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A PROJECT REPORT ON

EMPLOYEE RETENTION ON BLUE STAR LIMITED

SUBMITED TOWARDS PARTIAL FULFILMENT OF

MASTER OF BUSINESS ADMINISTRATION


SUBMITTED BY VIKAS THAKRAN
FACULTY GUIDE: MRS. RAJEETA DIXIT PROFESSOR INSTITUTE OF MANAGEMENT PUNE. INDUSTRY GUIDE: MR. DEEPAK JAIN REGIONAL HEAD BLUE STAR LTD.

BHARTI VIDYAPEETH UNIVERSITY, PUNE

CERTIFICATE OF COMPLETION This is to certify that Mr.VIKAS THAKRAN is a bonafide student of MBA program of the university in this institute for the year 2009-2011. As a part of the University curriculum, the student has completed the project report titled Market Research for Analyzing The Potential Of Revamp/Repair Business With Old Installation Of Blue Star Ltd..The project report is prepared by the student under the guidance of PROF RAJITA DIXIT. (Teacher Guide) Date: Place: Pune Program Co-coordinator Director

DECLARATION
I, Vikas Thakran, hereby declare that this project report titled as Market Research for Analyzing The Potential Of Revamp/Repair Business With Old Installation Of Blue Star Ltd., Focus- NATION CAPITAL REGION, is my original work under the guidance of Mr. Deepak Jain, towards partial fulfillment of the requirements for the MBA course of Institute of Management & Entrepreneurship Development, Pune. I also affirm that the information given in this report is materialized and authentic.

Place: - Pune Date: -

VIKAS THAKRAN

ACKNOWLEDGEMENT
First and foremost, I extend my deepest thanks to Mr. Deepak Jain for giving me this opportunity to work in such a prestigious organization as well as for giving me a wonderful live project. He has been a perfect guiding force and source of inspiration throughout the tenure of the project. Without his constant guidance and feedback, I would have never been able to complete the project in the manner that I did. I wish to express my gratitude to our director Mr. Nitin Nayak of IMED for having offered me an opportunity to work on this project. I also express my sincere thanks to Mrs. Rajeeta Dixit , my project guide and to the Staff Members of Blue Star Ltd. who assisted me in completing this project work. Two months with Blue Star Ltd. has been full of learning and sense of contribution towards the organization. I would like to thanks Blue Star Ltd. for giving me an opportunity of learning and contributing through the project. I also take this opportunity to thank all those people who made my experience a memorable one.

Executive Summary
Job satisfaction represents the constellations of persons attitude towards or about the job. In general, job satisfaction is the attitude towards the job as a whole. Job satisfaction is a function of satisfaction with different aspects of job, i.e. supervision, pay, works itself, co-workers, promotion, etc., and of the particular weighting or importance one attaches to these respective components. Employee job Satisfaction was a much popularized subject during the 1980s and 1990s, where much of the literature (Stoner & Wankel, 1986; Brewster, Dowling, Grobler, Holland & Warnich, 2000), focused on the link between Employee Satisfaction and Employee Performance. Subsequent research has, however, proven that this link is not particularly strong, (Kreitner & Kinicki, 2005; Ivancevich & Matteson, 2002). What recent research has confirmed is that there is a clear reciprocal relationship between Employee Satisfaction and Customer Satisfaction (Kraut, 1996). For example, one of the most detailed studies undertaken was that carried out by Heskett, Sasser and Schlesinger (1995). The authors point out that, When companies put employees and customers first, their employees are satisfied, their customers are loyal, their profits increase, and their continued success is sustained (as cited in Bailey & Dandrade, 1997). The concept of Employee Satisfaction can be traced back to Edward Thorndike, who in the early 1900s published an article in the Journal of Applied Psychology where he explored the relationship between work and satisfaction. The concept of Employee Satisfaction has certainly been researched very thoroughly over the years and has been linked to many other issues like employee loyalty, employee commitment, employee engagement and job satisfaction. One of the most quoted theorists is Hertzberg who during the 1950s developed his theory which identified two dimensions of satisfaction, namely motivation and hygiene. Hertzberg maintained that the hygiene factors could not motivate employees but rather helped minimize dissatisfaction levels if addressed. These hygiene factors include topics such as; company policies, supervision, salary, interpersonal relationships and working conditions. The motivating factors addressed topics such as: the work itself,

achievement, recognition, responsibility, and advancement. If continuously good levels are maintained in respect of these topics, a motivated work force is created. Modern management considers human being as resource and it is an importance for the success of any organization. It is the strength and aid. Therefore employees attitudes, interest quality, job satisfaction, etc., have a bearing productivity of a firm unless the management is able to recognize employees needs and wants they will lose motivation and morale and it will affect the best interest of the firm. Work is one of the most important activities in a persons life .Who do have satisfying job rarely have fully satisfying lives. Dissatisfaction in work can lead in many circumstances to lower production and friction on the job. So that it must be considered by the management and steps should be taken to find out the factors which cause job dissatisfaction and to reduce such dissatisfaction. In general employee satisfaction is the attitude towards the work environment, salary, relationship with their colleagues, job security, grievance handling, performance appraisal, training and development, management style, quality policy, career counseling and so on. In this project factors that are taken into consideration for the employee satisfaction are: Work Environment: Work environment is the atmosphere to which the employee is actually exposed. This constitutes a major portion of the influence on the employees. This typically included the quantum of work allotted, nature and complexities, system being followed, support from colleagues etc. Relationship with the Superiors and Subordinates: Healthy and cordial relationship in the department will not only provide healthy environment but also paves way for smooth flow of work, increases productivity and qualitative performance. Relationship with Colleagues: Better understanding and friendly relations with colleagues is necessity for a good environment. Joining hands together and helping each other enhance stability and

confidence among themselves that contributes to the security and improve performance as a whole. Motivation and Recognition: The level of performance of an employee is a function of his abilities. If there is a strong positive motivation, the output increases and decreases if it is negative. Motivation is a core element of management which shows that every human being earnestly seeks a secure, friendly and supportive relationship that gives him a sense of warmth and recognition in groups that are most important to him. Salary: Salaries are influenced by the size of the company, by a specific industry and in part by the contribution of the incumbent to the process of decision making. The bigger the firm, the greater is the compensation to the employees. The more attractive the salary, the more attractive will be the performance of the employees. Job security: A person who is satisfied with the current job would continue to remain in the same job. So job security plays a crucial role in the maintenance of job satisfaction among employees. Grievance handling: This is a corrective measure however important when grievances or difficulties or constraints enter in on employees job. The approaches of management, time taken to provide counter measures etc are the constraints of this factor. Performance appraisal: Most firms do not have a choice whether or not it should appraise its personnel and their performance of the hired personnel will be evaluated by someone at sometime. Management practices: The approach of the management towards employees in the interfaces like appraisal and reward schemes, permitting employees in the interfaces like appraisal and reward schemes, permitting employees to participate in the organizational issues etc, is also determining the employee satisfaction. This company has set employee of the year award

etc, ensures positive management approach. These approaches have made the employees to have a good view over their job. Opportunities for development: This is a factor strongly related to the higher order needs of the employees on their personal development. Many people like a challenging job, since that assures them to think and undergo series development measures. This factor is an essential one for satisfaction of permanent employees. Quality policy: Quality is a core concept that rules todays business. It is a non comprising factor of any industry in todays business world. Companies would adopt themselves to the recognize quality standards to sustain in the market and to provide a better working condition to the employees and job security. The study on employee satisfaction is relatively recent phenomenon. It can perhaps be said to have begun in earnest with the famous Hawthrone experiment conducted by Elton Mayo at western electrical company in 1920s. During the course of their investigation, however they became Convinced that the factors of social nature were affecting employee satisfaction with the job and productivity. Since the Hawthrone studies, there has be enormous output of work on the nature, causes, correct employee satisfaction. The traditional model of employee satisfaction is that it consists of training and development, salary, management style, quality policy than an individual has about his work. The total body of influence of the job, the nature of the job itself, the pay, the promotion prospects, nature of supervision and so on, where the sum total of influences gives to rise to the feeling of employee satisfaction, the employee is satisfied, where in total, they give rise to psychological and environmental circumstances that cause a person truly to say I am Satisfied. Employee satisfaction means a pleasurable positive emotional state resulting from the appraisal of ones feelings. This research named A Study on employee welfare in BLUE STARanticipates identifying the various factors and the extent to which they affect the satisfaction level of the employees.

Employee satisfaction and welfare is very crucial for every organization because higher satisfaction level and welfare of the employee have a positive impact on productivity, performance, and individuals physical and mental health, profitability, improve quality of products or services and reduce absenteeism, employee turnover, dispute between labour and management. This gives a competitive edge to the company over its competitors. The study tries to cover each and every factor that effect employee welfare and satisfaction level, weather it is HR policies (recruitment policy, promotion policy, compensation policy etc.) and HR practices (training and development, performance appraisal, motivation techniques etc.) or some other personal factor (gender, age, qualification etc.). The research includes each and every factor because even a single factor can lower satisfaction level and moral of the employee, which in turn leads to absenteeism, accidents, low productivity etc. and ultimately effect the organizational goal. The research will help the company to gain the benefits of higher employee satisfaction level and have a competitive edge over its competitors. Area of study The area of the study is the branch office of the BLUE STAR, lUCKNOW u.P. Scope of the study The scope of the study extends from middle hierarchical level (senior sales executives) to upper hierarchical level (Managers) of the company, so it is a comprehensive study. Objectives of the study The objective of conducting such research is to know reasons of employees exit of BLUE
STAR. Further it will also help to know the various job related and personal factors and

their extent to which they affect the satisfaction level of employees, so that meaningful conclusions and suggestions could be made in order to make the human resource policies and practices of the company more effective and efficient.

Research methodology The research includes both primary and secondary data. The information from the respondents
BLUE STARand secondary data is collected from the books.

is

collected through questionnaire. The primary data was collected form employees of the The sample size is 60 and samples are selected on the basis of convenient from every department of the company. Questions are framed in such a way that the answers reflect the ideas and thoughts of the respondents with regard to level of satisfaction. For job related factors like scale (five rating scale) is used in which respondents are required to show their level of satisfaction from 1 to 5 (1= Strongly Agree, 2= Agree, 3= Neutral, 4= Disagree, 5=Strongly Disagree) and for personal factor simple category scale is used and respondents are required to tick at the appropriate box. Some facts revealed in the study are bases on personal observations also. Tools of interpretation and analysis Here the simple percentage analysis is used for calculating the percentage of satisfaction level in the total respondents and data is presented in the form of tables and bar diagrams.

Limitations of the study The study is also subjected to certain limitations such as, sample is limited to 20, findings and conclusions are based on knowledge and experience of the respondents sometime may subject to personal biasness and research study was being done in the year June 2010, with required data analysis and interpretation, the data needs to be updated at times when it comes to have further usage of this research study report. Despite the above limitations I tried my best through the entire study to provide a comprehensive, complete and detailed report, so that it can help the organization to take appropriate decisions for the welfare and satisfaction of its employee while giving due consideration to its goals and objectives.

HUMAN

RESOURCE

MANAGEMENT

For any business to run one needs four Ms namely Man, Money, Machine and Material. Managing other three resources other than men, are easy to handle. Men are very difficult to handle because no two human beings are similar in all way. Human beings can think, feel and give response. Handling humans is more important for any business because human being have crucial potential that may be very profitable for the business. And these potential can be developed to an unlimited extent if they are provided with proper environment. So the function of managing men is as important as finance or marketing function in any business. Human resource management (HRM) is the strategic and coherent approach to the of management an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. Human Resource management is evolving rapidly. Human resource management is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce.
The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford part- or full-time help. However, they should always ensure that employees have -- and are aware of -- personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have

HRM refers to practices and policies framed for the management of human resources in an organization, including Recruiting, screening, rewarding and appraising. Human resources have at least two meanings depending on context. The original usage derives from political economy and economics, where it was traditionally called labour, one of three factors of production. The more common usage within corporations and businesses refers to the individuals within the firm, and to the portion of the firm's organization that deals with hiring, firing, training, and other personnel issues. This article addresses both definitions. The objective of Human Resources is to maximize the return on investment from the organization's human capital.

HRM is seen by practitioners in the field as a more innovative view of workplace management than the traditional approach. Its techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce and to provide the resources needed for them to successfully accomplish their assignments. As such, HRM techniques, when properly practiced, are expressive of the goals and operating practices of the enterprise overall. HRM is also seen by many to have a key role in risk reduction within organizations.

The HRM function and HRD profession have undergone tremendous change over the past 20-30 years. Many years ago, large organizations looked to the "Personnel Department," mostly to manage the paperwork around hiring and paying people. More recently, organizations consider the "HR Department" as playing a major role in staffing, training and helping to manage people so that people and the organization are performing at maximum capability in a highly fulfilling manner.

THE SCOPE OF HRM is indeed very vast. All major activities in the working life of a worker-from the time of his or her entry into the organization until he or she leaves- come under the purview of HRM. Specifically, the activities include are HR Planning Job analysis and design Recruitment and selection Orientation and placement Training and development Performance Appraisal and Job evaluation Employee and executive remuneration Employee Motivation Employee Welfare

It is the responsibility of human resource managers to conduct these activities in an effective, legal, fair, and consistent manner. "Human resource management aims to improve the productive contribution of individuals while simultaneously attempting to attain other societal and individual employee objectives." Schwind, Das & Wagar (2005).

Employee Retention
Effective employee retention is a systematic effort by employers to create and foster an environment that encourages current employees to remain employed by having policies and practices in place that address their diverse needs. A strong retention strategy becomes a powerful recruitment tool. Retention of key employees is critical to the long-term health and success of any organization. It is a known fact that retaining your best employees ensures customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective succession planning and deeply imbedded organizational knowledge and learning. Employee retention matters as organizational issues such as training time and investment; lost knowledge; insecure employees and a costly candidate search are involved. Hence failing to retain a key employee is a costly proposition for an organization. Various estimates suggest that losing a middle manager in most organizations costs up to five times of his salary. Intelligent employers always realise the importance of retaining the best talent. Retaining talent has never been so important in the Indian scenario; however, things have changed in recent years. In prominent Indian metros at least, there is no dearth of opportunities for the best in the business, or even for the second or the third best. Retention of key employees and treating attrition troubles has never been so important to companies. In an intensely competitive environment, where HR managers are poaching from each other, organisations can either hold on to their employees tight or lose them to competition. For gone are the days, when employees would stick to an employer for years for want of a better choice. Now, opportunities abound.

R EMUNERATE COMPETITIVELY E -NCOURAGEMENT AND EXPECTATIONS T RAINING AND DEVELOPMENT A -NNUAL REVIEW CYCLES I - NFORM AND INVOLVE N URTURE

It is a fact that, retention of key employees is critical to the long-term health and success of any organization. The performance of employees is often linked directly to quality work, customer satisfaction, and increased product sales and even to the image of a company. Whereas the same is often indirectly linked to, satisfied colleagues and reporting staff, effective succession planning and deeply embedded organisational knowledge and learning. Employee retention matters, as, organizational issues such as training time and investment, costly candidate search etc., are involved. Hence, failing to retain a key employee is a costly proposition for any organization. Various estimates suggest that losing a middle manager in most organizations, translates to a loss of up to five times his salary.

The Importance of Retaining Employees


The challenge of keeping employees: Its changing face has stumped managers and business owners alike. How do you manage this challenge? How do you build a workplace that employees want to remain with and outsiders want to be hired into? Successful managers and business owners ask themselves these and other questions because simply putemployee retention matters: High turnover often leaves customers and employees in the lurch; departing employees take a great deal of knowledge with them. This lack of continuity makes it hard to meet your organizations goals and serve customers well.

Replacing employees costs money. The cost of replacing an employee is estimated as up to twice the individuals annual salary (or higher for some positions, such as middle management), and this doesnt even include the cost of lost knowledge.

Recruiting employees consumes a great deal of time and effort, much of it futile. Youre not the only one out there vying for qualified employees, and job searchers make decisions based on more than the sum of salary and benefits.

Bringing employees up to speed takes even more time. And when youre short-staffed, you often need to put in extra time to get the work done.

The Three Rs of Employee Retention

To keep employees and keep satisfaction high, you need to implement each of the three Rs of employee retention: respect, recognition, and rewards. Respect is esteem, special regard, or particular consideration given to people. As the pyramid shows, respect is the foundation of keeping your employees. Recognition and rewards will have little effect if you dont respect employees. Recognition is defined as special notice or attention and the act of perceiving clearly. Many problems with retention and morale occur because management is not paying attention to peoples needs and reactions. Rewards are the extra perks you offer beyond the basics of respect and recognition that make it worth peoples while to work hard, to care, to go beyond the call of duty. While rewards represent the smallest portion of the retention equation, they are still an important one. You determine the precise methods you choose to implement the three Rs, but in general, respect should be the largest component of your efforts. Without it, recognition and rewards seem hollow and have little effector they have negative effects. The magic truly is in the mix of the three. Rewards Recognition Respect

When you implement the three Rs approach, you will reduce turnover and enjoy the following: Increased productivity Reduced absenteeism A more pleasant work environment (for both employees and you!) Improved profits

Furthermore, an employer who implements the three Rs will create a hard-to leave workplace, one known as having more to offer employees than other employers. You become a hard-to-leave workplaceone with a waiting list of applicants for any position that becomes availablepurposefully, one day at a time.

A steadfast philosophy that sets Employee Retention Strategies apart:


Uses only research-based, theory-supported approaches to improving employee engagement. Avoided are gimmicks such as employee of the month, suggestion boxes, prizes or other carrots. While commonly used, these short-term fixes fail to produce genuine employee loyalty (more than 60 years of research tells us so!). Employs an easy-to-understand systems approach to ensure the root causes of turnover are addressed and the potential for lasting change unleashed. Customizes all activities to your organizations unique history, current practices and strategic objectives. Also considered are challenges unique to your industry sector, competitive marketplace issues and talent shortages. Involves those responsible for implementing change in actually creating the change, ensuring input and improved shared understanding and support of all initiatives. Integrates hands-on, action-oriented approaches that enable organizations to move forward quickly and effectively Recognizes the research-proven role of no-cost strategies in developing the glue that builds employee loyalty and commitment.

Brings to your organization leading-edge organization-development best practices to effectively and quickly build a retention-rich culture.

10 WAYS TO RETAIN YOUR EMPLOYEE


Retaining key personnel is critical to long term success of an organization. A Retention Strategy has become essential if your organization is to be productive over time and can become an important part of your hiring strategy by attracting the best candidates who know of your track record for caring for employees. In fact, some companies do not have to recruit because they receive so many qualified unsolicited submissions due to their history of excellence in employee retention.
1. Treat your employees like you treat your most valuable clients; 2. Get your employees to "Fall in Love" with your organization; 3. Strong retention strategies become strong recruiting advantages; 4. Retention is much more effective when you put the right person into the right job. Know the job! Know the employee and their motivations; 5. Money is important but it is not the only reason people stay with an organization; 6. Employee committees to help develop retention strategies is a very effective strategy; 7. Leadership must be deeply invested in retention; 8. Recognition, in various forms, is a powerful retention strategy; 9. Remember, the "Fun Factor" is very important to many employees; & 10. Know the trends in benefit packages. Do your best to offer the ones your employees need

10 Factors That Affect Employee Retention


Most managers understand the importance of employee retention and its impact on the overall health and vitality of an organization. The importance of retaining top organizational talent will only increase over the coming years as the massive cohort of baby boomers begin to reach retirement age making it easy for younger employees to find work.

In a previous article we identified some useful tips to help improve employee retention in your organization. Given the importance of employee retention, we have compiled another list of 10 important factors that can affect employee retention in your organization

Shorten the feedback loop Do not wait for an annual performance evaluation to come due to give feedback on how an employee is performing. Most team members enjoy frequent feedback about how they are performing. Shortening the feedback loop will help to keep performance levels high and will reinforce positive behavior. Feedback does not necessarily need to be scheduled or highly structured; simply stopping by a team member's desk and letting them know they are doing a good job on a current project can do wonders for morale and help to increase retention. Offer a competitive compensation package Any team member wants to feel that he or she is being paid appropriately and fairly for the work he or she does. Be sure to research what other companies and organizations are offering in terms of salary and benefits. It is also important to research what the regional and national compensation averages are for that particular position. You can be sure that if your compensation package is not competitive, team members will find this out and look for employers who are willing to offer more competitive compensation packages.a Balance work and personal life Family is incredibly important to team members. When work begins to put a significant strain on one's family no amount of money will keep an employee around. Stress the importance of balancing work and one's personal life. Small gestures such as allowing a team member to take an extended lunch once a week to watch his son's baseball game will likely be repaid with loyalty and extended employment with an organization. Beware of burnout Staff adequately to reduce the amount of unwanted overtime a team member must work. Some employees enjoy the extra money that accompanies overtime hours, while others would rather spend their time with their families or doing other activities they enjoy.

Burnout can be a leading cause of turnover. Recognize the warning signs and give employees a break when they need it.

Provide opportunities for growth and development Offer opportunities for team members to acquire new skills and knowledge useful to the organization. If an employee appears to be bored or burned out in a current position offer to train this individual in another facet of the organization where he or she would be a good fit. Nobody wants to feel stuck in their position will no possibility for advancement or new opportunities. The ability to provide input and be taken seriously Everybody has opinions and ideas, some are better than others. However every team member wants to feel that their input is welcome and will be taken seriously without ridicule or condescension. Some of the greatest ideas can come from the most unlikely of places and people. Creating a culture where input is welcome from all level of the organizational chart will help your organization grow and encourage employee retention. Management must take the time to get to know team members It's not a big surprise that one of the greatest complaints that employees express in exit interviews is a feeling that management didn't know they existed. Nobody wants to feel like just another spoke in a big wheel. Managers are very busy - everybody is busy, but it is crucial that managers and supervisors take the time get to know the team members who work under them. Learn and remember a team member's name, what skills and talents they bring to the table, and what their business interests are. The time spent by management getting to know team members is well invested and can eliminate the headaches caused by having to continually hire and re-train new employees. Provide the tools and training an employee needs to succeed Nothing can be more frustrating to an employee than a lack of training or the proper tools to successfully complete his or her duties. You wouldn't try to build a house without a hammer, so why should an office job be any different? Providing a team member with the tools and training she needs to be successful shows a commitment and investment in that employee and will encourage the team member to stay with the organization.

Make use of a team member's talents, skills, and abilities All team members have knowledge, skills, and abilities that aren't directly related to their job description, but are still useful to an organization. Utilizing a team member's talents in areas other than their current position will indicate to an employee that management appreciates and recognizes all that an employee has to offer to the organization. This can also provide work variety and helps to break up the everyday grind of work. Never threaten a team member's job or income While threatening an employee with termination or demotion might seem like a surefire way to get the results needed from him or her, doing so will likely cause the employee to leave the organization. Put yourself in the employee's shoes, what is the first thing you would do if your job was threatened? Odds are you would probably update your resume and start checking for open job postings expecting the worst. If a team member's performance is not what you had hoped it would be, work with that team member on ways to improve his performance, saving termination only as a last resort. Take some time and seriously evaluate what your organization is doing to encourage a high retention workforce. Having a seasoned and well trained workforce can deliver a competitive advantage that is difficult to replicate. The best part is most of your efforts to retain your employees come free or with little charge and offer huge returns on a manger's investment in time and resources.

REASONS

FOR

EMPLOYEE

TO

STAY

WITH

THE

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

Listening Factor- Are they heard and valued?

FACILITIES RENDERED BY BLUE STAR


COMPANY LEASED HOUSE Company will arrange the house through an authorized real estate agent as per the choice of the employee. Security deposit by company. 12% percent Interest will be charged on deposit amount. The same will be debited in CTC. Rent would be exempted from income tax. 10% Perquisite Tax would be charged to the employee on his taxable income.

COMPANY OWNED ACCOMODATION No deposit no interest. Rent would be calculated @ 11 rupees per Square feet. Monthly rental would be charged to CTC Rental Amount will be exempted from tax 10% perquisite tax would be charged on employee. Security Deposit HRA House Rental Allowance HRA can be maximum 40% of Basic Salary. Deposit and rent has to be paid by employee by self

To get the tax exemption the employee has to produce the rental agreements and rental receipts of the house. The employee cant claim this benefit if He/She has his own house.

OFFICE WEAR ALLOWANCE An amount of Rs.18, 000 P.A. is exempted for income tax. To get the exemption original bills to be submitted. Items covered under this head are as follows: Attire (2) Ties (3) Shoes (4) Socks (5) Tailoring charges

LTA - LEAVE TRAVEL ALLOWANCE An Employee can block two months of Basic Salary as Leave Travel Allowance. He/She should take a minimum of 5 days leave (PL). In case of air travel-economy class fare is exempted and in case of rail travel second class AC fare is exempted. CAR Company will arrange a car through a car lease agency. Employee can choose any make/model. The EMI that will be charged would be Rs. 2095/- per Lac per month. The EMI amount per Annum would be exempted from Income Tax. He/She can travel within India only. He/She has to produce the original travel tickets.

MAINTENANCE & RUNNING COST

Maintenance and Fuel Cost will be exempted as follows. Maintenance cant exceed Rs. 25, 000 per annum. If CC of the car is less than 1000 Rs. 1, 11,000 per annum. If CC of the car is more than 1000 Rs. 1, 50,000 per annum. The perquisite Tax charged would be Rs. 1200 irrespective of the cc of the car The above exemption would be provided on submission of original bills. There would be no tax exemption against if the employee has his own car.

The FBT Tax (Fringe Benefit Tax) for fuel and maintenance is 6.73% on how much you have opted for. At the time of leaving CO. before 48 months then the employee has to pay FCV (For Closer Value) to the company from whom the loan is taken. If the employee is still stays after 48 months then employee will be charged 20% on the value of the car at that time for changing the name i.e. ownership.

CHILDREN EDUCATION ALLOWANCE Employee can claim exemption Rs. 2400 per year. This exemption is restricted up to two children. To pass the claim Employee has to submit the original bills. To get this benefit child age should be greater then 3.5 years.

GIFT COUPONS A sum of Rs. 5000/- would be exempted against the Gift Coupons. The company would provide coupons worth Rs. 5000/- during the months of October & November. Validity of this coupons is one year This coupon is accepted at major outlets in city. FBT Tax 16.67% is charged.

CONVEYANCE ALLOWANCE If the employee is not using companys car then and only then he can claim this option. To getting the exemption bills are not required. Conveyance allowance is up to Rs. 800/- per month.

FOOD COUPONS The Company gives SODEXO passes in term of Food Coupons. Food coupons are provided on monthly basis of Rs. 1300. A sum of Rs. 15600 per annum will be exempted from the income tax.

MEDICAL ALLOWANCE The employee gets an exemption of Rs. 15000 p.a. But to get exemption the employee must submit original bills.

HOUSE RENT ALLOWANCE Maximum 40% of basic salary can be calculated as HRA. But if employee owns the house in another state then he/she can ask for HRA and also opt for Company Leased House. SUPERANNUATION 13-15% of basic salary is transferred to trust. It can be given to employee only after the completion of 5 years with the company. The money is collected by a trust. To withdraw the money the employee has two options, either he can take the money monthly or he can take the money after 5years.

SPECIAL PERSONAL ALLOWANCE Any amount which exceeds the limits of each allowance can be transferred under this head. SPA is fully taxable as per income tax rules.

LEAVES There are four types of leaves available with the employees. PAID LEAVE CASUAL LEAVE SICK LEAVE OPTIONAL LEAVE

Additional Information: No leaves can be clubbed with another leave. Minimum 90 days leave should be in balance for the encashment of leaves. PAID LEAVE There are 30 days PL available with the employee after the conformation. The PL is available after 180 days from the date of joining. The employee can take only 3-5 PL at a single time CASUAL LEAVE There are 5 days CL available to an employee from the date of joining. The employee can take 1-3 days CL at a time. SICK LEAVE There are 10 days SL available to an employee from the date of joining.

The employee has to submit doctors certificate if the leave extends to 2 days. OPTIONAL LEAVE There are 3 days OL available to an employee from the date of conformation.

JOINING FACILITATION Joining Day is the day when an employee recruited on the payrolls of the company. The HR Rep. should be in constant touch with the candidates till the date of joining. Collect the information from the candidate regarding the date and mode of arrival to the location of joining. Arrange for pick-up of the joinee & family from the station/airport and take them to the hotel as per the requirement. If pick-up arrangement cant be arranged then give complete address/directions to the hotel & the office to joinee. HR Rep. should give a brief introduction to the new joinee on the following: Geography of the Location/City/Town. Organization Structure. Status of the Project/Operations of the circle. Role of the employee.

RESIDENTIAL & MOBILE TELEPHONE Residential & Cellular Phone are allotted to employee based on the role and responsibility level and should not be treated as Perquisite. The Residential & Cellular Phone provided by the company will be on the name of company. Circle / Business Entity Head can take any of the following decisions with respect to Residential Telephone Connection:

Obtain the telephone connection on priority basis by paying higher amounts. Provision of STD / ISD Facility. Reimburse only Telephone Rental expenses. Reimburse the Local Call Expenses. Reimburse expenses related to only official calls. Reimburse all expenses including Long Distance Calls.

ALLOTMENT OF DESKTOP PC / LAPTOP

All full time permanent employees who will be available at their office desk for more than 80% of the working hours on daily basis will be provided with a desktop PC on their workstation. The circle/Business Entity head can take decision to allotment of Lap Top in lieu of desktop PC based on the role of the employee. INDUCTION Induction is also called orientation, which is designed to provide a new employee with the information he or she needs to function comfortably and effectively in the organization.

Using the Wheel to Improve Employee Retention

KEi's Employee Retention Strategy is based upon two primary beliefs: (1) It is difficult for employers to retain good employees if they don't have a process to hire the right people in the first place. (2) Retention processes must directly support the reasons that successful, satisfied employees stay.

KEi's concentration on the center of the Employee Retention Wheel provides employers with Internet-based tools that give employees systematic, ongoing support to be successful in their work and satisfied with their employment.

The Center of KEi's Employee Retention Wheel: EIGHT FACTORS


Definition of successful: my job is helping me to grow personally, professionally and financially. Definition of satisfied: my employer is providing what I need to perform my job successfully. These eight central processes of the Employee Retention Wheel are the factors that are most critical to an employee's job performance success. ATTITUDE FOR EMPLOYING A process to clearly define the way supervisors are expected to interact with employees; a process to give employees a way to express what is most important to achieve job success; and a process to give employers a way to demonstrate "Employing Values" through employment policies. This "Employer Mission Statement" is about how and who you hire, how you treat them, and the organization's values as an employer. It is about making sure that the Values for Employing are communicated to your employees and consistently implemented throughout your organization. It is about the total employment package that goes beyond salary and traditional benefits.

FINDING CANDIDATES A process that gives employers a comprehensive way to communicate to job seekers what it takes to achieve short-term and long-term job success, and to

attract the candidates who fit this criteria. SORTING APPLICANTS A process that gives employers a way to confirm whether the attitudes and behaviors of job seekers are a match for their work environment. CHOOSING EMPLOYEES A process that gives employers a way to define the specific interview questions that prove job seeker abilities to successfully perform the target skills; and a process that gives employers a way to verify the accuracy of resume/application data and interview responses. STARTING EMPLOYEES A process that provides a way for new employees (before performing the job) to understand "why the employers business exists;" "what makes the business organization successful;" "why the employee's job exists;" and "what it will take for the employee to achieve job success." INFORMING EMPLOYEES A process that gives employers a way to provide essential information (from five critical information sources) that is needed by employees to make daily work decisions. IMPROVING EMPLOYEES A process that gives supervisors and employees a way to work together to build personalized plans for improving each employee's priority job skills; and a process that gives the employer a way to "deliver skills-improving training curriculum" and to "measure the learning effectiveness" from the training experiences. REWARDING EMPLOYEES

A process that gives employers a way to define and communicate exactly how individual employee salaries are determined; and a process that gives employers a way to provide employees with extra incentive income that is earned through the achievement of cash generating business goals.

10 WAYS TO RETAIN YOUR EMPLOYEE

Retaining key personnel is critical to long term success of an organization. A Retention Strategy has become essential if your organization is to be productive over time and can become an important part of your hiring strategy by attracting the best candidates who know of your track record for caring for employees. In fact, some companies do not have to recruit because they receive so many qualified unsolicited submissions due to their history of excellence in employee retention.

How do you get your employees to "fall in Love" with your organization? This is a great question. Some recently conducted research lists these Top Ten Strategies:

1. Treat your employees like you treat your most valuable clients. It is cheaper to keep your good employees than it is to hire and train new ones. Your top 20-25% should be courted as you would court and then service your top customers.

2. Get your employees to "Fall in Love" with your organization. Communicate your vision in a compelling way. Show everyone the role they have to contribute to this vision. Create opportunities for people to connect with each other for support and to improve communication in work teams.

Capture

the

Hearts

of

your

workforce

with:

Compelling

vision/Balance/Celebration-Fun Open Communication: Internal listening is a priority, multiple lines of communication (various channels.) This is essential for managing change in a positive way with less sabotage, anger, resistance, and fear. Create partnerships: Squash status barriers/Open the books/pay for performance (not titles), share the "bad" times the "good" times. Drive Learning: "Guarantee Employability," Encourage Life Long Learning (Train outside of job description). Loyalty comes from trusting your employees to develop their skills for the good of the company and for their needs for personal growth and satisfaction. Emancipate Action: Freedom to Fail, reduce bureaucracy, challenge the "status quo." Breathe life into your organization. Do not let your employees stagnate.

3. Strong retention strategies become strong recruiting advantages.

4. Retention is much more effective when you put the right person into the right job. Know the job! Know the employee and their motivations.

Half of the Fortune 500 companies are now using assessments to more fully understand each job and the soft skills that are required for top production within their specific company culture. These benchmarked skills are then compared against qualified applicants to help determine who will be successful in the position and fit well within their company's culture. These assessments are also used as a powerful professional development tool to enhance the training of continuous life-long learning (which is another powerful retention strategy.) Advanced Fibre Communication is beginning to use this assessment process in hiring.

5. Money is important but it is not the only reason people stay with an organization. If your compensation plan is in the top 20-30% of your industry, then money will often not be the reason why people leave.

6. Employee committees to help develop retention strategies is a very effective strategy. Get their input! Ask, what do people like about working here? What would you like changed to make your company a better place to work?

Some companies, such as Advance Fibre Communication (AFC), have recognized that the special engineers and technical experts that are the cornerstones of their business, require special attention. Victoria Perrault, VP of Administrative Services for AFC, says that her company has identified the top 25% of their staff and caters to these special people by meeting their financial

requirements and looking for the best package of benefits that these people will find most positive as incentives to stay. They even have employee committees that work as "focus groups" to determine why people stay at AFC and what they might want to see changed to make AFC an even better place to work.

7. Leadership must be deeply invested in retention. Management must be skillful communicating company policies in a way that creates "buy-in" from their staff and be open to employee input. Help create "ownership" in your employees. The companies with the best retention percentages are the same companies that are actively committed to retention. They know that is costs less to keep good people than to continuously have to replace unsatisfied employees and managers.

8. Recognition, in various forms, is a powerful retention strategy. It does not have to cost a lot. US Dept. of Labor - 46% of people leave their jobs because they feel unappreciated.

9. Remember, the "Fun Factor" is very important to many employees. Greg Peters, Past President and CEO of Mahi Networks in Petaluma, is one of many executives who reported that retention is often related to interpersonal

connections and amount of FUN in work teams. The FUN Factor is part of the generation of workers that use activities as stress management in highly charged production environments where long hours are required. Greg has encouraged Ping-Pong tournaments and basketball leagues for interpersonal interaction, fun, and stress management. Though not everyone can participate in physical activities, this sets the tone in a culture based on competition, health/well-being, and interactions that are inclusive beyond work.

10. Know the trends in benefit packages. Do your best to offer the ones your employees need. Consider offering the best of the rest.

Myths about Employee Morale Prevent Companies from Achieving Retention Success

Despite years of research that point to far different solutions, many companies use the wrong tactics when trying to improve employee morale, satisfaction and retention. These myths prevail, in part, because businesses have used these methods, however wrong, for a very long time and have become used to trying the same ideas. Myth #1: People most often leave a company for more pay. Exit interviews, conducted to learn why people leave an organization, contain some of Americas greatest fiction. People frequently say theyre leaving for more money because its the easiest reason to give. More often the causes leading to departure are related to issues that were unsatisfying in the job or the company. Typical issues that cause dissatisfaction are company policies and procedures, quality of supervision, working conditions, relationship with the immediate supervisor and salary. Yes, pay does matter. While research shows most people dont actually leave a job for more money, there are two important facts: Very-low-income workers will leave for more money because its a survival issue. For the rest of workers, the issue of money actually is about fairness. People become dissatisfied with pay when they feel it is unfair within the company, within the industry or when pay doesnt seem to match the amount or type of work required.

To increase employee satisfaction and retention, companies make more gains by working to improve whether people feel a sense of achievement, recognition, competence

and growth, whether there are choices about how work gets done and whether employees feel respected by management..

Myth #2: Incentive programs produce long-term profits and improve productivity and morale. So, who doesnt like free stuff? However, incentives such as gifts and cash bonuses for meeting speed and volume goals dont affect employee commitment. Theyre really a throwback to outdated management beliefs that workers must be coerced in order to work hard. All the extras dont add up to the real glue that creates employee commitment: the chance to learn and grow, meaningful work, good supervisors and respect and appreciation for a job well done. Incentives have been over-used particularly in the past decade, as management books touted the importance of improving recognition of excellent work. Yet, studies show that carrot-and-stick motivation actually does not pay off in long-term company profitability or employee satisfaction or retention. To the contrary, incentives can harm quality when employees aim for speed or other goals rather than quality.

Myth # 3: People dont want more responsibility.

They dont want more work if theyre already overloaded due to lean staffing; but people indeed want the opportunity to grow and develop their skills, advance their careers and have the opportunity for greater variety. Keep in mind what the research confirms: People do want to try new things, to feel skillful and to experience the personal satisfaction of higher levels of achievement. People dont need a job promotion in order to gain more responsibility. The same job can be broadened to include more variety, more contact with different parts of the organization and greater control over decisions on accomplishing work tasks.

Myth #4: Loyalty is dead. Not at all, though it is ailing in many organizations. People are seeking greater worklife balance than in the past, and employers have made great strides in providing more flexible hours and dress codes. Still, people seek to make a contribution, and organizations that provide healthy doses of the main satisfiers enjoy significantly lower turnover and higher morale. Profits are higher, too, according to recent research studies. Things have changed, indeed. Todays workers will, in fact, change careers and jobs much more often. When the economy is good, people have become much more at ease in changing companies, are more likely to acquire new skills and move to companies that offer greater chance to use more of their knowledge and more willing to take the risks of starting anew at another organization.

What has emerged in current management studies are that the same qualities that hold employees are the ones that best serve the customers: Employees who can make quick

decisions on behalf of the customer and the company; employees who have a broader scope of responsibility that allows them some freedom and leverage to solve customer problems; learning opportunities that give employees the skillfulness to address customer issues; and supportive management and supervisors who use any mistakes that occur as teaching opportunities.

Myth #5: Improving employee satisfaction is expensive. Research tells us the true satisfiers cant even be bought: career growth, meaningful work, respect and appreciation and being able to influence how work gets done. In these leaner times employers have the same opportunity to gain true loyalty despite lowered budgets. The trinkets and prizes given in recognition and rewards programs arent necessary ingredients for developing an engaged workforce. The glue that holds people is made of much different stuff: Management that listens and responds to employees ideas about improving service, supervisors who support peoples growth and initiative, training in how to do the job successfully, good relationships with coworkers and genuine appreciation for a job done well. There are no costs incurred to build or enhance these motivators.

Myth #6: Employee satisfaction is fluff.

Does having engaged workers make a difference in the bottom line? Studies now show that lower turnover and greater levels of employee satisfaction have a definite positive impact on customer satisfaction and profitability, which are the key factors in company growth and sustainability. Consider these facts: A strong link was found in a study by PricewaterhouseCoopers between

employee retention and the quality of service as rated by companies customers. According to the American Society of Training & Development, organizations

that invested the most in training had higher gross margins and income per employee. The cost of replacing an employee who leaves has been estimated by various

studies to be between 70 and 200 percent of that workers annual salary. The Council on Competitiveness found that a 10-percent increase in education

has a more positive impact on productivity than a 10-percent increase in work hours. The bottom line on the bottom line? Investing in people and using the most effective management practices increases profits.

Myth #7: Supervisors are the problem.

Many senior leaders express dismay about the quality and actions of their middle managers and front-line supervisors. The blame game is old, yet the solutions are strikingly similar to those required to build an engaged workforce. In most organizations today, supervisors have more people reporting to them than in the past, more demanding customers than ever and greater amounts of change all occurring at the same time. Yet, the amount of training provided to managers and supervisors in many organizations is minimal. More importantly, the amount of time that senior managers spend in dialogue with middle and line managers also is minimal. Middle managers and supervisors can appear resistant to improvement efforts. However, the true failure exists in our understanding of their world, the challenges they face and the support they need in order to be successful. Successful organizations seek to build teamwork between senior leaders and middle managers and line supervisors (which is a key ingredient in creating teamwork throughout the company).

Myth # 8: My company/industry/people are different!

Yes, every company is unique, and every industry has its own set of unusual challenges. However, a very costly mistake is made when we believe information from other sectors doesnt apply to us or our organization. Retention research studies cross all industries, all types of work settings and in varied economic conditions. Still, the same results come up time and again. We build employee loyalty and, indirectly, customer loyalty through providing people with growth and learning opportunities, minimizing red tape, allowing people to think and make good choices, supporting middle managers and front-line supervisors and appreciating the efforts that people give to help our customers. Its downright dangerous to ignore these findings risky to the bottom line and the organizations future.

Barriers to Success ? ? ? ? ? ? Lack of support from management team. Inability to provide hard numbers. Company culture does not support change. Back lash from single workers. Failure of other programs due to low utilization. Managers do not view work/life initiatives as business tools that impact employee

retention.

10 Factors That Affect Employee Retention

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

Shorten the feedback loop Do not wait for an annual performance evaluation to come due to give feedback on how an employee is performing. Most team members enjoy frequent feedback about how they are performing. Shortening the feedback loop will help to keep performance levels high and will reinforce positive behavior. Feedback does not necessarily need to be scheduled or highly structured; simply stopping by a team member's desk and letting them know they are doing a good job on a current project can do wonders for morale and help to increase retention.

Offer a competitive compensation package

Any team member wants to feel that he or she is being paid appropriately and fairly for the work he or she does. Be sure to research what other companies and organizations are offering in terms of salary and benefits. It is also important to research what the regional and national compensation averages are for that particular position. You can be sure that if your compensation package is not competitive, team members will find this out and look for employers who are willing to offer more competitive compensation packages. Balance work and personal life Family is incredibly important to team members. When work begins to put a significant strain on one's family no amount of money will keep an employee around. Stress the importance of balancing work and one's personal life. Small gestures such as allowing a team member to take an extended lunch once a week to watch his son's baseball game will likely be repaid with loyalty and extended employment with an organization. Beware of burnout Staff adequately to reduce the amount of unwanted overtime a team member must work. Some employees enjoy the extra money that accompanies overtime hours, while others would rather spend their time with their families or doing other activities they enjoy. Burnout can be a leading cause of turnover. Recognize the warning signs and give employees a break when they need it. Provide opportunities for growth and development Offer opportunities for team members to acquire new skills and knowledge useful to the organization. If an employee appears to be bored or burned out in a current position offer to train this individual in another facet of the organization where he or she would be a good fit. Nobody wants to feel stuck in their position will no possibility for advancement or new opportunities.

The ability to provide input and be taken seriously

Everybody has opinions and ideas, some are better than others. However every team member wants to feel that their input is welcome and will be taken seriously without ridicule or condescension. Some of the greatest ideas can come from the most unlikely of places and people. Creating a culture where input is welcome from all level of the organizational chart will help your organization grow and encourage employee retention. Management must take the time to get to know team members It's not a big surprise that one of the greatest complaints that employees express in exit interviews is a feeling that management didn't know they existed. Nobody wants to feel like just another spoke in a big wheel. Managers are very busy - everybody is busy, but it is crucial that managers and supervisors take the time get to know the team members who work under them. Learn and remember a team member's name, what skills and talents they bring to the table, and what their business interests are. The time spent by management getting to know team members is well invested and can eliminate the headaches caused by having to continually hire and re-train new employees. Provide the tools and training an employee needs to succeed Nothing can be more frustrating to an employee than a lack of training or the proper tools to successfully complete his or her duties. You wouldn't try to build a house without a hammer, so why should an office job be any different? Providing a team member with the tools and training she needs to be successful shows a commitment and investment in that employee and will encourage the team member to stay with the organization.

Make use of a team member's talents, skills, and abilities

All team members have knowledge, skills, and abilities that aren't directly related to their job description, but are still useful to an organization. Utilizing a team member's talents in areas other than their current position will indicate to an employee that management appreciates and recognizes all that an employee has to offer to the organization. This can also provide work variety and helps to break up the everyday grind of work. Never threaten a team member's job or income While threatening an employee with termination or demotion might seem like a surefire way to get the results needed from him or her, doing so will likely cause the employee to leave the organization. Put yourself in the employee's shoes, what is the first thing you would do if your job was threatened? Odds are you would probably update your resume and start checking for open job postings expecting the worst. If a team member's performance is not what you had hoped it would be, work with that team member on ways to improve his performance, saving termination only as a last resort. Take some time and seriously evaluate what your organization is doing to encourage a high retention workforce. Having a seasoned and well trained workforce can deliver a competitive advantage that is difficult to replicate. The best part is most of your efforts to retain your employees come free or with little charge and offer huge returns on a manger's investment in time and resources. At The Rainmaker Group we are committed to helping organizations achieve a high retention workforce where team members truly enjoy coming to work each day. We can help your organization develop the strategies and programs to make this happen. Give us a shout today; we'd love to hear from you!

REASON FOR EMPLOYEE TO COME TO THE ORGANISATION? Pay, Location, Benefits, Advancement Possibilities, Job Security, Nature Of Work, Personal/Family Time.

REASONS FOR EMPLOYEE TO STAY WITH THE ORGANISATION?

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

SOLUTION FOR THE PROBLEM


FINDING THE CAUSE OF ATTRITION Have a survey among employees to find the reasons for attrition. If possible, have exit interviews to know the reasons for resignations. If a key employee resigns, it should be taken up on a priority basis and the senior management should meet the employee to discuss his reasons for leaving and evaluate whether his issues bear merit and whether they can be resolved. Steps can be taken to avoid similar reasons from occurring in the case of others, in similar positions.

What can be done? Though, it is impossible to scrap problems totally, there are certain ways by which BPO managements can tackle attrition. Since the every organisation is unique, these companies need to develop innovative ways to tackle their problems. Human Resources department of companies must address these issues, and along with the management need to evolve strategies to retain employees at all levels.

At the time of Recruitment


Select the right people through competency screening. Use psychometric tests to get people who can work at night and handle the monotony. Offer an attractive, competitive, benefits package. Make clear of performance enhanced incentives and other benefits. Keep these promises, later. BPOs can set up offices in smaller towns, or recruit from there, where opportunities are few.

At the office

An employees work must be communicated to him clearly and thoroughly. The details of the job, its importance, the way it should be done, maximum time that can be allotted to complete it etc., must be made clear. If there are changes to any of these, let the employee know at the earliest

Give the employees necessary tools, time and training. The employee must have the tools, time and training necessary to do their job well - or they will move to an employer who provides them.

Have a person to talk to each employee at regular intervals. Listen and solve employee complaints and problems, as much as possible. Fairness and impartial treatment by seniors is important. Help employees manage stress, both at work and if possible, off work too. Give them special concessions, when in need. Treat the employees well & provide dignity of job.

The quality of the supervision an employee receives is critical to employee retention. Frequent employee complaints arise on this issue.

Provide the employees a stress free work environment. People want to enjoy their work. Make work and work place cheerful and fun-filled as possible.

Make sure that employees know that their work is important for the organisation. Feeling valued by their employer is key to high employee motivation and morale. Recognize their strengths and help them to improve those they lack.

Employees must feel rewarded, recognized and appreciated. Giving periodical raise in salary or position helps to retain staff. Offer excellent career growth prospects. Encourage & groom employees to take up higher positions/openings. If they dont get opportunity for growth within the organisation, they will look elsewhere for it.

Work-life balance initiatives are important. Innovative and practical employee policies pertaining to flexible working hours and schemes, granting compassionate and urgency leave, providing healthcare for self, family and dependants, etc. are important for most people. Work-life balance policies would have a positive impact on retaining skilled employees, as well as on attracting high-caliber recruits.

Implement competency models, which are well integrated, with HR processes like selection & recruitments, training, performance appraisal and potential appraisal.

Night shifts 1. Have doctors to advise them about health problems and the ways and means to deal with them. Provide dietary advice: - Dos and donts. Help them to maintain their health. 2. Organize programmes where people from other professions, who have night shifts talk to BPO employees about their experiences. Other organisations like Army, Railways, Hospitals and various government services etc., also have night shifts. 3. Organize training, counselling and development programmes for employees. Tell them that their work is important. Encourage the best performers to share their experiences with others and guide others. The emphasis is to create the desire to learn, enjoy and be passionate about the work they do. 4. If needed, provide special lights in the office/workplace to ensure that their bodies get sufficient vitamin D.

One distinct disadvantage of night shifts is the sense of disorientation with friends and family members. Concentrate on this problem and develop innovative solutions and ways to deal with it. Additional holidays for work on national holidays and festivals, holidays for family functions etc., can go a long way.

Employee Recognition Increases Retention

It seems that now more than ever employee recognition is limited at best in many organizations. Unfortunately many managers don't understand the importance of recognizing a team member's hard work and a job well done. Many might even ask why they should recognize their employees when they are "just doing their job." The truth is that recognizing employees for their hard work is one of the least expensive and easiest ways to improve the level of employee retention in your organization. The return on investment for a manager's time and limited expenses can be incredible. Recognizing an employee's performance reinforces positive behavior and encourages additional positive behavior. If a team member feels that he or she is appreciated they will be much more likely to repeat their behaviors in the future and even put out more effort than before. When a business leader understands the power of recognizing his or her employees the culture of an organization reacts to this recognition and moves in a positive direction helping to retain more employees.

Employee recognition can be as simple or as extravagant as one desire. The following is a short list of simple ways to recognize team members for a job well done and improve retention in your organization. A simple "thank you" or "nice job" given in regular frequency can significantly

boost team morale. Often times a team member will greatly appreciate the time you spent to find him at his desk and deliver the message in person. Send a thank you card or e-card. Also photocopy the thank you and document the

reason for the recognition in the employee's file. Let the employee know you did this - it will let her know that her hard work will not be forgotten. Movie tickets, gift certificates, or an engraved gift are excellent rewards for an

employee who has excelled or put in the extra effort to make a project happen. Recognize the team member's contribution in front of members of management.

This can reduce the tendency for employees to feel that their supervisors take all the credit for their hard work. Recognize loyalty and exceeding expectations. Mention the team member's hire

anniversary, large contract won, or surpassing of a sales goal in the company newsletter or at a staff meeting.

Know how to recognize your staff. Not all staff members want to be singled out

at a gathering of hundreds of fellow team members, while for others it would make their week. The approach to recognizing team members can vary greatly by generational cohort. You might seriously embarrass a baby boomer by having them stand up in front a Group of their peers and discuss their recent success, while a Gen X-er will relish this opportunity.

Retention Strategies Help to Drive Revenue Growth

Employee satisfaction is essential to any effective employee retention strategy - any good HR manager knows that. However few managers think of the impact that employee satisfaction has on their customers and ultimately company profits. One can assume that happier, more productive employees will make more sales, treat customers better, and ultimately make more money for the company, but few companies have analyzed this assumption to the extent that Sears, Roebuck and Company has. Sears has put this common assumption to the numbers test and the results are intriguing to say the very least. 1992 was the worst year on record for Sears, losing almost 4 billion dollars on over 52 billion dollars in retail sales. The early and mid 1990s were truly trying times for the retail giant and tested the will and resolve of managers and employees alike. During this time the company was in near shambles, morale was low, revenues were suffering, and the bottom line was hemorrhaging red ink. This was in stark contrast to nearly a century of stellar results that Sears had comfortably enjoyed. For Sears, something needed to be done, and fast!

Sears began their turnaround by identifying three key objectives: Creating a compelling place to work, a compelling place to shop, and lastly creating a compelling place to invest. One of the tools used to establish these objectives was the employee-customerprofit chain. The employee-customer-profit chain is essentially a flow chart that diagrams revenue creation starting with employee attitudes and satisfaction, followed by its effect on customer satisfaction, and ultimately the effect on revenue and bottom line profit generation.

One thing Sears realized it needed to do was exert a greater effort focusing on the customer. This is often times easier said than done for many organizations. However Sears took an innovative approach to increasing customer focus. Based on the employeecustomer-profit chain, it realized that it could not better focus on the customer without first focusing on its employees. For Sears 70% of its workforce was part-time status and turnover among its part-time workforce had become alarmingly high. Sears suspected that low morale and poor employee attitudes towards the company were to blame. Sears began a rigorous process of measuring employee attitudes and satisfaction via a 70 question employee survey. The results of this survey were then juxtaposed to customer satisfaction surveys and ultimately compared to revenue and profit trends for the company. The correlations drawn from the data were greater than Sears could have ever imagined. Undoubtedly Sears expected to see some positive correlation between employee and customer satisfaction and ultimately revenue and profit generation; however they were amazed to see just how great an impact employee satisfaction levels had on the bottom line. The data revealed that for each five point improvement on the employee attitude scale, there was a subsequent 1.3% improvement in customer satisfaction, and a 0.5% increase in revenue growth.

A 0.5% increase in revenue might sound miniscule, however when it is based on revenues of over 50 billion dollars it adds up quickly and significantly. For Sears this would equate to a 250 million dollar increase in revenues a year! This revenue increase does not require investments into advertising, new facilities, or improved operations, only an investment into the satisfaction and happiness of employees.

There are also cost savings that can be attributed to improved levels of employee satisfaction. It should come as no surprise that happy employees stay in their jobs longer than unhappy employees. By focusing on increasing employee satisfaction Sears was able to concurrently increase revenues and reduce the costs associated with employee turnover. Sears was also able to determine that employees with greater levels of satisfaction and a favorable attitude towards the company were more likely to speak positively about the company and recommend shopping there to friends and family members. By increasing employee satisfaction Sears was able to generate free word of mouth advertising spread by its employees, thus in a way reducing the reliance on paid advertising to generate revenue. Sears realized the importance of its employees and their levels of satisfaction and made it a corporate goal to increase levels of employee satisfaction throughout the company. Sears feels that employee satisfaction levels are so important to the company's health and vitality that it treats attitude and satisfaction numbers the same as "hard" financial numbers. Sears is so committed to these numbers that it has them audited by an accounting team to ensure validity and reliability just as it does with all of its internal financial measures.

For Sears its turnaround did not take place overnight. It took several years of hard work and dedication from managers and employees at all levels. Improving levels of employee satisfaction was not the sole contributing factor to Sears' remarkable turnaround. However it is fair to assume that without the focus on the employee as a base to better focus on the customer the turnaround at Sears would not have been as quick or amazing as it was.

As business leaders we should all pay careful attention to the approach that Sears took to improving its bottom line. The urge to drastically cut costs through outsourcing, layoffs, reducing benefits, and streamlining operations might well be overly complex solutions to a relatively simple problem. In lieu of cost cutting initiatives to preserve profit margins, a customer focused approach might be a better solution. As we can learn from Sears focusing on the customer ultimately begins by focusing on the employees who serve the customer. Give it a shot, your employees, your customers, and ultimately your shareholders will thank you for it!

Study Suggests Employees Leave Bosses, Not Jobs


Careful selection of employees and managers can have a huge impact on your employee retention efforts and employee turnover costs at your organization.

It has been said more than once, and for good reason, that employees leave their bosses not their jobs. A Florida State University study scheduled for full release in the Fall 2007 issue of Leadership Quarterly confirms this. The study shows that 40% of employees work for bad bosses based on survey results. The reasons that employers score poorly are varied and many: 39% of workers said their supervisor failed to keep promises. 37% indicated their supervisor failed to give credit when due. 31% said their supervisor gave them the "silent treatment" during the past year. 27% report their supervisor made negative comments about them to other employees or managers. 24% indicated their boss invaded their privacy. 23% said their supervisor blamed other to cover up personal mistakes or minimize embarrassment.

So what does this all boil down to? The effects of having bad bosses in your organization can be devastating. High turnover, poor employee morale, employee theft, diminished customer service, substandard employee performance, lower production, and an organizational culture of fear and mistrust can all be blamed in part on poor bosses and managers. The costs of having poor managers and bosses can be incredible. Consider the cost of employee turnover, which is different for all industries and positions, but has been roughly estimated at $15,000 - $17,000 per employee in low to moderately skilled positions. Having a manager who drives potentially valuable employees from your organization can have a huge impact on your bottom line, and your customers.

Employee Retention Strategies for Reducing Employee Turnover Costs


At The Rainmaker Group we are committed to helping your organization Maximize Possibility by identifying and retaining top performers to achieve a high retention and high performance workforce. We understand that time is money to your organization. Every minute of every day that your employee retention problems persist your organization is losing valuable time, energy, and resources. With the use of the powerful tools at our disposal, our employee retention experts will get to know your team and organizational culture better than you ever could have imagined. By doing so we can get down to the real causes of employee turnover in your organization and develop an employee retention program that is right for your team. Our employee retention programs deliver results - we guarantee it! Our clients always see a sizable return on investment in the form of improved profitability, reduced employee turnover, and enhanced employee morale. Stop unwanted employee turnover dead in its tracks and get back to doing what you do best: growing and leading your organization.

BPO SECTOR INDUSTRY


Business process outsourcing
Business process outsourcing (BPO) is a broad term referring to outsourcing in all fields. A BPO differentiates itself by either putting in new technology or applying existing technology in a new way to improve a process.

Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive business processes to an external provider that in turn owns, administers and manages the selected process based on defined and measurable performance criteria. Business Process Outsourcing (BPO) is one of the fastest growing segments of the Information Technology Enabled Services (ITES) industry.

Few of the motivation factors as to why BPO is gaining ground are:


Factor Cost Advantage Economy of Scale Business Risk Mitigation Superior Competency Utilization Improvement

Generally outsourcing can be defined as - An organization entering into a contract with another organization to operate and manage one or more of its business processes. When there are so many benefits associated with BPO industry. when there are so many privileges for the BPO employees than what makes them to change the company/industry?? Is it only MONEY that matters or anything else as well?? After

taking exit-interviews and analyzing the trend I am able to list out following reasons for a BPO professional to change his/her job.

No growth opportunity/lack of promotion For higher Salary For Higher education Misguidance by the company Policies and procedures are not conducive No personal life Physical strains Uneasy relationship with peers or managers

In an industry like BPO, the work can often be monotonous and opportunities for career growth minimal. So when opportunities beckon, the high rate of attrition is not surprising. However, there are some common reasons that especially cause people to leave. Surveys have listed night shifts, money, inability to handle various types of stress, monotonous work; company policies, lack of career growth, problems with those in senior positions etc., as some of the most common reasons listed by BPO employees, as reasons for quitting jobs.

CHAPTER 1 HISTORY

1.1 HISTORY

Blue Star was founded in 1943, by Mohan T Advani, an entrepreneur of exemplary vision and drive. The Company began as a modest 3-

member team engaged in reconditioning of airconditioners and refrigerators. Within three years, the Company secured the agency for US-based Melchoir Armstrong Dessau's airconditioning equipment. Shortly after, the Company was selected by Worthington, the US leader in airconditioning, as its India based partner - these were the first of numerous foreign associations to follow. An expanding Blue Star then ventured into the manufacture of ice candy machines and bottle coolers and also began the design and execution of central airconditioning projects. Then came the manufacture of water coolers. In 1949, the proprietorship company set its sights on bigger expansion, took on shareholders and became Blue Star Engineering Company Private Limited. Ever since, there has been a constant and profitable growth. Blue Star diversified and took up agencies for Material Testing Machines and Business Machines. The export arena beckoned and the Company began exporting water coolers to Dubai, where in fact, 'Blue Star' soon became the generic name for water coolers. The sixties and the early seventies witnessed Blue Star continuing to expand and thrive. A team of dedicated professionals aided Mohan T Advani in ever furthering his vision of a profitable company dedicated to its ideals of professionalism and success. Employee strength crossed the 1000 mark and the company went public in 1969 to become Blue Star Limited, as it continues to be called today. In 1970, the Company took up the all-India distributorship of HewlettPackard products, a business relationship which continues today and has grown ever stronger through the years. As the Company's reputation for delivering the goods in the most challenging of airconditioning projects grew steadily, the early seventies saw a series of prestigious projects being entrusted to Blue Star skyscrapers such as Air India Building, Express Towers, the Oberoi Hotel in Mumbai, apart from several others. Revenues touched the Rs. 10-crore mark and staff strength doubled to exceed 2000.

As its Indian presence reached greater heights, the Company began building determinedly upon its existing overseas presence, Blue Star set up a joint venture with Al Shirawi in Dubai and went on to execute some outstanding projects in Syria, Iraq and Saudi Arabia. To complement its airconditioning projects and undertake turnkey industrial projects, an Industrial Division was set up in 1978. Always moving with the times and ever on the lookout for business possibilities, Blue Star next set up a software export unit at Seepz, Mumbai in 1983. Then came associations with more global leaders a collaboration with York International of USA for central airconditioning equipment and joint ventures with Motorola and Yokogawa. In 1984, Ashok M Advani & Suneel M Advani, the sons of Mohan T Advani, took over the reins of the Company, after spending nearly 15 years within the Company steadily climbing up the ladder. A renewed thrust was placed on the company's core business areas airconditioning and refrigeration and the distribution of professional electronics equipment - and the company emerged a market leader in these focus areas. The nineties witnessed India entering an era of economic liberalisation and an upsurge in competition as the dynamic business scenario attracted the world's most forward-looking corporations. It was time to re-look at existing business competencies, re-engineer those that were obsolete and forge ahead in acquiring new business competencies. Blue Star was more than equal to the challenge and expansion continued unabated. In keeping with this focus, an advanced manufacturing facility was set up at Dadra in 1997, in technical collaboration with Rheem, USA, to enhance manufacturing competency. Today it bears the distinction of being regarded as the best such plant India-wide. The dealer network was strengthened and expanded to bring products within easy reach of every customer. With the advent of the much awaited new millennium in 2000, the action continued. The software unit was spun off into a separate company, Blue Star Infotech Ltd., the export of airconditioning

products from the Dadra factory began and contract manufacturing for local and foreign brands commenced. A new Corporate Vision was developed - "To deliver a world-class customer experience". Every employee is determined to follow this vision and keep their organization a competitive and forward-looking one. Blue Star crossed the Rs. 500 crore milestone in 2000 and the Rs. 600 crore milestone in 2002-03. With the boom in construction activity and increased infrastructure investments, the Company leveraged its leadership position to grow aggressively. In the following three years, the Company nearly doubled its turnover, clocking Rs 1178 crores in 2005-06. Even more than size, Blue Star enjoys an enviable reputation as an ethical corporation, ever mindful of its obligations towards customers, shareholders, dealers, business partners, employees and the environment in which it operates.

"To deliver world class customer experience", has been the core philosophy of Blue Star. The Manufacturing division of the company also aspires to be of world-class caliber. Blue Star's foray into manufacturing was a modest effort at producing ice candy machines in the 1940s, at first from a small office in Forbes Street at Colaba in Mumbai. It was only in the mid 1960s that Mohan T Advani expanded Blue Star's manufacturing base by buying a factory in Thane, then a distant suburb in Mumbai. The second plant was built in 1980 in Bharuch in Gujarat to manufacture water coolers, deep freezers and bottle coolers. In the late 1990s with the software boom driving the economy, investments in manufacturing sector were dwindling. Manufacturing facilities started become an unviable proposition. As a result, a lot of manufacturing units had to be closed down. However Blue Star management was convinced that manufacturing would be an important driver in the value chain and was important for the company to be successful in the longer run.

A new and exciting chapter began with the inauguration of a worldclass factory in Dadra in July 1st, 1997. The project at Dadra was incorporated with state-of-the-art technologies, quality standards and manufacturing process with consultations from Rheem USA. After the success of Dadra, Blue Star has been able to transplant the manufacturing philosophy and attitude to the other factories at Thane and Bharuch as well. The two fundamental transformations of Blue Star's manufacturing took place in improving operational efficiencies and quality improvement resulting in competitiveness in terms of price and delivery. Blue Star remained competitive in the market where prices of airconditioning products fell constantly since the late 1990s. The introduction of world class manufacturing facilities coupled with IT, automation and an overall positive morale amongst the employees resulted reduction of manufacturing cost. With the addition of Himachal Plant in 2005, which was built with inhouse expertise, Blue Star has been able to meet the increasing market demand. Himachal plant has the advantage of scale of operations and also enjoys tax benefits.

Wada facility is the most recent one set-up by the Company. With a plot size of around 36 acres, this facility is planned to eventually be Blue Stars largest manufacturing facility. Wada factory is a state-ofthe-art facility and follows world-class manufacturing practices. Blue Star's five modern manufacturing facilities coupled with a robust product development team and a significant contribution from the original equipment manufacturers and export market has given Blue Star a cutting edge in manufacturing.

1.2 COMPANY PROFILE


Blue Star is India's largest central air-conditioning company with an annual turnover of Rs 2556 crores, a network of 29 offices, 5 modern manufacturing facilities, 700 dealers and around 2600 employees. It fulfills the air-conditioning needs of a large number of corporate and commercial customers and has also established leadership in the field of commercial refrigeration equipment ranging from water coolers to cold storages. The Company has also started offering Electrical Contracting and Plumbing & Fire Fighting Services. Blue Star's other businesses include marketing and maintenance of hi-tech professional electronic and industrial products. Blue Star has business alliances with world renowned technology leaders such as Rheem Mfg Co, USA; Hitachi, Japan;, UK; Thales e-Security Ltd., UK; Jeol, Japan and many others, to offer superior products and solutions to customers. The Company has manufacturing facilities at Thane, Dadra, Bharuch, Himachal and Wada which use state-of-the-art manufacturing equipment to ensure that the products have consistent quality and reliability. Blue Star primarily focuses on the corporate and commercial markets. These include institutional, industrial and government organizations as well as commercial establishments such as showrooms, restaurants, banks, hospitals, theatres, shopping malls and boutiques. In accordance with the nature of products and markets, business drivers, and competitive positioning, the lines of business of Blue Star can be segmented as follows: Fact Sheet

Total Income: Rs.2556 Cr

Net Profit: Rs.211 Cr Employees: 2600 Manufacturing Units: 5 Offices: 29 Dealers: 720

Electro Mechanical Projects and Packaged Airconditioning Systems


This comprises central and packaged airconditioning as well as electrical projects. The central and packaged airconditioning business involves design, engineering, manufacturing, installation, commissioning and support of large central airconditioning plants, packaged airconditioners and ducted split airconditioners. In addition to this, Blue Star promotes after-sales service as a business, by offering several value added services in the areas of upgrades and enhancements, air management, water management, energy management and LEED certification consultancy for Green Buildings. The Company also executes building electrification contracting projects and offers expertise in the areas of electrical design and engineering, supply and installation of entire power systems as well as liasioning, approvals, commissioning and asset management. Cooling Products Blue Star offers a wide range of contemporary window and split airconditioners. The Company also manufactures and markets a comprehensive range of commercial refrigeration products and services that cater to the industrial, commercial and hospitality sectors. These include water coolers, bottled water dispensers, deep freezers, cold storages, bottle coolers, ice cube machines and supermarket refrigeration products. Professional Electronics and Industrial Systems For over five decades, the Electronics Division has been the exclusive distributor in India for many internationally renowned

manufacturers of hi-tech professional electronic equipment and services, as well as industrial products and systems. The Company has carved out profitable niches for itself in most of the specialized markets it operates in, such as analytical instruments, medical electronics, data communication products, material testing, and test and measuring instruments.

1.3 PRODUCT DETAIL OF BLUE STAR


Central Airconditioning

Screw Chillers Scroll Chillers Double Skin Air Handling Units Fan Coil Units Packaged Acs Hiper Packaged Acs Hisen Packaged Acs Ducted Splits Vrf Systems

Room Airconditioners

Window Airconditioners Split Airconditioners Cassette Airconditioners Verticool Split Acs Concealed Split Acs

Commercial Refrigeration

Cold Storages

Deep Freezers Ice Machines Water Coolers Flexi Water Coolers Bottle Coolers

Modular Cold Rooms Refrigeration Units PUF Insulated Panels Ripening Chambers

Milk Coolers Bottled Water Dispensers Supermarket Display

Speciality Cooling Products


Exports

Process Chillers Telepacs Precision Control Packaged Acs Bulk Milk Coolers Mortuary Chambers

Chillers AIR SIDE PRODUCTS Room Airconditioners Special Applications Refrigeration

PRODUCT INFORMATION
1. WINDOW AIR CONDITIONER

With aesthetically appealing designs and superior performance, Blue Star Window Airconditioners come with some brand new exciting features. A reliable and accurate electronic thermostat, fuzzy logic control that adjusts performance automatically and a low energy consuming compressor, besides others. They also include dependable components, excellent aftersales service and stunning looks. After all, you can't expect anything less than that from the leaders.

FEATURES

Great Looks Power Saver Compressor Long Life Advanced Fan Motor 3-Speed Cooling Inner Grooved Condenser 4-Way Air Distribution Capacities: 0.75TR to 2TR

Remote Features: Digital Display Electronic Thermostat Programmable Timer Backup Sleep Mode Quick Start*

2.SPLIT AIR CONDITIONER

Star Rated Hi-Wall Split ACs Capacity: 1 TR to 2 TR

Mega Split Airconditioners Capacity: 2.5 TR to 3 TR

Blue Star, leaders in central airconditioning, also bring you a state-of-theart range of split airconditioners that suit corporate, commercial and residential needs

3.CASSETTE AIR CONDITIONER

Blue Star's cassette airconditioners not only look contemporary, but are also extremely quiet and installation friendly. They blend beautifully with stylish interiors by virtue of their excellent looks, fit and finish. Their compactness and ability to distribute cool air uniformly in four directions without ducting make them an ideal choice where it is not practical to have a ducts for air flow (due to structural constraints such as low cross beams).

Features Available in 1.5, 2, 3 and 4 TR Aesthetic design Preferred choice for commercial/residential spaces with low ceilings Integrated drain pump ensures that condensed water is drained effectively without damaging the false ceiling

4.VERTICAL SPLIT AIR CONDITIONER

A versatile air-conditioning solution for large commercial spaces such as open-layout offices, showrooms and banks particularly when you need it in no time. Features

Available in 2.5, 3.5 and 4.5 TR Ideal for air-conditioning existing open layouts without obstructing partitions Needs no ducting or false ceiling, hence quick to install It does not need wall or window space, an unused corner or space beside a column in the room will do Cold air is delivered efficiently from a good height and can therefore reach up to 25 ft., enabling effective cooling of a large area Power saver Long life Blue fin condenser for highly efficient heat transfer Fuzzy logic control for intelligent cooling Oscillating louvres for uniform cooling Low noise Dry Mode dehumidifies the air and removes extra moisture from the room User-friendly Remote Control

5. CONCEALED SPLIT AIR CONDITIONER Apart from being reliable and trouble-free, the unique low noise feature makes it the quietest in the category. Its low height makes it easy to conceal, offering a central airconditioning look with higher head room. A big bonus when wall and floor space is limited. Features

Available in 1, 1.5, 2, 3, 4, 5 and 7.5 TR Low noise and low height State-of-the-art compressor saves 10-15% electricity bills Programmable timer Time delay feature for longer life of compressor Auto-restart Fuzzy logic control for intelligent cooling Detachable fan panel for easy servicing of fan motor and coil Salt spray-tested GI panels for longer life and aesthetic appeal Highly efficient permanent split capacitor motor

6. FLEXIBLE DUCTED SPLIT AIR CONDITIONER This product offers you the ease of installation of a non-ducted AC even while giving you the power of a ducted system. These units adapt themselves to any space, even those with low height ceilings. The flexible design not only allows freedom in layout and design, but also means economical, speedy ducting solutions. These can be installed in residences, clinics, eateries, commercial spaces, offices, shops and many more other locations.

Features

Available in 3 & 5 TR. Highly flexible, installation friendly design. Available in a standard diameter of 200 mm, with fiberglass insulation of 25 mm or without insulation. Easy-to-connect to supply air grilles and diffusers. No sheet metal fabrication work at site. Low operating cost Reliable and energy efficient Copeland compressor. Galvanized steel, pretreated and polyester powder-coated sheet metal for long life and corrosion-free operation. User-friendly Corded Pendant Controller offers fuzzy logic operation.

SERVICES SOLUTION PROVIDED BY BLUE STAR Why is it important to service your airconditioning and refrigeration system? All airconditioning and refrigeration systems, like any other machine, depreciate with time. And if not properly maintained, they progressively lose efficiency, consume more power, and drain your profits. Without regular maintenance an airconditioner looses its original efficiency steadily every passing year. It is common knowledge that these inefficiencies accelerate in the absence of adequate monitoring and maintenance. Thereby, causing a lot of inconvenience. The good news however, is that you can recover most of that lost efficiency through regular maintenance. Studies show that with regular tune-ups a unit will maintain up to 95% of its original efficiency. This means that the cost of a periodic tune -up is

recovered very quickly in savings on your monthly power bill and reduced running and repair costs.

Why Blue Star?


Blue Star, India's largest airconditioning and commercial refrigeration company, has been providing expert cooling solutions for over six decades. Blue Star provides you with the finest and most comprehensive range of services, to take care of your airconditioning system. With our experience and expertise, we optimize your system and ensure maximum energy efficiency, perfect air distribution and provide superior indoor air quality. Very often, customers tend to believe that maintaining airconditioning systems needs no great expertise, and in case of a breakdown, any local AC repair technician can repair it. But while local technicians might be an easy option, they don't have the kind of extensive knowledge required on the science of cooling. They lack adequate understanding of indoor air quality, airside management and energy efficiency. Neither do they know the designs and circuits well enough for them to optimize your system periodically, nor do they have the infrastructure and resources necessary to handle your system, in case of eventualities. In fact, relying on them can only cause inconvenience, apart from potential loss of business and productivity. On the other hand, Blue Stars' experts and customer focused professionals periodically check your entire system, repair and replace the necessary parts and calibrate the system for perfect air distribution and balancing. Blue Star has the largest pool of qualified and trained airconditioning and refrigeration engineers. Company has a wide network of channel partners all over India and across the globe to meet customer requirements. We understand the geography and have complete knowledge of the application and customer profiles

Corporate Social Responsibility

Blue Stars Corporate Social Responsibility (CSR) philosophy is built on three pillars namely

Environment protection Energy conservation Community development around its facilities.

The Company is highly committed to the cause of protecting the environment. Energy efficiency of its products remains a corner-stone of its research and development efforts Air, water and energy management services as well as LEED (Leadership in Energy and Environmental Design) consultancy for Green Buildings have been part of its business and practices. The Company has also been contributing in the technical domain in the use of eco-friendly refrigerants in its products. Energy Conservation goes beyond using efficient products. A huge amount of energy is wasted nationally due to sheer ignorance and lack of awareness. Blue Star helps deserving institutions such as hospitals and colleges to save power by conducting free walk-through energy audits. The Company has conducted several such audits with energy recommendations for Jai Hind College, St Xaviers College, Nirmala Niketan College of Social Work, National Association for the Blind (NAB), Bombay Natural History Society

(BNHS), JJ School of Architecture and Dilkhush Special School, amongst others. In its efforts towards community development around the Companys facilities, the Company has initiated and sponsored a study in the villages around its Wada Plant to understand the immediate needs. Vocational training and health emerged as pressing needs in this underdeveloped region. Blue Star has sponsored the vocational training courses offered by an NGO, KSWA in Wada. This centre was set up to support a vocational training initiative for school and college dropouts to make them employable contributing members of their families and communities. Regular visits by the Companys employees have aided in technical support to KSWA for conducting the courses. In addition to the above CSR efforts, the Company sponsors various philanthropic activities through its Trust, Blue Star Foundation, which has been supporting several activities in the areas of children education and healthcare apart from relief measures in national calamities.

OUR STRENGTHS

TRAINED PERSONNEL: Our engineers and technicians are intensively trained to handle the costly, sophisticated airconditioning equipment.

PRIORITY SERVICE: All customers who opt for our annual service solutions are offered priority service, so that your calls get attended quicker and the system is up faster.

PREVENTIVE CHECKS: Under all our service solutions, we offer preventive maintenance checks which help in identifying problems early, preventing costly down times.

GENUINE SPARES:

By opting for our service solution, you are assured of genuine spares that will go a long way in ensuring high uptime for your system.

EXTENDED LIFE: Genuine Spares and regular maintenance help in extending the life of your system.

SEASONAL SETTINGS: In summer, you would prefer lower temperatures and when the climate is cold you often feel the need to change your settings to higher temperatures. Before the onset of a season, our engineers calibrate the airconditioning system to suit.

Services
Why is it important to service your air-conditioning and refrigeration system? All air-conditioning and refrigeration systems, like any other machine, depreciate with time. And if not properly maintained, they progressively lose efficiency, consume more power, and drain your profits. Without regular maintenance an air conditioner loses its original efficiency steadily every passing year. It is common knowledge that these inefficiencies accelerate in the absence of adequate monitoring and maintenance. Thereby, causing a lot of inconvenience. The good news however, is that you can recover most of that lost efficiency through regular maintenance. Studies show that with regular tune-ups a unit will maintain up to 95% of its original efficiency. This means that the cost of a periodic tune -up is recovered very quickly in savings on your monthly power bill and reduced running and repair costs.

Standard services

At Blue Star, you will find a wide spectrum of Service Solutions to meet all your requirements. Apart from the Standard Maintenance solutions, we also offer premium value added services for your critical needs:

Risk Protection Contract: This comprehensive contract includes all labour, spares and consumables, it covers routine preventive maintenance and attending to break downs.

Labour Maintenance Contract:

This contract includes labour for only routine preventive maintenance and attending break downs. The spares and consumables are separately charged for. Operating Contracts: This is a pure labour contract. The operators are stationed for single, double, round the clock or 365 days shift, depending on your needs. They regularly monitor the operating status.

Customer service number


National Customer Service Number: 1860 266 6666 Alternate Toll-Free no: 1800 209 1177 Dealer / Associate Toll-free Number: 1800 209 1133 SMS facility: Send Service to 57007 Email: customerservice@bluestarindia.com

Online registration services.


All the fields are mandatory.

Name Address Telephone

E-Mail Product Purchased Invoice Details Name of the dealer

RESEARCH METHODOLOGY
The methodology followed for conducting the study includes the specification of research design, sample design, questionnaire design, data collection and statistical tools used for analyzing the collected data.

i) Research Design: The research design used for this study is of the descriptive type.
Descriptive research studies are those studies which are concerned with describing the characteristics of a particular individual or a group.

ii) Sample Size: All the items consideration in any field of inquiry constitutes a
universe of population. In this research only a few items can be selected form the population for our study purpose. The items selected constitute what is technically called a sample. Here out sample size is 20 employees from the total population in the delivery peoples. The samples are selected on the basis of convenient.

iii) Data Collection: The primary data was collected by using questionnaires. The
questionnaire has 68 questions. A liker scale (five point scale) was used such as strongly disagree, disagree, neutral, agree and strongly agree.

iv) Questionnaire Schedule: Questions are framed in such a way that the answers
reflect the ideas and thoughts of the respondents with regard to level of satisfaction of various factors of job satisfaction. The questionnaire has total 68 questions. The liker scaling techniques has been used for each question in the interview schedule. 1. Strongly agree 2. Agree 3. Neutral 4. Disagree 5. Strongly disagree

v) Tools of Analysis: v.a) Simple Percentage Analysis:


Here the simple percentage analysis is used for calculating the percentage of satisfaction level in the total respondents.

vi) Areas of Study


The area of the study is BLUE STAR, Branch office Gurgaon.

vii) Limitations of Study


i) The sample was confined to 20 respondents. So this study cannot be regarded as

full -proof one.


ii) Some respondents hesitated to give the actual situation; they were no more a part

of the organization.
iii) There was a hesitation of reprisal among the employees to reveal their personal

feelings and the result may not reflect the actual satisfactions.
iv) The findings and conclusions are based on knowledge and experience of the

respondents sometime may subject to bias. As such the research study was being done in the year June 2011, with required data analysis and interpretation, the data needs to be updated at times when it comes to have further usage of this research study report.

DATA PRESENTATION PERCENTAGE TABLE


SIMPLE PERCENTAGE TABLE 1 GENDER

WITH

SIMPLE

There is as yet no consistent evidence as to whether women are more satisfied with their job than men, holding such factors as job and occupational level constant. In order to know the ratio of gender among employees of BLUE STAR and the difference in their level of satisfaction, the respondents were asked about their gender. Gender of the employee Gender Frequency Male 20 Female 00 Total 20 Percentage 100 00 100

INTERPRETATION: The above table indicates that


100% of the left employees who left BLUE STAR were male.

No female employee left the company SIMPLE PERCENTAGE TABLE 2

MARITAL STATUS The marital status may influence the job satisfaction as a personal factor. Because the married people has some unavoidable responsibility. Marital status of the employees Marital Status Frequency Married 18 Unmarried 2 Total 20 Percentage 90.00 10.00 100

INTERPRETATION: The above table indicates that


90.00% of the left employees were married. 10.00% of the left employees were unmarried.

SIMPLE PERCENTAGE TABLE 3

AGE Age is an important factor that has an influence of job satisfaction. Hence according to age levels the respondents are classified into three categories. Age of the employees Age Less than or equal to 25 yrs 26-50 Total Frequency 01 19 20 Percentage 5.00 95.00 100

INTERPRETATION: The above table indicates that


Majority of the respondents i.e. 95% were in 26 to 50 years age group. 5.00% of the respondents were below 26 years age group.

SIMPLE PERCENTAGE TABLE 4 QUALIFICATION Qualification of the respondents may affect the perception of job satisfaction. Highly educated may expect much better work life than others. According to educational qualification the respondents are classified into four categories as under. Qualification of the employees Qualification Frequency Graduate 05 Post Graduate 15 Total 20 Percentage 25.00 75.00 100

INTERPRETATION: The above table reveals that


Majority of the respondents i.e. 75.00% were post graduate. 25.00% of the respondents were graduate

SIMPLE PERCENTAGE TABLE 5 EXPERIENCE The experience of the employees in their job is another factor affecting the perception on job satisfaction. Highly experienced may expect better working conditions and having less experienced satisfy with the existing one. The respondents are classified into three categories according to their level of experience as under: Experience of the employees Experience Less than or equal to 5 yrs 6-10yrs More than or equal to 11 yrs Total Frequency 10 09 01 20 Percentage 50.00 45.00 05.00 100

INTERPRETATION: The above table shows that


50.00% were having less than or equal to 05 years of experience in BLUE

STAR.
45.00% of the respondents had 6 10 years of experience.

05.00% of the respondents had more than 10 years of experience.

SIMPLE PERCENTAGE TABLE 6 MONTHLY SALARY Man work to earn every employee in the organization will expect adequate pay to be paid for the job done by him. The reasonable pay for each job which is performed in the organization. This scale of pay may help for the job satisfaction to a greater extent. Monthly Salary of the employees Monthly Salary Less than or equal to Rs 15000 Rs. 15001 25000 More than or equal to Rs. 35001 Total Frequency 00 02 18 20 Percentage 00.00 10.00 90.00 100

INTERPRETATION:

The above table reveals that


Majority of the left employees i.e. 90.00% had their monthly salary above

Rs.35001.
10% of the left employees had their monthly salary between Rs.15001

Rs.25500 SIMPLE PERCENTAGE TABLE 7 Table showing employees opinion about the nature of their work. Your work is very challenging one Description Frequency Strongly agree 15 Agree 03 Neutral 02 Disagree 00 Strongly disagree 00 Total 200 Percentage 75.00 15.00 10.00 0 00 100

INTERPRETATION: The above table reveals that


75.00% of the left employees strongly agreed that their work is very

challenging one.

15% of the left employees agreed that their work was challenging one. 10.00% of the left employees are neutral about the fact that their work was

challenging one. SIMPLE PERCENTAGE TABLE 8 Table showing opinion of employees regarding their work load. I feel I have too much work to do Description Frequency Strongly agree 09 Agree 08 Neutral 03 Disagree 00 Strongly disagree 00 Total 20 Percentage 45.00 40.00 15.00 00.00 00.00 100

INTERPRETATION: The above table reveals that

45.00% of the left employees were strongly agreed that they have too much

work to do.
40.00% of the left employees were agreed that they have too much work to do. 15.00% of the employees were neutral about the fact that they have too much

work to do.
0% of the left employees were strongly disagreed that they have too much work

to do SIMPLE PERCENTAGE TABLE 9 Table showing opinion of employees regarding working hours. Working hours are convenient for me Im happy with my work place Description Frequency Percentage Strongly agree 16 80.00 Agree 04 20.00 Neutral 00 00.00 Disagree 00 00.00 Strongly disagree 00 00.00 Total 20 100

INTERPRETATION:

The above table reveals that


Majority of the left employees i.e. 80.00% were strongly agreed that their

working hours are convenient.


20.00% of the left employees were agreed that their working hours are

convenient.
00.00% of the left employees were neutral about the fact that their working hours

are convenient.
0% of the left employees were disagreed that their working hours are convenient. 0% of the left employees were strongly disagreed that their working hours are

convenient. SIMPLE PERCENTAGE TABLE 10 Table showing opinion of the employees about management and employees relationship. Management builds and maintains work relationship Description Frequency Percentage Strongly agree 19 95.00 Agree 00 00.00 Neutral 00 00.00 Disagree 01 05.00 Strongly disagree 0 00.00 Total 20 100

INTERPRETATION: The above table reveals that


Majority of the left employees i.e. 95.00% were strongly agreed that

management builds and maintains work relationship.


5% of the left employees were disagreed about the fact that management builds

and maintains work relationship.


0% of the left employees was strongly disagreed that management builds and

maintains work relationship. SIMPLE PERCENTAGE TABLE 11 Table showing opinion of the employee that they are provided with sufficient allowances. Im satisfied with allowances provided by the organization Description Frequency Percentage Strongly agree 13 65.00 Agree 04 20.00 Neutral 03 15.00 Disagree 00 00.00 Strongly disagree 00 00.00 Total 20 100

INTERPRETATION: The above table reveals that


65% of the left employees were strongly agreed that they are satisfied with

the allowances provided to them.


20% of the left employees were agreed that they are satisfied with the allowances

provided to them.
15% of the left employees were neutral about the fact that they are satisfied with

the allowances provided to them. SIMPLE PERCENTAGE TABLE 12 Table showing opinion of the employees regarding the opportunities to use their ability. I have adequate opportunity to use my ability Description Frequency Strongly agree 06 Agree 06 Percentage 30.00 30.00

Neutral Disagree Strongly disagree Total

08 00 00 20

40.00 00.00 00.00 100

INTERPRETATION: The above table reveals that


30.00% of the left employees were strongly agreed that they have adequate

opportunity to use their ability.


30% of the left employees were agreed that they have adequate opportunity to

use their ability.


40% of the left employees were neutral about the fact that they have

adequate opportunity to use their ability.


0% of the employees are strongly disagreed that they have adequate opportunity

to use their ability. SIMPLE PERCENTAGE TABLE 13 Table showing opinion of the employees about their overall satisfaction level in the company.

Overall, Im satisfied with my job Description Strongly agree Agree Neutral Disagree Strongly disagree Total

Frequency 17 02 01 00 00 20

Percentage 85.00 10.00 05.00 0 0 100

INTERPRETATION: The above table reveals that


85% of the left employees were strongly agreed that they are overall satisfied

with their job in BLUE STAR.


10.00% of the left employees were agreed that they are overall satisfied with

their job in BLUE STAR. 0% of the employees are strongly disagree that they are overall satisfied with their job in BLUE STAR

SUMMARY OF FINDINGS
A.i) Findings from Simple Percentage Analysis and Descriptive Statistics
1) The number of male employees that left the company is 100% 2) The percentage of the left employees who were married in the company was more i.e. 90.00% than the unmarried one.
3) Majority of the left employees belongs to the age group of 26years-50years. 4) The data regarding the qualification of the employees shows that majority of the

left employees have done post graduation level i.e. 75.00%, which is followed by graduates with 25.00%
5) Majority of left employees i.e. 50% had less than 5 yrs of experience followed by

employees 45% having more than 5 yrs but less than 11 yrs and than by employees 5% having more than 10 yrs.
6) Data collected to know the monthly salary of the employees depict that majority

of the employee got monthly salary more than or equal to Rs. 55001 with 90.00%.
7) The respondents were satisfied with the environment and nature of work

environment and nature of work. 8) Job factors such as opportunities, quality of work life and overall satisfaction of employee with regard to job was also excellent. 9) The left employees were satisfied that the companys management were having very good relationship with the employees. 10) There was no communication gap between the employees and management of the company and employees if given the second chance to work again were ready to join.

11) According to them BLUE STAR is among the finest and best FMCG company to work with because they had the best working system and rules.

B) SUGGESTION
Employee recognition can be as simple or as extravagant as one desire. The following is a short list of simple ways to recognize team members for a job well done and improve retention in your organization A better exit interview form and procedure can be drafted so that employees get a chance to talk with the management about the reasons why they are leaving. A simple "thank you" or "nice job" given in regular frequency can significantly boost team morale. Often times a team member will greatly appreciate the time you spent to find him at his desk and deliver the message in person. Send a thank you card or e-card. Also photocopy the thank you and document the reason for the recognition in the employee's file. Let the employee know you did this - it will let her know that her hard work will not be forgotten. Movie tickets, gift certificates, or an engraved gift are excellent rewards for an employee who has excelled or put in the extra effort to make a project happen. Recognize the team member's contribution in front of members of management. This can reduce the tendency for employees to feel that their supervisors take all the credit for their hard work. Recognize loyalty and exceeding expectations. Mention the team member's hire anniversary, large contract won, or surpassing of a sales goal in the company newsletter or at a staff meeting. MY DAY- Every week the employee can have one my day, i.e. for one day a week they can have their own time away from work after 1.30 pm. Annual Day A day in a year can be dedicated as a annual day where we will be celebrating the overall success and achievements of the company and every employee can be given a gift voucher, Lunch at some good hotel and a fun tour. Annually we can have interdepartmental matches like Cricket Matches, Volleyball Matches etc to improve team building and feeling of belongingness.

Departmental Lunch: Every month one dept can have lunch together. Each and every member of the Dept eats and drinks together which helps in improving the team spirit and the feeling of belongingness in the dept Employee of the month- AWARD their names are declared on the Notice board which encourages others also to work better. We can have ask company to issue a monthly or quarterly or half yearly magazine which can have all the details of the achievements of the company and employees creative skills can be given a chance. Emphasis can be given on HIGHER EDUCATION and also on carrier development programs which can be done on annually basis for which company can pay. A bond can be signed by the employees who are going for higher education or development skills whose fee is borne by the company. Structured career planning process can developed so that employees keep their interest in the organization only. Early responsibilities in career can be given to the employees so that they remain engage and dedicated towards the company More Flexible and transparent organizational culture should be developed. More Freedom to operate at work should be given and more powers can be delegated so as to make work more challenging. Organization should believe in Growing our own timber and promotions and vacant position should be done internally or preference can be given to existing employees. Innovative people program which means employees should be given a chance to innovate new marketing sales financial etc programmes system or structure. Challenging work assignments should be provided and assigned to the employees which can be a dummy or pilot project or may be a crisis situation Regional level marketing competition can be organized to encourage and display there creative and innovative skills.

C) CONCLUSION
It is not about managing retention. It is about managing people. If an organization manages people well, employee retention will take care of itself. Organizations should focus on managing the work environment to make better use of the available human assets. People want to work for an organization which provides Appreciation for the work done Ample opportunities to grow A friendly and cooperative environment A feeling that the organization is second home to the employee Organization environment includes Culture Values Company reputation Quality of people in the organization Employee development and career growth Risk taking Leading technologies Trust Types of environment the employee needs in an organization Learning environment: It includes continuous learning and improvement of the individual, certifications and provision for higher studies, etc. Support environment: Organization can provide support in the form of worklife balance. Work life balance includes: Flexible hours Telecommuting Dependent care Alternate work schedules Vacations

Wellness Work environment: It includes efficient managers, supportive co-workers, challenging work, involvement in decision-making, clarity of work and

responsibilities and recognition. Lack or absence of such environment pushes


employees to look for new opportunities. The environment should be such that the employee feels connected to the organization in every respect. Growth and Career Growth and development are the integral part of every individuals career. If an employee can not foresee his path of career development in his current organization, there are chances that hell leave the organization as soon as he gets an opportunity. The important factors in employee growth that an employee looks for himself are: Work profile: The work profile on which the employee is working should be in sync with his capabilities. The profile should not be too low or too high. Personal growth and dreams: Employees responsibilities in the organization should help him achieve his personal goals also. Organizations cannot keep aside the individual goals of employees and foster organizations goals. Employees priority is to work for themselves and later on comes the organization. If hes not satisfied with his growth, hell not be able to contribute in organization growth. Training and development: Employees should be trained and given chance to improve and enhance their skills. Many employers fear that if the employees are well rained, theyll leave the organization for better jobs. Organization should not limit the resources on which organizations success depends. These trainings can be given to improve many skills like: Communications skills Technical skills In-house processes and procedures improvement related skills or customer satisfaction related skills special project related skills Need for such trainings can be recognized from individual performance reviews, individual meetings, employee satisfaction surveys and by being in constant touch with the employees.

Importance of Relationship in Employee Retention Program


Sometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization. The management is sometimes not able to provide an employee a supportive work culture and environment in terms of personal or professional relationships. There are times when an employee starts feeling bitterness towards the management or peers. This bitterness could be due to many reasons. This decreases employees interest and he becomes demotivated. It leads to less satisfaction and eventually attrition. A supportive work culture helps grow employee professionally and boosts employee satisfaction. To enhance good professional relationships at work, the management should keep the following points in mind. Respect for the individual: Respect for the individual is the most in the organization. Relationship with the immediate manager: A manger plays the role of a mentor and a coach. He designs and plans work for each employee. It is his duty to involve the employee in the processes of the organization. So an organization should hire managers who can make and maintain good relations with their subordinates. Relationship with colleagues: Promote team work, not only among teams but in different departments as well. This will induce competition as well as improve the Relationship among colleagues. Recruit whole heartedly: An employee should be recruited if there is a proper place and duties for him to perform. Otherwise hell feel useless and will be dissatisfied.

Employees should know what the organization expects from them and what their expectation from the organization is. Deliver what is promised. Promote an employee based culture: The employee should know that the organization is there to support him at the time of need. Show them that the organization cares and hell show the same for the organization. An employee based culture may include decision making authority, availability of resources, open door policy, etc. development:

Individual

Taking

proper

care

of

employees

includes

acknowledgement to the employees dreams and personal goals. Create opportunities for their career growth by providing mentorship programs, certifications, educational courses, etc.

Induce loyalty: Organizations should be loyal as well as they should promote loyalty in the employees too. Try to make the current employees stay instead of recruiting new ones.

Support Lack of support from management can sometimes serve as a reason for employee retention. Supervisor should support his subordinates in a way so that each one of them is a success. Management should try to focus on its employees and support them not only in their difficult times at work but also through the times of personal crisis. Management can support employees by providing them recognition and appreciation. Employers can also provide valuable feedback to employees and make them feel valued to the organization. The feedback from supervisor helps the employee to feel more responsible, Confident and empowered. Top management can also support its employees in their personal crisis by providing personal loans during emergencies, childcare services, employee assistance Programs, counselling services, etc

Employers can also support their employees by creating an environment of trust and inculcating the organizational values into employees. Thus employers can support their employees in a number of ways as follows: By providing feedback By giving recognition and rewards By counselling them By providing emotional support

In general these practices can be categorized in 3 levels: Low, medium and High level. Low Level Employee Retention Strategies:

Appreciating and recognizing a well done job Personalized well done and thank-you cards from supervisors Congratulations e-cards or cards sent to spouses/families Voicemails or messages from top management Periodic days off for good performance Rewards ( gift, certificates, monetary and non monetary rewards) Recognizing professional as well as personal significant events Wedding gifts Anniversary gifts New born baby gifts Scholarships for employees children Get well cards/flowers Birthday cards, celebrations and gifts Providing benefits Home insurance plans

Legal insurance Travel insurance Disability programs Providing perks: It includes coupons, discounts, rebates, etc Discounts in cinema halls, museums, restaurants, etc. Retail store discounts Computer peripherals purchase discounts Assistance with tax calculations and submission of forms Financial planning assistance Celebrate birthdays, anniversaries, retirements, promotions, etc Holiday parties and holiday gift certificates Employee support in tough time or personal crisis Personal loans for emergencies Childcare and eldercare services Employee Assistance Programs ( Counselling sessions etc) Emergency childcare services

Medium Level Strategies for Employee Retention

Appreciating and recognizing a well done job Special bonus for successfully completing firm-sponsored certifications Benefit programs for family support Child adoption benefits Flexible benefits Dependents care assistance Medical care reimbursement Providing conveniences at workplace Gymnasiums

Athletic membership program Providing training and development and personal growth opportunities Sabbatical programs Professional skills development Individualized career guidance High Level Strategies

Promoting Work/Life Effectiveness Develop flexible schedules Part-time schedules Extended leaves of absence Develop Support Services On-site day care facility etc.

Feedback
Feedback acts as a channel of communication between the employee and his manager. The amount of information employees receive about how well or how poorly they have performed is what we call feedback. It is a dialog between a manager and an employee which acts as a way of sharing information about the performance. It suggests where the employee performance is effective and where performance has to improve. Managers can provide either positive feedback or negative feedback to employees. This feedback helps the employee assess his performance and identify the improvement areas. Positive feedback communicates managerial satisfaction. Positive recognition for good performance boosts up morale of employees and results in performance improvement to a

higher productivity level. It is believed that positive feedback is the only type of feedback that generates performance above the minimum acceptable level. Negative feedback

obviously communicates managers dissatisfaction. However, negative feedback sometimes make employee to put more efforts to improve his performance. But such times are very rare. Moreover this improvement is short term. Some managers do not provide any kind of feedback to their employees. Due to no feedback, employees may assume that they are performing productively or they may feel that the manager is satisfied with their performance. Studies reveal the performance tends be same or even decreases if no feedback is provided. Thus, feedback is necessary because: It builds trust and enhances communication between manager and employee. It gives managers and employees a way to identify and discuss skills and strengths. Positive feedback leads to employee retention and Retention. It helps in identifying performance areas that need improvement and specific ways to improve them. It acts as an opportunity to enhance performance by identifying resources for skill development. It is an opportunity for managers and employees to assess and identify career and advancement opportunities. It helps employees to understand the effectiveness of their performance and contributes to their overall knowledge about the work Managers have tendency to ignore good performances of their employees. Providing no feedback may demotivate employees and may lead to employee absenteeism. Input from managers side is necessary as it help employees to improve their performance and increase productivity. Communication Between Employee and Employer Communication is a process in which a message is conveyed to the receiver by the sender. The message may be or may not be in a common format or language that both the sender and receiver understand. So there is a need to encode and decode the message in the process. Encoding and decoding also helps in the security of the message. The process of communication is incomplete without the feedback. Communication is the solution to almost everything in this world. Same applies to employee retention also.

Straight-from-the-shoulder communication is what the employees need from their employers. Employees look for organizations where communication and process are transparent. Nothing is hidden and shared with the employees. There are 3 categories of employees:

A: Who will leave their current employer in 3 years of their employment


B: Who have a probability of leaving their current employer in next 3 years C: Who will stay with their current employer in the next 3 years Category A: These are the employees who lack communication with their Employers. Category C: These are the employees who have proper, well structured communication with their employers. Communication is also the way to win the employees trust in the organization. Employees trust the employers who are friendly and open to them. This trust leads to employee loyalty and finally retention.

Employers also feel that the immediate supervisors are the most authenticated and trusted source of information for them. So the organizations should hire managers who are

active communicators. Communication mediums


Open door policy: Organizations should support open door policies so that the Employees feel comfortable and are able to express their doubts and feeling to their employers. Frequent meetings and Social gatherings Emails, Newsletters, Intranet and many more. So there should be effective communication across the organization and this communication should be two-way. Communication alone can lead to unimaginable heights of employee retention. It was a wonderful experience for me to be a part of BLUE STAR for around two month and working on a research project for the company was a tremendously excellent experience that made me learn various aspects of an organization, areas of concern for an organization, art of not just surviving but proving its potential and extra caliber at time to time in the Indian corporate sector.

I hope the organization will be benefited from this survey and with the help of the suggestions given the organization can improve its working further more and the overall satisfaction level in the organization might increase up to the excellent level. The employees of the company are highly satisfied. The study on employees exit at BLUE STAR is cased out with full co-operation of the employees and management. As far as possible with in the given limits the study is completed with the satisfaction of many peoples. The data collected are analyzed scientifically and the results obtained are free to nearly 80%. It is assured that the company may get high boosted moral in the organization provided some of the suggestions made in the report are carried out. The suggestion to set up a training department and more developed Hr department will definitely reduce the number of exit. Further from this survey I hope the organization will be benefited and with the help of the suggestions given the organization can improve its functioning and the overall satisfaction level in the organization and its performance will increase. Overall I will rate BLUE STAR in A category companies. BLUE STAR through its highly ethical values not only climbing the ladder of growth year by year but also fulfilling its responsibilities towards its employees and society.

Questionnaire
A study on employee exit In BLUE STAR
The purpose of collecting such information is to know the level of satisfaction among the employees of BLUE STAR. Further it will also help to know the various job related and personal factors and their extent to which they affect the satisfaction level of employees, so that meaningful conclusions and suggestions could be made in order to make the human resource policies and practices of the company more effective and efficient. Dear respondents, Your Co-operation in the context shall go a long way helping me to draw conclusive inferences for which I shall be grateful. Note: Following are the questions that are to be duly filled up by the candidate. It is being strongly assured that secrecy shall be maintained at all the levels of this research and the identity of respondent will not be revealed. It is simply a part of research project which is to be submitted to Institute of Professional Education and Research, Bhopal in the partial fulfillment of the requirements for the award of Masters in Business Administration (HRM). Name of the employee Employee code Designation Name of the department : : : : __________________________________ __________________________________ __________________________________ __________________________________

Part A (General Information) Please tick ( ) at the appropriate place. 1. Gender 2. Marital status 3. Age. 25 years 26-50 years 50 years : : Male Married Female Single

4. Educational qualification. School level Graduate Post Graduate :

5. Your experience in CIL. 5 years 6-10 years 11 years

6. Monthly salary. Rs. 10000 Rs. 10001-Rs. 25000 Rs. 25001

Please indicate your level of agreement in connection with the following factors: 1= Strongly Agree, 2= Agree, 3= Neutral, 4= Disagree, 5=Strongly Disagree S. No. 7. 8. 9. Part B (Work Environment And Nature Of Work) Particulars 1 Your work is very challenging one I feel I have too much work to do Working hours are convenient for me Im happy with my work place 10. Management builds and maintains work relationship 11. I am mentally and/or physically exhausted at the end of a day at work 1 2 3 4 5

Part C (Relationship With Seniors And Colleagues) S. No. Particulars 12. I have proper superiors assistance 13. 14. 15. 16. 17. 18. 19. 20. 21. My boss considers my ideas too while making decision I am appreciated for my performances My boss is not partial My Participation is welcomed I can easily approach my superiors Superiors are competent enough to guide The colleagues of the organization are friendly The colleagues are helpful in nature All the workers share their Know-how

Part D (Communication And Motivation) 1 S. No. Particulars I feel that my Boss motivate me to achieve the organization 22. goal My supervisor motivates me to increase my efficiency at 23. times when Im not productive 24. Communication seems good within this organization

25. Work assignments are explained clearly to me

Part E (Training Program And Performance Appraisal System) S. No. Particulars 1 26. I am satisfied with the training programs provided to us 27. Training is given whenever needed 28. Training provided is useful 29. The training increases the performance I am satisfied with organization's techniques for evaluating 30. my performance The appraisal policy of the organization improves the 31. performance Performance appraisal of the employee is not effected by 32. personal biasness Part F (Pay And Promotion) S. No. Particulars 33. I feel Im being paid a fair amount for my work 34. I am provided with commensurate salary 35. Our wages are at par with the wages in the industry 36. Im satisfied with allowances provided by the organization 37. 38. 39. I am satisfied with promotion policies of the organization I am rewarded for the innovative ideas I am rewarded for my performance 1

Part G (Welfare Facility) 1 S. No. Particulars 40. The organization has adequate transport facility 41. The organization has adequate medical facilities 42. I am provided by benefits for the family 43 Im satisfied with the refreshment facilities 44. We are provided with the rest and lunch room and they are good enough 45. Parking facilities provided for our vehicles are satisfactory 46. Im satisfied with the first aid facilities 47. Im satisfied with the Loan facilities and other personal welfare benefits offered by company Part H (Job Security)

S. No. 48. 49. 50.

Particulars My organization provides me job security My job security is based on my performance The job security is based on workers welfare principle

Part I (Management Style And Grievance Handling) 1 S. No. Particulars Workers are given due recognition in the management 51. decisions I am satisfied with the decision making standards and 52. plans of the organization 53. Opinion given is due importance in decision making and for any change in respective department 54. The grievance handling procedure is effective 55. I am able to freely communicate my grievance Part J (Quality Policy) S. No. Particulars 56. I am aware of the quality standards of the organization 57. I am satisfied with the ISO/QS Certificate of the company 58. I am adaptable to the changes due to ISO/QS certification 59. I am happy and acceptable to the changes 1

Part K (Job Factors) 1 S. No. Particulars 60. I love my job and to work in this organization 61. My work life is meaningful I consider that my work is valuable in attaining 62. organizational goals 63. I have adequate opportunity to use my ability 64. Overall, Im satisfied with my job Any

Suggestion:

_______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ ____________________________

Date: ____________________

Signature: ____________________