plan
that it intends to fund through an IPO, according to parent company Aditya Birla
Group.

MOBILE SUBSCRIBER STATISTICS:

Recently, mobile phone connections in India have crossed the 100-million mark,
which means over nine in 100 Indians have a phone. Adding on to this benevolent and
happy information, telecom companies are anticipating the number will nearly treble
in the next two years. According to a survey, by 2006, the cellular networks are
expected to cover 3, 50,000 (out of 6, 07,000) villages, covering 450 million
people.   

Figure 1.3.1 Market Share of both mobile and wire line Service Providers in
India

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TELECOM IN RURAL INDIA:

India has an urban population of about 26.8% and rural population

isabout73.2%. And there are over 600,000 villages in India. But a vast section of the
rural sector is still cut off from the benefits of telecom services. The rural population
of around 700 million is waiting for its share of economic growth. Initially the big
telephone companies focused only on urban centers, which they felt were more
profitable. However, this mindset is gradually changing with the realization that there
is equal, if not bigger money in rural areas

MOBILE SUBSCRIBER STATISTICS

Recently, mobile phone connections in India have crossed the 100-million mark,
which means over nine in 100 Indians have a phone. Adding on to this benevolent and
happy information, telecom companies are anticipating the number will nearly treble
in the next two years. According to a survey, by 2006, the cellular networks are
expected to cover 3, 50,000 (out of 6, 07,000) villages, covering 450 million
people.   

Figure 1.3.1 Market Share of both mobile and wire line Service Providers in India

20
TELECOM IN RURAL INDIA

India has an urban population of about 26.8% and rural population is about 73.2%.
And there are over 600,000 villages in India. But a vast section of the rural sector is
still cut off from the benefits of telecom services. The rural population of around 700
million is waiting for its share of economic growth. Initially the big telephone
companies focused only on urban centers, which they felt were more profitable.
However, this mindset is gradually changing with the realization that there is equal, if
not bigger money in rural areas.

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 BHARAT SANCHAR NIGAM LIMITED

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest
telecommunications company providing comprehensive range of telecom services in
India: Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service,
MPLS-VPN, VSAT, VOIP services, IN Services etc. Within a span of five years it
has become one of the largest public sector units in India. BSNL has installed Quality
Telecom Network in the country and now focusing on improving it, expanding the
network, introducing new telecom services with ICT applications in villages and
winning customers’ confidence.

Today, it has about 47.3 million line basic telephone capacity, 4 million WLL
capacities, 20.1 Million GSM Capacity, more than 37382 fixed exchanges, 7330
cities/towns and 5.5 Lakhs villages.

BSNL is the only service provider, making focused efforts and planned initiatives to
bridge the Rural-Urban Digital Divide ICT sector. In fact there is no telecom operator
in the country to beat its reach with its wide, network giving services in every nook &
corner of country and operates across India except Delhi & Mumbai.

The company offers vide ranging & most transparent tariff schemes designed to suite
every customer. BSNL cellular service, Cell One, has more than 17.8 million cellular
customers, garnering 24 percent of all mobile users as its subscribers. That means that
almost every fourth mobile user in the country has a BSNL connection. In basic
services, BSNL is miles ahead of its rivals, with 35.1 million Basic Phone subscribers
i.e. 85 per cent share of the subscriber base and 92 percent share in revenue
terms.BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet
Customers who access internet through various modes viz. Dial-up, Leased Line,
DIAS, and Account Less Internet (CLI). BSNL has been adjudged as the NUMBER
ONE ISP in the country.
BSNL has set up a world class multi-gigabit, multi-protocol convergent IP
infrastructure that provides convergent services like voice, data and video through the

22
same Backbone and Broadband Access Network. At present there are 0.6 million Data
One broadband customers. The company has vast experience in planning, installation,
network integration and maintenance of Switching & Transmission Networks and also
has a world class ISO 9000 certified Telecom Training Institute. Scaling new heights
of success, the present turnover of BSNL is more than Rs.351, 820 million (US $ 8
billion) with net profit to the tune of Rs.99, 390 million (US $ 2.26 billion) for last
financial year. The infrastructure asset on telephone alone is worth about Rs.630, 000
million (US $ 14.37 billion). BSNL plans to expand its customer base from present 47
millions lines to 125 million lines by December 2007 and infrastructure investment
plan to the tune of Rs. 733 crores (US$ 16.67 million) in the next three years. The
turnover, nationwide coverage, reach, comprehensive range of telecom services and
the desire to excel has made BSNL the No. 1 Telecom Company of India.
VISION

► To become the largest telecom service provider in Asia.

MISSION

 To provide world class state-of-the-art technology telecom services to its customers

on demand at competitive prices.
 Provide world class telecom infrastructure in its area of operation and to contribute to
the growth of the country's economy.
OBJECTIVES

 To be the Lead Telecom Services Provider.

 To provide quality and reliable fixed telecom service to our customer and there by
increase customer's confidence.
 To provide mobile telephone service of high quality and become no. 1 GSM operator
in its area of operation.

CONTRIBUTE TOWARDS
 National Plan Target of 500 million subscriber base for India by 2010.
 Broadband customers base of 20 million in India by 2010 as per Broadband Policy
2004.
 Providing telephone connection in villages.

23
BSNL provides almost every telecom service in India. Following are the main
telecom services provided by BSNL:

 Universal Telecom Services: Fixed wire line services & Wireless in Local loop
(WLL) using CDMA Technology called bfone and Turing respectively. As of
December 31, 2007, BSNL has 81% market share of fixed lines.

 Cellular Mobile Telephone Services: BSNL is major provider of Cellular Mobile

Telephone services using GSM platform under the brand name BSNL Mobile. As of
Sep 30, 2009 BSNL has 12.45% share of mobile telephony in the country.

 Internet: BSNL provides internet services through dial-up connection (Sancharnet)

as Prepaid, (Net One) as Postpaid and ADSL broadband (BSNL Broadband). BSNL
has around 50% market share in broadband in India. BSNL has planned aggressive
rollout in broadband for current financial year.

 Intelligent Network (IN): BSNL provides IN services like televoting, toll free
calling, premium calling etc.

 3G: BSNL offers the '3G' or the'3rd Generation' services which includes facilities like
video calling etc.

 IPTV: BSNL also offers the 'Internet Protocol Television' facility which enables us to
watch television through internet.

 FTTH: Fibre to the Home facility that offers a higher bandwidth for data transfer.
This idea was proposed on post-December 2009.

Administrative units

BSNL is divided into a number of administrative units, termed as telecom circles,

metro districts, project circles and specialized units, as mentioned below:

Maintenance Regions Jharkhand Telecom Circle Eastern Telecom Maintenance

Region Karnataka Telecom Circle Telecom Circles Metro Districts Chennai +91
9445233233 Andaman & Nicobar Telecom Circle Calcutta Andhra Pradesh Telecom
Circle Chennai Assam Telecom Circle

24
Project Circles Bihar Telecom Circle Eastern Telecom Project Circle Chhattisgarh
Telecom Circle Western Telecom Project Circle Gujarat Telecom Circle Northern
Telecom Project Circle Haryana Telecom Circle Southern Telecom Project Circle
Himachal Pradesh Telecom Circle IT Project Circle, Pune Jammu & Kashmir
Telecom Circle

Maintenance Regions Jharkhand Telecom Circle Eastern Telecom Maintenance

Region Karnataka Telecom Circle Western Telecom Maintenance Region Kerala
Telecom Circle Northern Telecom Maintenance Region Madhya Pradesh Telecom
Circle Southern Telecom Maintenance Region Maharashtra Telecom Circle
Specialized Telecom Units North East-I Telecom Circle Data Networks North East-II
Telecom Circle National Centre For Electronic Switching Orissa Telecom Circle
Technical & Development Circle Punjab Telecom Circle Quality Assurance
Rajasthan Telecom Circle

Production Units Telecom Factory, Mumbai Telecom Factory, Jabalpur Telecom

Factory, Richhai Telecom Factory, Kolkata Other Units Training Institutions Telecom
Stores Advanced Level Telecom Training Centre North East Task Force Bharat Ratna
Bhim Rao Ambedkar Institute of Telecom Training Telecom Electrical Wing National
Academy of Telecom Finance and Management Telecom Civil Wing Regional
Telecom Training Centres Circle Telecom Training Centres District Telecom
Training Centres.

Present and future

BSNL (then known as Department of Telecom) had been a near monopoly during the
socialist period of the Indian economy. During this period, BSNL was the only
telecom service provider in the country (MTNL was present only in Mumbai and New
Delhi). During this period BSNL operated as a typical state-run organization,
inefficient, slow, bureaucratic, and heavily unionized. As a result subscribers had to
wait for as long as five years to get a telephone connection.

The corporation tasted competition for the first time after the liberalization of Indian
economy in 1991. Faced with stiff competition from the private telecom service
providers, BSNL has subsequently tried to increase efficiencies itself. DoT veterans,

25
however, put the onus for the sorry state of affairs on the Government policies, where
in all state-owned service providers were required to function as mediums for
achieving egalitarian growth across all segments of the society. The corporation (then
DoT), however, failed miserably to achieve this and India languished among the most
poorly connected countries in the world. BSNL was born in 2000 after the
corporatisation of DoT. The efficiency of the company has since improved. However,
the performance level is nowhere near the private players.

The corporation remains heavily unionized and is comparatively slow in decision

making and implementation. Management has been reactive to the schemes of private
telecom players. Over the past five years BSNL's management is not able to absorb
Group A (ITS) officers, who are working in BSNL as borrowed staff. This has
considerably reduced the ability of management to take risks and get rewarded in
open telecom field. Though it offers services at lowest tariffs, the private players
continue to notch up better numbers in all areas, years after year. BSNL has been
providing connections in both urban and rural areas. Pre-activated Mobile connections
are available at many places across India. BSNL has also unveiled cost-effective
broadband internet access plans (Data One) targeted at homes and small businesses.
At present BSNL enjoys around 60% of market share of ISP services.

Challenges

During the financial year 2008-2009 (from April 1, 2009 to March 31, 2009) BSNL
has added 8.1 million new customers in various telephone services taking its customer
base to 75.9 million. BSNL's nearest competitor Bharti Airtel is standing at a
customer base of 62.3 million. However, despite impressive growth shown by BSNL
in recent times, the fixed line customer base of BSNL is declining. In order to woo
back its fixed-line customers BSNL has brought down long distance calling rate under
One India plan, however, the success of the scheme is not known. However, BSNL
faces bleak fiscal 2009-2010 as users flee

Presently there is an intense competition in Indian Telecom sector and various Telcos
are rolling out attractive schemes and are providing good customer services.

26
Access Deficit Charges (ADC, a levy being paid by the private operators to BSNL for
provide service in non-lucrative areas especially rural areas) has been slashed by 20%
by TRAI, w.e.f. April 1, 2009. The reduction in ADC may hit the bottomlines of
BSNL.

BSNL launched 3G services in 12 cities of country in 2nd march 2009.MTNL which

operates in Mumbai and Delhi first launched 3G services in these cities.

Modern growth

A large population, low telephony penetration levels, and a rise in consumers' income
and spending owing to strong economic growth have helped make India the fastest-
growing telecom market in the world. The first operator is the state-owned incumbent
BSNL. BSNL was created by corporatization of the erstwhile DTS (Department of
Telecommunication Services), a government unit responsible for provision of
telephony services. Subsequently, after the telecommunication policies were revised
to allow private operators, companies such as Vodafone, Bharti Airtel, Tata Indicom,
Idea Cellular, Aircel and Loop Mobile have entered the space. see major operators in
India. In 2008-09, rural India outpaced urban India in mobile growth rate. Bharti
Airtel now is the largest telecom company in India.

India's mobile phone market is the fastest growing in the world, with companies
adding some 20.31 million new customers in March 2010.

The total number of telephones in the country crossed the 600 million mark in Feb
2010.The overall tele-density has increased to 44.85% in Oct 2009.Telecom
Regulatory Authority of India, Information note to the Press (Press Release No. 61 /
2007), 20 Jun 2007 In the wireless segment, 19 million subscribers have been added
in Dec 2009. The total wireless subscribers (GSM, CDMA & WLL (F)) base is more
than 543.20 million now. The wire line segment subscriber base stood at 37.06
million with a decline of 0.12 million in Dec 2009.

27
Emergence as a major player

In 1975, the Department of Telecom (DoT) was separated from P&T. DoT was
responsible for telecom services in entire country until 1985 when Mahanagar
Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom
services of Delhi and Mumbai. In 1990s the telecom sector was opened up by the
Government for private investment as a part of Liberalization-Privatization-
Globalization policy. Therefore, it became necessary to separate the Government's
policy wing from its operations wing. The Government of India corporative the
operations wing of DoT on 1 October 2000 and named it as Bharat Sanchar Nigam
Limited (BSNL). Many private operators, such as Reliance Communications, Tata
Indicom, Vodafone, Loop Mobile, Airtel, Idea etc., successfully entered the high
potential Indian telecom market.

Privatization of telecommunications in India

The Indian government was composed of many factions (parties) which had different
ideologies. Some of them were willing to throw open the market to foreign players
(the centrists) and others wanted the government to regulate infrastructure and restrict
the involvement of foreign players. Due to this political background it was very
difficult to bring about liberalization in telecommunications. When a bill was in
parliament a majority vote had to be passed, and such a majority was difficult to
obtain, given to the number of parties having different ideologies.

Liberalization started in 1981 when Prime Minister Indira Gandhi signed contracts
with Alcatel CIT of France to merge with the state owned Telecom Company (ITI), in
an effort to set up 5,000,000 lines per year. But soon the policy was let down because
of political opposition. She invited Sam Pitroda a US based NRI to set up a Center for
Development of Telematics(C-DOT), however the plan failed due to political reasons.
During this period, after the assassination of Indira Gandhi, under the leadership of
Rajiv Gandhi, many public sector organizations were set up like the Department of
Telecommunications (DoT) , VSNL and MTNL. Many technological developments
took place in this regime but still foreign players were not allowed to participate in the
telecommunications business.

28
The demand for telephones was ever increasing. It was during this period that the P.N
Rao led government introduced the national telecommunications policy [NTP] in
1994 which brought changes in the following areas: ownership, service and regulation
of telecommunications infrastructure. They were also successful in establishing joint
ventures between state owned telecom companies and international players. But still
complete ownership of facilities was restricted only to the government owned
organizations. Foreign firms were eligible to 49% of the total stake. The multi-
nationals were just involved in technology transfer, and not policy making.

Revenue and growth

The total revenue in the telecom service sector was Rs. 86,720 crore in 2005-06 as
against Rs. 71, 674 crore in 2004-2005, registering a growth of 21%. The total
investment in the telecom services sector reached Rs. 200,660 crore in 2005-06, up
from Rs. 178,831 crore in the previous fiscal.

Telecommunication is the lifeline of the rapidly growing Information Technology

industry. Internet subscriber base has risen to 6.94 million in 2005-2006. Out of this
1.35 million were broadband connections. More than a billion people use the internet
globally.

Under the Bharat Nirman Programme, the Government of India will ensure that
66,822 revenue villages in the country, which have not yet been provided with a
Village Public Telephone (VPT), will be connected. However doubts have been raised
about what it would mean for the poor in the country.

It is difficult to ascertain fully the employment potential of the telecom sector but the
enormity of the opportunities can be gauged from the fact that there were 3.7 million
Public Call Offices in December 2005 up from 2.3 million in December 2004.

The value added services (VAS) market within the mobile industry in India has the
potential to grow from $500 million in 2006 to a whopping $10 billion by 2009.

29
Telephone

On landlines, intra-circle calls are considered local calls while inter-circle are
considered long distance calls. Currently Government is working to integrate the
whole country in one telecom circle. For long distance calls, the area code prefixed
with a zero is dialed first which is then followed by the number (i.e. to call Delhi, 011
would be dialed first followed by the phone number). For international calls, "00"
must be dialed first followed by the country code, area code and local phone number.
The country code for India is 91.

Telephony Subscribers (Wireless and Landline): 621.28 million (Mar 2010)

Land Lines: 36.96 million (Mar 2010)

Cell phones: 584.32 million (Mar 2010)

Yearly Cell phone Addition: 178.25 million (Jan-Dec 2009)

Monthly Cell phone Addition: 20.31 million (Mar 2010)

Teledensity: 52.74%% (Mar 2010)

Projected Teledensity: 1 billion, 84% of population by 2012.

FOUNDING BODY:

Chairman & Managing Director- ShriAnupamShrivastava

AnupamShrivastava is a 1981 batch of Indian Telecom Service (ITS) Officer who has
more than three decades of experience in the field of telecommunications. He is BE

30
(Electronics & Communications) and is also MBA (Mktg.). He has taken
telecommunication trainings in India&Japan.
AnupamShrivastava took over as CMD, BSNL on 15th of January, 2015. Prior to that
he worked as Director (CM) in BSNL Corporate Office since May, 2013 where he
was responsible for the growth of mobile business of GSM in BSNL, including all
activities related to Sales & Marketing, VAS, Tariff finalization & revenue. As Zonal
Director for North Zone he was also responsible for monitoring growth and
maintenance of Telecom Network in 8 North Zone Circles. During his tenure Phase-
VII roll-out in all Zones showed remarkable progress. Approximately 8 million new
GSM line with state-of-the-art technology were added in BSNL GSM Network which
improved quality of service / data speed. Union Govt. gave GSM mobile tower
installation work in more than1800 locations in LWE areas to be funded through
USOF with a total cost of more than 3500 crores. The PO has been awarded in
November, 2014 and is important for both GoI and BSNL. In all approximately Rs.
8,000 crores worth of developmental activities were initiated in his tenure. During his
tenure revenue growth for mobile segment remained positive. AnupamShrivastava is
also holding the additional charge of Director (Finance) as the post is lying vacant
since December 2013.
Prior to these assignments in BSNL C.O., AnupamShrivastava had held the post of Sr.
GM, Ajmer TD where he gave special attention to Sales & Marketing of telecom
products in the SSA which resulted in physical growth of connections in all segments
and increased revenue for the SSA. Ajmer SSA was chosen for the pilot project for
NOFN which was successfully completed ahead of target. He also worked in Jodhpur
SSA and gave record number of mobile and landline connections with special
emphasis on data and broadband business. He also has experience of working in
Broadband Marketing and Enterprise Business.
AnupamShrivastava also has overseas working experience in Zimbabwe where he
was posted in Harare while representing TCIL as Task Force Leader to upgrade their
telecom services. Due to his hard work and coordination skills the fault rate was
drastically curtailed which was well appreciated by PTC Zimbabwe and TCIL
management. He was associated with 6th G-15 Summit in Harare in 1996.
AnupamShrivastava has delivered lectures extensively in different institutions both in
India and abroad including many universities and management colleges. He also
organized many seminars and skill up-gradation courses at many places.
31
A firm believer in team work, AnupamShrivastava always sets examples by himself
and uses latest technological applications to promote and inculcate team work
amongst his subordinates and maintains synergy with all in BSNL management.
Director - (CFA) -ShriN.K.Gupta

ShriNaresh Kumar Gupta took over as Director CFA in BSNL on 1st June 20012.
Shri Gupta is B.E. from Delhi College of Engineering (DCE), in Electronics and
Communications. He joined the Department of Telecommunications, Government of
India through Indian Telecommunications Services (ITS) Group A 1978 batch. Since
then he has worked in various capacities in different units of DoT/TEC/BSNL/MTNL
and has versatile experience covering almost all the fields in telecommunications
including installation, operations, development and management of telecom networks,
sales and marketing and financial management etc.
Before joining as Director (CFA) on the BSNL Board, N K Gupta was working as
Chief General Manager Punjab Telecom Circle in BSNL and prior to that he was
heading the Information Technology division for CFA business unit of BSNL”.
He in the capacity of DDG (I) TEC was instrumental in framing specifications and
Network architecture against which BSNL and MTNL have implemented their
broadband Networks. He has represented DoT in many committees of TRAI, DIT,
and also in various Inter-Ministerial Committees like committee on preparing
encryption policy, E-Commerce and Information Security working Group. He has
widely travelled abroad and represented India in number of UN & ITU meetings
including World Summit on Information Society in Geneva and other important
assignments.
He was an active member of Apex Committee involved in the planning and execution
of NIB-II of BSNL and also framing the specification for ERP implementation in
BSNL which is currently in progress
He was deeply involved in Pan-India Roll out of zonal OSS and BSS for Wire-line
and Broadband segment which helped BSNL to changeover from decentralized 334

32
SSA level systems to 4 zonal data centres with implementation of world class COTS
applications.
N K Gupta is also instrumental in conceptualizing BSNL entry in to the Data Centre
(IDC) Services business for opening up a new revenue stream by leveraging BSNL’s
existing infrastructure with an innovative revenue share model. Presently BSNL is in
the process of acquiring IDC business
As Director (CFA) BSNL, he is mainly responsible for improving the Systems and
Methods to achieve optimal performance and maximum utilization of BSNL's
extensive country-wide Infrastructure and network. He is also responsible for
achieving business interests of the Company by way of high customer satisfaction and
timely provision of quality services in BSNL CFA segment. He is also responsible for
induction & adoption of new technologies and committed to provide state-of-the-art
modern and world class telecom services in the highly competitive environment.
Director - (CFA) -ShriR.K.Mittal

ShriRakesh Kumar Mittal, an officer of Indian Telecommunications Service 1981

batch, is a Graduate in Electrical (Electronics) Engineering from Delhi College of
Engineering. He assumed the charge of the Consumer Mobility Vertical on 4.11.2015.
Prior to the current assignment, he was General Manager in MTNL Delhi. At MTNL
he was in charge of MM, IT & Tech/Plg in Corporate office. He started his career in
Department of Telecommunications and held various positions in the field formation.
He has been responsible for procurement of ADSL2+ and 3G technologies for the 1st
time in India by any of the operator. He attended various training programmes in
India and abroad.

33
Govt. Director - Shri N.SIVASAILAM

Shri N. Sivasailam is an officer of the 1985 batch of the Indian Administrative

Service allotted to Karnataka Cadre. He graduated in Mechanical Engineering from
University of Delhi. He did his Post Graduate studies at the Faculty Management
Studies, University of Delhi and at the London School of Economics in Business
Administration and Social Policy & Planning in Business Administration and Social
Policy & Planning in Developing Countries respectively. He also has a Post Graduate
Diploma in Intellectual Property Rights Law (IPRL) from the National Law School of
India University, Bangalore. His last assignment in cadre was at the Department of
Public Enterprises, Government of Karnataka where he served in the position of
Additional Chief Secretary. He has served in the Departments of Health & Family
Welfare and Forest, Ecology & Environment Departments of the Govt. of Karnataka
as Principal Secretary.
He has served Bangalore Metro Rail Corporation Ltd, the Karnataka State Beverages
Corporation Limited and Rajiv Gandhi Rural Housing Corporation Ltd. as Managing
Director, in earlier stints in the Cadre besides serving an assignment as Secretary in
the Rural Development &Panchayat Raj Department of the State Government.
In his earlier stint with the Central Government, he served as Deputy Secretary (AIS)
in the M/o Personnel, Public Grievances and Pensions. Presently, he is serving as
Additional Secretary (Telecom) and is also ex-officio Secretary of the Telecom
Commission in the Government of India
He has been a Member of National Award Winning Teams in Panchayat Raj
Administration and E-governance applications.

34
MAJOR COMPETITORS:-

1. Reliance

2. Idea

3. Vodafone

4. TataDocomo

5. Airtel

6. Unior

MILESTONES:-
milestones of BSNL, formed in October, 2000, is world's 7th largest
telecommunications company providing comprehensive range of telecom services in
India: Wireline, CDMA mobile, GSM mobile ,Internet, Broadband, Carrier service,
MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five years it has
become one of the largest public sector units in India. BSNL has installed Quality
Telecom Network in the country and now focusing on improving it ,expanding the

35
network, introducing new telecom services with ICT applications in villages and
winning customer confidence. Today, it has about 47.3 million line basic telephone
capacity, 4million WLL capacity, 20.1 Million GSM Capacity, more than 37382 fixed
exchanges, 18000BTS, 287 Satellite Stations, 480196 R km of OFC Cable, 63730 R
km of Microwave Network connecting 602 Districts, 7330 cities/towns and 5.5 Lakhs
villages. BSNL is the only service provider, making focused efforts and planned
initiatives to bridge the Rural-Urban Digital Divide ICT sector. In fact there is no
telecom operator in the country to beat its reach with its wide network giving services
in every nook and corner of country and operating across India except Delhi and
Mumbai. Whether it is the inaccessible areas of Siachen Glacier or the North-Eastern
region of the country, BSNL serves its customers with its wide bouquet of telecom
services. BSNL is the numeric Uno operator of India in all services in its license area.
The company offers wide ranging and most transparent tariff schemes designed to suit
every customer. BSNL cellular service, Cell One, has more than 17.8 million cellular
customers, garnering 24%of all mobile users as its subscribers. That means that
almost every fourth mobile user in the country has a BSNL connection. In basic
services, BSNL is miles ahead of its rivals, with 35 1million Basic Phone subscribers,
i.e., 85% share of the subscriber base and 92% share inrevenue terms. BSNL has more
than 2.5 million WLL subscribers and 2.5 million internet customers who access
internet through various modes, viz. Dial-up, Leased Line, DIAS, Account Less
Internet(CLI). BSNL has been adjudged as the NUMBER ONE ISP in the country.
BSNL has set up a world-class multi-gigabit, multi-protocol convergent IP
infrastructure that provides convergent services like voice, data and video through
thesame Backbone and Broadband Access Network. At present there are0.6 million
Data One broadband customers.

TELEPHONE:

On landlines, intra-circle calls are considered local calls while inter-circle are
considered long distance calls. Currently Government is working to integrate the
whole country in one telecom circle. For long distance calls, the area code prefixed
with a zero is dialed first which is then followed by the number (i.e. to call Delhi, 011
would be dialed first followed by the phone number). For international calls, "00"

36
must be dialed first followed by the country code, area code and local phone number.
The country code for India is 91.

Telephony Subscribers (Wireless and Landline): 621.28 million (Mar 2010)

Land Lines: 36.96 million (Mar 2010)

Cell phones: 584.32 million (Mar 2010)

Yearly Cell phone Addition: 178.25 million (Jan-Dec 2009)

Monthly Cell phone Addition: 20.31 million (Mar 2010)

Teledensity: 52.74%% (Mar 2010)

Projected Teledensity: 1 billion, 84% of population by 2012.

FUTURE PLANS:

BSNL has continued its growth story ever since its formation and presently it is one
of the largest & leading public sector units in India, providing a bouquet of telecom
services: Wireline, GSM mobile, CDMA mobile, Internet, Broadband, Carrier
service, MPLS-VPN, VSAT, VoIP, IN Services, etc. BSNL has customer base of
121.65 million as on 31st March, 2013 and further plans to increase it to 189 million
with 165.47million wireless customers by March, 2017. 

New Services Introduced/planned by BSNL:

3G Services : BSNL has covered 1259 cities with 3G services across the country and
all 2G customer have been enabled for 3G facilities. 
Broadband services : The shift in demand from voice to data has revolutionized the
very nature of the network. BSNL is poised to cash on this opportunity & has planned
for extensive expansion of Broadband services. BSNL has increased minimum
download speed to 512 Kbps. BSNL has covered more than 1.69 lakh villages with
Broadband services. The Broadband customer base of BSNL has reaches to 10.13
Million customers in March, 2013 & further BSNL plan to increase Broadband
customer to 17.50 million by March, 2017. 
Value Added Services : BSNL is focussing on provision of value added

37
services/features to attract high end customers and to double its revenues from VAS 
Fibre to Home(FTTH) : To meet demand for high bandwidth services, BSNL has
rolled out FTTH services (GPON & GE-PON) in 2010 for the first time in the
country. FTTH services have already been launched in more than 160 cities. 
Mobility in WLL : BSNL is planning to provide full mobility on its WLL network
from March 2010. 

Important Projects Under Implementation:

 BSNL is augmenting its GSM Network by 15 Million lines to meet its capacity
requirement, through Phase VII GSM expansion project.
 Augmentation of broadband Network by additional 3.2 Million ports
 Migration of Wireline customers from legacy Network to Next Generation
Network (NGN).
 Augmentation of Optical Fibre network.
 Implementation of Enterprises Resource Planning ( ERP) system country vide in
BSNL
 Executing DoT’s work of building alternate communication infrastructure for
Defence(NFS).
 Executing BBNL’s part work/project of high Speed Broadband connectivity to
Panchayat (NOFN).
 6731 Base Station rural phase-II WiMax Project for 52000 CSCs covering all
Telecom Circles except Kerala &A&N.

International Long Distance

Undersea Cable : BSNL is participating/member of the following submarine cable
systems: 

Bharat Lanka Cable System: Connecting to Sri Lanka and to reach in the Pacific
direction from India. 

Europe India Gateway (EIG) Cable System: Connecting UK, Portugal, Gibraltar,
France, Libya, Egypt, Saudi Arabia, Djibouti, Oman & UAE. 

38
 THEORETICAL FRAME WORK

Attrition

"A reduction in the number of employees through retirement, resignation or death".

Attrition, also known as employee churn, employee turnover, or employee defection,
is an industrial term used to describe loss of employees or Man power.

Attrition is pretty high in the industry these days. Attrition is a universal phenomenon
and no industry is devoid of it, but the degree fluctuates from industry to industry.
Attrition is a serious issue in the industries because the industry is knowledge-based
and hence employees are its “assets”.

Deficiencies like inability to influence employee perception of growth; not aligning

employees to roles based on their individual talent, inflexibility in leadership styles,
are causing conflicts at a very intrinsic level, resulting in knowledge employees
choosing the proverbial “easy way out.”

ATTRITION IS A BUSINESS PERSPECTIVE

Attrition is a phenomenon affecting any business organization in the industry. Over

the past few years, organizations have taken an increased interest in aligning their HR
practices to their business goals.

Where as the deficiencies like inability to influence employee perception of growth;

not aligning employees to roles based on their individual talent, inflexibility in
leadership styles, are causing conflicts at a very intrinsic level, resulting in knowledge
employees choosing the proverbial “easy way out.” Employees thus attempt to change
the manager or the work environment, resulting in employee attrition.

Attrition occurs due to INEFFECTIVE MANAGERS…

Says BEENA HANDA, Vice-President-HRM of Claris Life sciences. “Attrition also

happens when people hate their working conditions, do not like their team-mates or
perhaps do not like what they are doing. There are also cases when people leave their
job for family reasons or when they wish to migrate. For example, girls often leave
their jobs when they get married and shift to another city,”

39
Beyond a point, an employee's primary need has less to do with money, and more to
do with how he's treated and how valued he feels. Much of this depends directly on
the immediate manager. And yet, bad bosses seem to happen to good people
everywhere. A Fortune magazine survey some years ago found that nearly 75 per cent
of employees have suffered at the hands of difficult superiors.

A WORKFORCE MAGAZINE ARTICLE, "Knowing how to keep your best and

brightest," reported the results of interviews with 20,000 departing workers. The main
reason that employees chose to leave was poor management. HR magazine found that
95 percent of exiting employees attributed their search for a new position to an
ineffective manager.

ATTRITION IS A CRITICAL ISSUE

Whenever a well-trained and well-adapted employee leaves any organization, it

creates a vacuum. The organization loses key skills, knowledge and business
relationships. And it is not an easy task to find a sustainable substitute. “Situation is
worse when it happens at a critical (decision making) position, as there is a scarcity of
such technical resources in the market,” explains Head HR, who feels attrition directly
affects the company. “Employees want not only work recognition, but also extra
perks.”

COMBATING HIGH ATTRITION

Alarm bells are ringing loudly in corporate corridors as attrition rates in IT

organizations average 22 percent as per a study conducted by the Indian Institute of
Technology, Bombay (IIT-B) with a sample of 1,028 IT companies in the country.

Says Dr. NANDKISHORE RATHI, placement officer of IIT-B, “After doing the
survey, we found that the lack of match between personal requirements and
organizational culture was quite prevalent.”

40
Along with the three main reasons as mentioned,

• An employee may be concerned about the environment in the organization,

• His compatibility with his supervisors,

• The attention paid to him.

Hence, the reason for an employee leaving a company could be nothing other than his
growth, If companies take proper steps and adopt methods to serve their employees
needs, the challenge of managing attrition will remain low.

TREAT EMPLOYEES LIKE CUSTOMERS

• Companies should have a similar approach to employees and customers. A

company should strive to retain an employee in the same way it tries to retain a
customer. BIJAY SAHOO, Vice-president

Talent Engagement & Development Wipro Technologies…

• Some employees prefer development to being in a support and maintenance

job. To hold back these people, we give first preference for training them.

Says BIJAY SAHOO, vice-president, talent engagement and development, Wipro

Technologies, “Companies should have a similar approach to employees and
customers. If a company strives to retain an employee in the same way it tries to
retain a customer, him leaving the organization could be out of question.
Communication is the foundation for the entire process of managing attrition. This
communication begins right from recruitment.

Says RAJEEV MALIK, director, HR, McAfee Software (India), “Conducting

regular meetings and updating employees, especially new entrants, about the
company’s status and achievements is a must.”

41
LEADERSHIP CRISIS LEADS TO ATTRITION

“Employees don’t leave organizations but their managers.” There has been a
phenomenal change in employee perception of “loyalty” over the last decade and is
especially true of knowledge workers. What the organization can expect from an
employee has dramatically changed from “loyalty” to “commitment-to-cause” and so
has the factors causing them.

Deficiencies like inability to influence employee perception of growth; not aligning

employees to roles based on their individual talent, inflexibility in leadership styles,
are causing conflicts at a very intrinsic level, resulting in employees choosing the
proverbial “easy way out.” They attempt to change the manager or work environment
and hope for the best to happen.

FIVE PRINCIPAL REASONS FOR WHICH THE PEOPLE CHANGE JOBS

•It doesn't feel good around here. This is a corporate culture issue in most cases.
Workers are also concerned with the company's reputation; the physical conditions of
comfort, convenience, and safety, and the clarity of mission.

•They wouldn't miss me if I were gone. Even though leaders do value employees, they
don't tell them often enough. If people don't feel important, they're not motivated to
stay. No one wants to be a commodity, easily replaced by someone off the street. If
they are regarded as expendable, they'll leave for a position where they're appreciated.

•I don't get the support I need to get my job done. Contrary to opinions heard all-too-
often from management, people really do want to do a good job. When they're
frustrated by too many rules, red tape, or incompetent supervisors or co-workers,
people look for other opportunities.

•There's no opportunity for advancement. No, we're not talking about promotions,
although many deserving people would like to move up. The issue here is learning.
People want to learn, to sharpen their skills and pick-up new ones. They want to
improve their capacity to perform a wide variety of jobs. Call it career security. The
desire is for training and development. If workers can't find the growth opportunities
with one company, they'll seek another employer where they can learn.

42
•Compensation is the last reason people most leave. That's a brash statement, but it's
true. Workers want fair compensation, but the first four aspects must be strong. If
they're not, but money's high, you'll hear people say "you can't pay me enough to stay
here."

DEFINITION: Attrition can be defined as “The reduction in the number of

employees through retirement, resignation or death". In broad term, attrition is a
situation which employer face when employee left the organization due to job
dissatisfaction, new opportunity in the market, retirement & natural cause
(death/illness). Attrition rate can be defined as "the rate of shrinkage in size or
number".

Attrition can be classified into two types, Drive Attrition" which is caused due to the
employer and "Drag Attrition" which is caused due to the employee. The reasons
for Drive Attrition are due to employer's policies of Terminating the employee at the
end of the contract period for employment. Drag Attrition is basically due to the host
of insecurities and vulnerabilities associated with the taking up a career with a BPO
company.

The formula and correct logic behind calculation of attrition rate

((No. Of attritions x 100) / (Actual Employees + New Joined)) /100.

Employee attrition and candidate absconding are significant business concerns for
every organization, one even bigger than attracting talent. Employee attrition is a
serious issue, especially in today’s knowledge-driven marketplace where employees
are the most important human capital assets; attrition impacts an organization’s
competitive advantage. Annual attrition rates in the IT/ ITs industry are estimated to
be in the range 20 to 80 percent, 15% for high-skilled IT services and on average 40%
in the BPO industry. The tangible costs of employee attrition would be the cost of
training new employees, the recruitment and selection costs, adjustment time, possible
product and/or service quality problems, costs of agency workers/ temporary staff, the
cost of training, the cost of loss productivity, the cost of lost knowledge and the cost
of the position remaining vacant till a suitable replacement is found. The intangible
costs, which may be even more significant than the tangibles, involve the effect of
attrition on organizational culture, employee morale, social capital or organizational

43
memory. All these costs would significantly take away the profitability and the
competitive advantage of the firm.

It is imperative for every organization to understand what attracts and retains a

potential candidate and predict attrition early in the recruitment process to curtail
significant loss of productivity among hiring managers, recruiters and eventual loss of
revenue and moneys.

Employee attrition is a very big problem globally. Attrition rate is increasing day by
day, and especially the software industry is affected the most in the present era. Why
an Employee leaves a company is the question asked by most of the employers.
Companies even hire Private HR professionals to study the company’s work and find
out why an employee is dissatisfied.

HR department does the recruiting of new employees and then send them for training
so that they can understand work and work culture and become better professionals.
Each and every company faces employee turnover problem whether big or small. An
employee leaves his present job for another job to get better pay package and good
working conditions.

Every Company calculates Employee attrition rate and takes measures to reduce it.
The facts and figures are not made public as it may tarnish the image of the company
in front of its own employees and its loyal customers. For this, a study on employee
attrition is made at Invest leaf Management Solutions Pvt. Ltd. to know about the
attrition rate and the techniques followed by the company to overcome this barrier.

ASSOCIATED COST WITH HIGH ATTRITION:

1. Talent loss:
It includes the cost of lost knowledge, skills and contacts that the person who is
leaving is taking with them out of your door.

2. Recruitment cost:
The cost of advertisements, agency costs, employee referral costs, internet posting
costs. Cost of the various candidate pre-employment tests to help assess candidates'
skills, abilities, aptitude, attitude, values and behaviors.

44
3. Training cost:

It includes the cost of orientation in terms of the new person's salary and the cost of the
person who conducts the orientation. The cost of various training materials needed including
company product manuals, computer or other technology equipment used in the delivery of
the training.

4. Motivational cost:

It refers to the cost arises because of motivating the other employees to retain them in the
organization in terms of increasing their salary and time.

5. Lost Productivity Costs:

As the new employee is learning the new job, the company policies and practices, etc. they
are not fully productive. Use the following guidelines to calculate the cost of this lost
productivity.

REASON FOR LEAVING:

A recent Hewitt 'Attrition & Retention' survey shows one of the top reasons for talent
attrition to be "external inequity in compensation". They also show that 27% of the
employees in their EXIT interview mentioned compensation as the primary reason. It
comes no surprise to many that money is an important factor but what besides this,
there are several factors that influence an employee's decision to leave.

According to a survey there are three main reasons that are followed by other
common reason:

 In equity in compensation
 Limited career opportunities
 Role stagnation
Common reasons experienced by HR manager are discussed here:

 Mismatch of job profile.

 Job stress and work-life imbalances
 Odd working hours/Early morning-night shifts
 Job hopping
 Monotony of job

45
Retention strategies:

Retaining employees has always proved to be fruitful across many industries rather
than to search for new & efficient talent. So to gain the fruit of this tree, different
companies devise different strategies for retaining their employees

Employee Benefits Provided By Majority of the BPO Companies

A part from the legal and mandatory benefits such as provident-fund and gratuity,
below is a list of other benefits…BPO professionals are entitled to the following:

1. Group Medi-claim Insurance Scheme: This insurance scheme is to provide

adequate insurance coverage of employees for expenses related to hospitalization due
to illness, disease or injury or pregnancy in case of female employees or spouse of
male employees. All employees and their dependent family members are eligible.
Dependent family members include spouse, non-earning parents and children above
three months

2. Personal Accident Insurance Scheme: This scheme is to provide adequate

insurance coverage for Hospitalization expenses arising out of injuries sustained in an
accident. This covers total / partial disablement / death due to accident and due to
accidents.

3. Subsidized Food and Transportation: The organizations provide transportation

facility to all the employees from home till office at subsidized rates. The lunch
provided is also subsidized.

4. Company Leased Accommodation: Some of the companies provides shared

accommodation for all the out station employees, in fact some of the BPO companies
also undertakes to pay electricity/water bills as well as the Society charges for the
shared accommodation. The purpose is to provide to the employees to lead a more
comfortable work life balance.

5. Recreation, Cafeteria, ATM and Concierge facilities: The recreation facilities

include pool tables, chess tables and coffee bars. Companies also have well equipped
gyms, personal trainers and showers at facilities.

46
6. Corporate Credit Card: The main purpose of the corporate credit card is enable
the timely and efficient payment of official expenses which the employees undertake
for purposes such as travel related expenses like Hotel bills, Air tickets etc

7. Cellular Phone / Laptop: Cellular phone and / or Laptop are provided to the
employees on the basis of business need. The employee is responsible for the
maintenance and safeguarding of the asset.

8. Personal Health Care (Regular medical check-ups): Some of the BPO'S provides
the facility for extensive health check-up. For employees with above 40 years of age,
the medical check-up can be done once a year.

9. Loans: Many BPO companies provide loan facility on three different occasions:
Employees are provided with financial assistance in case of a medical emergency.
Employees are also provided with financial assistance at the time of their wedding.
And, the new recruits are provided with interest free loans to assist them in their
initial settlement at the work location.

10. Educational Benefits: Many BPO companies have this policy to develop the
personality and knowledge level of their employees and hence reimburses the
expenses incurred towards tuition fees, examination fees, and purchase of books
subject, for pursuing MBA, and/or other management qualification at India's top most
Business Schools.

11. Performance based incentives: In many BPO companies they have plans for,
performance based incentive scheme. The parameters for calculation are process
performance i.e. speed, accuracy and productivity of each process. The Pay for
Performance can be as much as 22% of the salary.

47
 DATA ANALYSIS AND INTERPRETATION

ANALYSIS USING PERCENTAGE METHOD

Classification of the respondents based on their AGE LEVEL

S.No Age No. of Percentag

Respondents e
1 18-25 35 70

2 26-35 12 24

3 36-45 03 06

4 Above 45 0 0

Total 50 100

70

70

60

50

40
Percentage
24
30

20
6
10
0
0
18-25 26-35 36-45 Above 45

Inference:

The above table infers that, 70 percent belongs to the age group of 18-25 years, 24
percent belongs to the age group of 26-35 years, and 6 percent belongs to the age
group of 36-45 years.

48
Classification of the respondents based on their MARITAL STATUS

S.No. Marital status No. of Respondents Percentage

1 Married 16 32

2 Unmarried 34 68

Total 50 100

68

70

60

50
32
40
Percentage
30

20

10

0
Married Unmarried

Inference:
The above table infers that, 32 percent of the respondents are married people
and 68 percent of the Respondents are unmarried people.

49
 Classification of the Respondents based on their EDUCATIONAL
QUALIFICATION

S.no Qualification No. of Respondents Percentage

1 Below Hr.Sec 21 42
2 Hr.Sec 13 26
3 UG or PG 12 24
4 I.T.I and Others 04 08
Total 50 100

42
45
40
35
26
30 24
25
20 Percentage

15
8
10
5
0
Below Hr.Sec Hr.Sec UG or PG I.T.I and
Others

Inference:

The above table infers that, 42 percent of the respondents are having below higher
secondary qualification, 26 percent of the respondents are having higher secondary
qualification.

50
Classification of the Respondents based on their YEARS OF EXPERIENCE

S.no Years of Experience No. of Respondents Percentage

1 0-2 years 23 46
2 3-5 years 22 42
3 6-8 years 01 02
4 Above 8 years 04 08
Total 50 100

46
50
42
45
40
35
30
25 Percentage
20
15 8
10
2
5
0
0-2 years 3-5 years 6-8 years Above 8 years

Inference:

The above table infers that, 46 percent of the respondents are having 0-2 years
experience, 42 percent of the respondents are having 3-5 years, 2 percent has above 5
years of experience.

Classification of the Respondents based on their ROLE

51
 S.no Role of Employees No. of Percentage
Respondents
1 Top Level Management 03 06
2 Middle Level 17 34
Management
3 Low Level Management 30 60
4 Contract Persons 0 0
Total 50 100

60

60

50

40 34

30
Percentage

20
6
10
0
0
Top Level Middle Level Low Level Contract
Management Management Management Persons

Inference:
The above table infers that, 06 percent of the respondents are in Top Level
Management, 34 percent of the respondents are in Middle Level Management and
60% are Lower Level Management.

Classification of the Respondents based on their YEARS OF EXPERIENCE IN

EXISTING COMPANY

52
 S.no Years of Experience in No. of Respondents Percentage
company
1 <1 year 14 32
2 1-2 years 08 16
3 2-3 years 08 16
4 >3 years 18 36
Total 50 100

40
36
35 32
30
25
20
16 16
15 Percentage

10
5
0
company
<1 year
1-2 years
2-3 years
>3 years

Inference:
The above table infers that, 32 percent of the respondents are having less than one
year experience, 16 percent of the respondents are having 1-2 years of experience,
36 percent of the respondents are having above 3 years of experience in the
existing company.

Classification of the Respondents based on their UNDERSTANDING ABOUT

THE JOB

53
 S.No Level of Attitude No of Respondents Percentage

1 Not Really 02 04

2 Some what 08 16

3 Pretty Much 12 24

4 Totally 28 56

56
60

50

40

30 24 Percentage

16
20

10 4

0
Not Really Some what Pretty Much Totally

Inference:

The above table infers that, 16 percent of the respondents somewhat understand

their job, 24 percent of the respondents understand their job pretty much and 56

percent of the respondents totally understand their job

7. How far you were comfortable with your nature of job?

□Highly comfortable □Comfortable □ Neutral

54
□Uncomfortable □Highly Uncomfortable

Job Nature No. of Respondents Percentage of Respondents

Highly Comfortable 20 15

Comfortable 30 20

Neutral 40 48

Uncomfortable 10 17

50
40
30
20
10
0
e e l e e
bl bl tra bl bl
tr a tr a u tr a tr a
fo fo Ne fo fo
Com Co
m
com com
ly Un Un
igh h ly
H g
Hi

Interpretation:

Above mentioned table and chart shows that 15% of the employees are highly
comfortable with job nature, 20% of the employees are comfortable with the job
nature, 48% of the employees are neutral and 17% of the employees are
uncomfortable with the job nature.

8. Do you feel stressed in doing your work?

□To great extent □To some extent □Not at all

55
 Stress types No. of Respondents Percentage of Respondents

Physical stress 50 40.5

Mental stress 35 32

Psychological stress 15 27.5

40.5
45
40 32
35 27.5
30
25
20
15
10
5
0
Physical stress Mental stress Psychological stress

Interpretation:

Above mentioned table and chart shows that 40.5% of the employees said they
experience physical stress, 32% responds as mental stress and 27.5% respond as
psychological stress.

9. What do you expect from your organization to render your service apart from
compensation?

□Recognition □Job security □Moral support

56
 □Self respect □Recreational facilities

Expectations No. of Respondents Percentage of Respondents

Recognition 40 31

Self Respect 35 20.5

Freedom to implement 20 17.5

Job security 05 18

35
30
25
20
15
10
5
0
Recognition Self Respect Freedom to Job security Moral support
implement

Interpretation:

Above mentioned table and chart shows that 31% of the employees expect
recognition from the organization, 20.5% of the employees expect self respect, 17.5%
of the employees expect freedom to implement, 18% of the employees expect job
security and 13% of the employees expect moral support from the organization.

10. Are you satisfied with the working condition provided by BSNL?

□Highly satisfied □Satisfied □Neither satisfied nor dissatisfied

□Dissatisfied □Highly dissatisfied

57
Satisfaction level No. of Respondents Percentage of Respondents

Highly satisfied 08 7

Satisfied 32 31

Neutral 40 39

Dissatisfied 20 19

Highly dissatisfied 8 4

40
35
30
25
20
15
10
5
0
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

Interpretation:

Above mentioned table and chart shows that 7% of the employees are highly satisfied
with working condition , 31% of the employees are satisfied with the working
condition , 39% of the employees are neutral in their jab nature, 19% of the
employees are dissatisfied with the working condition and 4% of the employees are
highly dissatisfied with the working condition.

11. Whether BSNL is providing any counseling program to reduce

the work stress?

□ Always □Usually □Sometimes □Rarely □Not at all

58
 Counseling Program No. of Respondents Percentage of Respondents

Always 20 6

Usually 30 20.5

Sometimes 50 57.5

60

50

40

30

20

10

0
Always Usually Sometimes Rarely Not at all

Interpretation:

Above mentioned table and chart shows that 6% of the employees have said that
management conduct counseling program always, 20.5% of the employees have said
that management conduct counseling program usually, 57.5% of the employees have
said that sometimes management has conduct the counseling program, 16% of the
employees have said that management program rarely conduct the counseling
program and 0% of the employees have said that there is no such counseling program.

12. How likely are you to be working in this organization two years
from now?

□ like Very much □ like □ Neutral □ Dislike □ Dislike Very much

59
 Level of Willingness No. of Respondents Percentage of Respondents

Like very much 10 5

Like 50 25

Neutral 85 42.5

Dislike 45 22.5

Dislike very much 10 5

45
40
35
30
25
20
15
10
5
0
Like very much
Like
Neutral
Dislike
Dislike very
much

Interpretation:

Above mentioned chart shows that 5% of employees are like very much, 25% of
employees are like to work, 42.5% of employees are neutral in their view, 22.5% of
the employees are dislike to work and 5% of the employees are dislike veru much to
work after two years.

13. Does your organization provide all statutory welfares to the

employees?

□ Yes □ No

Statutory Welfare No. of Respondents Percentage of Respondents

60
 Yes 169 84.5

No 31 15.5

90
80
70
60
50
40
30
20
10
0
Yes No

Interpretation:

Above mentioned table shows that 84.5% of the employees said they are provided
with all statutory welfares and 15.5% of the employees said they are not provided
with such welfares

14. Which of the following type of rewards that you prefer as reward
for your performance?

Monetary rewards Holiday vouchers Medals and trophies

Special trainings Special scholarships Promotion

61
 No. of Percentage of
Rewards Respondents Respondents

Monetary rewards 55 27.5

Holiday vouchers 36 18

Medals & trophies 8 4

special training 16 8

Special scholarship 18 9

Promotion 67 33.5

30
20
10
0
d s rs es g ip n
ar he hi nin sh tio
c p i r o
re
w u tro ra la om
vo lt ho
ry y & cia sc Pr
eta lid
a
als e ial
on ed sp ec
M Ho M S p

Interpretation:

Above mentioned table shows that 57.5% of the employees said they prefer monetary
rewards, 18% of the employees said they prefer holiday vouchers, 4% of the
employees said they prefer medals & trophies, 8% of the employees said they prefer
special training, 9% of the employees said they prefer scholarship and 33.5% of the
employees said they prefer promotion.

15. Do you believe that BSNL is treating its employees as an

important ‘Asset’ of the organization?

□ Yes □ No

Importance to Employee No. of Respondents Percentage of Respondents

62
Yes 115 57.5

No 85 42.5

60

50

40

30

20

10

0
Yes No

Interpretation:

Above mentioned table and chart shows that 57.5% of the employees respond that
management aware that employees are as an Asset of an organization, 42.5% of
employees respond no to this statement.

FINDINGS

o From the Survey it is found that, 70 % belongs to the age group of 18-25 years, 24
% belongs to the age group of 26-35 years, 6% belongs to the age group of 36-45
years.

o The study has found that 32% are married and 68% are unmarried.

63
o According to the respondents, 42% are below H.Sc, 26% completed H.Sc, 24%
are upto UG or PG, 8% are ITI.

o The survey found that 46% belongs to 0-2 years experience, 42% belongs to 3-5
years experience, 2% belongs to 6-8 years and 8% belongs to experience of above
8years.

o According to the survey 6% are from Top-level, 34% are from Middle-level and
60% are from Lower-level management and no any contracted persons.

o The study has found 32% has <1 year experience in the existing company, 16%
has 1-2 years experience, 16% has 2-3 years experience, 36% has >3 years work
experience in the company.

o From the Survey it is found that, 4% are rarely understood about their job, 16%
are somewhat understood, 24% are pretty much in their job, 56% are totally
underst6ood about their present job.
o Employees respond that they are satisfied.
o Employees respond that management is treating employees as an asset of an
organization.
o Employees respond that work-life balance was satisfied.
o Employees said that organization takes necessary measures to retain them in the
organization.
o Employees respond that the promotion is the retention strategy using in the
organization.
o Employees said that there is group harmony and inter-relationship among the team
member to achieve organizational goal.
o Employee responds that there is an open flow of communication prevailing in the
organization.
SUGGESTIONS

 More than half of the employees are satisfied with their nature of job and with
their working conditions. So the company can attain a further improvement level
for the rest if it guides its employees.

64
 Very few employees are comfortable with their present salary. Majority of them
has the opinion that low salary is their problem in their organization. So the
Company is suggested to provide salary, which satisfies its employees at least to
some extent.
 Many employees suggest improving working environment and employee
motivation in the survey. So the company should give attention to the factors
which it can improve itself internally.
 Many of the respondents suggest improving some developments in the existing
product. So the company can be benefited if they consider the employees view for
their long run.
 The company has less number of employees so the company could recruit many
new employees. So, there will be a decrease level in work pressure among
employees.
 Even though the employees are satisfied with their job nature, it is identified in the
study that many employees prefer to change their job due to lack in their growth
opportunities in their job. So the company can look for some Innovative
technologies to decrease their attrition level by providing growth opportunities.
 The company should conduct regular meetings to know about what exactly
employee expects.
 The company may give training like Personality Development and Self
improvement training to the employees, every three or six months once this status
has to be reviewed and necessary action can be taken. It is better to have such
training in the future.

CONCLUSION

The main aim of any organization is to earn profit. But to attain the maximum profit,
the organization should concentrate more on employees and the ways to retain them
for their long run.

65
To control attrition level in the BSNL., the company should focus on

 What the employees really expect from the organization?

 The common reasons for which the employees feel to change their job?

 What makes employee to get dissatisfy in the organization?

From the study it is identified that, the Lack of growth opportunities and the Family
issues are the major problem which makes employees to change their job from this
organization.

This study concludes that to reduce attrition, BSNL should create some opportunities
for the growth of their employees through adopting new Innovative Technologies,
Effective training programs and the company can recruit people’s who are around , so
the family issue factor will not lead to attrition in future and the company can curb
attrition.

BIBILIOGRAPHY

BOOKS
 Human Resource Management. The ICFAI Center of Management

Research, Banjara Hills, Hyderabad.

66
  Kothari, C.R., Research Methodology - Methods & Techniques , New

Delhi, New Age international (P) Ltd., Publishers, Second Edition,2004.

 Gupta, S.P., Statistical Methods, New Delhi, Sultan Chand & Sons

Publishers, Thirty Fourth Edition, 2005.

WEBSITES

 www.bsnl.com

 www.attrition.org/attrition/about.html

 www.answers/topic/attriton.com

 www.geocites.com/tutor19US/attrition.html

 www.bpotimes.com

 www.mangamentorg.com

QUESTIONNAIRE
A STUDY ON ATTRITION LEVEL AT BSNL, VISAKHAPATANAM

PERSONAL DATA :

67
 1. Name:

2. Designation:

3. Age:

a) 18 -25 b) 26 – 35 c) 36 -45 d) above 45

4. Marital status:

a) Married b) unmarried

5. Educational Qualification:

a) Below Hr. Sec.b) Hr. Sec c) UG or PG d) ITI or e) Others

6. Years of Experience:

a) 0 – 2 years b) 3 – 5 years c) 6 – 8 years d) Above 8 years

7. Contact No & Address:

6. Please rate your satisfaction levels on the following parameters(Put a tick mark)

Highly Satisfactory Average Dissatisfactory Highly

Satisfactory Dissatisfactory

Working
hours

Compensation
package

Organization
culture

HR team

Co-Employee

68
 7. What do you expect from your organization to render your service apart from
compensation?
□Recognition □Job security □Moral support

□Self respect □Recreational facilities

8. Are you satisfied with the working condition provided by RAMKY

INFRASTRUCTURE PVT. LTD?
□Highly satisfied □Satisfied □Neither satisfied nor dissatisfied
□Dissatisfied □Highly dissatisfied

9. Whether ramky infrastructure pvt. Ltd is providing any counseling program to reduce
the work stress?
□ Always □Usually □Sometimes □Rarely □Not at all

10. How likely are you to be working in this organization two years from now?
□ like Very much □ like □ Neutral □ Dislike □ Dislike Very much

11. Does your organization provide all statutory welfares to the employees?
□ Yes □ No

12. Which of the following type of rewards that you prefer as reward for your
performance?

Monetary rewards Holiday vouchers Medals and trophies

Special trainings Special scholarships Promotion

69