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Root Cause Analysis for Employee Turnover

Root Cause Analysis for Employee Turnover

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Published by Rani Gujari
Project Report submitted for completion of MBA, done in Kotak Mahindra Life Insurance
Project Report submitted for completion of MBA, done in Kotak Mahindra Life Insurance

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Published by: Rani Gujari on Mar 07, 2011
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03/31/2013

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INTRODUCTION

Analysis of employee mobility is a vital part of the management process. The obtaining and recording of costs, number of people leaving, types of employees who are terminating, why they are separating from the company, are all indicative factors to the management of its quality of operation. Without this analysis, management is overlooking one of the most important factors of production with which it must cope. The nature of the employees also has important effects. The relationship between employee characteristics and the pattern of employee separations can have profound effects on organizational goals. Mobility of employees among organizations and between functional submits within a given organization, confronts managers with many interrelated and knotty problems. An attempt made to study the employee separation or employees mobility in Kotak Life Insurance

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REVIEW OF LITERATURE
Employee turnover is defined as the ratio of the number of workers that had to be replaced in a given time period to the average number of workers The Chartered Institute of Personnel and Development is the United Kingdom's leading professional body for those involved in the management and development. It has done a lot of surveys and research on the subject and has given the below inferences. In a human resources context, turnover or labor turnover is the rate at which an employer gains and loses employees. Simple ways to describe it are "how long employees tend to stay" or "the rate of traffic through the revolving door." Turnover is measured for individual companies and for their industry as a whole. If an employer is said to have a high turnover relative to its competitors, it means that employees of that company have a shorter average tenure than those of other companies in the same industry. High turnover can be harmful to a company's productivity if skilled workers are often leaving and the worker population contains a high percentage of novice workers. Turnover levels vary very considerably from industry to industry. The highest levels of turnover (20.4%) are found in private sector organisations. Successive CIPD surveys of labour turnover show that the highest levels are typically found in retailing, hotels, catering and leisure, call centres and among other lower paid private sector services groups. The public sector has an average turnover rate of 13.5%. Turnover levels also vary from region to region. The highest rates are found where unemployment is lowest and where it is unproblematic for people to secure desirable alternative employment. 2

The study has also answered the below mentioned questions 1. When does employee turnover become problematic? Measuring employee turnover Measuring employee retention Costing employee turnover 2. 3. 4. Why do people leave organizations? Premature departure Investigating why people leave

The following suggestions were offered for improving employee retention 1. 2. 3. 4. 5. 6. 7. 8. 9. Job previews Make line managers accountable Career development and progression Consult employees Be flexible Avoid the development of a culture of 'presenteeism' Job security Treat people fairly Defend your organization

This project answers the above questions and enumerates in detail the suggestions offered by the employees in reference to Kotak Life Insurance.

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INDUSTRY PROFILE
The concept of insurance (i.e. That which displays the characteristics of insurance in the sense of a transfer of risk of loss due to a fortuitous uncertain event in lieu of payment of consideration/premium), is a marine insurance contract on a ship “The Santa Clara” dated 1347 in Genoa. The policy is in the Italian language and appears in the form a maritime loan to avoid the canon (church) prohibition against usury. The earliest insurance contracts did not appear in the form of a modern insurance contract, but rather was drafted in the form of either a fictional sale or loan, until the insurance contract proper was recognized and accepted. The earliest insurers were merchants underwriting risks for fellow merchants, on a part time basis. Until the 1800-1900’s premiums were not determined by statistics kept etc. as in the modern sense, but was often arrived at as a result of haggling. Insurance Industry First Learn about Insurance may be described as a social device to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual. The risk, which can be insured against include fire, the peril of sea, death, incident, & burglary. Any risk contingent upon these may be insured against at a premium commensurate with the risk involved.

Insurance is actually a contract between 2 parties whereby one party called insurer undertakes in exchange for a fixed sum called premium to pay the other party happening of a certain event.

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DEFINITION: A promise of compensation for specific potential future losses in exchange for a periodic payment, Insurance is designed to protect the financial well-being of an individual, company or other entity in the case of unexpected loss Insurance is broadly classified into two categories namely1) Life insurance 2) General insurance Life insurance is the insurance taken against the life of the person, where as general insurance includes insurance on assets. Prior to a decade the life insurance was completely under the control of government; private companies’ entrance added an advantage such as more services to their customers, Private insurance companies are MetLife, Bajaj Allianz, Tata AIG INTRODUCTION The Concept Of Insurance The business of insurance is related to the protection of the economic value of an asset for which a normal life time exists during which it is expected to perform. However if the asset gets Damaged, Destroyed or is made non functional by the occurrence of some unfortunate event the owner of the assets suffers .Insurance is a mechanism to reduce the financial implications of such consequences. The mechanism involves people who are exposed to the same risk come together and agree that if any one of the members suffers a loss the others will share the

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loss and make good the loss. Thus people facing common risk come together and make their contribution towards a common fund whose amount is determined beforehand on the basis of past data and experiences. The fundamental underlying principle of insurance is 1. Losses must be definite and discreet in time and place 2. Losses must not be fortuitous accidental in nature and beyond the control of the insured 3. Losses must be large enough to cause a financial burden 4. Losses must be measurable or calculable and a monetary amount should be determined to compensate the loss 5. Past history of the specific losses should exist to help the actuaries to estimate frequency severity and costs involved and determine fair rates of insurance. 6. The cost of insurance should be affordable by the parties and should be a fraction of the value of the insured Item. Thus we see that a large number of homogenous units (people, companies, entitles) with a similar potential for loss exposure must be available for insurance and this is generally referred to as The Law of large numbers. Life Insurance Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice. That, perhaps, was how insurance made its beginning. Life insurance had its origins in ancient Rome, where citizens formed burial clubs that would meet the funeral expenses of its members as well as help survivors by making some payments.

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As European civilization progressed, its social institutions and welfare practices also got more and more refined. With the discovery of new lands, sea routes and the consequent growth in trade, Medieval guilds took it upon themselves to protect their member traders from loss on account of fire, shipwrecks and the like. Since most of the trade took place by sea, there was also the fear of pirates. So these guilds even offered ransom for members held captive by pirates. Burial expenses and support in times of sickness and poverty were other services offered. Essentially, all these revolved around the concept of insurance or risk coverage. That's how old these concepts are, really. In 1347, in Genoa, European maritime nations entered into the earliest known insurance contract and decided to accept marine insurance as a practice. The first step... Insurance as we know it today owes its existence to 17th century England. In fact, it began taking shape in 1688 at a rather interesting place called Lloyd's Coffee House in London, where merchants, ship-owners and underwriters met to discuss and transact business. By the end of the 18th century, Lloyd's had brewed enough business to become one of the first modern insurance companies. Insurance and Myth... Back to the 17th century. In 1693, astronomer Edmond Halley constructed the. First mortality table to provide a link between the life insurance premium and the average life spans based on statistical laws of mortality and compound interest. In 1756, Joseph Dodson reworked the table, linking premium rate to age.

Enter companies...

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The first stock companies to get into the business of insurance were chartered in England in 1720. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston, SC. In 1759, the Presbyterian Synod of Philadelphia sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. However, it was after 1840 that life insurance really took off in a big way. The trigger: reducing opposition from religious groups. The growing years... The 19th century saw huge developments in the field of insurance, with newer products being devised to meet the growing needs of urbanization and industrialization. In 1835, the infamous New York fire drew people's attention to the need to provide for sudden and large losses. Two years later, Massachusetts became the first state to require companies by law to maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the risks are spread among several companies, was devised specifically for such situations. There were more offshoots of the process of industrialization. In 1897, the British government passed the Workmen's Compensation Act, which made it mandatory for a company to insure its employees against industrial accidents. With the advent of the automobile, public liability insurance, which first made its appearance in the 1880s, gained importance and acceptance? In the 19th century, many societies were founded to insure the life and health of their members, while fraternal orders provided low-cost, members-only insurance.

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Even today, such fraternal orders continue to provide insurance coverage to members as do most labor organizations. Many employers sponsor group insurance policies for their employees, providing not just life insurance, but sickness and accident benefits and old-age pensions. Employees contribute a certain percentage of the premium for these policies. Life Insurance in India Although insurance in its present form has been brought to India by the British and other colonial powers the concept of collective co-operation to share a particular risk is as old as the dawn of human civilization. India was a major trading power in ancient times and some examples of sharing risks can be found such as ships carried cargo of several traders together instead of a single individual. In the Mogul army a life annuity was granted to the family on the demise of a soldier against some regular contribution in his life time. The Joint family system of India is also an embodiment of the same concept. Early attempts Life insurance in its modern form came to India from England in 1818 with the formation of the Oriental Life Insurance Company in Kolkata and with the passage of time Indians were also covered by this company. By 1868 there were 285 companies operating in India and were primarily into insuring the European lives, those Indians who were offered were charged an extra premium of 15 to 20% and treated as substandard lives.

First Indian Company

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The first insurance company under the title "the Bombay life insurance society" started its operations in 1870 and started insuring lives of Indians at standard rates. Later "oriental Govt. life insurance co." was established in 1874 which emerged as the leading insurance company in India. Pre Independence history With the various freedom movements various leaders encouraged domestic life insurance companies to enter the fray. In 1914 there were only 44 companies and in 1940 this number grew to 195.From here on the growth of life insurance was quiet steady except in 1947-48 during the partition of India. Nationalization of Insurance Business 1956 After Independence our nation was moving towards a Socialistic pattern of society and with the main aim of spreading the concept to rural areas and to channel the money into nation building activities the government of India Nationalized the life insurance business and formed "The Life Insurance Corporation of India" by merging about 250 life insurance companies. The Life Insurance Corporation of India started functioning from 1.9.1956 and is today the largest insurer in the country with one central office, seven zonal offices and over 2048 branch offices with a workforce of 125000 employees and over 800000 life insurance agents. Evaluate your life insurance needs Life Insurance is one of the most popular savings/ investment vehicles in India. Ironically, it’s probably the least understood too. An insurance policy offers much more than just tax planning and investment returns. It offers the ability to plan for unforeseen events that could affect family's financial profile adversely. Factors to consider:

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Financial profile and needs are different from person to person, and the same is true for insurance needs. However, irrespective of the differences, the number of dependents PH has and their financial needs are the most important factors to consider. Issues to consider while evaluating the above factors include: 1) The wealth, income and expense levels of PH dependents, 2) Their significant foreseeable expenses, 3) The inheritance PH would leave on them, and 4) The lifestyle PH wants to provide for them. How much insurance does a person need? Obviously the above factors mean nothing to the insurance planning process unless they are quantified. Globally, the time-tested approach used by insurance and financial planners is the capital needs analysis method. When should you re-evaluate? Whenever any of the factors discussed above change. In Step 2, understand the key concepts underlying life insurance. Risk cover versus investment returns:

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Insurance options range from policies with low premium that offers a PH almost no returns to those with high premium that effectively offer post-tax returns of around 8% to 9.5% p.a. These returns are at the lower end of fixed-income returns available today and hence are relatively unattractive. I recommend PH buy an insurance policy skewed towards investment returns only if you are in the high-tax bracket, prefer to invest in low-risk, fixed-income options and have exhausted all the other such investment options available. See Financial Investment Options and Government Schemes Directory for details of low-risk, fixed-income investment options available. Whole life versus limited period: As PH grow older, he may not have as many dependents (his children would become self-dependent) or his wealth may reach a level where it can support his dependents’ financial needs in the event of his death. These possibilities bring us to the interesting question on whether he should insure himself, for whole life or for a limited term. Obviously, the cost of insurance for the latter is lower. I recommend him to insure for whole life only if he never expect his wealth to reach a level where it can support the financial needs of his dependents. Tax Planning: The premium paid for an LIC policy also qualifies for tax rebate under Section 88 of the Income Tax Act. The maximum premium amount that can qualify for rebate is Rs60, 000 per annum and you get a rebate equivalent to 20% of the premium paid, from your tax liability for the year.

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In step 3, deals about steps in selecting a life insurance policy. Understand how much insurance PH need: This is the single most important factor to evaluate before PH select a life insurance policy. For this, he must consider the current expense profile of his dependents and the current wealth level of his family. Also, consider what is his dependent’s risk tolerance level is. Is he adequately Insured, this planning tool can take him step-by-step in addressing this issue. Selecting Premium Paying Term (PPT): How long he want to pay his insurance premium for? Key factors this decision could depend upon are 1) How many years he see himself earning a regular income 2) The level of his regular savings 3) The amount he can commit to paying regularly as insurance premium 4) How long he want to be insured versus how long he expects to pay a premium for? Other important questions to ask besides understanding how much insurance he need and letting his premium-paying term, he need to consider some other Key factors, such as 1) Does he want to participate in bonus/ profit share? 2) What is the primary objective of his seeking insurance – 3) Mainly risk cover, mostly investment returns? 4) Does he want accident cover?

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For a detailed understanding of the factors he need to consider while selecting a life insurance policy, and the rationale for the same, use Insurance Planner. This planning tool will also take him step by step and arrive him at a shortlist of life insurance policies appropriate for him, based on his personal profile. To understand life insurance terms, he can read The Basics of Life Insurance is as follows.... What is life Insurance? Life insurance is a contract for payment of money to the person assured (or to the person entitled to receive the same) on the occurrence of the event insured against. Usually the contract provides for Payment of an amount on the date of maturity or at specified periodic intervals or at death, if it occurs earlier. Periodical payment of insurance premium by the assured, to the corporation who provides the insurance. Who can buy a life insurance policy? Any person above 18 years of age, who is eligible to enter into a Valid contract. Subject to certain conditions, a policy can be taken on the life of a spouse or children. What is a Whole Life Policy? When most people think of life insurance, they think of a traditional whole life policy. These are the simplest policies to understand: You pay a fixed premium

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every year based on your age and other factors, you earn interest on the policy's cash value as the years roll by, and your beneficiaries get a fixed benefit after you die. The policy takes you into old age for the same premium you started out with. Whole life insurance policies are valuable because they provide permanent protection and accumulate cash values that can be used for emergencies or to meet specific objectives. The surrender value gives you an extra source of retirement money if you need it. What is an Endowment policy? Unlike whole life, an endowment life insurance policy is designed primarily to provide a living benefit and only secondarily to provide life insurance protection. Therefore, it is more of an investment than a whole life policy. Endowment life insurance pays the face value of the policy either at the insured's death or at a certain age or after a number of years of premium payment. Endowment life insurance is a method of accumulating capital for a specific purpose and protecting this savings program against the saver's premature death. Many investors use endowment life insurance to fund anticipated financial needs, such as college education or retirement. Premium for an endowment life policy is much higher than those for a whole life policy. What is a Money Back policy? This is basically an endowment policy for which a part of the sum assured is paid to the policyholder in the form of survival benefits, at fixed intervals, before the maturity date. The risk cover on the life continues for the full sum assured even after payment of survival benefits and bonus is also calculated on the full sum

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assured. If the policyholder survives till the end of the policy term, the survival benefits are deducted from the maturity value. What is An Annuity Scheme? Annuity schemes are those wherein your regular contributions over a period of time (or a one-time contribution) accumulate to form a corpus with the insurer. This corpus is used to yield you a regular income that is paid to you until death starting from your desired retirement age. Some annuity schemes have the option to pay your survivors a lump sum amount upon your death in addition to the regular income you receive while you are alive. What are With Profit and Without Profit Plans? The insurer distributes its profits among it policyholders every year in the form of a bonus/ profit share. An insurance policy can be "with" or “Without” profit. In the former, any bonus declared is allotted to the policy and is paid at the time of maturity/ death (with the contracted amount). In a “without” profit plan, the contracted amount is paid without any profit share. The premium rate charged for a “with” profit policy is therefore higher than for a "without" profit policy. What is Bonus? An insurer distributes its profits among it policyholders every year in the form of a Bonus. Bonuses are credited to the account of the policyholder and paid at the time of maturity. Bonus is declared as a certain amount per thousand of sum assured. The term "bonus" is used interchangeably with "with profit".

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What are guaranteed Additions? In some policies, the insurer guarantees the bonus/ profit declared as a certain amount per thousand of sum assured. This assured bonus will be credited to the policyholder irrespective of the performance of insurance company and is known as Guaranteed Additions. Guaranteed Additions will be payable at the end of the term of the policy or early death of the policyholders. What are Loyalty Additions? In some policies, over and above Guaranteed Additions, the insurer will declare and credit to the policyholder, an additional amount per thousand of sum assured every 5 years, depending on its performance. This additional amount is known as Loyalty Addition. What are Survival Benefits? In some policies, a part of the sum assured is paid to the policyholder in the form of Survival Benefits, at fixed intervals before the maturity date. The risk cover for life continues for the full sum assured even after payment of survival benefits and bonus is also calculated on the full sum assured. If the policyholder survives till the end of the term, the survival benefits will be deducted from maturity value. What are Accident Benefits? On payment of an additional premium of Re1 per Rs1000 of Sum Assured per year, the assured is entitled to the following benefits:In case of accidental death, the nominee shall receive double the sum assured. In case of total and permanent disability due to accident, risk coverage continues without further payment of premium. In addition, an amount equal to the sum assured is paid to the assured in monthly installments spread over 10 years. However, subsequent accidental death will not entitle the nominee for double the sum assured.

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What are Disability Benefits? If the assured becomes totally and permanently disabled due to any accident, he need not pay future premiums and his policy shall remain in force for the full Sum Assured. What are the various modes of payment for premium? Premiums, other than single premiums, can be paid by the policyholders to the insurer in yearly, half-yearly, quarterly or monthly installments or through a Salary Savings Scheme. If the mode of payment is yearly or half-yearly, some insurers give a rebate of 3% and 1.5% respectively on the premium. If the mode of payment is monthly, some insurers charge an additional 5% (this additional charge is waived for the Salary Saving Scheme). What is Salary Savings Scheme? Salary Savings Scheme provides for payment of premiums through monthly deductions by the employer from the salary of employees. For this scheme, the additional charge of 5% of the premium usually added for the monthly mode of payments will be waived. What loans are available against life insurance policies? At present loans are granted on unencumbered polices as follows Up to 90% of the Surrender Value for policies, where the premium due is fully paid-up, and Up to 85% of the Surrender Value for policies where the premium due is partly paid-up. The minimum amount for which a loan can be granted under a policy is Rs150. The rate of interest charged is 10.5% p.a., payable half-yearly. Loans are not granted for a period shorter than six months, or on the security of lost policies (the assured must have the duplicate policies) or on policies issued under certain plans. Certain types of policies are, however, without loan facility.

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What is Surrender Value? The cash value payable by the insurer on termination of the policy contract at the desire of the policyholder before the expiry of policy term is known as the surrender value of the policy. Generally, a policy can be surrendered provided the policy is kept in force for at least 3 years. The bonus is also added to the surrender value if the policy has been in force, in most cases, for at least 5 years. What is a Death Claim? The claim is usually payable to the nominee/assignee or the legal successor, as the case may be. However, if the deceased policyholder has not nominated/assigned the policy or not made a will, the claim is payable to the holder of a Succession Certificate or such evidence of title from a Court of Law. What is Nomination/Assignment of a Policy? When the policy money becomes due for payment on the death of the policyholder, it can be paid only to that person who is legally entitled to give a valid and effective discharge to the corporation. If the policy bears nomination, the claim is settled in favor of the nominee. Similarly, if the policy is assigned, the assignee receives the claim amount. It should be noted that an assignment of a policy automatically cancels the existing nomination. Hence, when such a policy is reassigned in favor of the policyholder, it is necessary to make fresh nomination. What are Medical and Non-Medical Schemes? Life insurance is normally offered after a medical examination of the life to be assured. However, to facilitate greater spread of insurance and also as a measure of relaxation, some insurers do offer insurance cover without any medical examination, subject to certain conditions.

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How do you effect a Change of Address and Transfer of Policy Records? When a policyholder wants to change his address in the insurer’s records, notice of such change should be given to the Branch office servicing his policy. Policy records can be transferred from the Branch Office that services the policy to any other Branch Office nearest to the policyholder’s place of residence. The correct address facilitates better services and quicker settlement of claims. When does a policy lapse? When the premium is not paid within the days of grace provided after the due date, the policy lapses. The grace period in case of yearly, half-yearly and quarterly modes of payment is one month and in case of the monthly mode of payment, it is 15 days. How can a lapsed policy be revived? A lapsed policy may be revived during the lifetime of the assured, but within a period of 5 years from the due date of the first unpaid premium and before the date of maturity. Revival of a lapsed policy is considered either on non-medical or medical basis depending upon the age of the life assured at the time of revival and the sum to be revived. If the revival of the policy is completed by payment of over-due premium within 14 days from the expiry of the grace period, only the late fee for one month has to be paid. Can a policy be altered? No alteration is permissible in the policy document - the evidence of contract, unless both the parties to the contract agree. After the policy is issued, a policyholder in a number of cases finds the terms not suitable to him/her and desires to change them to suit his/her convenience. As all insurers also realize that insurance is a long term contract, certain changes under given circumstances might necessitate an alteration of the contract. Keeping in view the basic principles of insurance and administrative convenience, most insurers permit some alterations. Though, it is generally found that as a rule, insurers do not

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permit alterations resulting in lower rates of premier and within the 1st year from the commencement of the policy. What is the difference between Life Insurance and General Insurance? A Life Insurance deals with various plans connected with the life of a person, whereas all kinds of non life insurance policies are issued by the General Insurance companies. What are the documents to be executed at the time of taking insurance? A Proposal form should be filled in by the person taking insurance without concealing any material facts. The values for which insurance is to be taken is also decide by the party taking insurance. No bills, documentary proofs are taken by the insurance companies at the time of taking insurance, as the insurance is a contract of utmost good faith. Premium is to be given along with the proposal form for completing the insurance transaction after which the insurance company issues the cover note or policy. Insurance Sector Reforms Why it became Inevitable Despite the phenomenal success of The Life Insurance Corporation of India the government and the public at large were not satisfied with it and by signing the GATT accord the Government of India was committed to open up the insurance sector to both domestic and international firms. A committee under the chairmanship of late Mr. R.N Malhotra was formed (ex governor RBI) and came to conclude that the monopoly of LIC lead to the lack of sensitivity towards policy holders and only 22% of the insurable population was insured. The committee thus recommended a number of measures to revamp LIC and to allow foreign companies to operate in India with an Indian partner. It felt that this

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would lead to a greater scope in product innovation and service improvement as well. In 1999 the Insurance Regulatory and Development Authority Bill was passed by the government to facilitate the growth and regulate the newly opened insurance sector and to guarantee the investments made by the people. On August 15, 2000 the sector was finally opened for foreign sector participation. Deregulation came with certain conditions: Firstly, all new foreign players entering the Indian market must set up a joint venture with a local company. Secondly, the maximum share the foreign player can hold is 26%, with the local company (or companies) holding the balance. Regulators are currently reconsidering the foreign equity cap of 26%.

Proactive steps taken by the IRDA for development of the market: 1) Market regulation by prudential norms. 2) Registration of players who have the necessary financial strength to withstand the demands of a growing and nascent market. 3) Implementation of a solvency regime that ensures continuous financial stability. 4) Presence of an adequate number of insurers to provide competition and choice to the customers. 5) Development of market capacity by asking insurers to retain bulk Of the premium within the country and to exhaust local market Capacity before reinsuring abroad. In today’s highly competitive financial services environment, effective organizations will employ technology in a strategic role to achieve competitive

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edge. Technology will play an increasing role in aiding design and administering of products, as well in efforts to Build life-long customer relationships.

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COMPANY PROFILE
Corporate Identity

Kotak Mahindra Bank Ltd. (KMBL) Kotak was set up in 1994. Kotak Mahindra Bank Limited (KMBL) is the holding company and the flagship of the Kotak Mahindra Group. It was actually incorporated as Kotak Capital Management Finance Limited on November 2, 1985 and obtained its ‘Certificate of Commencement of Business on February 11, 1986. With the liberalization of the Indian economy and the opening up of the financial markets, the Company diversified and started offering a wider spectrum of financial services.

Old Mutual plc. Old Mutual plc. Is a leading financial services provider in the world, providing a broad range of financial services in the area of insurance, asset

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management and banking. It is a leading life insurer in South Africa, with more than 30% market share. The partnership with Old Mutual plc. Provides the Kotak Mahindra group with an international perspective and expertise in the life insurance business. The Joint Venture The joint venture OM Kotak Mahindra Life Insurance started off with an initial net worth of Rs. 150 crore, with 74:26 stake between KMBL and OM. .The Life Insurance business offers KMBL with an opportunity to leverage its core strengths of Wealth Management and Retail Distribution. OM Kotak Mahindra Life Insurance

Kotak Mahindra Old Mutual Life Insurance Limited was established in 2000 as a joint venture between Kotak Mahindra Bank Ltd. - KMBL (74%) and Old Mutual plc, London (26%)

Total assets managed by the Kotak Mahindra Group are around USD 9.4 billion. It is amongst the few banks in India to have a non-profitable asset level of just 0.33%

KMBL was the first non-banking financial company (NBFC) to receive a retail bank license in 2003 In the life insurance market, Kotak Life Insurance registered an adjusted premium (single premium: 1/10) growth of over 53% from financial year 2005-06 to financial year 2006-07

Kotak Life Insurance, with 100 branches in over 68 cities, and a work force of over 4,100 employees, is a company with a high level of brand awareness Kotak Life Insurance aspires to a spiralling growth with a strong focus on the customer, products, mapping of geographic distribution channels and fund performance

Member of the Swiss Life Network since 2003

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Kotak Mahindra Old Mutual Life Insurance is a 76:24 joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Mahindra Old Mutual Life Insurance is one of the fastest growing insurance companies in India and has shown remarkable growth since its inception in2001. Old Mutual, a company with 160 years experience in life insurance, is an international financial services group listed on the London Stock Exchange and included in the FTSE 100 list of companies, with assets under management worth $ 400 Billion as on 30th June, 2006. For customers, this joint venture translates into a company that combines international expertise with the understanding of the local market.

The Kotak Mahindra Group Kotak Mahindra is one of India's leading financial conglomerates, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporates. The group has a net worth of over Rs. 5,609 crore, employees around 17,100 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 344 cities and towns in India and offices in New York, London, Dubai, Mauritius and Singapore. The Group services around 3.6 million customer accounts. The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited.

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Since then it's been a steady and confident journey to growth and success. Kotak Mahindra Finance Limited starts the activity of Bill Discounting Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market The Auto Finance division is started The Investment Banking Division is started. Takes over FICOM, one of India's largest financial retail marketing networks Enters the Funds Syndication sector Brokerage and Distribution businesses incorporated into a separate 1995 company - Kotak Securities. Investment Banking division incorporated into a separate company - Kotak Mahindra Capital Company The Auto Finance Business is hived off into a separate company Kotak Mahindra Prime Limited (formerly known as Kotak 1996 Mahindra Primus Limited). Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information Services Limited marks the Group's entry into information distribution. 1998 Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company. Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business. 2000 Kotak Securities launches its on-line broking site (now www.kotaksecurities.com). Commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund. 2001 Matrix sold to Friday Corporation

1986 1987 1990 1991 1992

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Launches Insurance Services 2003 2004 Kotak Mahindra Finance Ltd. converts to a commercial bank - the first Indian company to do so. Launches India Growth Fund, a private equity fund. Kotak Group realigns joint venture in Ford Credit; Buys Kotak 2005 Mahindra Prime (formerly known as Kotak Mahindra Primus Limited) and sells Ford credit Kotak Mahindra. Launches a real estate fund Bought the 25% stake held by Goldman Sachs in Kotak Mahindra 2006 Capital Company and Kotak Securities

Types of benefits: Coverage available:
• • • • • • •

Group Life Accidental Death & Dismemberment (rider) Accidental Lump Sum Disability (rider) Critical Illness (rider) Credit Life Group Gratuity Scheme Group Superannuation Scheme

SPECIAL ADVANTAGES: • Market leader in brokerage, car finance & investment banking

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• • • •

Dedicated to developing unique products with a special focus on product and service quality Among the first to offer group insurance products in the Indian market Extensive nationwide coverage through a direct sales force, brokers, spotters and frontline sales managers in more than 68 cities Kotak Life Insurance's value proposition is based on strong corporate relationships, superior products, extensive marketing skills and quality of service

The objective of Kotak Life Insurance is to build long-term sustainable business under regular premium and sustain fund performance in the capital guaranteed segment.

Kotak Group Products & Services Bank Life Insurance Mutual Fund Car Finance Securities Institutional Equities Investment Banking Kotak Mahindra International Kotak Private Equity Kotak Realty Fund

Kotak mahindra deals with different products namely

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BANKING & SEVICES BANKING A/C DEMAT DEPOSITS N R I SERVICES

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INVESTMENT & INSURANCE LIFE INSURANCE MUTUAL FUNDS SHARE TRADING GOLD

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LOANS & BORROWINGS CAR FINANCE HOME LOANS LOANS ON PROPERTY PERSONAL LOANS &

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CORPORATE INSTITUTIONAL CORPORATE FINANCE, TREASURY EQUITIES

CONVINIENCE BANKING REAL ESTATE

Individual Kotak Smart Advantage Kotak Eternal Life Plans Kotak Platinum Advantage Plan Kotak Headstart Child Plans Kotak Sukhi Jeevan Plan Kotak Privileged Assurance Plan Kotak Term Plan Kotak Preferred Term Plan Kotak Money Back Plan Kotak Child Advantage Plan Kotak Endowment Plan Kotak Capital Multiplier Plan Kotak Retirement Income Plan Kotak Retirement Income Plan (Unit-linked) Kotak Safe Investment Plan II Kotak Flexi Plan Kotak Easy Growth Plan Kotak Premium Return Plan Riders

Group Employee Benefits Kotak Term Grouplan Kotak CreditTerm Grouplan Kotak Complete Cover Grouplan Kotak Gratuity Grouplan Kotak Superannuation Grouplan

Rural Kotak Gramin Bima Yojana

PURPOSE OF THE PROBLEM

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The main objective is to study the reasons for employee turnover or causes for manpower leaving the organization and the level of satisfaction of employees regarding the various aspects like pay, training given by the organization, performance appraisal which effects the job they do. Analysis of employee mobility is a vital part of the management process. Human resource managers make decisions that affect the relationships between employees and employers like how many employees to hire, at who to train in which skills and how to handle dissatisfied employees. The obtaining and recording of costs, number of people leaving, types of employees who are terminating, why they are separating from the company, are all indicative factors to management of its quality of operation. Without this analysis, management is overlooking one of the most important factors of production with which it must cope.

DEFINITION

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Employee mobility has been defined as “the rate of change in the working staff of a concern during a definite period.” In other words it signifies the shifting of the workforce into and out of an organization. It is a measure of the extent to which old employees leave and new employees enter into service in a given period. It is sometimes defined as a measurement of inarticulate labor unrest. Employee mobility is the cause and effect of instability of employment, apart from being a measure of the morale and efficiency or otherwise of workers. The rate of employee turnover is generally expressed in a number of different formulas, which involve such forms. Separations Accessions Replacements

DEGREE OF EMPLOYEE MOBILITY

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A certain amount of mobility is evitable. Illness, accidents, aging, death, and a variety of personal reasons bring about separations. Some of these same factors, as well as economic and financial conditions in organizations and in the larger community, occasion terminating of employment, layoffs, or internal mobility. However although some degree of mobility is both inevitable and healthy, too much of it can severely reduce productivity, demoralize, incumbents, and damage an organizations public image. On the other hand, too little internal mobility stultifies employee ambitions, and too low a rate of external mobility can result in a moribund organization. Thus, studying past and current rates of mobility is important for managers and personnel administrators.

Costs involved if employee leaves the organization All employee mobility (in and out of an organization and up, down or laterally) is part of the total turnover picture. The chief financial costs of such mobility may be calculated by examining the following:

Hiring cost: Involving time and facilities for recruitment, interviewing and examining a replacement. For new hires, expenses incurred during two major phases of the employment of process: Employment procedures including recruitment, selection and placement. A training period including orientation, induction, follow-up, training, and employment development.

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Training cost: Involving the time of the supervisor, the personnel department and trainee. When training takes place on the job, as is usual for rank and file employees, part of the cost consists in the time taken to reach peak productivity. This cost element depends in large measure on the quality of instruction, the degree to which an employee’s inner motivation is stimulated, and extent of cooperation by associates. For these reasons it is sometimes proved as an unduly expensive to Apprentice a new hire to an “old hand” with the aim of saving time for a first level supervisors or training specialist. When training takes place off the job the immediate financial cost is obviously far greater because work is interrupted, or not even begun until afterward. For promoted employees and new hires at relatively high organizational levels, and for certain technical specialists, cost is considerable because extended socialized training within or outside the organization is needed. However the benefits may be expected to outweigh costs, even when the employer pays all expenses. Varying cost: For the employer, separation and replacement costs tend, to match the organization level. Therefore, voluntary quits by high level employees are an expense that deserves serious study. In this connection, researchers have found that more than 40% of M.B.A. degree holders had left their first employer within 5 years although their starting salaries had been high.

Separation cost:

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These include wasted technical learning, experience as an organization member, increased operating expenses such as higher rates for accident and unemployment insurance, and perhaps also severance pay. In addition, in completed work can be costly. Loss of an able manager or executive may be even more expensive. Replacement cost: These cost duplicate those listed earlier for new hires. But items can be eliminated and others reduced, by promotion from within the organization internal mobility. However, the vacancy this creates may require a new hire or a second promotion. The loss of production in the interval between the separation of the old employee and replacement by new; The production equipment is not fully utilized during the hiring interval and the training period; Over time pay result from an excessive number of separations causing trouble in meeting contract delivery dates. Cost of non-discrimination: According to a study turnover rates among earlier hard-core workers were 60 percent twice as high as the average and training time was twice as long. Many managers who have set up affirmative action programs have found that, during the learning period, costs tend to be greater for previously unemployed individuals than for persons from more privileged backgrounds. Blacks or whites who have never before associated regularly with other races may need close and

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skillful supervision to help them resolve their inner tensions and adjust to organizational requirements. Until these disadvantaged newcomers will make all the necessary accommodations, and regular employees will learn to work productively and comfortably with them, additions costs may show up in prolonged substandard performance, avoidable accidents, time-consuming arguments, and even fighting. And unless these costs can be reduced, unless these cost reduced the whole separation replacement cycle must be repeated. Evaluating employee separations Employee separations are sometimes initiated by employees and other times by employers, managers can evaluate their effects by focusing on the retained workforce. Typically, they evaluate employee separations solely by the quality of employees who quit, resign, are discharged, or are laid off. Such evaluation approaches are severely limited because they fail to account for the efficiency and equity consequences of employee separations. Efficiency: Separations and programs to manage them can be costly. Separation involves activities such as exit interviews, outplacement assistance, counseling and severance pay, as well as requiring administrative and clerical support. Such cost can easily amount to thousands of dollars per separation. Research cites these costs often as arguments for the harmful effects of some separations, such as quits. However they emphasize costs less strongly in discussions of other separations. Yet, costs are clearly applicable to all separations. Although managers can reduce separation costs by more efficiently managing the separation process, they can often use cost figures to argue that separations especially quit should always be reduced

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Productivity: Quits are not necessarily harmful to the organization. Quits can be functional when they improve the productivity of the work force by removing poor performers, or allow replacement of highly paid employees with newer and lower paid employees of similar ability, the notion that separations can improve work force productivity applies not only to quits, but to all separations. If employee manages separations so that the most valuable performers are retained, the productivity benefits can be substantial. The magnitude of these effects depends on the quantity and quality of retained work force. This perspective suggests that human resource managers would do well to look beyond simply the quantity and cost of separations, adopting an evaluation framework that encompasses productivity as well. Equity: Employee separations are both a result and cause of equity perceptions. Quits appear to be related to employee satisfaction and work attitudes. Moreover, the manner in which organizations dismiss, retire and lay off employees serves as one index of their commitment to fairness and equity. Government at the local state, and federal levels carefully monitor the effects of separations on communities and minority group representation. Discharges are becoming more vulnerable to legal challenge as the “employment-at-will” concept is honed by state courts and governments. The decision to terminate the employment relationship is one of the most difficulty facing employees and employers. Clearly, the impact of separations on the attitudes and composition of the retained work force must encompass equity as well as productivity or cost. Computing and comparing turnover rates Turnover can be computed for each type of movement into and out of the organization. Employee turnover is commonly expressed in two rates:

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Separations Accession Separations Termination of employment usually subdivided into as follows: Voluntary quits-individuals who are absent without authorization for 7 consecutive days(are sometimes less) are usually listed in this category. Layoffs for lack of work-terminations initiated by the employer because there is a reduction of employment due to insufficient demand. Such separation is presumably without prejudice to the employee. Disciplinary layoff or discharge – this is because of dissatisfaction with an employee’s performance or conduct. Therefore, both are prejudicial to an employee’s record. However, if discharge comes before completion of a probationary period, loss to the employee is less severe because no employment rights have been acquired. Permanent or partial disability, retirement or death. The U.S. bureau of labor statistics uses the following method to compute the separation rate: Find the average number of employees by adding together the number on the payroll on the first and last days of the month. Then divide this total by 2. Divide the total number of separations during the month by this average employment figure. Multiply this number by 100 to get the rate per 100 employees for the month. Expressed as a formula: Separation rate(or percentage)= total separation per month Average number on month’s payroll

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Accessions: Hiring new employees or rehiring former employees. Other accessions include employees called back to work after layoff, transfers from other plants of the same firm, and former employees returning from military services or other absences without pay that were not counted as accession. The rate for accessions, quits, layoffs, and discharges can be computed by same basic formula. When the separation rate is subtracted from the accessions rate, the positive or negative figure shows whether employment is expanding or contracting. If avoidable turnover is to be measured, the rate is the most useful figure. This may be subdivided for regular employees with seniority standing and new hires whose status is probationary. Total figures for turnover rates by themselves are relatively useless. They become significant only when compared with rates in other similar organizations. These comparative figures provide data for a useful chart of turnover trends. With such a visual display at hand, managers and personnel administrators can readily take the next step, analyzing associated costs. Direct operating expenses and administrative costs are available in standard accounting records and measurable in dollars and cents, other intangible costs are far less susceptible to exact, quantitative measurement.

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CAUSES OF EMPLOYEE TURNOVER
Employee turnover is the outcome of resignations and dismissals Resignations: Resignations may be due to such causes as dissatisfaction with working conditions. Insufficient wages, bad health, sickness, old age, family circumstances. Dismissals: Dismissals on the other hand may occur due to participation in strikes or union activities, misconduct in subordination, and inefficiency, but dismissal is a lesser cause of employee turnover. Market conditions: Market conditions affect both employee’s decisions to leave and organizations decisions to reduce their workforce. Dissatisfied employees seem reluctant to leave during times of high unemployment and more likely to leave during periods of low unemployment. Decisions to quit: Industrialist’s psychologists and others have studied employees quit decisions extensively. The employee’s decision to quit as a function of: • The relative attractiveness of the current employment relationship compared to alternatives.

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• • • •

The perceived opportunities to obtain an attractive alternative employment relationship. Dissatisfaction with the current employment relationship. Having difficulties with transportation, working conditions, shift assignments. They are leaving for reasons that have nothing to do with work.

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SOURCES OF INFORMATION
Often managers do not know why an employee quits. In quits without notice even the immediate supervisor may not know what prompted this irresponsible behavior. On the other hand, if employees give reasonable notice and leave in a good mood, they may tell an immediate supervisor why they want to make a change. Exit interviews and questionnaires To supplement haphazard communication, many companies have a personnel department representative hold an exit interview when the employee calls for the last paycheck. In theory, such as interview might seem an excellent opportunity to check administrative and supervisory practices. Especially when employees are invited to express their feelings about the job and work situation that they are leaving, the manner and nature of their response may yield useful insights. It may even prove possible to salvage a desirable employee at this last moment. However, the following flaws in exit interviews have been noted: Often reasons for leaving are multiple and employees cannot easily put them into words. Sometimes the chief reason is one which the employee thinks would prejudice an employer if and when future references are desired. Again internal stress may make it impossible for employees to talk freely even to a sympathetic listener. More reliable and specific information may be obtained in a post-exit interview held several months after termination, especially if the former employee is then securely established in a new job. Widespread discrepancies have been disclosed

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by comparing reasons given by employees in a first exit interview and in a postterminal interview. In view of these findings, it seems clear that a manager concerned about why employees quit may prefer to ask a second set of questions. Where are voluntary separations occurring? What categories of employees are leaving voluntarily? What early warning signals can be observed?

IMPACT OF TURNOVER
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The heavy rate of turnover is a great handicap for employees and industry alike, for it implies a reduction in skill and efficiency on the part of the worker and reduced output for the industry. However some amount of employee turnover is inevitable and even natural, particularly when it stems from the retirement of old employees and accession of new blood. Such turnover may not only be avoidable but also welcome to some extent. In some case, it arises because of resignations and dismissals. This turnover is harmful to the efficiency of the worker and impairs the quality of production. It is a serious obstacle to the full utilization of a country’s human and material resources.” From the employee side, they are not only deprived of various advantages of continued employment, opportunities of graded pay, bonus, provident fund and leave, but they have even to purchase their re-engagement; and there is bound to be less solidarity among workers who move from company to company. Attention to employee quits usually centers around the quantity or costs incurred to separate and replace employees. However these factors reflect only part of issue. The patterns of quits affect the value of retained workforce. If those quits are most valuable future employees, even a low quit may cause substantial harm. Conversely, if those who quit are the least valuable future employees, then even high quit rates may not be cause for alarm.

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MEASURES TO CONTROL EMPLOYEE TURNOVER
A high rate of separation is bad both for the employee and the industry. Hence efforts should be made to reduce it. The measures to be adopted for the purpose call for a positive policy and concerted action on the part of employers. Besides any measures conductive to the employees economic advancement and welfare, as well as measures intended to provide security of employment, are bound to mitigate the evils of turnover by reducing their tendency to make frequent visits to their villages and to search for what is often a mirage of better employment and higher remuneration. Improvement in the methods of recruitment is one of the radical principal remedies for excessive employee turnover. But more radical and effective methods, such as the establishment exchanges, the restriction of the powers of jobbers and the organization of personnel department and required. Improvement in working conditions, the adoption of an enlightened policy of management in respect of wages, transfers and promotions, leaves and holidays, the provision of facilities for education and training, the promotion of welfare work, the introduction of unemployment and sickness insurance, gratuity and pension schemes, will all contribute to make the employee more stable than it is at present. Not at least important factors contributing to the stability will be the attitude of employers and workers organizations and the provision of an effective machinery of the ventilation and redressal of the grievances of the workers. Besides a scientific system of recruitment, selection and placement, the provision of vocational guidance facilities, enlightened supervision and the development of

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a two-way communication system between the management and the employees will to reduce the rate of employee turnover. Mobility of employees among organizations and between functional subunits within a given organization, confronts managers with many interrelated and knotty problems.

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METHODOLOGY
Scope of study The study covers the various practices of human resources like training salary scheme, leave scheme of the organization as well as the communication skills and interpersonal skills of the employees. The study is confined to one organization that is Kotak Life Insurance. Research design: An attempt was made to study the impact of employee turnover and also to assess the levels of satisfaction of employees with respect to employee mobility structure prevailing in the organization. DATA COLLECTION METHODS: Primary source: Primary data source for the study is the questionnaire. The questionnaire consists of a few closed-ended questions and a few open-ended questions. Questionnaires were handed to the samplers and collected within a week. Secondary source: Data regarding the company profile is drawn from secondary sources like brochures, company websites, annual reports, opinion of employee constitute.

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Research instruments used: Data was collected from employees of different departments using questionnaire. The questionnaire consists of a few closed-ended questions and a few open-ended questions. The rating for closed-ended questions was on a five-point scale. The scale ranges from Strongly agree, Agree, Cant say, Disagree, Strongly disagree. Respondents were requested to select the most appropriate answer, which suited him/her the best. Simple tools like averages, percentages and graphs were computed for the overall sample on various dimensions SAMPLING: The questionnaires were handed to the sales managers and relationship officers in the organization. The sample size is 30. Questionnaires were handed to the samplers and collected within a week. The study was undertaken in Kotak Life Insurance for 45 days. Data analysis method: The results collected from the various sources were then scrutinized and expressed in the form of graphs to be amenable for further analysis. All the conclusions were drawn based on a detailed analysis of the collected data.

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DATA ANALYSIS
1. How is the relation between the management and the employees?

Relation

moderate good bad

70% of the total samplers responded that the relationship between the management and employees is good. It is analyzed that majority of the employees in the organization are happy with the relationship between the management and employees.

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2. My colleagues are cooperative and helpful

70 60 50 40 Series1 30 20 10 0 SA A CS DA SDA

From the sample of 30 employees, 60% of the samplers agreed that their coemployees are co-operative and helpful.

50

3. My superior is approachable and understanding

70 60 50 40 Series1 30 20 10 0 SA A CS DA SDA

The 60% of total samplers strongly agreed, 40% of samplers agreed that the superior in the organization is approachable and understanding.

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4. My job provides personal satisfaction and sense of accomplishment

50 45 40 35 30 25 20 15 10 5 0 SA A CS DA SDA Series1

51.4% of samplers stated that their job is providing personal satisfaction and sense of accomplishment.

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5. Is the organization providing job security?

YES NO

47% of the respondents answered YES to the statement that organization is providing job security and 53% responded NO to the statement.

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6. If YES, mention in what way is it giving job security. It is analyzed form the total sample that 47% of samplers opinion is that organization is providing job security by implementing the following methods: Organization is trying to provide job security to employees by giving regular increments. Job security by giving promotions to the employees on the basis of their abilities in the organization.

7. If NO, mention the reasons. 53% of the respondents answered that the organization is not providing job security. By the analysis it is found that organization is not providing job security due to the following reasons. As Kotak Life Insurance is a private organization it is not in a position to provide any job security to their employees. Due to every day changing technology in the industry the organization is not able to provide job security to their employees.

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8. Training programmes are conducted for the employees

70 60 50 40 30 20 10 0 SA A CS DA SDA Series1

64% of the responders agreed to the statement that training programmes are conducted to the employees. So it is clear that organization is conducting training programmes to their employees. The organization needs to increase the number of training programmes to get 100% results from employees.

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9. Training programmes meet the personal needs of employees and objectives of the organization.

60 50 40 30 20 10 0 Series1

SA

A

CS

DA

SDA

From the total sample size 56.6% of samplers agreed that the training programmes meet the personal needs of employees and objectives of the organization.

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10. Efficiency and hard work are suitably rewarded

60 50 40 30 20 10 0 SA A CS DA SDA Series1

It is analyzed that 50% of responders agreed that the efficiency and hard work are suitably rewarded in the organization.

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11. Are there any recreational facilities.

YES NO

53.3% of samplers agreed that there are recreational facilities in the organization.

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12. Management adopts a good leave policy

80 70 60 50 40 30 20 10 0 SA A CS DA SDA Series1

The 69% of total sample strongly agreed to the statement that management is adopting good leave policy.

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13. You are involved in decision making process

50 45 40 35 30 25 20 15 10 5 0 SA A CS DA SDA Series1 Series2

46.6% of responders agreed that they would be allowed to involve in decisionmaking process.

60

14. There is a scope for advancement in the job

50 45 40 35 30 25 20 15 10 5 0 SA A CS DA SDA Series1

By analysis it observed that 63.4% of samplers opinion is that the organization need to adopt welfare measures.

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16. If yes, mention the welfare measures need to be adopted by the organization. The following are the welfare measures that the organization needs to adopt: 1. Medical facilities to the employees and their family members. 2. Transport facilities to the employees. 3. Educational facilities to the employee’s children. 4. Monetary benefits to the employees. 5. If these welfare facilities are provided to the employees they feel loyal towards the organization.

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17. Congenial working atmosphere in the organization.

60 50 40 30 20 10 0 SA A CS DA SDA Series1

From total sample size 40% strongly agreed, 56.6% agreed that in the organization there is a congenial atmosphere.

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18. The monetary incentives are satisfactory.

60 50 40 30 20 10 0 SA A CS DA SDA Series1

50% of the responders stated that monetary incentives giving by the organization are satisfactory.

64

19. Is positive stress (writing bonds) required for effective utilization of man power?

YES NO

60% of the samplers felt that for the effective utilization of manpower there is requirement of positive stress.

65

20. The implementation of suggestions given by the employers is a motivator towards better work.

60 50 40 30 20 10 0 SA A CS DA SDA Series1

From the total sample size 53.3% of the respondents strongly agreed that the implementation of the suggestions given by the employers is a motivator towards better work.

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21. In your opinion what are the reasons for the employees leaving the organization. The employees in the organization stated the following reasons for employees leaving the organizations. 1. Search of better jobs, better organization, and better salary 2. No provision of requisite training to handle the work process. 3. Inconvenience of traveling. 4. Lack of job security. 5. Management failure to meet the requirements of employees like providing basic facilities as bonus, increments and medical insurance facilities. 6. For further studies and also for personal reasons.

22. Mention five features in an organization where you would love to work. The sample of 30 employees stated that the following features in an organization where they love to work. 1. Congenial working atmosphere. 2. Providing job security 3. Scope for advancement in the job 4. Efficiency and hard work get rewarded 5. Co-operation and constant encouragement of employees by the management 6. Organization needs to maintain excellent quality standards and structure 7. Organization should provide basic amenities and benefits for the welfare of the employees.

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23. Suggest any welfare measures to avoid the problem of manpower leaving the organization. The following are the measures suggested by the employees to avoid the problem of manpower leaving the organization. 1. Organization needs to provide basic facilities to the employees 2. Improvement in the training program sessions will some extent support the employees to stay. 3. Maintaining good relationship between the management and employees. 4. Providing the job security. 5. Motivating and building self-confidence in employees. 6. Looking after the welfare measures.

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LIMITATIONS OF THE STUDY

1. The sample size is small. The questionnaire could not be administered to a larger sample due to resources and time constraint. 2. Personal biases tend to arise even after all precautions were taken, as the employees feel apprehensive to answer the questions in total honesty. 3. Also the questions in themselves may not suffice the cause for which this research is done.

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FINDINGS
1. The relation between the management and the employees is good. 2. The staff agreed to the statement “my colleagues are cooperative and helpful.” 3. The majority of the staff agreed that their superior is approachable and understanding 4. The staff reported that their job provides personal satisfaction and sense of accomplishment. 5. The organization does not offer job security 8. Training programmes are conducted for the employees 9. Training programmes meet the personal needs of employees and objectives of the organization. 10. Efficiency and hard work are suitably rewarded 11. Recreational facilities are provided to the employees. 12. Management adopts a good leave policy 13. The employees are involved in decision making process 14. There is no scope for advancement in the job

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15. The organization needs to adopt welfare measures such as medical and transport facilities to the employees and also monetary benefits to the employees. 17. There is congenial working atmosphere in the organization. 18. The monetary incentives are not satisfactory. 19. Positive stress (writing bonds) is required for effective utilization of man power. 20. The majority of employees strongly agreed that implementation of suggestions given by the employers is a motivator towards better work. 21. The following are the reasons for the employees leaving the organization. 1. Lack of basic facilities in the organization. 2. Search of better job and better pay. 3. Dissatisfaction with the job. 22. The following are the five features in an organization where one would love to work. 1. Good working conditions and good pay 2. Cooperation and coordination from co-employers. 3. Job security 4. Involving employees in the decision making process. 5. Challenge and competition in the work 23. The following are the measures to avoid the problem of man power leaving the organization. 1. Providing basic facilities to the employees 2. Up-gradation of policies and positive motivation. 3. Regular training programmes and tours outside the working place.

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CONCLUSION
Kotak Life Insurance is an organization where the relationship between the management and employees is good and the superior is approachable. The management is conducting training programmes to the employees to meet the employee’s personal needs and also to achieve the objectives of the organization. But the root causes for manpower leaving the organizations are search for a better pay and better organization, lack of job security, lack of basic facilities in the organization, no proper training to the employees to achieve their targets and less scope for advancement in the job. It is concluded that the above may be some of the reasons for which the employees in Kotak Life Insurance are leaving the organization.

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RECOMMENDATIONS
The management is advised to provide welfare facilities such as medical, transport, education, monetary benefits to employees so that they feel loyal towards organization and employee mobility or employees leaving the organization can be reduced. The organization is advised to conduct exit interviews when employee calls for last pay. Especially when employees are invited to express their feelings about the job and work situation that they are leaving, the manner and nature of their response may yield useful insights. To reduce the employee separations, many works-related factors are suggested that could be effected human resource activities. These factors include pay, role clarity, satisfying work, improved supervision and improved co-worker relationships. Monotony in the organization work leading to heavy physical and mental stress very often causes employees to stay away from work, so to break their monotony or boredom the management is advised to implement more recreational facilities so that the separation rates can be reduced.

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ANNEXURE
Questionnaire for root cause analysis of manpower leaving the organization Name(optional): Qualification: Designation: Department: Total years of experience: Note: Put a tick mark against the option, which you think is correct. SA: Strongly Agree A: Agree CS: Cant say DA: Disagree SDA: Strongly disagree 1. How is the relation between the management and the employees? a) Moderate b) Good c) Bad 2. My colleagues are cooperative and helpful a) SA b)A c)CS d)DA e)SDA

3. My superior is approachable and understanding a) SA b)A c)CS d)DA e)SDA

4. My job provides personal satisfaction and sense of accomplishment a) SA b)A c)CS d)DA e)SDA

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5. Is the organization providing job security. a) Yes b)No

6. If YES, mention in what way is it giving job security.

7. If NO, mention the reasons.

8. Training programmes are conducted for the employees a) SA b)A c)CS d)DA e)SDA

9. Training programmes meet the personal needs of employees and objectives of the organization. a) SA b)A c)CS d)DA e)SDA

10. Efficiency and hard work are suitably rewarded a) SA b)A c)CS d)DA e)SDA

11. Are there any recreational facilities. a) Yes b)No

12. Management adopts a good leave policy a) SA b)A c)CS d)DA e)SDA

13. You are involved in decision making process a) SA b)A c)CS d)DA e)SDA

14. There is a scope for advancement in the job a) SA b)A c)CS d)DA e)SDA

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15. Does the organization need to adopt any welfare measures. a) Yes b)No

16. If yes, mention the welfare measures need to be adopted by the organization. 17. Congenial working atmosphere in the organization. a) SA b)A c)CS d)DA e)SDA

18. The monetary incentives are satisfactory. a) SA b)A c)CS d)DA e)SDA

19. Is positive stress (writing bonds) required for effective utilization of man power? a) Yes b)No

20. The implementation of suggestions given by the employers is a motivator towards better work. a) SA b)A c)CS d)DA e)SDA

21. In your opinion what are the reasons for the employees leaving the organization.

22. Mention five features in an organization where you would love to work.

23. Suggest any measures to avoid the problem of man power leaving the organization.

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BIBLIOGRAPHY

Paul Pigors, Charles Myers A. Personnel Administration, A point of view and a method, ninth edition Page No 217-222 Mamoria C.B. Personnel Management Third edition Page No 302 to 305 George Milkovich T., John Boudreau W., Personnel/Human resource management, fifth edition Page No 456 to 459 and 461 to 463. www. Kotak.com

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