A REPORT ON ATTRITION ANALYSIS AT BIG BAZAAR (Future Value Retail Limited)

Submitted to
MAHARSHI DAYANAND UNIVERSITY, ROHTAK In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION (3rd Semester)

Submitted By:
Vimalesh Kumar SKYLINE BUSINESS SCHOOL 122, INSTITUTIONAL AREA, SEC 44, GURGAON - 122003

STUDENTS DECLARATION
I hereby declare that the Training Report conducted at BIG BAZAAR, (Future Value Retail limited) Civil Line Allahabad Under the guidance of Mr. Ashwani Mishra And Mahendra Singh Rawat Submitted in Partial fulfilment of the requirements for the Degree of

MBA TO MDU Rohatk

Is my original work and the same has not been submitted For the award of any other Degree/diploma/fellowship or other similar titles or prizes.

Place: Gurgaon Date: 30/01/2013

Vimaleshkumar Regn. No.: 1130520037 Roll No.: 1190210052

CERTIFICATE

This is to certify that VIMALESH KUMAR a student of the MaharshiDayanand University, Rohtakhas prepared his Training Report entitled ATTRITION ANALISYS at BIG BAZAAR(Future Value Retail Limited), under my guidance. He has fulfilled all requirements leading to award of the degree of MBA (Industry Integrated). This report is the record of bonafide training undertaken by him and no part of it has been submitted to any other University or Educational Institution for award of any other degree/diploma/fellowship or similar titles or prizes.

I wish him all success in life.

Signature of Guide with Date:-

ACKNOWLEDGEMENTS

On the successful completion of the project, I take this opportunity to express my sincere gratitude towards Mr. Ashwani Mishra, Manager HR at Big Bazaar for giving me the opportunity to complete my training at Big Bazaar, Civil Line Allahabad.

I thank Mr. Mahendra Singh Rawat HR head under whose guidance I completed this project. I would also like to thank all the others at Big Bazaar for being extremely co-operative and guiding me throughout my project.

I would also like to express my thanks to Mr. Chirag Mallik whose immense involvement in my project, regular feedbacks and suggestions helped me complete my project. She gave the right direction to my project. Without her able guidance, I would not be able to complete my work successfully as she provided help for correcting the project section over and over until I finally got it accomplished efficiently.

CONTENTS

Sl.no.

Page No

1. Industry Profile 2. Company Profile Mission,

6 16

.. 19

Vision, . 19 Values,. 19 Marketing size, 19 History, . 20 Competitors Information, 21 About Allahabad Store 21 S.W.O.T Analysis of the Organization. 22 Marketing mix 23

3. Departmental study(department structure, role of department) 25-26 4. HR Hierarchy of the organization 28-31 5. Stapes Taken By Big Bazaar And Attrition 32-41 6. Key Learning And Intern Profile.41 7. Attrition Analysis.42-45 8. Recommendations..46 9. BIBLIOGRAPHY46

1.INDUSTRY PROFILE

Retailing
The word retail is derived from the French word retailer, meaning to cut a piece off or to break bulk. In simple terms, it implies a first-hand transaction with the customer. Retailing involvers a direct interface with the customer and the coordination of business activities right from the concept or design stage of a product or offering to its delivery and postdelivery service to the customer. The industry has contributed to the economic growth of many countries and is undoubtedly one of the fastest changing and dynamic industries in the world today.

INDIAN RETAIL INDUSTRY

The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by the year 2010. The retail scenario in India is unique. Much of it is in the unorganized sector, with over 12 million retail outlets of various sizes and formats. Almost 96% of these retail outlets are less than 500 square feet in size, the per capital retail space India being 2 square feet compared to the US figure of 16 square feet Indias per capital retailing space is thus the lowest in the world.

With more than 9 outlets per 1000 people, India has the largest number in the world. Most of them are independent and contribute as much as 96% to total retail sales. Because of the increasing number of the nuclear families, working women, greater work pressure and increased commuting time, convenience has become a priority for Indian consumers. They want everything under one roof for easy access and multiplicity of choice. This offers an excellent opportunity for organized retailers in the country which account for just 2% and modern stores 0.5% of the estimated US Dollar 180 billion worth of goods that are retailed in India every chain, Wal-Mart.

GROWTH OF INDIAN RETAIL INDUSTRY

According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail industry is the most promising emerging market for investment. In 2007, the

retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010. According to a report by North bride Capita, the India retail industry is expected to grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market. India is rapidly evolving into a competitive marketplace with potential target consumers in the niche and middle class segments. The market trends indicate tremendous growth opportunities. Global majors too are showing a keen interest in the Indian retail market. Over the years, international brands like marks and Spencer, Samsonite, Lactose, McDonalds, Swarovski, Dominos among a host of others have come into India through the franchise route following the relaxation of FDI (Foreign Direct Investment) restrictions. Large Indian companies- among them the Tata, Goenka and the Piramal groups are investing heavily in this Industry.

MAJOR RETAILERS IN INDIA

Pantaloon:
Pantaloon is one of the biggest retailers in India with more than 450 stores across the country. Headquartered in Mumbai, it has more than 5 million sq. ft retail space located across the country. It's growing at an enviable pace and is expected to reach 30 million sq. ft by the year 2010. In 2001, Pantaloon launched country's first hypermarket Big Bazaar. It has the following retail segments:
1. 2. 3. 4. 5. 6. 7. 8.

Food & Grocery: Big Bazaar, Food Bazaar Home Solutions: Hometown, Furniture Bazaar, Collection-I Consumer Electronics: Shoes: Shoe Factory Books, Music & Gifts: Depot Health & Beauty Care: Star, Sitara E-tailing: Futurebazaar.com Entertainment: Bowling Co. e-zone

Tata Group
Tata group is another major player in Indian retail industry with its subsidiary Trent, which operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and music retailer in India Landmark in 2005. Trent owns over 4 lake sq. ft retail space across the country.

RPG Group
RPG Group is one of the earlier entrants in the Indian retail market, when it came into food & grocery retailing in 1996 with its retail Food world stores. Later it also opened the pharmacy and beauty care outlets Health & Glow.

Reliance

Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. Its expecting its sales to reach Rs. 90,000 cores by 2010.

AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Philippe, Allen Solly, Van Heusen, and Peter England are quite popular. It's also investing in other segments of retail. It will invest Rs. 8000-9000 cores by 2010. Another big player in the segment will be the Bharti group. Overhauling this part of the supply chain will be the key to the success of any retail venture in food and groceries segment. Wal-Mart, the worlds largest retailer, and Bharti Enterprises have signed a Memorandum of Understanding (MoU) to explore business opportunities in the Indian retail industry. This joint venture will mark the entry of Wal-Mart into the Indian retailing industry a retail chain like Future Groups Big Bazaar may be clocking heady sales (growing at 100 % yearon- year), but the dozen odd shops operating in its proximity wear a deserted look, giving a somewhat hollow ring to the much- talked- about retail boom in the country. The key players currently operating in the Indian retail industry includes Future Group, Trent Ltd, RPG Enterprise, Vishal Retail Ltd, Shoppers Stop Ltd, Bata India Ltd, Provogue India Ltd, Videocon Appliances Ltd, ITC Ltd, Godrej Agrovert Ltd, and DCM-Hariyah Kissan Bazaar. Retailers ranging from Pantaloon to RPG to Piramals or the Tatas are working towards exploiting this model, perceived by consumers as more value enhancing. But in the long run, what is most likely to succeed is a more balanced multi-format strategy. Finally, while in the first flush of the retail boom, the elimination of traditional intermediaries may bring windfall gains (as well as bring welcome and much-needed relief to the producers), this source will increasingly dry out as competition intensifies and margins come under pressure a few years down the line. What would set the survivors apart from those who are forced to sell out or go belly-up will be differentiators like location, value-added services (convenience), private labels and customer loyalty programs other than price. The last, a result of retailer-manufacturer tie-ups, state-of-theart supply chain infrastructure, global sourcing and scale will be a key factor.

RETAIL FORMATS IN INDIA

Hyper marts /supermarkets: large self-servicing outlets offering products from a variety of categories.
1.

Mom-and-pop stores: they are family owned business catering to small sections; they are individually handled retail outlets and have a personal touch.

2.

Departmental stores: are general retail merchandisers offering quality products and services.

3.

Convenience stores: are located in residential areas with slightly higher prices goods due to the convenience offered.

4.

Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types of products and services including entertainment and food under a single roof.

5. 6. 7.

E-trailers: are retailers providing online buying and selling of products and services. Discount stores: these are factory outlets that give discount on the MRP. Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small items can be bought via vending machine.

8.

Category killers: small specialty stores that offer a variety of categories. They are known as category killers as they focus on specific categories, such as electronics and sporting goods. This is also known as Multi Brand Outlets or MBO's.

9.

Specialty stores: are retail chains dealing in specific categories and provide deep assortment. Mumbai's Crossword Book Store and RPG's Music World is a couple of examples.

CHALLENGES FACING INDIAN RETAIL INDUSTRY

1.

The tax structure in India favors small business

10

2. 3. 4. 5. 6. 7. 8.

Lack of adequate infrastructure facilities High cost of real estate Dissimilarity in consumer groups Restrictions in Foreign Direct Investment Shortage of retail study options Shortage of trained manpower Low retail management skill

The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%

CATEGORIES OF INDIAN RETAILERS

Corporate Houses
Tatas: Tata Trent
1. 2. 3. 4. 5. 6. 7. 8.

RPG group: Food World, Health and Glow etc. ITC: Wills Life Style Raheja group: (Shoppers Stop), DLF (DT cinemas). Nike, Rbk. Zodiac Multi-brand outlets Vijay Sales, Viveks etc. Manufacturers/ Exporters Pantaloons, Bata, Weekender

11

Classifying Indian Retailers:

1. Modern Format Retailers
i. ii. iii. iv. v.

Supermarkets Hypermarkets Department Stores Specialty Chains

(food World) (Big Bazaar) (shoppers Stop) (IKEA)

Company Owned Company Operated

2. Traditional Format Retailers

i. ii. iii. iv. Kiranas: traditional Mom and Pop Stores Kiosks Street Market Exclusive /Multiple Brand Outlets

3. Hypermarket
i. ii. iii. iv. 4. Department i. ii. iii. iv. Lifestyle Pantaloons Pyramids Shoppers Stop Trent Big Bazaar Giants Shoprite Star

v.

5. Entertainment
12

i. ii. iii. iv.

Fame Ad labs Fun Republic Inox PVR

FUTURE OF RETAIL INDUSTRY

Retail is clearly the sector that is poised to show the highest growth in the next five years. The sector is set for a revolution, as both the present players and new entrants are gearing up to explore the market. This sector contributes 10% of India's GDP and the current growth rate is 8.5%. The present size of the organized retailing sector is approximately 3% and is expected to grow to 25-30% by the year 2010. There are about 300 new malls, 1500 supermarkets and 325 departmental stores currently under construction. Many players are coming up with huge investments, due to which the present 12 million mom-and-pop shops and kirana stores fear losing their business. Most predictions say that the sector might reach to US$ 400-600 billion by the year 2010. Global retail giants such as Wal-Mart, Tesco, Germany's Metro AG and many others are ready to enter the retail markets. The rising demand of branded products and increase in purchasing power has lured these companies to enter the market.

CURRENT SCENARIO
A glimpse of the International Retail
2. 3. 4. 5. 6.

One of the world's largest industries exceeding US$ 9 trillion 47 global fortune companies & 25 of Asia's top 200 companies are retailers Dominated by developed countries US, EU & Japan constitute 80% of world retail sales. Biggest player in India is Pantaloon Retail India Limited.

Percentage of Organized Retail

13

7. 8. 9. 10. 11. 12. 13. 14. 15.

USA - 85% Taiwan - 81% Malaysia - 55% Thailand - 40% Brazil - 36% Indonesia - 30% Poland - 20% China - 20% India - 3%

Key Trends
The existing players like Big Bazaar, Shoppers' Stop, and Piramyd are expanding to smaller towns and cities. Many other business houses are planning to enter the retail sector either on their own or through partnerships. New entrants like Reliance Retail Ltd and Wal-Mart are going to enter the market soon. Even rural areas will provide a huge opportunity to be explored.

Estimates and Predictions

16. 17.

The industry is estimated to be more than US$ 400 billion by a study of McKinsey. The Economist Intelligence Unit (EIU) estimates the retail market in India to increase to US$608.9 billion in 2009 from US$394 billion in2005.

18.

A KPMG report says that the organized retail would grow at a higher rate than GDP in the next five years.

19.

The retail sector would generate employment for more than 2.5 million people by the year 2010, says an analysis by Ma Foe Management Consultants Ltd.

Benefits of FDI in Retail Sector

20.

Higher competition would lead to higher quality in products and services.

14

21. 22. 23. 24.

Better lifestyle as better products would be introduced. Exports would increase due to greater sourcing of major players. Investment in whole supply chain would increase. Technology would be upgraded in terms of logistics, production, and distribution channels.

25. 26. 27. 28.

The markets of the sector would flourish and develop. Employment would increase and skills & manpower will develop. A strong retailing sector would promote tourism. Economies of scale would help lower consumer prices and increase the purchasing power of the consumer.

29.

In the long term it will be beneficial in the up-gradation of agriculture and small scale & medium scale industries.

Indian Consumerism
The Indian consumer behavior is rapidly changing with a shift in new generation's preference towards luxury commodities

Jobs in Retail Sector in India

Job opportunities in retail sector are ample in India. Countless jobs in retail sector are available such as books and publishing industries, music stores, multiplex, shopping malls, garment industry and processed food industry. With speedily expanding departmental stores and vast shopping malls, plenty of job opportunities are opening all over India or abroad. Probable growth rate in retail sector in India has been concerning 30-40% with establishment of more than 200 shopping malls.

15

2. FUTURE GROUP
Industry Founder(s) Retailing Mr. Kishore Biyani (MD & CEO)

Headquarters Mumbai, Maharashtra, India Products: - Discount, grocery and convenience stores, cash and carry, hypermarkets, financial services. Divisions Pantaloon Retail, Future Value Retail Limited.

Future Group India was established in 1994 with a vision to provide diverse services in Indian and Global markets. The business areas of Future Group cover BPO (Business Process Outsourcing), New Media, Security Management, and Construction. Through their strategic investment and services, the future of Future Group shows a rising star in the business sky of India. Every day, Future Group brings multiple products, opportunities and services to millions of customers in India. Through over 17 million square feet of retail space, we serve customers in 93 cities and 60 rural locations across the country. Most of all, we help India shop, save and realize dreams and aspirations to live a better quality of life every day.

FUTURE RETAIL:
The retails businesses of Future Group in India are divided into three main categories:

Pantaloon Retail India Limited

the leading retail formats under this include:

Pantaloons Stores Big Bazaar Central

16

Food Bazaar Home Town E Zone Depot Health & Beauty Malls Online retail through futurebazaar.com

Future value brands: The Future Group has built a strong portfolio of some of the fastest Growing consumer brands in India. This activity is led through Future Brands India Limited, a specialized subsidiary company that was set up to create and build powerful brands that address the aspirations of the new Indian consumer Some of the key brands in this portfolio include, John Miller, Lombard, Bare, DJ&C, Buffalo and RIG in the fashion and apparel space. Dream line, present in the home segment, offers a wide range of products in kitchenware, bed & bath linen, and Home Dcor categories. In the food and home care segment brands include Tasty Treat, Premium Harvest, Fresh & Pure, Care Mate and Clean Mate. In consumer durables and electronics space, the groups brands include Koryo and Sensei. Indianness: confidence in ourselves

Joint Ventures with International Brands

Indus League Clothing that owns leading apparel brands like Indigo Nation, Scullery and Urban Yoga

Galaxy Entertainment Limited that operates Bowling Co, Sports Bar, F123 and Brew Bar French retailer ETAM group, US-based stationary products retailer, Staples and UK-based Lee Cooper.

Franchisee of international brands like Marks & Spencer, Next, Debenhams and Guess in India

17

BIG BAZAAR
Type Public Industry Founded Retailing 2001

Headquarters Mumbai, Maharashtra, India Products Revenue Employees Department store Rs 6000 crores (in 2011) (Big Bazaar and Food Bazaar combined) ~ 36000 people [1]

Parent Future Group Divisions ~ 214

Big Bazaar is a chain of hypermarket in India. As of June 2, 2012 there are 214 stores across 90 cities and towns in India covering around 16 million sq.fts. Of retail space. Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters offering a wide range of merchandise including fashion and apparels, food products, general merchandise, furniture, electronics, books, fast food and leisure and entertainment sections. Big Bazaar is part of Future Group, which also owns the Central Hypermarket, Brand Factory, Pantaloons, e-ZONE, Hometown, futurebazaar.com, KB's Fair Price to name a few and is owned through a wholly owned subsidiary of Pantaloon Retail India Limited (BSE: 523574 523574), that is listed on Indian stock exchanges.

18

FUTURE GROUPS VISION

To deliver everything ,everywhere, every time , to every Indian customer in the most profitable manner. One of the core values at Future group is Indianness and its corporate credo is REWRITE RULES RETAIN VALUES

Future Groups Mission

Share the vision and belief that our customer and stake Holder shall be served only by creating and executing by Future scenery in the consumption space leading to economy Macs development. Trendsetters in involving delivery format ,creating realty, Making consumption affordable for all customer segments for classes and masses Infuse Indian brand with confidence and renewed ambition Efficiently and cost-conscious and committed to equality

Marketing size
Retailing in India: the present scenario Retail market in India was valued at INR 16.94 tr in 2010 and is expected to grow at a CAGR of 11%. It accounts for 22% of the country's GDP and is the second largest employer with 35.06 mn people. Traditional retail formats are fast getting replaced by modern organised retail formats. Due to growing retail space and changing consumer behaviour, retail market in India is poised
19

for strong growth in the near future. This is followed by a section on the FDI scenario of the retail market in India which includes evolution of retail FDI policy, current FDI scenario in retail, single brand retailing and multi brand retailing in India. A section on the investment scenario of this market is also highlighted, including investment and expansion plans, mergers and acquisitions, and partnership agreements in the retail sector. 2005 -06 :-PictureGDP -$700 bn :PFC -$220 bn (30%) Investment -$480 bn (70%) 2012 -13 :- PictureGDP -$1200 bn :PFC -$600 bn (50%) Investment -$600 bn (50%)

History of Big Bazaar

Big Bazaar was launched in September, 2001 with the opening of its first four stores in Calcutta, Indore, Bangalore and Hyderabad in 22 days. Within a span of ten years, there are now 161 Big Bazaar stores in 90 cities and towns across India. By September 2012 BIG BAZAAR will have two more stores in North east namely SILCHAR and JORHAT in Assam. Big Bazaar was started by Kishore Biyani, the Group CEO and Managing Director of Pantaloon Retail India. Though Big Bazaar was launched purely as a fashion format including apparel, cosmetics, accessory and general merchandise, over the years Big Bazaar has included a wide range of products and service offerings under their retail chain. The current formats include Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar. The inspiration behind this entire retail format was from Saravana Stores, a local store in T. Nagar, Chennai The stores are customized to provide the feel of mantis and meals [2] while offering the modern retail features like Quality, Choice and Convenience. As the modern Indian family's favorite retail store, Big Bazaar is popularly known as the "Indian Walmart". On successful completion of ten years in Indian retail industry, in 2011, Big Bazaar has come up a new logo with a new tag line: Naye India Ka Bazaar, replacing the earlier one: 'Isse Sasta Aur Accha Kahin Nahin'
20

About Allahabad store: -

In Allahabad store there are total employees near about 290 On Payroll -135 Brand Promoters -85 Housekeeping -20 Security 30

Competitors of Big Bazaar: Reliance Fresh Odyssey Wal-Mart Landmark group Life style Shoppers stop Aditya Birla Group MORE Local grocery market
21

SWOT ANALYSIS
STRENGTH
High brand equity enjoyed by Big Bazaar Everyday low prices, which attract customers Huge investment capacity It offers a family shopping experience, where entire family can visit together. Available facilities such as online booking and delivery of goods

WEEKNESS
General perception: Low price = Low quality Overcrowded during offers Long lines at billing counters which are time consuming Limited only to value offering low price products, branded products are still missing from Big Bazaars line of products.

OPPERTUNITIES
lot of potential in the rural market, Huge potential rural market to be tapped Opportunities available in the cosmetics industry

THREATS
Competition from other value retail chains such as Reliance (Fresh and trends). Unorganized retail also appears to be a threat to Big Bazaars business. A large population still prefers to visit local convenient stores for daily purchases

22

Changing Government policies International players looking to foray India

Marketing mix: Product Mix

APPARELS FOOD FARM PRODUCT CHILL STATION HOME & PERSONAL CARE ELECTRONICS BAZAAR FASHION & JEWELLERY FURNITURE BAZAAR CHILD CARE & TOYS

Pricing
Value pricing :- Big bazaar promises its consumers the lowest available price without coupon clipping, waiting for discount promotions, or comparison shopping Promotional pricing psychological discounting Special event pricing Differentiated Pricing

23

Time pricing: - Time-based pricing is a special case of price discrimination in which producers charge different rates for a given good or service depending on the time, day, month, and so on.

Bundling: -Selling combo-packs and offering discount to customers. The combo-packs add
value to customer.

Place: Big Bazaar stores are located in 90 cities with 116 outlets. Area 10,000 sq ft 1,20,000 sq ft. Big Bazaar has presence in almost all the major Indian cities. They are aggressive on their expansion plans.

Promotion: 1. Below the line Promotion: - Coupon Discount, more of the products at normal price, gift with purchase, competitions and prizes, money back offers and exchange offers, special occasions 2. Above the line Promotion: - Giving advertisement in news papers,(Amar Ujala, Dainik Jagran, Hindustan) TV, Internet, (own website which gives online shopping services) Partnership with Bigflix, Big FM 92.7

24

3.Departmental study(department structure, role of department)

ORGANIZATIONAL CHART OF BIG BAZAAR

M1 (ADM) ASM FOOD BAZAAR M2 (DM)

ASM BIG BAZAAR

ELECTRONICS, MANS, LADIS, KIDS, FASHION, FURNITURE, GM, FOOTWARE.

VM / MARKETING SM

HR

ADMIN

HEAD CASHIOUR

25

HR NORTH ZONE

NORTH ZONE

REST OF NORTH (RON)

DELHI/NCR

UP (E&W), P&H, MP, etc.

26

HR HIERARCHY OF THE ORGANIZATION

HR HEAD NORTH ZONE ASHIS PATNAIK

HR HEAD (NORTH) AMIT BANSAL

HR HEAD (RON) VIKRAM

HR UP (E) RAHUL GUPTA

STORE HR

27

STORE HR

LOCKNOW (4) STORE

ALLAHABAD (1) STORE

KANPUR (3) STORE

Employee turnover and attrition analysis of big bazaar

Definition of 'Attrition
The reduction in staff and employees in a company through normal means, such as retirement and resignation this is natural in any business and industry. This type of reduction in staff is one way a company can decrease labor costs: the company simply waits for its employees to leave and freezes hiring. Such a method contrasts the more severe labor-reduction techniques, such as mass layoffs. Waiting for attrition is usually better for company morale. Attrition Formula: - Attrition Rate =(No of people left *100)/(number of employee currently present+ newly joined)/100

Benefits of Attrition
Attrition is not bad always if it happens in a controlled manner. Some attrition is always
28

desirable and necessary for organizational growth and development. The only concern is how organizations differentiate good attrition from bad attrition. The term healthy attrition or good attrition signifies the importance of less productive employees voluntarily leaving the organization. This means if the ones who have left fall in the category of low performers, the attrition in considered being healthy. Attrition rates are considered to be beneficial in some ways:

If all employees stay in the same organization for a very long time, most of them will be at the top of their pay scale which will result in excessive manpower costs.

When certain employees leave, whose continuation of service would have negatively impacted productivity and profitability of the company, the company is benefited.

New employees bring new ideas, approaches, abilities & attitudes which can keep the organization from becoming stagnant.

There are also some people in the organization who have a negative and demoralizing influence on the work culture and team spirit. This, in the long-term, is detrimental to organizational health.

Attrition at Big Bazaar Allahabad store: Attrition rate at Allahabad store is lowest among north zone store; it is awarded for the lowest attrition rate.

Positive and negative attrition: -

29

Positive attrition Attrition is viewed positively where the change means that the business retains or inherits new skills. This could apply where a team member is promoted, as he/she will still be within the business and the vacancy can be plugged by a new, competent individual. Attrition is also viewed positively where a staff member resigns (or is dismissed) where the individual was under-performing. In this scenario, again, the business is potentially increasing its overall capability by shifting out a poor performer and bringing in somebody new. In essence, if the business benefits from the turnover, it should be seen as positive. Negative attrition

Negative attrition occurs where the opposite situation exists. If a member of staff resigns to take up a role in a different company or simply resigns because they dont enjoy working in the current environment, this is viewed as a loss to the business. Negative attrition brings with it solely the cost of recruitment and training and also additional resource that is required until the skilled employee is in post. Businesses would normally seek to target the root causes of negative attrition to help bring down these costs.

REASONS FOR ATTRITION:

Employees leave the organization for reasons which can be broadly classified as organizational issues, personal reasons. Big Bazaar has its own administrative manual of classifying and grouping the reasons behind attrition. The most common reasons behind attrition are manifold.

Dissatisfaction with the tasks assigned to them Organizational climate not conducive to effective contribution Tasks assigned not challenging (in knowledge sector this is a common reason) Success is not shared with juniors Good works are not recognized and rewarded
30

Burn out stress syndrome Rust out stress syndrome Working environment Lack of transparency in administration Canceling of information from juniors Passing the buck (Diverting the blame) Salary and other benefits Personal reasons Better prospects Integrity issue Health grounds

Employee Turnover
Employee Turnover is the Percentage of a company's employees who leave during a specified period. Although it is most often expressed at annual turnover rate, the calculation can be done for shorter or longer periods. Turnover can be caused by employees who leave on their own. This is called voluntary turnover. When an employee leaves because of a layoff or a disciplinary firing this is called involuntary turnover. The total of the two is called total turnover. To calculate turnover rate divide the number of employee who left, in each category, by the total number of employees at the start of the period. For example, Company A has 150 employees. Three employees get fired during the year and 7 quit for personal reasons. The involuntary turnover rate is 3/150 or 2%. The voluntary turnover rate is 7/150 or 4.7%. The total turnover rate is 10/150 or 6.7%.
31

5. STEPS TAKEN BY BIG BAZAAR AND ATTRITION: 1. Recruitment and selection: The process of finding and hiring the best-qualified candidate (from within or outside of an organization) for a job opening, in a timely and cost effective manner. The recruitment process includes analyzing the requirements of a job, attracting employees to that job, screening and selecting applicants, hiring, and integrating the new employee to the organization.A process of searching for prospective employees and stimulating them, to apply for the job in the organization

Why recruitment is important: The function of HR is all about people- managing them, hiring them, etc. To carry out any function in a business, be it marketing, production, operations, you need people. HR brings the people to the organization and its business. Every firm whether small or large needs people to do even the minutest clerical work for them. And when there are employees they need to be managed. Recruitment is the very important thing for attrition if recruit right people at right job at right place then there are attrition is definitely low thats why Big Bazaar attrition rate is low. At Big Bazaar there is different type of recruitment for different bands For Band1 they recruit at store level which is done by store HR.

BAND 1

TEAM MEMBER (TM)

TEAM LEADER (TL)

32

And for Band2 and other they recruit at zone level which is situated at Gurgaon.

VM, ADMIN,HR, CASHIER, EXECUTIVE (2C) SUPPORT BAND 2 OPERATION SR.EXECUTIVE (2D)

ADM (2C)

DM (2D)

33

BAND 3 (3A, 3B)

ASM (3A) BB & FB SM (3B)

Generally we recruit band1 employee as the employee reference and walk in process and for the band2 and other we are go through job portal For recruitment to happen the company has to do a Job Analysis of the job to be assigned to an eligible candidate. Job Analysis is further bifurcated into 2 sub-parts i.e.

JD & JS: - Job description and job specification is also affect the attrition rate because
if it is not clear then employee will not satisfied therefore it is important part of it.

JOB DESCRIPTION: Job description includes basic job-related data that is useful to advertise a specific job and attract a pool of talent. It includes information such as job title, job location, reporting to and of employees, job summary, nature and objectives of a job, tasks and duties to be performed, working conditions, machines, tools and equipments to be used by a prospective worker and hazards involved in it.
Purpose of Job Description

The main purpose of job description is to collect job-related data in order to advertise for a particular job. It helps in attracting, targeting, recruiting and selecting the right candidate for the right job. It is done to determine what needs to be delivered in a particular job. It clarifies what employees are supposed to do if selected for that particular job opening. It gives recruiting staff a clear view what kind of candidate is required by a particular department or division to perform a specific task or job.
34

It also clarifies who will report to whom.

JOB SPECIFICATION: Also known as employee specifications, a job specification is a written statement of educational qualifications, specific qualities, level of experience, physical, emotional, technical and communication skills required to perform a job, responsibilities involved in a job and other unusual sensory demands. It also includes general health, mental health, intelligence, aptitude, memory, judgment, leadership skills, emotional ability, adaptability, flexibility, values and ethics, manners and creativity, etc.
Purpose of Job Specification

Described on the basis of job description, job specification helps candidates analyze whether are eligible to apply for a particular job vacancy or not. It helps recruiting team of an organization understand what level of qualifications, qualities and set of characteristics should be present in a candidate to make him or sheer eligible for the job opening. Job Specification gives detailed information about any job including job responsibilities, desired technical and physical skills, conversational ability and much more. It helps in selecting the most appropriate candidate for a particular job.

In Allahabad Big Bazaar JS & JD is very clear and specify therefore hare attrition rate is lowest. Its help in low attrition rate 2. T RAINING AND DEVELOPMENT: The process of teaching new employees the basic skills they need to perform their jobs.

35

Training means a systematic process of changing knowledge, skill, behavior and motivation of employees to improve their performance on the job as per the goals and objectives of the organization. Training is about knowing where employees stand (no matter how good or bad the current situation looks) at present, and where they will be after some point of time. The need for Training and Development Before we say that technology is responsible for increased need of training inputs to employees, it is important to understand that there are other factors too that contribute to the latter. Training is also necessary for the individual development and progress of the employee, which motivates him to work for a certain organization apart from just money. We also require training update employees of the market trends, the change in the employment policies and other things. The following are the two biggest factors that contribute to the increased need to training and development in organizations 1. Change 2. Development In Big Bazaar there is different kind of training as per need of training, it depend upon employee job performance. The following training provided by Big Bazaar A. Prarambh: - as per name PRARAMBH means start it is provided by Big Bazaar at the time of opening new store at new place. B. Induction training: - induction training provided by Big bazaar for the new employee which is recruit recently, 10 days time period for this training where we provide: A Mentor Company PPT, floor walk etc.

And after that we go on new stapes which is Replacement Preamble: -it is provided by head office or zone office Big Bazaar which is Lucknow for 3 days, this training is only for band-1 employee.

36

C. On job training: - On job training is the very critical part of training, Employee training at the place of work while he or she is doing the actual job. Usually a professional trainer (or sometimes an experienced employee) serves as the course instructor using hands-on training often supported by formal classroom training. See also off the job training. In Big Bazaar It is periodic monthly training

UNNATI STORE PERIODIC MONTHLY TRAINING LUCKNOW

SOP

BAND 1,2,3

This is happen at two place first is in store and second is Lucknow SOP: - Standard Operating Procedures (SOP) are a set process formulated by an
organization. Where provide all information about organization tell them how

organization runs and what is the job criteria. UNNATI: - this is a OJT in unnati we provide training for employee behavior and their functional way of work in behavior we tell them about how to talk customer how to behave and how to handle critical condition, at the time of on job for this we firstly go through TNI and after it we chose those people who need this training. This is store level training where we chose a particular date and employee and a trainer, trainer can department manager.

37

Training and development play an important role in any organization its also help in decrease attrition rate. And in Big bazaar know these thing very well therefore here attrition rate is low.

3. Employee engagement and employee benefit: Employee engagement refers to a condition where the employees are fully engrossed in their work and are emotionally attached to their organization. Employee benefit The benefits package includes all financial rewards that are generally not paid directly to the employee. . These benefits are a significant part of employee "total compensation". Employee benefit provided by Big Bazaar which are EDC (Employee discount card):- Employee discount card provided by Big Bazaar. Discount is according to band wise. Uniform and shoes: Uniform and shoes is provided by Big Bazaar which is 3shirt and 2 trouser per year and 1pair shoes per year Employee happiness index: Employee happiness index is a very critical and important for the organization because if employee is unhappy than productivity will low and attrition is high in that organization therefore Big bazaar wants to know the employee happiness through quarterly base happiness meet where HR meet every employee and ask about their happiness and give a rating. Fun zone: - fun zone is the interior part of the organization where employee can sit and take rest in fun zone there can be TV, coffee Machine, and other way of entertainment.

38

CSR: -corporate social responsibility power of one is the plane for the customer. Those people who want to work for society in this plane we take only Rs 1 from the customer with their happiness.

Performance management system: Performance management (PM) includes activities which ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product of service, as well as many other areas. Performance management is the systematic process by which the Department of Commerce involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals. In Big Bazaar generally PMS done through S/W which is SPARSH, we can do performance management very well through Sparsh it make easy to PMS and other function of HR. At the time of PMS firstly we make self rating HR rate employee and then forward that rate to HR head north zone for his rating, where HR head approve that rating and resend store HR, and store HR Accept them. At the time of KRA, KRA is also done through SPARSH where KRA is already upload from the head office of north zone. And employee logon sparsh and fill up the form and send. If PMS is going on right means there is low attrition rate and on the basis of performance give reward to the employee and if employee will happy than there is low attrition rate. Therefore good PMS is important for attrition rate.

39

Rewards and Recognition: Fulfilling employees needs, recognizing their efforts and presenting them with monetary and non-monetary rewards help you create a right workforce for your organization that can be your partner in success. Reward is generally based on the performance and in Big Bazaar Reward give that people who are achieve their monthly target, for this we do monthly meeting and decide reward, reward can be as the coupon by which they can buy product from Big Bazaar by given coupon price. Reward is also help in low attrition rate because if reward is given by the organization to employee and employees are happy than attrition rate defiantly low.

40

6. INTERN PROFILE (Your profile)

I have worked in the HR Department of Big Bazaar as a management trainee under the HR Mr. Ashwani Mishra and Mahendra Singh Rawat he had told me about the HR functions of Big Bazaar - Atlantic Multiplex, 34 -B, M G Road, Civil Lines, Allahabad,

KEY LEARNING
I had learned about all the activities I had performed during my training session the major learning are 1. About the HR department how it works and maintain the HRIS 2. Payroll and Compensation 3. Recruitment and Selection 4. Employee learning and engagement activities 5. Importance of HR department 6. Different letters given to employs 7. How to judge a person on different aspects

41

7. ATTRITION ANALYSIS

STORE WISE ANALYSIS

STORE NAME
BB-Allahabad-Civil Lines BB-Kanpur-Moti Rave BB-Kanpur-Kidwai Nagar BB-Kanpur-Z Square Mall
160 140 120 100 80 60 40 20 0

Jul-12 4 2 13 7 130 127 87 125 0 2 3 5

Aug-12 133 125 86 126

Sep-12

Oct-12

Nov-12

Dec-12

Jan-13

Attrition Headcount Attrition Headcount Attrition Headcount Attrition Headcount Attrition Headcount Attrition Headcount Attrition Headcount

0 3 1 1

133 123 84 124

3 4 3 3

133 123 81 122

1 2 1 1

133 124 84 122

1 0 0 2

135 128 86 122

BB-Allahabad-Civil Lines BB-Kanpur-Moti Rave BB-Kanpur-Kidwai Nagar Attrition Headcount Attrition Headcount Attrition Headcount Attrition Headcount Attrition Headcount Attrition Headcount Attrition Headcount BB-Kanpur-Z Square Mall

Jul-12 Aug- Sep- Oct-12 Nov- Dec- Jan-13 12 12 12 12

Note: - At the store wise attrition Allahabad has lowest attrition rate during July 2012 to Jan 2013.

TENUREWISE ANALYSIS

TENUREWISE LESS THAN 6 MONTHS 6-12 MONTHS 12-24 MONTHS MORE THAN 24 MONTHS TOTAL

Jul-12 11 4 4 7 26

Aug-12 3 1 6 10

Sep-12 2

3 5

Oct-12 2 5 5 1 13

Nov-12 2 1 2 5

Dec-12

1 2 3
42

YTD% TOTAL Jun-13 May-13 Apr-13 Mar-13 Feb-13 Jan-13 Dec-12 Nov-12 Oct-12 Sep-12 Aug-12 Jul-12 0 10 20 30 40 50 60 70

TOTAL MORE THAN 24 MONTHS 12-24 MONTHS 6-12 MONTHS LESS THAN 6 MONTHS

Note: - According to TENUREWISE data we find the period of work of the people with us.

RRTINGWISE ANALYSIS
RATINGWISE Outstanding Excellent Good NI UP Not Eligible Total Jul-12 1 12 1 12 26 Aug-12 1 5 Sep-12 1 2 Oct-12 Nov-12 Dec-12 1 1 1 4 10 2 5 7 13 2 5 Jan-13

YTD% TOTAL Jun-13 May-13 Apr-13 Mar-13 Feb-13 Jan-13 Dec-12 Nov-12 Oct-12 Sep-12 Aug-12 Jul-12 0 10 20 30 40 50 60 70

Total Not Eligible UP NI Good Excellent Outstanding

Note: - In this case we measure that which kind of people is leaving us what is rating of that people

43

REASON WISE ANALYSIS

REASONWISE Absconding Better Prospect Integrity Issue Personal Reason Health Problem Higher Studies TOTAL
YTD% TOTAL Jun-13 May- Apr-13 Mar-13 Feb-13 Jan-13 Dec-12 Nov-12 Oct-12 Sep-12 Aug-12 Jul-12 0 10 20 30 40 50 60 70

Jul-12 7 4 1 13 1 0 26

Aug-12 1 5 0 2 2 0 10

Sep-12 1 3 1 0 0 0 5

Oct-12 1 3 1 6 1 1 13

Nov-12 2 3

Dec-12 1 2

Jan-13

TOTAL Higher Studies Health Problem Personal Reason Integrity Issue Better Prospect Absconding

Note: - Hear we find out the reason of the leaving job of employee

BAND WISE ANALLYSIS

BANDWISE 1 2 3 4 TOTAL

Jul-12 25 1

Aug-12 10

Sep-12 5

Oct-12 12 1

Nov-12 Dec-12 5 2 1

Jan-13

26

10

13

44

YTD% TOTAL Jun-13 May-13 Apr-13 Mar-13 Feb-13 Jan-13 Dec-12 Nov-12 Oct-12 Sep-12 Aug-12 Jul-12 0 10 20 30 40 50 60 70

TOTAL 4 3 2 1

Note: - In band one there is the highest attrition rate. LOBWISE ANALYSIS
LOBWISE T24 Food Eletronics Footwear Furniture Beauty & Wellness GM Fashion Support Total Jul-12 2

4 0 1 1 4 2 3 9
26

Aug-12 1 1 0 1 0 0 3 2 2 10

Sep-12 2

Oct-12 2 1

Nov-12 1

Dec-12 1

Jan-13

1 1 1 5

2 4 4 13

1 2 1 5

2 3

YTD% TOTAL Jun-13 May-13 Apr-13 Mar-13 Feb-13 Jan-13 Dec-12 Nov-12 Oct-12 Sep-12 Aug-12 Jul-12 0 10 20 30 40 50 60 70

Total Support Fashion GM Beauty & Wellness Furniture Footwear Eletronics Food T24

Note: - LOBWISE analysis we find the department wise attrition like in electronic there is no attrition till Jul 12 to Jan 13.
45

8. RECOMMENDATIONS
I would like to recommend for Big Bazaar. As we know that attrition rate of big bazaar is lowest in north zone that is good for that but some time his is not good for that. then according to me Big bazaar should do some kind of test of the employee. By which we can know the employees ability of working. As we know Allahabad is not a big city and there is less opportunity for the job. At that time employee test is help full for them because we can find batter employee through that.

9. BIBLIOGRAPHY
REFERENCES:
V S P Rao - Human Resource Management, Edition-2009 B.P.Singh; T.N.Chhabra- Organization Theory and Behaviour, Dhanpat Rai & Co. Publications, Edition-2009. Departmental Training Manual (Jan Edition 2010)

SEARCH ENGINES:
www.Google.com www.bigbazaar.com www.futuregroup.in www.indiainfoline.com

46