1.

1 TITLE OF THE STUDY

A study about working capital management with special reference to Bharat Heavy Electrical Ltd (BHEL) Banglore.

1.2 RESEARCH PROBLEM

Like any other industries though competition is ahead in hotel industry. In hotel industry the competition is going on not only with the hotels but also with employee retention. employee retention is given prime importance in the modern market. Due to increase in corporate culture especially in thrisur the hotel industry is becoming more and more personalized. This automatically increased the demand for hospitality industry. MANAPPURAM, one of the major three star hotel, offers services aimed at corporate customers. The aim of this project is to study the EMPLOYEE RETENSION STRATEGY IN, THE HOTEL MANAPPURAM

1.2 SIGNIFICANCE OF THE STUDY Working capital management has an effect on the liquidity and profitability of the firm. The study helps the company for their expansion and growth. The study has an effect on both the workers and the management in the organization. The study has an effect on the external agencies connected with the company and their by the entire economy. 2. LITERATURE REVIEW
Till 18th century no discussion was done about working capital management. later many researchers have studied working capital from different views and in different environments.

(Eljelly, 2004) elucidated that efficient liquidity management involves planning and controlling current assets and current liabilities in such a manner that eliminates the risk of inability to meet due short-term obligations and avoids excessive investment in these assets. The relation between profitability and liquidity was examined, as measured by current ratio and cash gap (cash conversion cycle) on a sample of joint stock companies in Saudi Arabia using correlation and regression analysis. The study found that the cash conversion cycle was of more importance as a measure of liquidity than the current ratio that affects profitability. The size variable was found to have significant effect on profitability at the industry level. The results were stable and had important implications for liquidity management in various Saudi companies. First, it was clear that there was a negative relationship between profitability and liquidity indicators such as current ratio and cash gap in the Saudi sample examined. Second, the study also revealed that there was great variation among industries with respect to the significant measure of liquidity. (Deloof, 2003) discussed that most firms had a large amount of cash invested in working capital. It can therefore be expected that the way in which working capital is managed will have a significant impact on profitability of those firms. Using correlation and regression tests he found a significant negative relationship between gross operating income and the number of days accounts receivable, inventories and accounts payable of Belgian firms. On basis of these results he suggested that managers could create value for their shareholders by reducing the number of days accounts receivable and inventories to a reasonable minimum. The negative relationship between accounts payable and profitability is consistent with the view that less profitable firms wait longer to pay their bills. (Ghosh and Maji, 2003) in this paper made an attempt to examine the efficiency of working capital management of the Indian cement companies during 1992 1993 to 2001 2002. For measuring the efficiency of working capital management, performance, utilization, and overall efficiency indices were calculated instead of using some common working capital management ratios. Setting industry norms as target-efficiency levels of the individual firms, this paper also tested the speed of achieving that target level of efficiency by an individual firm during the period of study. Findings of the study indicated that the Indian Cement Industry as a whole did not perform remarkably well during this period.

(Shin and Soenen, 1998) highlighted that efficient Working Capital Management (WCM) was very important for creating value for the shareholders. The way working capital was managed had a significant impact on both profitability and liquidity. The relationship between the length of Net Trading Cycle, corporate profitability and risk adjusted stock return was examined using correlation and regression analysis, by industry and capital intensity. They found a strong negative relationship between lengths of the firms nettrading Cycle and its profitability. In addition, shorter net trade cycles were associated with higher risk adjusted stock returns. (Smith and Begemann 1997) emphasized that those who promoted working capital theory shared that profitability and liquidity comprised the salient goals of working capital management. The problem arose because the maximization of the firm's returns could seriously threaten its liquidity, and the pursuit of liquidity had a tendency to dilute returns. This article evaluated the association between traditional and alternative working capital measures and return on investment (ROI), specifically in industrial firms listed on the Johannesburg Stock Exchange (JSE). The problem under investigation was to establish whether the more recently developed alternative working capital concepts showed improved association with return on investment to that of traditional working capital ratios or not. Results indicated that there were no significant differences amongst the years with respect to the independent variables. The results of their stepwise regression corroborated that total current liabilities divided by funds flow accounted for most of the variability in Return on Investment (ROI). The statistical test results showed that a traditional working capital leverage ratio, current liabilities divided by funds flow, displayed the greatest associations with return on investment. Wellknown liquidity concepts such as the current and quick ratios registered insignificant

1.6 OBJECTIVE OF THE STUDY

Primary objective : To evaluate whether the employees are satisfied with the service. 1. To find out the benefits enjoyed by the employees. 2. To find out suggestions and defaults pointed by employees.

Secondary objective :

3. To find out further improvements. 4. How to face stiff competition through employee retention. 5. To offer suggestions based on the findings.

1.7 RELEVENCE OF THE STUDY

Direct variables : MANAPPURAM. Indirect variable: promotional activities remuneration strategy of THE HOTEL Management policy, employee retention strategy THE HOTEL

MANAPPURAM.

1.8. RESEARCH METHODOLOGY

Research methodology may be understood as all those methods and techniques that are adopted for collecting information and data.These steps includes the selection of a research problem, the presentationof the problem,the formulation of hypothesis, conceptual clearity, and methodology, survey of literature and documentation, bibliography, data collection testing of hypothesis, interpretation, aparesentation and report writing. In view of the research objectives, research methodology adopted during the research process is described below. 1.8.1 RESEARCH DESIGN The design may be specific presentation of the various steps in the process of research. descriptive design was taken for the study. 1.8.2 SOURCE OF DATA COLLECTION Data used for the research has been collected from primary and secondary source, Primary source : Primary datas are collected through questionnaire and formal

interview with the employees and official staff on MANAPPURAM.

Secondary source

Secondary data on the other hand includes those data, which are

collected from some earlier research work, showroom records and websites. 1.8.3 SAMPLING PLAN 1.8.3.1 SAMPLE SIZE The sample size taken is 50 1.8.3.2SAMPLING PROCEDURE Through direct contact with employees Samples are choosen through convient sampling method Simple statistical tool like percentage where used for the analysis Sample size taken is 50 Actual samples are taken from thrissur.

2. LITERATURE REVIEW
Till 18th century no discussion was done about working capital management. later many researchers have studied working capital from different views and in different environments. (Eljelly, 2004) elucidated that efficient liquidity management involves planning and controlling current assets and current liabilities in such a manner that eliminates the risk of inability to meet due short-term obligations and avoids excessive investment in these assets. The relation between profitability and liquidity was examined, as measured by current ratio and cash gap (cash conversion cycle) on a sample of joint stock companies in Saudi Arabia using correlation and regression analysis. The study found that the cash conversion cycle was of more importance as a measure of liquidity than the current ratio that affects profitability. The size variable was found to have significant effect on profitability at the industry level. The results were stable and had important implications for liquidity management in various Saudi

companies. First, it was clear that there was a negative relationship between profitability and liquidity indicators such as current ratio and cash gap in the Saudi sample examined. Second, the study also revealed that there was great variation among industries with respect to the significant measure of liquidity. (Deloof, 2003) discussed that most firms had a large amount of cash invested in working capital. It can therefore be expected that the way in which working capital is managed will have a significant impact on profitability of those firms. Using correlation and regression tests he found a significant negative relationship between gross operating income and the number of days accounts receivable, inventories and accounts payable of Belgian firms. On basis of these results he suggested that managers could create value for their shareholders by reducing the number of days accounts receivable and inventories to a reasonable minimum. The negative relationship between accounts payable and profitability is consistent with the view that less profitable firms wait longer to pay their bills. (Ghosh and Maji, 2003) in this paper made an attempt to examine the efficiency of working capital management of the Indian cement companies during 1992 1993 to 2001 2002. For measuring the efficiency of working capital management, performance, utilization, and overall efficiency indices were calculated instead of using some common working capital management ratios. Setting industry norms as target-efficiency levels of the individual firms, this paper also tested the speed of achieving that target level of efficiency by an individual firm during the period of study. Findings of the study indicated that the Indian Cement Industry as a whole did not perform remarkably well during this period. (Shin and Soenen, 1998) highlighted that efficient Working Capital Management (WCM) was very important for creating value for the shareholders. The way working capital was managed had a significant impact on both profitability and liquidity. The relationship between the length of Net Trading Cycle, corporate profitability and risk adjusted stock return was examined using correlation and regression analysis, by industry and capital intensity. They found a strong negative relationship between lengths of the firms nettrading Cycle and its profitability. In addition, shorter net trade cycles were associated with higher risk adjusted stock returns. (Smith and Begemann 1997) emphasized that those who promoted working capital theory shared that profitability and liquidity comprised the salient goals of working capital management. The problem arose because the maximization of the firm's returns could seriously

threaten its liquidity, and the pursuit of liquidity had a tendency to dilute returns. This article evaluated the association between traditional and alternative working capital measures and return on investment (ROI), specifically in industrial firms listed on the Johannesburg Stock Exchange (JSE). The problem under investigation was to establish whether the more recently developed alternative working capital concepts showed improved association with return on investment to that of traditional working capital ratios or not. Results indicated that there were no significant differences amongst the years with respect to the independent variables. The results of their stepwise regression corroborated that total current liabilities divided by funds flow accounted for most of the variability in Return on Investment (ROI). The statistical test results showed that a traditional working capital leverage ratio, current liabilities divided by funds flow, displayed the greatest associations with return on investment. Wellknown liquidity concepts such as the current and quick ratios registered insignificant

3.1 BUDGET
Transportation Food Project report Other expense Total : Rs. 1,000(approx.) : Rs. 1,800(approx.) : Rs. 2,200(approx.) : Rs. 1,000(approx.) : Rs. 6,000

3.2 CONCLUSION
Employees do not leave an organization without any significant reason. There are certain circumstances that lead to their leaving the organization. Companies have now realized the importance of retaining their quality workforce. Retaining quality performers contributes to productivity of the organization and increases morale among employees.

Four basic factors that play an important role in increasing employee retention include salary and remuneration, providing recognition, benefits and opportunities for individual growth. But are they really positively contributing to the retention rates of a company? Basic salary, these days, hardly reduces turnover. Today, employees look beyond the money factor.

3.2 REFERENCE
http://www.major-media.com/learning-resources/employee-retention-lit.htm http://retention.naukrihub.com/manager-role.html