CHAPTER ONE

INTRODUCTION OF
THE SUBJECT
PEOPLE CAN MOVE MOUNTAINS
Americas Erick Weihen Mayer created history on May 2! 2""# $y $ecomin% the
&rst $'ind (erson to sca'e Mo)nt E*erest+ Erick at! ,2! -ho 'ost his eyesi%ht d)e
to a de%enerati*e disease at the a%e o. #,! set a .oot on /!/0/ meter (eak a'on%
-ith #1 other mem$ers o. an e2(edition team a.ter an )ns)ccess.)' attem(t
ear'ier d)e to $ad -eather conditions+ An ho)r $e.ore Erick! 3rad.ord 3)'' earned
a distinction o. $ein% the o'dest c'im$er to set .oot ato( the -or'ds hi%hest (eak
at the a%e o. 45 a'on% -ith his son+
6so)rce7 Times o. India! 24882""#9
Amon% the *ario)s .actors o. (rod)ction! -hich are )sed in an or%ani:ation!
human resource is the most im(ortant+ This is $eca)se e;ecti*e )se o. (hysica'
reso)rces s)ch as 'and! machinery! materia's! etc+ )'timate'y de(ends on ho-
the h)man .actor is ()t to %ood )se on *ario)s o(erations+ The most e;ecti*e
and e<cient machinery in the -or'd -i'' not (rod)ce o(tim)m 'e*e' )n'ess the
(eo('e -ho o(erate the machinery kno- ho- to make it (er.orm at its $est and
most im(ortant'y! are moti*ated to make their e=)i(ment (rod)ce e<cient'y+
#+# >E?INATION O? @AM7
Human Resource Management (HRM) is a process of bringing
people and organizations together so that the goal of each one
is met, efectively and efciently!
#+2 NATUAE O? @AM7
The (rinci('e sco(e o. @AM can $e 'isted as!
Per*asi*e .orce
Action oriented
Indi*id)a''y oriented
Peo('e oriented
?)t)re oriented
>e*e'o(ment oriented
Inte%ratin% mechanism
Com(rehensi*e .)nction
A)2i'iary ser*ices
Inter5disci('inary .)nction
Contin)o)s .)nction
#+, O3BECTIVES O? @AM7
The (rinci('e o$Cecti*es o. @AM can $e 'isted as!
To he'( the or%ani:ation reach its %oa's+
To em('oy the ski''s and a$i'ities o. the -ork.orce e<cient'y+
To (ro*ide the or%ani:ation -ith -e''5trained and -e''5 moti*ated
em('oyees+
To increase the .)''est the em('oyees Co$ satis.action and se'.5
act)a'i:ation+
To de*e'o( and maintain a =)a'ity o. -ork 'i.e+
To comm)nicate @A (o'icies to a'' em('oyees+
To $e ethica''y and socia''y res(onsi*e to the needs o. the society+
#+0 IMPOATANCE O? @AM7
Peo('e ha*e a'-ays $een centra' to the or%ani:ation and an or%ani:ations
s)ccess increasin%'y de(ends on the "no#ledge, s"ills and abilities o. em('oyees!
(artic)'ar'y they esta$'ish a set o. core competencies that distin%)ish an
or%ani:ation .rom its com(etitors+ With a((ro(riate @A (o'icies and (ractices an
or%ani:ation can hire! de*e'o( and )ti'i:e $est $rains at -ork ('ace! rea'i:e its
(ro.essed %oa's and de'i*er $etter res)'ts than others+
#+1 DAOWT@ O? @A IN @A IN IN>IA7
Since the e*o')tion o. @A! the &e'd has seen a 'ot o. chan%es! -hich can 'isted
as!
PERIOD EMPHASIS STATUS ROLES
$%&'($%)' We'.are mana%ement
Paterna'istic (ractices
C'erica' We'.are
administrator
Po'iceman
$%*'($%+' E2(andin% the ro'e to Administrati* A((raiser
,ttract and retain ta'ent
-rain (eo('e .or
cha''en%in% ro'es
.evelop ski''s and
com(etencies
/romote team s(irit
.evelop 'oya'ty and
commitment
0ncrease (rod)cti*ity and
(ro&ts
0mprove Co$ satis.action
1nhance standard o.
'i*in%
2enerate em('oyment
o((ort)nities
GOOD HR
PRACTICES
HELP
co*er 'a$or! -e'.are!
ind)stria' re'ations and
(ersonne' administration
e Ad*isor
Mediator
Le%a' ad*isor
?ire &%htin%
$%3'($%4'
E<ciency! e;ecti*eness
dimensions added
Em(hasis on h)man
*a')es! as(irations!
di%nity! )se.)'ness
>e*e'o(ment Chan%e a%ent
Inte%rator
Trainer
Ed)cator
$%%'5s(
on#ards
Incrementa' (rod)cti*ity
%ains thro)%h h)man
assets
Proacti*e!
%ro-th5
oriented
>e*e'o(er
Co)nse'or
Coach
Mentor
Pro$'em so'*er
#+/ S@I?TS IN @A MANADEMENT IN IN>IA7
TADITIONAL HR PRACTICE EMERGING HR PRACTICE
Administrati*e ro'e Strate%ic ro'e
Aeacti*e Proacti*e
Se(arate! iso'ated .rom com(any
mission
Eey (art o. or%ani:ationa'
mission
Prod)ction .oc)s Ser*ice .oc)s
?)nctiona' or%ani:ation Process $ased or%ani:ation
Indi*id)a's enco)ra%ed! sin%'ed
o)t .or (raise! re-ards
Cross5.)nctiona' teams!
team-ork most im(ortant
Peo('e as e2(enses Peo('e as key
in*estments8assets
#+F CONTEMPOAAAG ISSUES IN @AM7
?o''o-in% can $e stated as contem(orary iss)es in @AM!
CONTEMPOAA
AG ISSUES IN
@AM
Mana%in
%
di*ersity
Attit)de
to-ards
)nion
@AM in
hi%h
(er.ormanc
e
or%ani:atio
ns
@AM in
MHA
Chan%ed
em('oyee
e2(ectatio
ns
Make @A
acti*ities
ethica'
Ne-
or%ani:atio
na' .orms
Chan%in%
-ork.orce
demo%ra(h
ics
@A
(ro.essiona'
as chan%e
a%ent
@A
mana%er
as
strate%ists
As stated a$o*e! one o. the cha''en%es .aced $y @A mana%ers is that o. @)man
Aeso)rce Mana%ement is that o. attrition o. Em('oyees in 3PO and EPO ind)stry+
#+#" EMPLOGEE ATTAITION7
DEFINING EMPLOYEE ATTRITION AND ATTRITION RATE:
Attrition7 IA red)ction in the n)m$er o. em('oyees thro)%h retirement!
resi%nation or deathJ+
Attrition Aate7 IThe rate o. shrinka%e in si:e or n)m$erJ+
There are n)mero)s reasons .or the attrition to $e hi%h -hich can $e cate%ori:ed
into t-o $road c'assi&cations+ The &rst can $e coined as Drive Attrition
-hich is ca)sed d)e to em('oyerK the second one can $e termed as Dr!
Attrition -hich is ca)sed d)e to the em('oyee+
The attrition rate has a'-ays $een a sensiti*e iss)e .or a'' or%ani:ations+
Ca'c)'atin% em('oyee t)rno*er rate is not that sim('e as it seems to $e+ No
common .orm)'a can $e )sed $y a'' the or%ani:ations+ A .orm)'a had to $e
de*ised kee(in% in *ie- the nat)re o. the $)siness and di;erent Co$ .)nctions+
Moreo*er! ca'c)'atin% attrition rate is not on'y a$o)t de*isin% a mathematica'
.orm)'a+ It a'so has to take into acco)nt the root o. the (ro$'em $y %oin% $ack to
the hirin% sta%e+
"#"$#" CALCULATING ATTRITION RATE:
Attrition rates can $e ca'c)'ated )sin% sim('e .orm)'a7
Attrition % &No# o' e()*o+ee, -.o *e't in t.e +er/ ver!e e()*o+ee,
in t.e +er01"$$
Th)s! i. the com(any had #!""" em('oyees in A(ri' 2""0! 2!""" in March 2""!
and ,"" =)it in the year! then the a*era%e em('oyee stren%th is #!"" and
attrition is #""L6,""8#!""9M2"N+ 3esides this! there are *ario)s other ty(es o.
attrition that sho)'d $e taken into acco)nt+ These are7
?resher attrition that te''s the n)m$er o. .reshers -ho 'e.t the or%ani:ation
-ithin one year+ It te''s ho- many are )sin% the com(any as a s(rin%$oard
or a 'a)nch (ad+
In.ant morta'ity that is the (ercenta%e o. (eo('e -ho 'e.t the or%ani:ation
-ithin one year+ This indicates the ease -ith -hich (eo('e ada(t to the
com(any+
Critica' reso)rce -hich te'' the attrition in terms o. key (ersonne' 'ike
senior e2ec)ti*es 'ea*in% the or%ani:ation+
Lo- (er.ormance attrition7 It te''s the attrition o. those -ho 'e.t d)e to
(oor (er.ormance+
ATTRITION RATE IN DIFFERENT COUNTRIES ROUND THE GLOBE:
ATTRITION RATE &20
D'o$a'i:ati
on
3a'ancin
% -ork5
'i.e
3PO and
CALL
centers
US 02N
A)stra'ia 2FN
E)ro(e 02N
India #/N
D'o$a' A*era%e 02N
REASONS 3HY EMPLOYEES LEA4E:
Em('oyees do not 'ea*e an or%ani:ation -itho)t any si%ni&cant reason+ There are
certain circ)mstances that 'ead to their 'ea*in% the or%ani:ation+ The most
common reasons can $e7
Bo$ is not -hat em('oyee e2(ected to $e7 Sometimes the Co$
res(onsi$i'ities dont come o)t to $e the same as e2(ected $y the
candidates+ Une2(ected Co$ res(onsi$i'ities 'ead to Co$ dissatis.action+
Bo$ and (erson mismatch7 A candidate may $e &t to do a certain ty(e o.
Co$ -hich matches his (ersona'ity+ I. he is %i*en a Co$ -hich mismatches
his (ersona'ity! then he -ont $e a$'e to (er.orm it -e'' and try to &nd o)t
reasons to 'ea*e the Co$+
No %ro-th o((ort)nities7 No or 'ess 'earnin% and %ro-th o((ort)nities in
the c)rrent Co$ -i'' make candidates Co$ and career sta%nant+
Lack o. a((reciation7 I. the -ork is not a((reciated $y the s)(er*isor! the
em('oyee .ee's de5moti*ated and 'oses interest in Co$+
Lack o. tr)st and s)((ort in co-orkers! seniors and mana%ement7 Tr)st is
the most im(ortant .actor that is re=)ired .or an indi*id)a' to stay in the
Co$+ Non5 s)((orti*e co-orkers! seniors and mana%ement can make o<ce
en*ironment )n.riend'y and di<c)'t to -ork in+
Stress .rom o*er-ork and -ork 'i.e $a'ance7 Bo$ stress can 'ead to -ork 'i.e
im$a'ance -hich )'timate'y many times 'ead to em('oyee 'ea*in% the
or%ani:ation+
Com(ensation7 3etter com(ensation (acka%es $ein% o;ered $y other
com(anies may attract em('oyees to-ards themse'*es+
Ne- Co$ o;er7 an attracti*e Co$ o;er -hich em('oyee thinks is %ood .or
him -ith res(ect to Co$ res(onsi$i'ity! com(ensation! %ro-th and 'earnin%
etc+ can 'ead an em('oyee to 'ea*e the or%ani:ation+
"#"$#5 TRUTHS ABOUT ATTRITION:
It is di<c)'t to acce(t -hen or%ani:ations say they ha*e :ero attrition rates+
Com(anies may ha*e hea'thier t)rno*er rates! ho-e*er! there is no s)ch thin% as
:ero attrition+ There are other s)ch .acts a$o)t t)rno*er! a$o)t -hich most o. )s
are not a-are+ Some o. s)ch .acts ha*e $een hi%h'i%hted $e'o-7
T)rno*er a'-ays ha((ens7 This ha((ens $eca)se em('oyees kee( on mo*in% d)e
to reason 'ike marria%e or .)rther ed)cation+ Nothin% can sto( these em('oyees
.rom mo*in% on+ So! rather than achie*in% :ero attrition com(anies sho)'d .oc)s
on identi.yin% -hom they -ant to kee( so that they ha*e hea'thy attrition rate+
Some t)rno*er is desira$'e7 Oero attrition is not desira$'e main'y $eca)se o. t-o
reasonsK &rst'y! i. a'' em('oyees contin)e to stay in the same or%ani:ation! most
o. them -i'' $e at the to( o. their (ay sca'e -hich -i'' res)'t in e2cessi*e
man(o-er costs+ Second'y! ne- em('oyees $rin% ne- ideas! a((roaches!
a$i'ities and attit)des -hich can kee( the or%ani:ation .rom $ecomin% sta%nant+
T)rno*er inc')des costs7 T)rno*er a'-ays inc')des some costs+ Consider the cost
o. re('acin% the key em('oyee -ho .a''s into the cate%ory o. hi%h (er.ormers+
This inc')des the costs o. recr)itment ad*ertisement! re.erra' $on)ses! se'ection!
trainin% costs! etc+ Moreo*er! t)rno*er res)'ts in 'oss o. time and e;orts! 'o-
(rod)cti*ity! 'oss o. mora'e! 'oss o. kno-'ed%e and so on+
@i%h sa'ary doesnt -ork7 Most mana%ers ass)me that a hi%h sa'ary (acka%e is
eno)%h to kee( em('oyees 'oya' to their or%ani:ation+ Em('oyees may .ace other
(ro$'ems 'ike 'o- Co$ satis.action! 'o- en%a%ement 'e*e's! no reco%nition! (oor
-orkin% conditions! 'ess s)((ort .rom s)(eriors and so on+ Sa'aries are not
a'-ays the so')tion to attrition+ Mana%ers sho)'d try to &nd o)t the root ca)se o.
the (ro$'em and then &nd a .easi$'e so')tion+
The mana%er can red)ce attrition7 Mana%ers sho)'d take (rimary res(onsi$i'ity
.or retainin% their em('oyees+ M)ch o. the em('oyees (erce(tion o. Co$
satis.action stems .rom the re'ationshi( they share -ith their immediate
s)(er*isor+ Mana%ers sho)'d try to s)((ort their s)$ordinates and %i*e (ro(er
.eed$ack on (er.ormance+ @A mana%ers sho)'d -ork in co''a$oration to make
the key em('oyees 'ast in their or%ani:ation+
Aed)cin% t)rno*er takes commitment7 Aed)cin% t)rno*er takes an in*estment in
coachin%! de*e'o(in%! moti*atin%! mentorin% and 'istenin% to (eo('e+ There
sho)'d $e )ni*ersa' acce(tance o. the %oa' o. red)cin% t)rno*er a'on% -ith to(
mana%ement commitment and dedication+
"#"$#6 BENEFITS OF ATTRITION:
Attrition is not a'-ays $ad! i. it ha((ens in a contro''ed manner+ Some attrition is
a'-ays desira$'e and necessary .or or%ani:ationa' %ro-th+ The on'y concern is
ho- or%ani:ation di;erentiates good attrition .rom bad attrition! The term
health attrition si%ni&es the im(ortance o. 'ess (rod)cti*e em('oyees
*o')ntari'y 'ea*in% the or%ani:ation+ This means i. the ones -ho ha*e 'e.t .a'' in
the cate%ory o. 'o- (er.ormers! the attrition is $ein% hea'thy+
Attrition rates are considered to $e $ene&cia' in some -ays7
I. a'' em('oyees stay in the same or%ani:ation .or a *ery 'on% time! most o.
them -i'' $e at the to( o. their (ay sca'e -hich -i'' res)'t in e2cessi*e
man(o-er costs+
When certain em('oyees 'ea*e! -hose contin)ation o. ser*ice -o)'d ha*e
ne%ati*e'y im(acted (rod)cti*ity and (ro&ta$i'ity o. the com(any is
$ene&ted+
Ne- em('oyees $rin% ne- ideas! a((roaches! a$i'ities and attit)des -hich
can kee( the or%ani:ation hea'thy+
There are a'so some (eo('e in the or%ani:ation -ho ha*e a ne%ati*e and
demora'i:in% inP)ence on the -ork c)'t)re and team s(irit+ This! in the
'on%5 term! is detrimenta' to or%ani:ationa' hea'th+
>esira$'e attrition a'so inc')des termination o. em('oyees -ith -hom the
or%ani:ation does not -ant to contin)e a re'ationshi(+ It $ene&ts the
or%ani:ation in the .o''o-in% -ays7
It remo*es $ott'eneck in the (ro%ress o. the com(any+
It creates s(ace .or the entry o. ne- ta'ents+
It assists in e*o'*in% hi%h (er.ormance teams+
There are (eo('e -ho are not a$'e to $a'ance their (er.ormance as (er
e2(ectations! 'ack (otentia' .or .)t)re or need disci('inary action+
?)rthermore! as the re-ards are 'imited! $)siness (ress)res do not a''o-
the mana%ement to o*er5re-ard the (er.ormers! $)t -hen )ndesira$'e
em('oyees 'ea*e the com(any! the %ood em('oyees can $e %i*en the
share they desire+
Some com(anies $e'ie*e attrition in any .orm is $ad .or an or%ani:ation .or it
means that a -ron% choice -as made at the $e%innin% -hi'e recr)itin%+
E*en %ood attrition indicates 'oss as recr)itment is a time cons)min% and
cost'y a;air+ The on'y (ositi*e (oint is that the rea'i:ation has initiated
action that -i'' 'ead to c)ttin% 'oss+
#+## EMPLOGEE AETENTION7
Em('oyee retention is a (rocess in -hich the em('oyees are enco)ra%ed to
remain -ith the or%ani:ation .or the ma2im)m (eriod o. time or )nti' the
com('etion o. the (roCect+ Em('oyee retention is $ene&cia' .or the or%ani:ation as
-e'' as the em('oyee+
Em('oyees today are di;erent+ They are not the ones -ho dont ha*e %ood
o((ort)nities in hand+ As soon as they .ee' dissatis&ed -ith the c)rrent em('oyer
or the Co$! they s-itch o*er to the ne2t Co$+ It is the res(onsi$i'ity o. the
em('oyer to retain their $est em('oyees+ I. they dont! they -o)'d $e 'e.t -ith no
%ood em('oyees+ A %ood em('oyer sho)'d kno- ho- to attract and retain its
em('oyees+
Aetention in*o'*es &*e maCor thin%s7
Com(ensation
S)((ort
Ae'ationshi(
En*ironment
"#""#" IMPORTANCE OF EMPLOYEE RETENTION:
So m)ch is $ein% done $y or%ani:ations to retain its em('oyees! -hy is retention
so im(ortantQ Is C)st to red)ce the t)rno*er costsQ We''! the ans-er is a de&nite'y
67+ Its not the on'y cost inc)rred $y a com(any that em(hasi:es the need o.
retainin% em('oyees $)t a'so to retain ta'ented em('oyees .rom %ettin% (oach+
The (rocess o. em('oyee retention -i'' $ene&t an or%ani:ation in the .o''o-in%
-ays7
The cost o. t)rno*er7 The cost o. em('oyee t)rno*er adds h)ndreds o. tho)sands
o. money to a com(anys e2(enses+ Whi'e it is di<c)'t to .)''y ca'c)'ate the cost
o. t)rno*er 6inc')din% hirin% costs! trainin% costs and (rod)cti*ity 'oss9! ind)stry
e2(erts o.ten =)ote 2N o. the a*era%e em('oyee sa'ary as a conser*ati*e
estimate+
Loss o. com(anys kno-'ed%e7 When an em('oyee 'ea*es! he takes -ith him
*a')a$'e kno-'ed%e a$o)t the com(any! c)stomers! c)rrent (roCects and (ast
history 6sometimes to com(etitors9+ O.ten m)ch time and money has $een s(ent
on the em('oyee in e2(ectation o. .)t)re ret)rn+ When the em('oyee 'ea*es! the
in*estment is not rea'i:ed+
Interr)(tion o. c)stomer ser*ice7 C)stomers and c'ients do $)siness -ith a
com(any in (art $eca)se o. the (eo('e+ Ae'ationshi(s are de*e'o(ed that
enco)ra%e contin)ed s(onsorshi( o. the $)siness+ When an em('oyee 'ea*es!
the re'ationshi(s that em('oyee $)i't .or the com(any are ser*ed! -hich co)'d
'ead to (otentia' c)stomer 'oss+
T)rno*er 'eads to more t)rno*ers7 When an em('oyee terminates! the e;ect is
.e't thro)%ho)t the or%ani:ation+ The )ns(oken ne%ati*ity o.ten intensi&es .or the
remainin% sta;+
Dood-i'' o. the com(any7 The %ood-i'' o. a com(any is maintained -hen the
attrition rates are 'o-+ @i%her retention rates moti*ate (otentia' em('oyees to
Coin the or%ani:ation+
Ae%ainin% e<ciency7 I. an em('oyee resi%ns! the %ood amo)nt o. time is 'ost in
hirin% a ne- em('oyee and then trainin% an em('oyee and this %oes to the 'oss
o. the com(any direct'y -hich many a times %oes )nnoticed+ And e*en a.ter this
com(anies cannot ass)re )s o. the same e<ciency .rom the ne- em('oyee+
"#""#5 EMPLOYEE RETENTION STRATEGIES:
The $asic (ractices -hich sho)'d $e ke(t in mind the em('oyee retention
strate%ies are7
@ire the ri%ht (eo('e in the &rst ('ace+
Em(o-er the em('oyees+ Di*e em('oyees the a)thority to %et thin%s
done+
Make em('oyees rea'i:e that they are the most *a')a$'e asset o. the
or%ani:ation+
Na*e .aith in them! tr)st them and res(ect them+
Pro*ide them in.ormation and kno-'ed%e+
Eee( (ro*idin% them .eed$ack on their (er.ormance+
Aeco%ni:e and a((reciate their achie*ements+
Eee( their mora'e hi%h+
Create an en*ironment -here the em('oyees -ant to -ork and ha*e .)n+
These (ractices can $e cate%ori:ed in , 'e*e's7
Lo-! medi)m and hi%h 'e*e'+
"#""#6 RETENTION MYTHS:
The (rocess o. retention is not easy as it seems+ There are so many tactics and
strate%ies )sed in retention o. em('oyees $y the or%ani:ations+ The $asic
()r(ose o. these strate%ies sho)'d $e to increase em('oyee satis.action! $oost
em('oyee mora'e hence achie*e retention+ 3)t some times these strate%ies are
not )sed (ro(er'y or e*en -orse! -ron% strate%ies are )sed+ 3eca)se o. -hich
these strate%ies .ai' to achie*e the desired res)'ts+ There are many myths re'ated
to the em('oyee retention (rocess+ These myths e2ist $eca)se the strate%ies
$ein% )sed are either -ron% or are $ein% )sed .rom a 'on% time+ These myths
(re*ent the em('oyer .rom s)ccess.)''y im('ementin% the retention strate%ies+
Em('oyees 'ea*e an or%ani:ation .or more (ay7 Money may $e the moti*atin% $)t
.or many (eo('e it is not the most im(ortant .actor+ Money matters more to the
'o- income em('oyees .or -hom its a s)r*i*a' iss)e+ Money can make an
em('oyee stay in an or%ani:ation $)t not .or 'on%+ The .actors more im(ortant
than money are Co$ satis.action! Co$ res(onsi$i'ities and indi*id)a's ski''
de*e'o(ment+ The em('oyers sho)'d )nderstand this and -ork o)t some other
-ays to make em('oyee .ee' satis&ed+ When em('oyees 'ea*e! mana%ement
tries to retain them $y o;erin% more money+ Iss)es that are main'y the ca)se o.
dissatis.action are or%ani:ations (o'icies and (roced)res! -orkin% conditions!
re'ationshi( -ith the s)(er*isor and sa'ary! etc+ ?or s)ch em('oyees!
achie*ements! %ro-th! reco%nition! are the main concerns+
Incenti*es can increase (rod)cti*ity7 Incenti*es can s)re'y increase (rod)cti*ity
$)t not .or 'on% time+ Cash incenti*es! *o')me -ork tar%ets and s(eed a-ards
are o'd mana%ement $e'ie.s+ They can %enerate -ork s(eedi'y and in *o')mes
$)t cant $oost em('oyee commitment+ Aather s(eed can ham(er the =)a'ity o.
-ork (rod)ced+ What rea''y %')es em('oyees to their -ork and or%ani:ation is
=)a'ity -ork! meanin%.)' res(onsi$i'ities! reco%nition! res(ect! %ro-th
o((ort)nities and .riend'y s)(er*isors+
Em('oyees r)n a-ay .rom res(onsi$i'ities7 It is myth that em('oyees r)n a-ay
.rom res(onsi$i'ities+ In R.act em('oyees .ee' more res(onsi$'e i. they are %i*en
e2tra res(onsi$i'ities a(art .rom their re%)'ar Co$+ Em('oyees 'ook .or *ariety!
%reater contro' on the (rocesses and a)thority to take decisions in their (resent
Co$+ They -ant o((ort)nities to 'earn and %ro-+ Mana%ement can assi%n e2tra
res(onsi$i'ities to their em('oyees and a((reciate them on com('etion o. these
tasks+ This -i'' ind)ce a sense o. (ride in the em('oyee and -i'' im(ro*e the
re'ationshi( $et-een the mana%ement and the em('oyee+
Loya'ty is a thin% o. the (ast7 Em('oyees can $e 'oya' $)t -hat they need is an
em('oyer .or -hom they can $e 'oya'+ There is no reason .or the em('oyee to ho(
Co$ i. he is satis&ed -ith the em('oyer+
Takin% meas)res to increase em('oyee satis.action -i'' $e e2(ensi*e .or the
or%ani:ations7 The thin%s act)a''y re=)ired to im(ro*e em('oyee satis.action 'ike
res(ect! career %ro-th and de*e'o(ment! a((reciation! etc+ cant $e $o)%ht+
They are .ree o. cost+ An em('oyee or mana%ement reacts -e'' to the em('oyees
ideas and s)%%estions is eno)%h .or the em('oyee to $e retained+
CHAPTER T3O
INTRODUCTION OF
THE INDIAN MAR7ET
SCENARIO
2+# EMEADANCE O? T@E IN>IAN IT5ITES SECTOA7
5#"#" MAR7ET SI8E:
5#"#"#" GLOBAL:
The %'o$a' IT5ITES market has %enerated re*en)es o. US> #!,22 $i''ion in 2"",+
D'o$a''y! North America and Western E)ro(e -ere maCor market ('ayers and
to%ether .or more than three5.o)rth o. the %'o$a' IT5ITES market+ The US a'one
acco)nted .or 01N o. the %'o$a' IT5ITES market in 2"",+ IT ser*ices and 3PO
constit)ted the 'ar%est (ortion o. the %'o$a' IT5ITES s(end! acco)ntin% .or
a((ro2imate'y 4" o. the tota' (ie+

5#"#"#5 INDIA:
The Indian IT5ITES ind)stry $road'y cate%ori:ed into IT ser*ices! ITES3PO and
hard-are se%ments+ The ind)stry achie*ed re*en)es o. US> 2#+ $i''ion in ?G2
2"",+ Earnin%s .rom IT5ITES e2(orts -ere US> #,+, $i''ion! -hi'e re*en)es o. the
domestic IT5ITES market -ere US> /+2 $i''ion+ At (resent! the IT5ITES ind)stry
constit)tes aro)nd #+4N o. the %'o$a' IT5ITES market+
The se%ment is estimated to to)ch re*en)es o. aro)nd US> F2+0 $i''ion in 2""F
at a CADA 6Com(o)nd A*era%e Dro-th Aate9 o. 21+N+ the contri$)tion to the
ser*ice sector as a -ho'e -i'' %o )( to #1+0N in 2"#"+ The key dri*ers o. %ro-th
inc')de the ra(id increase in IT o)tso)rcin% and the ra(id e2(ansion in the sca'e
and $reath o. IT5ITES5 3PO o;erin%s $y Indian *endors+ The Indian IT5ITES
*endors .oc)sed on im(ro*in% (rod)cti*ity and mo*ed )( in the *a')e5chain+
Whi'e com(anies (ro*idin% IT ser*ices inc')ded ne- ser*ice 'ines! s)ch as
(acka%e so.t-are im('ementation! systems inte%ration! AH> en%ineerin% and
remote net-ork mana%ement to their (ort.o'io o. o;erin%s! IT5ITES53PO
com(anies $e%an more com('e2 ser*ices! s)ch as &nancia' research and
ana'ytics! act)aria' mode'in% and cor(orate and $)siness research+
5#5 REASONS FOR THE GRO3T OF THE IT9ITES
SECTOR:
The maCor reasons .or the (henomena' %ro-th o. the IT5ITES se%ment o. the
Indian ser*ice sector can $e attri$)ted to I'ocation ad*anta%eJ and I(eo('e
attracti*enessJ .actors! and India scores *ery hi%h on $oth co)nts+ Accordin% to a
re*ie- $y NASSCOM! the a$o*e reasons inc')de si2 maCor .actors7
A %ro-in% and hi%h'y ed)cated En%'ish5s(eakin% -ork.orce -ith the
re=)ired technica' and so.t ski''s+
@)%e cost ad*anta%e
Com(etent mana%ement o. data sec)rity risks
Ado(tion and maintenance o. internationa' =)a'ity standards
Wor'd5c'ass te'ecom in.rastr)ct)re
Do*ernment s)((ort
In %enera'! India has si%ni&cant %eo%ra(hica' ad*anta%e d)e to the time
di;erence $et-een the US and E)ro(e and so there is eno)%h .eed$ack time+ In
terms o. (eo('e attracti*eness! India has a 'ar%e (oo' o. hi%h'y5 trained! En%'ish5
s(eakin%! 'o-5cost 'a$or! -hich adds as an attraction .or o; shorin% more than
anythin% e'se+
2+, 3USINESS PAOCESS OUTSOUACIND7
5#6#" O4ER4IE3:
O; shorin% is a (henomenon! -herein an enter(rise re'ocates the (rod)ction o.
its %oods or ser*ices to *ario)s 'ocations in co)ntries other than the one in -hich
it is $ased+ O;5shorin%5 es(ecia''y that o. ser*ices5 has $ecome an increasin%'y
*ia$'e o(tion .or com(anies 'ookin% to im(ro*e their o(erationa' e<ciencies!
$ottom 'ined and $)siness (er.ormance+ In .act! to achie*e %'o$a'
com(etiti*eness and hi%h (ro&ta$i'ity! it has no- a'most $ecome im(erati*e .or
most o. the com(anies to o;shore some o. their IT and non5 IT 3PO ser*ices+ The
%'o$a' 3)siness Process O)tso)rcin% 63PO9 market has )nder%one ra(id
trans.ormation d)rin% the 'ast decade and has $een ado(ted as a strate%ic
$)siness so')tion $y 'eadin% com(anies+ A red)ction in te'ecom costs! co)('ed
-ith the increased di%iti:ation o. ser*ices! is he'(in% many com(anies to o;5
shore their ser*ices+
5#6#5 MAR7ET SI8E:
5#6#5#" GLOBAL:
Accordin% to E*a')easer*e! the re*en)e o. %'o$a' 'o-5end o)tso)rcin% 63PO9
ser*ices in ?G 2"", -as US> 1+1 $i''ion+ This market is e2(ected to %ro- to US>
,F+/ $i''ion in ?G 2"#"+ This im('ies a com(o)nded ann)a' %ro-th rate 6CADA9 o.
24+N .or the sector+
5#6#5#5 INDIA:
Accordin% to E*a')eser*e the Indian 3PO sector -i'' increase its share in the
%'o$a' EPO sector to 0N $y 2"#"! com(ared to ,4N share in 2"",+ The Indian
3PO market! -ith re*en)e o. 2+1/ $i''ion in 2"",! is e2(ected to %ro- at a CADA
o. ,"+4N )(to 2"#"+ The contri$)tion o. the 3PO sector to the Indian ser*ices
sector -as "+F#N in 2"", and it is e2(ected that $y 2"#"! the contri$)tion -i''
$e more than do)$'e and reach 2+41N to add to the o*era'' ser*ices sector+
Share o. the Indian 3PO sector int eh %'o$a' 3PO ind)stry -i'' increase .rom ,4N
in 2"", to 0N in 2"#"+
5#6#5#6 S3OT ANALYSIS OF INDIAN INDUSTRY
STRENGTHS
English speaking labor pool
Strong IT background
Superior service maturity
Strong governmental support
Cost competitiveness
Indian domestic market
growth
Positing geographic
WEAKNESS
Small players
High attrition
Infrastructure
Bureaucracy
OPPORTUNITIES
ove up the value chain
!ne"plored markets
#reater share of market
THREATS
Emerging low cost nations
$ising cost
Backlash in !S and Europe
Technology
Indian educational policy
5#: 7NO3LEDGE PROCESS OUTSOURCING:
5#:#"O4ER4IE3:
Eno-'ed%e Process O)tso)rcin% 6EPO9 re.ers to the o)tso)rcin% o. hi%h5end
com('e2 tasks and (rocesses to s(ecia'i:ed ser*ice (ro*iders+ These inc')de
*a')ation research! in*estment research! (atent &'in%! 'e%a' and ins)rance c'aims
(rocessin%! etc+ EPO (ro*ides *a')e to the c'ient thro)%h domain e2(ertise rather
than (rocess e2(ertise+ In com(arison to 3PO! EPO de'i*ers hi%her *a')e to the
or%ani:ations that o; shore their domain5$ased (rocesses! there$y enhancin%
3POs traditiona' cost5=)a'ity (aradi%m+ The shi.t .rom o; shorin% o. 'o-5end
$)siness (rocesses 63PO9 to hi%h5end tasks 'ed to a ra(id %ro-th in the o; shore
EPO ind)stry+
5#:#5 MAR7ET SI8E:
5#:#5#" GLOBAL:
E*a')eser*e (redicts that re*en)es .rom the EPO market -i'' %ro- %'o$a''y .rom
US> #+2F $i''ion in ?G 2"",! to US> #1 $i''ion in ?G 2"#"+ This im('ies a CADA o.
00+N! .or the %'o$a' EPO market+ The im(ortant %ro-th dri*ers o. this market
are7
@i%her sa*in%s at the hi%h5end o. the *a')e5chain as com(ared to the 'o-5
end and a scarcity o. a hi%h'y5trained s(ecia'i:ed ta'ent (oo' in the
de*e'o(ed co)ntries+
Mat)rity o. (rocesses and the (ros(ect o. $etter mar%ins .or kno-'ed%e5
intensi*e ser*ices in the 'o-5cost destinations+
5#:#5#5 INDIA:
The Indian EPO sector -i'' increase its share in the %'o$a' EPO sector to 1#N $y
2"#"! com(ared to a 4N share in 2"",+ The EPO market in India is e2(ected to
increase to US> #2 $i''ion $y ?G 2"#"! rePectin% a CADA o. 0F+N+
In ?G 2"",! the Indian EPO ind)stry %enerated a((ro2imate'y US> "+12 $i''ion o.
the tota' re*en)e! contri$)tin% a$o)t "+20N to the Indian ser*ices sector+ This
share is e2(ected to increase to #+1/N o. Indian ser*ices sector $y 2"#"+
The US a'one acco)nts .or near'y 4"N o. the EPO ser*ices o; shored to 'o-5cost
'ocations+ The UE and Canada acco)nt .or a((ro2imate'y a 2"N share! -hi'e the
remainin% 2"N is shared $et-een the rest o. E)ro(e and rest o. the -or'd+
5#; 7EY SEGMENTS:
O)t o. the estimated o((ort)nity o. US> #1 $i''ion the EPO sector in 2"#"! the
maCor re*en)es -i'' come .rom si2 (rominent sectors+
5#< GRO3TH DRI4ERS:
The si%ni&cant %ro-th o. the EPO sector is attri$)ted to se*era' .actors the
demand and s)(('y side+
5#<#" DEMAND DRI4ERS:
There are se*era' demand5side .actors .)e'in% the EPO trend s)ch as!
There is an inc)m$ent shorta%e o. hi%h'y5ski''ed kno-'ed%e (ro.essiona's
in the de*e'o(ed nations+
@ence! recr)itin% the ta'ents .or hi%her5end kno-'ed%e5intensi*e
sectors is $ecomin% di<c)'t .or enter(rise in hi%h5-a%e co)ntries+
With ti%hter immi%ration norms! o; shorin% o. these hi%h5end
ser*ices is the on'y *ia$'e so')tion .or enter(rise .acin% this
shorta%e o. hi%h'y5trained s(ecia'i:ed 'a$or+
?)rther! to remain com(etiti*e %'o$a''y! enter(rises need to c)t their costs
and red)ce the time5to5market .or their ser*ices and (rod)cts+
O; shorin% hi%h5end ser*ices not on'y ens)res these t-o $ene&ts! $)t a'so
the inte''ect)a' (ro(erty th)s created! rests -ith the $)yer o. the o; shore
hi%h5end 6EPO9 ser*ices+
5#<#5 SUPPLY9 SIDE DRI4ERS:
India o;ers an attracti*e cost (ro(osition and a hi%h'y5ski''ed ta'ent (oo'+ These
.actors make it a hi%h'y com(etent and attracti*e destination .or o)tso)rcin%+
The maCor trends in the Indian ser*ices market e2(ected to dri*e the EPO sector
inc')de7
Economies o. sco(e %enerated $y the entry o. many IT com(anies in the
3PO and EPO sectors+
3PO com(anies mo*in% )( the *a')e5chain
O; shore ser*ice *endors are %ainin% si%ni&cant mat)rity as -e'' as
(roCect mana%ement and domain e2(ertise! there$y mo*in% )( the
*a')e5chain+
A*ai'a$i'ity o. a'' ty(es o. ser*ices thro)%h a sin%'e *endor
With the entry o. many 3PO com(anies into (ro*idin% EPO ser*ices!
c'ients can %et the entire ran%e o. so')tions and ser*ices (ort.o'io!
-hich -i'' he'( -ard o; com(etition .rom ser*ices (ro*iders in other
emer%in% 'o-5cost destinations+
ATTAITION AATES IN >I??EAENT SECTOAS7
?o''o-in% chart sho-s attrition rate in di;erent sectors in India7
CHAPTER THREE
INTRODUCTION OF
THE COMPANY
6#" HISTORY:
A:)re -as .o)nded in #FF# as an IT8CAM trainin% and So.t-are >e*e'o(ment
com(any and in the (eriod #FF#52"""! it trained more than 4"!""" st)dents
across *ario)s A:)re IT Trainin% Instit)tes+
In the year 2"""! A:)re *ent)red into the 3PO $)siness .aci'itated $y
(romoters -ith more than # years o. o)tso)rcin% and ser*ice ind)stry
e2(erience+
6#5 A8URE TODAY:
A:)re enCoys the re()tation o. $ein% the &rst and the 'ar%est 3)siness Process
O)tso)rcin% 63PO9 center in the state o. D)Carat in -estern India+ Today! A:)re is
a 2#"" (eo('e com(any -ith its Eno-'ed%e Centers s(read across three
'ocations in India and one in China+
A:)re has a (ro*en track record o. So)rcin% and Trainin% o. e2ce''ent =)a'ity
h)man reso)rces on a 'ar%e sca'e o-in% its trainin% $ack%ro)nd+ One o. the
reasons -hy c'ients (re.er to -ork -ith A:)re is $eca)se o. its retention 'e*e's+
A:)re has a record o. retainin% more than F"N o. its senior mana%ement in the
'ast 4 years and an a*era%e attrition o. #/N .or associates8inter*ie-ers as
com(ared to 4"51"N in the ind)stry
A:)re is an ISO 21""# certi&ed com(any -ith 3S11FF IT Sec)rity
Certi&cation+ A:)res ser*ices (ro*ide the $est *a')e .or money to c'ients o-in%
to its 'o- cost o. o(erations in Ahmeda$ad 61"N 'o-er cost than (re*ai'in% costs
in US8E)ro(e and ,"N 'o-er cost than other metro cities in India9 and e<ciency
ma2imi:ation achie*ed thro)%h a)tomation o. (rocesses and e;ecti*e )sa%e o.
In.ormation Techno'o%y 6IT9! made (ossi$'e d)e to its stron% $ack%ro)nd in IT and
an e2(erienced IT team+
What c'ients a((reciate a$o)t A:)re is its Process Oriented a((roach in
(ro*idin% ser*ices $y metic)'o)s'y ('annin% the -orkPo- and s)((ort systems!
settin% the ri%ht $enchmarks .or =)a'ity and de'i*ery and )sin% techno'o%y as a
$ack$one to (ro*ide .aster! $etter and cost5e;ecti*e ser*ices to c'ients+
6#6 COMPANY 4ISION: ITo $e a 'eadin% (ro*ider o. &nancia'
ser*ices and kno-'ed%e $ased ser*ices to a %'o$a' c'iente'e $y o;erin% *a')e
thro)%h inno*ati*e )se o. techno'o%y and harnessin% the hi%hest (otentia' o.
its (eo('eJ+
6#: MILESTONE:
Yer/Perio
=
7e+ Event,
">>"
Started as an IT Trainin% Com(anyK Set)( *ario)s IT ed)cation
instit)tes across the state o. D)Carat! India
">><95$$$ No5# IT Trainin% com(any in the StateK Trained 4"!""" st)dents
across ," A:)re IT instit)tes
5$$$
Set )( a "" seat D'o$a' Contact center to (ro*ide Market
Aesearch and ?inancia' Ser*ices to ?ort)ne "" com(anies
5$$6 Added Mort%a%e Processin% and Mort%a%e Ori%ination S)((ort
ser*icesK ?irst m)'ti5co)ntry! m)'ti5'in%)a' 323 Market Aesearch
ProCect e2ec)ted s)ccess.)''y
5$$:
E2(and MA ca(a$i'ities to inc')de S)r*ey Pro%rammin%! >ata
Processin%K Cond)cted more than ,"!""" -e$ and (hone
inter*ie-s
5$$; Added 2 ?ort)ne "" com(anies as key c'ients -ith 'on% term
contractsK ?inancia' ser*ices e2(ansion to UE! E)ro(e and
A)stra'iaK E2(anded m)'ti5'in%)a' ca(a$i'ity to co*er #2
internationa' 'an%)a%es
5$$<
ISO 21""# certi&cationK A:)re $a%s &nancia' ser*ices contract
.rom one o. the to( %'o$a' &nancia' com(anies K 3a%s 'ar%e IT
so')tions contracts
5$$? La)nched China o<ce in D)an%:ho)K Took 0FN stake in Citi:ens
?inancia' Mort%a%eK Aanked amon% the to( ITES com(anies $y
>)n H 3radstreet 6>H39K La)nches IT so')tions com(any7 S)ccess
Cra.t
5$$@
2""/ A:)re -ins I3est C)stomer Aes(onsi*eness PracticeJ a-ard
instit)ted $y A*aya D'o$a' Connect! adC)d%ed $y Ernst H Go)n%
and ACNie'senK Set)( #"" seat .aci'ity in Phi'ade'(hia! US
6#; A8URE CORE 4ALUES:
A:)res core *a')es inc')de7
Inte%rity
Aes(onsi*eness
E;ecti*e )se o. techno'o%y
Trans(arency
Process orientation and disci('ine
6#< A8URE CAPABILITIES:
A:)res ca(a$i'ities inc')de7
MA*ti Re,)on=ent
A%e5%ro)(s! c)'t)res etc+
MA*ti Lin!A*
O*er # 'an%)a%es are s(oken
MA*ti Me=iA(
Phone! We$! E5Mai'! Print! ?a2 and ?ace5to5?ace
MA*ti Geo!r).+
F" Co)ntries across North America! E)ro(e! Asia! A)stra'ia and A.rica
MA*ti ProBe,,
S)r*ey Pro%rammin%! >ata Co''ection! Processin%! Ana'ytics!
Presentation
MA*ti In=A,tr+
IT H Te'ecom! @ea'thcare H Pharma! ?MCD8Cons)mer Doods! 3?SI!
Aetai' H Man).act)rin%! Media! Others+
6#? A8URE AD4ANTAGE:
o 1 years o. e2(erience in (ro*idin% EPO and 3PO ser*ices+
o #"" seat in.rastr)ct)re across Ahmeda$ad! D)an%:ho) and Phi'ade'(hia -ith
2#"" (eo('e +
o Ser*in% 1 (')s co)ntries in #2 'an%)a%es+
o Pro*en track record in (ro*idin% ?inancia' Ser*ices and Eno-'ed%e Ser*ices+
o C)rrent c'ients inc')de three ?ort)ne "" c'ients and 'ar%e &nancia' ser*ices
com(anies+
o State5o.5art techno'o%y set)( inc')din% dedicated (ri*ate data and *oice 'inks to
US -ith techno'o%y so')tions .rom Norte'! I3M+
o Stron% .oc)s on (rocesses and systems .or e<ciency and e;ecti*eness in c'ient
de'i*ery+
o Com(rehensi*e $)siness contin%ency and disaster reco*ery mode'+
o >edicated =)a'ity reso)rces .or each (roCect and (rocess+
o Trainin% and -orksho(s cond)cted $y ind)stry e2(erts+
6#@ SER4ICES:
3asica''y! A:)re .aci'itates its c'ients -ith .o)r $asic ser*ices! inc')des7
o Eno-'ed%e Ser*ices7 A:)re is dedicated to s)(('yin% s)(erior kno-'ed%e
ser*ices so')tion to their c'ients+ S?rom Strate%y to So')tion encom(asses
A:)res a((roach to de*e'o(in% 'on% term re'ationshi(s -ith their c)stomers and
)nderstandin% the needs o. (eo('e! the cha''en%es o. com('e2 $)siness
(rocesses and the o((ort)nities (resented $y techno'o%y+ A:)reTs s)ccess is
hi%h'y 'e*era%ed on the ca(a$i'ities o. their team and each mem$er o. the team
is chosen care.)''y to $e a$'e to assist in de'i*erin% res)'ts+
ACAreD, !(At o' Eno-*e=!e ,erviBe, inB*A=e:
Market Aesearch
E=)ity Aesearch
o C)stomer Care Ser*ices7 In$o)nd C)stomer Care
3SNL5C)stomer Care Ser*ices7 3harat Sanchar Ni%am Limited 63SNL9 the
'ar%est ()$'ic sector )ndertakin% and te'ecom ser*ice (ro*ider in India
6?i2ed !Ce'')'ar and 3road 3and9 ha*in% net -orth o. #0+,2 $i''ion U!
in.rastr)ct)re -orth 22+10 $i''ion U!net-ork o. o*er 0 mi''ion (hone 'ines
in """ to-ns! o*er 2" mi''ion ce'')'ar connections re*erts $ack to A:)re
to o)tso)rce its C)stomer Care Ser*ices+
A:)re on its (art -i'' )se its e2(ertise and state o. the art in.rastr)ct)re
and the $est in its c'ass CAM too's to at'east meet the 3SNL re=)irements
i. not s)r(ass them+ The 3SNL di*ision -i'' -ork on 20L,4 and -i'' $e #"
stron% o;erin% ser*ices in , 'an%)a%es! En%'ish! @indi and D)Carati+ As
D)Carat is an im(ortant destination .or 3)siness and To)rism! a'' e;orts
are $ein% made to see there are a'teast , CSAS P)ent in 'an%)a%es 'ike
Marathi! Tami'! and Te')%)+
Panasonic To)%h $ooks7 Panasonic 'a)nched its (remi)m (rod)ct in the
'a(to( *ertica' in India and the he'(desk n)m$er 'ands at A:)re+ The Co$ o.
the Panasonic Team is to hand'e in$o)nd ca'' =)eries and a'so .o''o-5)(
-ith in.ormation re=)ested $y the (otentia' c'ients+
o ?inancia' Ser*ices7
%&ure is a leading provider of financial services like mortgage processing' loan
origination' finance ( accounting ( collections) %&ure has the necessary knowledge on the
working of the financial services industry)
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