MAJOR PROJECT REPORT SUBMITTED TOWARDS THE PARTIAL FULFILMENT

OF

Bachelor of Commerce (B.COM H)

MAJOR PROJECT REPORT ON

Submitted by: PROJECT GUIDE

Prachi Das SAPNA
01424088815 ASSISTAN PROFESSOR

Trinity Institute of Professional studies

Affliated to Guru Gobind Singh Indraprastha University, New Delhi
 CERTIFICATE
TO WHOMSOEVER IT MAY CONCERN
This is to certify that the project work “_________________________________________”
made by “Prachi Das B.com h 5TH semester Enrolment number- 01424088815” is an authentic
work carried out by her under the guidance and supervision of Ms. Sapna .
The project report submitted has been satisfactory for the partial fulfilment of the degree of
Bachelor of Commerce.
Internal Supervisor

Signature

Ms. Sapna
 AKNOWLEDGEMENT
It is in particular that I am acknowledging my sincere feeling towards my mentors who graciously
gave me their time and expertise.
They have provided me with the valuable guidance, sustained efforts and friendly approach. It
would have been difficult to achieve the results in a short span of time without their help.
I deem it my duty to record my gratitude towards the Project Supervisor_________________
who devoted her precious time to interact, guide and gave me the right approach to accomplish the
task and also helped me to enhance my knowledge and understanding of the project.

Signature
Prachi Das
01424088815
B.com H
6th sem/2nd shift
 DECLARATION
I hereby declare that the following documented Project Report titled________________________
is an original and authentic work done by me for the partial fulfillment of Bachelor of Commerce degree
program.
I hereby certify that all the Endeavour put in the fulfillment of the task are genuine and original to the best
of my knowledge and I have not submitted it earlier elsewhere.

Signature
Prachi Das
01424088815
B.com H
6th sem/2nd shift
 Table of Content
S.NO Particulars Page No.

1. Chapter-1 (Introduction and Literature Review) 1-15

 Introduction
 History
(Theoretical concept about the topic such as Importance, Functions,
Types, Roles, etc.)
2. Chapter-2 (Research Objectives and Methodology) 15-30
 Research objective of the study
 Research Methodology
 Research Design
(Types of research design)

 Data Collection
(Sources of data collection-Primary and Secondary)
 Sampling Design
Population/Universe
Sampling Unit
Sampling Size
Sampling Area
Sampling Technique

 Sampling Instrument (Questionnaire)

No. of questions
Type of questions
Rating scale (if used)

3. Chapter-3 (Data Processing, Analysis and Interpretation) 30-45

 Data Processing
 Analysis of the problem under study
 Interpretation of the result

4. Findings 46

5. Limitations 47

6. Conclusions 48

7. Recommendations and Suggestions 49

8. Bibliography 50

9. Annexures 51
CHAPTER-1
 1.1INTRODUCTION

What is an Organization?
A set up where individuals come together and work in unison to achieve a common goal is
called as organization. Individuals working together in an organization to earn their bread and
butter as well as make profits are called employees. Employees are the lifeline of an
organization and contribute effectively to its successful running and profit making.An
organization can’t survive if the employees are not serious about it and are more concerned
about their personal interests.
What is Employee Retention?
Employee retention refers to the various policies and practices which let the employees stick
to an organization for a longer period of time. Every organization invests time and money to
groom a new joiner, make him a corporate ready material and bring him at par with the
existing employees. The organization is completely at loss when the employees leave their
job once they are fully trained. Employee retention takes into account the various measures
taken so that an individual stays in an organization for the maximum period of time.
Why do Employees Leave?
Research says that most of the employees leave an organization out of frustration and constant
friction with their superiors or other team members. In some cases low salary, lack of growth
prospects and motivation compel an employee to look for a change. The management must
try its level best to retain those employees who are really important for the system and are
known to be effective contributors.
It is the responsibility of the line managers as well as the management to ensure that the
employees are satisfied with their roles and responsibilities and the job is offering them a new
challenge and learning every day.
Need & Importance of Employee Retention:
• Hiring is not an easy process: The HR Professional shortlists few individuals from a large
pool of talent, conducts preliminary interviews and eventually forwards it to the respective
line managers who further grill them to judge whether they are fit for the organization or not.
Recruiting the right candidate is a time consuming process.
• An organization invests time and money in grooming an individual and makes him ready
to work and understand the corporate culture: A new joiner is completely raw and the
management really has to work hard to train him for his overall development. It is a complete
wastage of time and money when an individual leaves an organization all of a sudden. The
HR has to start the recruitment process all over again for the same vacancy; a mere duplication
of work. Finding a right employee for an organization is a tedious job and all efforts simply
go waste when the employee leaves.
• When an individual resigns from his present organization, it is more likely that he would
join the competitors: In such cases, employees tend to take all the strategies, policies from the
current organization to the new one. Individuals take all the important data, information and
statistics to their new organization and in some cases even leak the secrets of the previous
organization. To avoid such cases, it is essential that the new joinee is made to sign a document
which stops him from passing on any information even if he leaves the organization.
• The employees working for a longer period of time are more familiar with the company’s
policies, guidelines and thus they adjust better: They perform better than individuals who
change jobs frequently. Employees who spend a considerable time in an organization know
the organization in and out and thus are in a position to contribute effectively.
• Every individual needs time to adjust with others: One needs time to know his team
members well, be friendly with them and eventually trust them. Organizations are always
benefited when the employees are compatible with each other and discuss things among
themselves to come out with something beneficial for all. When a new individual replaces an
existing employee, adjustment problems crop up. Individuals find it really difficult to
establish a comfort level with the other person. It is a human tendency to compare a new
joinee with the previous employees and always find faults in him.
• It has been observed that individuals sticking to an organization for a longer span are more
loyal towards the management and the organization: They enjoy all kinds of benefits from the
organization and as a result are more attached to it. They hardly badmouth their organization
and always think in favour of the management. For them the organization comes first and all
other things later.
• It is essential for the organization to retain the valuable employees showing potential:
Every organization needs hardworking and talented employees who can really come out with
something creative and different. No organization can survive if all the top performers quit.
It is essential for the organization to retain those employees who really work hard and are
indispensable for the system.
• The management must understand the difference between a valuable employee and an
employee who doesn’t contribute much to the organization. Sincere efforts must be made to
encourage the employees so that they stay happy in the current organization and do not look
for a change.
Employee Retention Strategies:
• An employee looks for a change when his job becomes monotonous and does not offer
anything new. It is essential for everyone to enjoy whatever he does. The responsibilities must
be delegated according to the individual’s specialization and interests. It is the responsibility
of the team leader to assign challenging work to his team members for them to enjoy work
and do not treat it as a burden. Performance reviews are important to find out whether the
employees are really happy with their work or not.
• Constant disputes among employees encourage them to go for a change. Conflicts must be
avoided to maintain the decorum of the place and avoid spreading negativity around. Promote
activities which bring the employees closer. Organize outdoor picnics, informal get together
for the employees to know each other better and strengthen the bond among themselves. Let
them make friends at the workplace whom they can really trust. Friendship among employees
is one strong factor which helps to retain employees. Individuals who have reliable friends at
the workplace are reluctant to move on for the sake of friendship. No one likes to leave an
organization where he gets mental peace. It is essential to have a cordial environment at the
workplace.
• The human resource department must ensure that it is hiring the right candidate. Frustration
crops up whenever there is a mismatch. A finance professional if is hired for a marketing
profile would definitely end up being frustrated and look for a change. The right candidate
must be hired for the right profile. While recruiting a new candidate, one should also check
his track record. An individual who has changed his previous jobs frequently would also not
stick to the present one and thus should not be hired.
• Employee recognition is one of the most important factors which go a long way in retaining
employees. Nothing works better than appreciating the employees. Their hard work must be
acknowledged. Monetary benefits such as incentives, perks, cash prize also motivate the
employees to a large extent and they prefer sticking to the organization. The performers must
have an upper edge and should get a special treatment from the management.
• Performance appraisals are also important for an employee to stay motivated and avoid
looking for a change. The salary hike should be directly proportional to the hard work put by
the employees. Partiality must be avoided as it demotivates the talented ones and prompt them
to look for a better opportunity.
• The salary of the employees must be discussed at the time of the interview. The components
of the salary must be transparent and thoroughly discussed with the individuals at the time of
joining to avoid confusions later. The individuals should be made to join only when the salary
as well as other terms and conditions are acceptable to them.
• The company’s rules and regulations should be made to benefit the employees. They
should be employee friendly. Allow them to take a leave on their birthdays or come a little
late once or twice in a month. It is important for the management to understand the employees
to gain their trust and confidence. The consistent performers must also have a say in the
company’s decisions for them to feel important.
Role of Motivation in Employee Retention:
Motivation plays an important role in employee satisfaction and eventually employee
retention. Nothing works better than motivation. Motivation acts as a catalyst to an
individual’s success. The team leaders and the managers must constantly motivate the
employees to extract the best out of them. If an employee has performed exceptionally well,
do appreciate him. Simple words like “Well done”, “Bravo”, “Good”, “Keep it up” actually
go a long way in motivating the employees. The top performers must be in the limelight. The
employees must feel indispensable for the organization. It is essential for the employees to be
loyal towards their organization to deliver their level best.
The superiors should send motivational emails to their team once in a week. Display
inspirational posters, photographs on the notice board for the employees to read and stay
motivated. It is natural for an individual to feel low sometimes, but the superiors must ensure
to boost their morale and bring them back on track. No individual should be neglected or
criticized. This demotivates them. If they fail to perform once, motivate them and give them
another opportunity.
Organize various activities and events at the workplace. Ask each one to take charge of
something or the other. Engage the employees in productive tasks necessary for their overall
development. The management must show its care and concern for all the staff members. The
employees must feel secure at the workplace for them to stay motivated.
Whenever any company policy is to be formulated, the opinion of each and every employee
should be taken into consideration.
Invite all of them on a common platform and ask for their suggestions as well. Freedom of
expression is must. Every employee must have a say in the organization’s guidelines as they
are made only to benefit them.
Incentives, perks, cash prizes are a good way to motivate the employees. The employees who
have performed well consistently should be felicitated in front of all the staff members as well
as the management. Give them trophies or badges to flaunt. Ask the audience to give a loud
applause to the employees who have performed well. This is a good way to motivate the
employees for them to remain happy and work with dedication for a longer duration. Others
who have not performed up to the mark also gear up for future. The names of the top
performers must be put on the company’s main notice board or bulletin board for everyone to
see.
Appraisals are also an important way to motivate the employees. The salaries of the
performers must be appraised at regular intervals- an effective way to retain the employees.
Career growth is an important way to retain the talented employees. Give them power to take
some decisions on their own but the management must have a close watch on them so that
they do not misuse their power.
Role of HR in Employee Retention:
The Human Resource team plays an important role in employee retention. Let us find out
their role in the same:
• Whenever an employee resigns from his current assignments, it is the responsibility of the
HR to intervene immediately to find out the reasons which prompted the employee to resign.
No one leaves an organization without a reason. There has to be one and the human resource
team must probe into it. There can be innumerable reasons for an employee to leave his current
job. The major ones being conflict with the superiors, lesser salary, lack of growth, negative
ambience and so on.
• It is the duty of the HR to sit with the employee and discuss the various issues face to face.
Understand his problems and listen to his side of the story as well. Remember the HR should
not focus on conducting exit interviews, rather more emphasis should be laid on retaining the
employees.
• Try to provide a solution to his problem. Hiring is a tedious process and it is really very
difficult to recruit the right candidate and train him once again. Do check the track record of
the employee who wishes to move on. It is really essential for the management to retain those
employees who have the potential and are really indispensable for the organization. If they
leave and join the competitors; the organization would be at loss. If one feels that the
employee is not very happy with his team leader, try to shift him to a new team. If the
employee feels his salary is not justified, try to give him a hike but make sure he is worth it
and you don’t end up upsetting others
• The HR person must ensure that he is recruiting the right employee who actually fits into
the role. A right person doing the wrong job would never find his job interesting and certainly
look for a change. Make sure every individual has been assigned responsibilities according to
his specialization and interest. The employees must be clear with their KRAs from the very
beginning.
• The human resource department must conduct motivational activities at the workplace.
Organize various internal as well as external trainings which help the employees to learn
something extra apart from their routine work. Make them participate in extracurricular
activities important for their overall development. Encourage them to interact with each other
so that the comfort level increases.
• The HR must launch various incentive schemes for the top performers to motivate them.
This way the employees feel important for the organization and strive hard to perform even
better the next time. The employees who show promise should be awarded with cash prizes,
lucrative perks and certificates to make the individual stand apart from the crowd. Send a mail
wishing the employees on their birthdays or congratulating them when they perform
exceptionally well or come out with something innovative. Arrange a small bouquet for them
as a gift from the organization’s side. This way the employees feel attached to the organization
and are reluctant to look for a change. A friendly atmosphere is essential for the employees to
feel safe and secure. Make them participate in various management decision making.
• Performance reviews are a must. The HR along with the respective team leaders must
monitor their team member’s performance to ensure whether they are enjoying the work or
not. The employees look for a change only when their job becomes monotonous and does not
offer any growth or learning. Job rotation can be one of the effective ways to retain employees.
Employee Engagement and Employee Retention:
What is employee engagement?
Employee engagement refers to a situation where all the employees are engaged in their own
work and take keen interest in the organization’s activities. An engaged employee is one who
is focused, enjoys his work and learns something new each day.An engaged employee is
satisfied with his work and would never think of quitting his job. He is the one who willingly
accepts responsibilities and looks forward towards a long term association with the
organization.
Lack of challenging work is one of the major reasons as to why an employee decides to move
on. An individual should be delegated responsibilities as per his specialization and
background for him to perform up to the mark. An employee delivers his hundred percent
when he does something which interests him.
Problems crop up when individuals have nothing creative and challenging to do. An employee
must foresee a bright future and better growth prospects in the organization for him to stick
to it for a longer duration. An engaged employee always stays motivated in his current
assignments and does not look for opportunities outside. Why does an individual always look
for challenges outside, why can’t he improve the conditions in his own organization?
Monotonous work demotivates an individual and prompts him to look for a change.
As they say “an empty mind is a devil’s workshop”. In the same way, idle employees are the
ones who loiter around and spread negativity all over the place. They are the ones who
provoke others to fight amongst themselves. Individuals who have nothing to do at workplace
kill their time by gossiping around and badmouthing their organization. They always talk
negative about the management and encourage others to move on.
The team leaders and the management must take the initiative to assign challenging work to
the subordinates so that they do not treat their work as a burden. An employee must be asked
to do something innovative every time.

An individual engaged in his work strives hard to deliver his level best and live up to the
expectations of the management everytime. He looks forward towards achieving his
organization’s targets and thus making it one of the best places to work.An employee who is
busy with his work stays away from nasty politics, backstabbing and thus maintain the
decorum of the office. He prioritizes his work and does not really get time for controversies.
Individuals are reluctant to leave when they enjoy a cordial relation with their colleagues.
Everyone expects a stress free environment at workplace and tends to leave only when there
are constant disputes. No one likes to carry tensions back home. An engaged employee does
not get time to participate in unproductive tasks instead finishes his assignments on time and
benefits the organization. The team leaders must monitor the performance of the team
members to ensure whether they are satisfied with their profile or not? Performance reviews
are a must to make sure every one finds his job interesting. Discussions are essential at the
workplace and everyone should have the liberty to express his opinions on an open forum.
Don’t impose things on anyone. Let people decide themselves what best they can do. This
way employees are satisfied with their work and never look for a change. One should always
remember that offices are meant to work and not for fun. For an individual, his work should
come first and everything else later.
 1.2 INDUSTRY PROFILE
GARAGE EQUIPMENT MARKET

THE CHANGING LANDSCAPE

With close to two decades of experience in the automobile industry, the changing landscape of
garages, the equipment they use, their customer interaction and skill set of employees is analogous
to the changing economic and social environment in India. Taking out a page from history we all
know that we do not have to depend on only a few models of cars to choose from. We today have
around 40 models to choose from. Theoretically there are over 200. Such model crowding has
made many people’s lives complex while simplifying the customers’ lives. It has also given rise
to a host of other challenges.

These forces have given rise to two significant factors – changing customer attitudes and
expectations and growing car population and variety. Combined together and interacting with each
other, these drivers have effected significant changes in workshops, garage equipment and the skill
requirement of technicians.

With the opening up of the economy in the 1990s, every possible brand of automobile entered the
Indian market. Their swanky and up-market design cars could be seen on city roads. Showrooms
and service set-ups were revamped and job opportunities in the automobile sector widened. These
were a paradigm shift for car consumers. Customers are maturing, buying more of C segment and
SUV cars, looking for more subtle differentiations and are getting refined. At the same time they
have started questioning everything – prices, service standards, soft service qualities, and so on.
They are able to see functional aspects of cars distinct from other frills, and as the products become
more or less the same they only see the quality in each. Today customers do differentiate on service
quality and are willing to notice it and pay a premium for the same. While on the customer attitude
front substantial shifts are taking place, the booming automotive sector also gave rise to a
burgeoning network of service centers. While the good old Premier Padminis and bulky
Ambassadors were often found at roadside mechanic joints, a modern automobile, being a far more
sophisticated machine, needs an equally sophisticated set of equipment to service. The location of
the service centers, the cleanliness of the workshop, the professionalism and attire of the workmen,
timeliness of the service and the equipment that are being used to diagnose or repair the vehicles
have all become a must for workshops.

All this is indicated in the penetration of auto service equipment which has reached a decent level
though far below the international level.

Garages have started coming up in main streets. They have a wider frontage, present a bold and
good look, and are airy and epoxy floored. With a reception area they provide water when someone
comes in, sport a TV that beams channel programs, whether there is a person in the lounge or not,
and are a “service advisor” who is well dressed and technically competent. Today, even
independent repair shop owners are ready to invest in modern machinery and diagnostic tools. This
behavioral change is not only to achieve parity with other workshops but their belief that it pays
to invest in these. Right from the wheel aligner, balancer, body repair system, MIG welder, dent
puller, special tools to paint booths, you will find them all. They talk about productivity matrix,
bay turn, multi-skilled workers, customer satisfaction and all such words which once used to be
the copyright for dealership workshops. And if all is so good, then this must be the best business
plan to invest in for any entrepreneur and make money. Parts used to be a bug bear. Customers
were led to believe that they would get good and genuine parts only with authorized workshops. It
is no longer true. As the markets disperse, so also parts distribution. Today’s article on
Competition Commission of India’s report says that the parts of majority of the car makers are
available freely. Car manufacturers know that they cannot remain silent and without catering to
the ever-growing aftermarket. For them, the choice is to supply to it or forget that market in the
long run. Mature makers have realized the inevitable and are supplying parts to all markets. The
restrictions are limited to a very few manufacturers who do not command much market share
individually. Reflecting such shifts, the Automobile Component Manufacturers’ Association
(ACMA) is taking the lead and organizing a trade expo in Delhi for aftermarket needs. This is the
first time ACMA is taking a lead different from the Society of Indian Automobile Manufacturers
(SIAM). We can see a subtle power balance getting restored.

Aftermarket and independent aftermarket service will all become a major force to reckon with in
the Focus on garage equipment98 MOTORINDIA l July 2012current decade. As with any sector,
this business also has its own challenges and nuances. Workshops built in tier-2 and tier-3 cities,
at an investment of Rs. 10 lakhs each, with basic equipment, break even in four to five months.

At the same time, you have a host of workshops in metro cities that are located at prime junctions,
with heavy investments made in modern machinery and struggling to make profit even after two-
three years of operation.

There are problems which are peculiar to this industry. Following are the few:

• The customer has to be delivered what is being promised. If he has come for service he should
not be allowed to leave with the feeling that his car has been given a good wash.

• Procuring costly equipment will not serve any purpose until service advisors know where and
how it has to be used. Productivity can be enhanced only if the potential of the employees and also
the equipment is tapped to the fullest extent. Besides, substantial thrust has to be put on training.

• Original diagnostic tools and repair equipment should be available at affordable prices. The
workshops should have access to quality information on how to use them effectively. Particularly
garage technicians need to become adept at electronics tools usage.

• Well, the above point will not only require investments in terms of manufacturing them in India
but also certain legislative or policy changes that makes this manufacturing market lucrative. Not
only will it bring in better service but would also generate larger revenue and skilled/semi-skilled
jobs for States.

• Repair needs to be carried out only when it is necessary. Customer has every right to manage
with the same parts being repaired till the time it does not raise a safety threat or environment
concern. More importantly, he should have visibility on what he is being charged for.

• Though some time it is required for right reasons, replacements also being carried too far and is
inviting suspicion. There is a distrust developing; and regulator is taking note and it is not long far
that there will be restrictions.

• Garages should only do necessary repairs. They should not use safety and reliability as veils to
push parts and carry out costly labor charges.

• Vehicle manufacturers have to come forward in terms of making electronic catalogues & manuals
accessible to all. Keeping these privy and leveraging the lack of information availability in
ensuring customer loyalty is detrimental to the free market philosophy.With Indian vehicle
population growing and aspirations of millions of people driving this growth the service workshop
market is all set for an explosive growth. There is scope for everyone to benefit from it, be it
customers, laborers, workers, executives, government (excise from manufacturing), SMEs,
exporters/traders and OEMs.
 1.3 COMPANY PROFILE
MANATEC is one of Asia's largest original equipment manufacturers of automotive garage
equipments. Located in Pondicherry, India, the company manufactures Wheel Aligners, Wheel
Balancers, Two Post Lifts, Gas analyzers, Smoke Meters, Head lamp aligners & Digital Air Tire
inflators.

Established in the year 1987, as a manufacturer of industrial shaft aligners, Manatec diversified
into garage equipment industry in 1991. The company, through its in-house R&D, indigenously
designed and developed Optical wheel alignment systems in 1991, to become the first company to
design a wheel aligner in the whole of Asia. Following this the company's R&D dept continuously
designed & developed wheel balancers, tyre changers, exhaust gas analyzers, smoke meters, head
lamp aligners, 2 post lifts & automatic tyre inflators. With this, Manatec is one of very few
companies in the world to have design & technology of eight different garage equipments.
Advanced versions of wheel aligners were also developed in these years simultaneously. Manatec's
extensive Wheel Aligner installations across the world speak for its quality, specialization and lead
role we play in this industry.

Manatec's in-house R&D facility is spread over 10,000 sq.ft with more than 35 electronics,
mechanical & software and hardware engineers. All the products are designed by the R&D are
indigenous with proprietary software, hardware and electronics design. The R&D strength of
Manatec has enabled the company to export its products worldwide and provide technical support
to its overseas buyers.

Buoyed with increasing export orders and significant growth in domestic business, Manatec has
come up with a new Greenfield manufacturing facility in an area of 130,000 Sq.ft, near
Pondicherry. This facility ensures that the exports and domestic demands are met by producing
garage equipments on a mass scale.

Manatec is ISO 9001:2008 certified, which confirms its commitment to quality systems within
the company that will result in quality products. The entire organization is driven by fully-
integrated ERP system that was introduced in 2007.

Manatec exports to more than 50 countries across the globe through its distributor network. This
was achieved through a unique value proposition Manatec was able to offer its buyers- Designing
garage equipments with world-class technology & quality and offering at prices competitive to
European and Chinese products. Today Manatec has emerged as a truly global player in the
automotive aftermarket and has evolved its vision and mission for the long term.
PRODUCT FACILITY:

Manatec's production floor is equipped with state of the art manufacturing facilities to produce
garage equipment. The Production floor is spread over an area of 130,000 sq.ft in our new
Greenfield facility. Production techniques such as Cellular manufacturing, KANBAN & 5S are
practiced to ensure quality throughput. The infrastructure includes CNC machines, machine
shop, tool room, electronics assembling & testing bays, sub-assembly bays and final-assembly
lines. Stringent Quality Assurance measures in place to control various stages of production from
raw material, sub assembly to final product.

The new Greenfield facility has the production infrastructure with the capacity to produce the
following volumes:

 3000 wheel aligners

 3000 wheel balancers
 1500 two post lifts
 1000 exhaust gas analyzers
 1000 diesel smoke meters

R&D:

Manatec established its in-house R&D division in 1987. Manatec through its R&D strength, has
become one of the very few companies in the world to have 100 % indigenously designed 8
different garage equipments (wheel aligners, balancers, tire changers, 2 post lifts, gas analyzers,
smoke meters, head lamp aligners, automatic tire inflators).

The R&D dept houses all required facilities, both Electronics & Mechanical, to design & develop
high quality Garage Equipments. Experienced technical engineers, hardware & software
Specialists work in the R&D dept that designs world-class products. The software of Wheel
Aligner and Wheel Balancer has been copy right protected.

Manatec invests approx. 7% of its annual turnover in Research & Development every year.

Currently Manatec is working in designing advanced wheel alignment systems, premium wheel
balancers to handle heavy-duty wheels and gas & smoke analyzers to conform to European and
UK standards.

CE MARKING:

All the products are designed and developed in our R&D Centre to conform to International quality
requirements. Wheel Aligners, Wheel Balancers, and Gas & Smoke analyzers are already self-
certified for CE. The third party certification from a leading worldwide organization is applied
and acquired.
PRIVATE LABELING:

Manatec’s strong R & D has enabled the company to tie up with famous global brands to supply
Wheel Aligner, Wheel balancer, Pollution Check Equipments & Two Post Lifts under private
label. They find enormous value in terms of latest technology product at economical cost when
they buy from Manatec.

MILESTONES:

In its 25 years of designing & producing garage equipment, Manatec has crossed various
milestones.

COMPANY MILESTONE:

1987: R. Mananathan, a technocrat in machinery & vibration analysis forms the company,
Manatec to design and produce industrial shaft alignment computers. These computers work on
micro-processor based design to measure and display misalignment between the shafts of any
industrial prime mover.

1989: Manatec designs another product electronic spirit level. Both shaft aligner & electronic
spirit level were import-substitute products and received good response from the Indian market.

1991: In 1991, automotive garage equipment used to be imported into India from Italy.
Identifying the need for an import-substitute, Manatec with 100% indigenization, designed a wheel
aligner for the first time in India & Asia.

1992: Manatec was awarded with Best productivity performance award for the year 1990-1991
from the National productivity council of India.

1992: Manatec’s wheel aligners were approved by major Indian vehicle manufacturers like
Hindustan motors & TATA motors.

1993: Manatec designed first ever video graphic wheel aligners with attractive and user-friendly
software design.

1994: Manatec received the coveted national award from the president of India for Best
entrepreneur and quality products in SSI sector for the year 1993.

1995: Digital toe-aligners were designed to align only the TOE angle. This model was exclusively
developed for buses & trucks.

1996: Manatec designed wheel balancers in both digital and video graphic versions.

1997: Award for Excellence in R&D for the year 1996 was awarded by the Dept of science and
industrial research, Govt of India
1997: Product approvals from tyre manufacturers followed from JK tyres, Birla tyres, Apollo
tyres

1998: Manatec applied for ISO 9001 certificate successfully and received from KPMG.

1999: Tyre changers were designed in-house through the mechanical R&D division.

1999: Exhaust gas anlaysers were designed to cater to the rising emissions conditions in India.

2000: Manatec successfully applied for in-house R&D recognition from the Govt. of India.

2000: Best R&D efforts award for the year 1998-1999 was given away by Prof.Murali Manohar
Joshi

2000: Manatec develops diesel smoke meter

2001: Manatec successfully received ISO 9001: 2000 certificate from TUV Germany.

2002: Two post lift, model RHINO 3.0 was designed

2003: Manatec successfully re-applied for in-house R&D recognition.

2007: Manatec received Silver shield award for star performer in exports for the year 2005-2006
awarded by Engineering export promotion council of India.

2008: Second time in a row, Manatec received Silver shield award for star performer in exports
for the year 2006-2007 awarded by Engineering export promotion council of India.

2008: Manatec was converted into a private limited company and 3 additional directors were
inducted into the board.

2010: Third time in a row, Manatec received Silver shield award for star performer in exports for
the year 2008-2009 awarded by Engineering export promotion council of India.

2011: Manatec's FOX 3D Wheel Aligner; India's first indigenously designed Wheel Aligner.
Manatec is certified by Ministry of Science & Technology, Department of Scientific and Industrial
Research for its R&D efforts.

2012: Fifth time in a row, Manatec receives Silver shield award for star performer in exports for
the year 2010-2011 awarded by Engineering Export Promotion Council of India.

2012: Manatec celebrates 25th Anniversary.

CERTIFICATIONS: ISO 9001:2008

Manatec has been certified by TÜV SÜD South Asia Pvt. Ltd. for Quality Management System.
Manatec received its ISO 9001certification as early as 2003, after this the company has gone for
fourth successful consecutive certifications. Currently the company is in the process of extension
of certification.

VISION STATEMENT:

Manatec’s long term vision is to become India’s one of the most respectable companies with a
global footprint across different countries. A company with best corporate governance and
ethics and a valuable contributor to the society at large.

MISSION STATEMENT:

• Mission with paranoid approach.

• Continuous development through innovation.

• Acquire, polarize and vitalize technologies/manpower/machinery.

• Assimilate excellence through global best practices.

• Ensuring global stability through honest business practices.

• Enable, enrich and energies employees, investors and government.

• Invest Compete and conquer.

QUALITY: One of the value propositions Manatec offers its buyers is the Quality of its
equipments. Excellent quality combined with economic prices will offer a unique value to the
buyers and place Manatec competitively against a Western or Chinese product. Manatec
understands the importance of this value and has always prioritized quality assurance of its
products. Extensive process quality system ensure strict adherence to the norms prescribed. In-
coming raw material or vendor assemblies are subject to quality checks. With long-established
vendor base, on-site self check methods are established at the vendor premises itself. Custom-
designed quality jigs are established in-house and at the vendor’s premises to check deviations if
any.

QUALITY POLICY:

“Every Employee of Manatec is responsible for achieving the ultimate customer satisfaction
through effective design, systematic production, timely delivery and prompt customer service.
These are reinforced by periodic updating of technology, knowledge and systems through proper
training and motivation”
TQM INITIATIVE:

Manatec launched the TQM initiative in December 2011 by releasing the TQM Logo & banner
during an employee meeting. TQM steering committee has been formed to drive the TQM
initiative. MANATEC is working towards achieving the coveted DEMING AWARD by 2015.
 1.7 LITERATURE REVIEW
Tricks to Improve Employee Retention (Franke Mor, 2001)

Employee retention is mainly done to assure the constant growth of the company in terms of
production, sales, and monetary gains and reduce employee turnover by cutting down on the cost
of employee hiring, training etc. It is the responsibility of the human resource management team
to take initiative steps to retain their important and productive workers for long term benefits and
future prospects of business gains and success. Carefully analyze the reasons that would motivate
them to stay in your company and make sure they are implemented. Feedback process of
organization system should be simple and short. It can work for boosting employee morale and
helps increasing retention. Employee compensation also plays an important role in employee
retention strategies. Fair and competitive salary package give the workers an incentive to want to
stay in the company. Upper Management should know their name, skills and specifications in
business. Create opportunities for better professional development and growth for your workers.
You can provide training or tools to implement new techniques in their work.

10 Strategic Tips for Employee Retention (Jaime Menor, 2009)

1. Balance work and personal life

2. Competitive compensation package

3. Treat each employee with respect and as an individual

4. Positive Work environment

5. Eradicate Favoritism

6. Communication and availability

7. Employee Empowerment

8. Placing the Right Talent for the Right Job

9. Celebrate successes, big and little and make the workplace fun.

10. Workplace flexibility

How to Increase Employee Retention (Brad Booysen, 2011)

Every company needs talented, hard-working staff, and the best way to retain good workers is to
keep them happy. That's why having an employee retention strategy is important. Here are some
employee retention strategies you can use to keep employees "on your team."
 1. Encourage communication:

Share your company's vision with staff and make them feel part of the plan. Communicate your
enthusiasm for what your company does so that employees see the "bigger picture" and how they
fit in to it. Have monthly meetings with employees to get feedback on their job performance.

2. Recognize employee achievements for better employee retention:

Recognize employees who are productive and motivated, and make them feel part of the business
"family" by recognizing personal achievements. Reward employees as a team for working hard on
a project by hosting a healthy team lunch.

3. Keep them healthy:

Healthy employees are more productive. Sponsor health screening programs to check for health
problems. Bring in experts on nutrition and physical fitness to talk to employees about staying
active and making healthier food choices. A healthy employee is a more productive one.

4. Reduce stress in the workplace:

Encourage employees to take breaks or take a short walk outdoors. Keep an open door and
encourage employees to discuss stress-related issues so you can help correct them. Bring in experts
to talk about how to deal with work-related stress. Humor keeps employees healthy and happy -
and that's a good thing when it comes to employee retention.

Employee Retention Plan (Ivo Legenda, 2011)

Smart companies develop Employee Retention Plan to improve their current Employee Retention
Rate and develop high performance organizations. How do you develop your Employee Retention
Plan? First of all you need to identify the most important drivers for Morale, Loyalty and
Satisfaction. Employee Retention Rate depends on many factors such as overall company
environment, company policies, company culture, work environment, employee development, etc.
Creating High Retention Workforce is the number one priority of a successful Retention Plan.
Improve morale through effective rewards and recognition system and develop relevant rewards
for your workforce. Employee Surveys are used for measuring employee satisfaction and identify
important issues for your employees. Achievements and recognitions are also important for
employee satisfaction. Rewards and recognition systems are also important for your Retention
Plan. Employee Retention Plan should be customized to your business and employees.

Executive Search Firms on Employee Retention Guidelines (Charles S. Cox, 2012)

To start, organizations need to understand that finding and acquiring talented employees is difficult
at the best of times, and all the more so when the economy is in a slump and the job market is
being flooded with under qualified individuals. What's more, in order to retain the talent they have,
companies will need to stop seeing these individuals as tools and as individuals who should be
supported and encouraged if they are to be effective and help the company achieve its goals. To
help guide companies in these endeavors, here are some employee retention tips courtesy of
executive search firms.

 Keeping Motivated
 Providing the Corporate Ladder
 Developing a Brand
 Building Relationships
 Open Decision Making
 Take Time to Listen
 Effective Management
 Be Supportive
 Become More Than a Business
 Share the Company Vision

Executive Search Firms Look at Employee Retention Through Effective Management (By
Charles S. Cox, 2012) Co-Author: Maurice G.

For starters, employers should stay in touch with their employees as well as keeping an ear to the
ground for any rumblings which may be warning signs of instances of employee dissatisfaction. If
managers remain attentive enough they can often detect early sign of agitation and unrest in their
personnel. Other signs that employees may be less than satisfied in their positions and considering
jumping ship can be seen in individuals who seem disconnected or have shown a marked difference
in their working habits and behavior. All of these factors are issues that managers should be able
to catch by paying close attention to their employees' behavior and activities. It is important that
not only top managers, but those on all levels, as well as team leaders, be trained to each carefully
monitor their personnel for signs that individuals may be becoming disenfranchised in their role
and considering leaving.Key to the success of these previous points is the need for managers to
have previously developed relationships with their employees. Finally, building on the previous
point, managers should seek gain an understanding of their employees' goals and ambitions.

Employee Retention Techniques (Nate Rodnay, 2005)

Employees are a valuable asset to any organization. Focusing on employee retention techniques
can positively impact the organization.

Increase Employee Engagement: Effectively implementing employee retention program by

increasing employee engagement ensures that the employees are satisfied with their work, take
pride in their work, report to duty on time, feel responsible for their job, feel valued for their
contributions, and have high job satisfaction.
Motivate Employees: Motivating employees by offering them better opportunities for career
development can help in employee retention. Giving rewards, recognitions, promotions, and
appreciation can motivate them to increase their productivity, commitment to work, and loyalty to
the organization.

Focus on Team Building: Team building promotes team work and team effort that help them to
tackle work pressure and thus provide a competitive advantage to organization. Focusing on team
building activities can help to reduce workplace conflicts between team members as they work in
a team.

Recognition of Performance: Although monetary compensation can act as a motivating factor,

openly recognizing the performance, initiative, and good work increases the morale and motivates
the employee to work more productively.

The Benefits of Employee Retention (Dipika Patel, 2010)

Employee retention is a vital part of running a successful business, with a range of benefits
experienced by human resources professionals who manage to keep hold of their staff. A key
advantage to sustaining a stable workforce is that you will be able to establish and maintain a
strong knowledge base throughout your company, with a dedicated backbone of employees being
able to carry out everyday duties with ease. This kind of experience is vital, allowing you to
maximize your profits when business is good, while lessening the impact of downturns. Long-term
employees are also able to deal with problems more easily, as well as being more effective at
training new staff. Importantly, an established workforce sets a good example for new personnel,
providing encouragement that the business environment is not only enjoyable, but stable and
supportive. Studies have also proven that individuals who feel secure in their jobs are happier and
work harder, meaning there is a range of benefits from a performance perspective. However,
organizations that fail to hold on to their best people may struggle to compete, particularly in
adverse economic conditions. Not only will these enterprises find it difficult to attract the most
sought-after talent if they have a high staff turnover, but they may also discover their current
employees are being snapped up by competitors with a better reputation. These considerations are
why HR manager priorities staff retention and motivation, utilizing a number of methods in an
attempt to keep personnel happy. A primary reason many workers give for having left their
previous role is their employer's failure to show appreciation or give feedback. This means
providing incentives and rewards can be highly effective in raising morale, while also showing
that you are aware of their valuable contributions to the company. There are a variety of schemes
available for organizations looking at staff retention as a key area in which to improve. One method
is to introduce an online point scheme, which allows employees to collect points through various
means and store them in an internet account. Using an online website to monitor the initiative also
creates a team atmosphere, with leader boards, weekly emails and regular updates keeping people
informed of what is going on in the business.
Practices That Will Surely Improve Employee Retention in Your Office (Ashok Grover,
2012)

If employee retention is not an issue with your organization, you need not read any further. There
is a fair chance that either your organization does not belong to this world or it has perfectly
understood and put into practice the secrets of the trade!For others, all these secrets are revealed
hereunder!

1. Having Right People - Before talking about retention, go back to the basics and select the
people you would like to retain. If enough time and efforts are spent to check not only technical
but behavioral aspect also, result will be the employees who would like to stay and company would
like to retain.

2. Good Salary Levels - Though money is not everything, it is a big equalizer. Unfortunately,
while many companies feel that it is only the money what matters, there are others who feel that
money does not matter at all. The truth lies somewhere in between and a fine balancing act is
required.

3. Internal Pay Equity - Many a times, the pain point is not one's lower salary; but comparatively
higher amount being paid to another colleague. I have seen employees jumping with joy after their
increments are announced... till they know about others. Similarly, a new employee may disturb
older employees who may not be getting similar amounts or vice versa when the newcomer realizes
that he could have negotiated better. All of them are human beings and there is nothing wrong in
comparison.

4. Benefits Programs and Retirement Benefits - Even in the environment of CTCs (cost to the
company), benefits programs like health insurance, recreation facilities, family get-togethers and
retirement benefits are extremely important. These make employees feel part of a close-knit family
and remain motivated.

5. Role Clarity - Nothing can be more damaging than a lack of clear job responsibilities. In such
situations, contrary to normal belief, employees performance is well below expectations, while
they feel that they are much more than they should. So, the result is a hopeless lose-lose
relationship.

6. Impartiality - Employees feel highly demotivated when they feel that they are not treated
equally and favoritism is practiced in the company. This invariably happens whenever there are
policies with clauses allowing management discretion.
7. Employee Empowerment - Employees perform much better when they are given the tasks and
freedom to perform the same independently. Workplaces that promote employee empowerment,
employee enablement, and broader spans of control by managers, will result into superior
performance. Micromanaging drives employees away, empowerment improves retention.

8. Responsive Human Resource Team - Adequate and timely response to employee queries and
concerns by the Human Resource department keeps the environment healthy. In many companies,
the HR department is perceived as the policing arm of management. A responsive HR department
is one of the strongest reasons to ensure high degree of employee retention.

9. Two Way Communication - Employees feel much more comfortable when they feel that they
are being heard. This multiplies when they get face-to-face communication opportunity with their
supervisors and are given feedback about their performance. This communication helps them feel
recognized and important.

10. Performance Linked Reward System - Performers believe that the reward system should be
based on merit and contribution. When some management try to keep all their employees happy
through similar annual increments, it results into demoralization. In such case, while the status of
poor performers remains a question mark, star performers don't find any reason to stay back with
the organization.

11. Learning Environment - Employees look for opportunities to learn as well as share their
knowledge. Involving them in training sessions, team assignments and mentor-mentee roles
provides them with high level of internal self satisfaction, so important for retaining people.

12. Balanced Workload - No employees minds working long hours if it is once in a while.
However, consistent need of staying late at work pulls their motivation down and efficiency is the
casualty. This is happening more often now since it is getting more and more challenging to find
skilled and experienced staff to meet growing business demands. To tackle this, companies should
enable employees to balance work and life. Encouraging employees’ participation in continuous
improvement activities helps.

13. People Involvement - Involving employees in decisions that have an effect on their jobs and
the overall direction of the company makes them feel important.
Engage Employees and Improve Employee Retention (Abblig Beals, 2011)

Most companies see the under the pressure of retaining employees for longer periods of time. An
escalated number of opportunities for the truly motivated and skilled personnel and impatience, on
the part of the employees, of staying with the same company for long have led to this phenomenon.
Therefore, companies, all across the globe, are looking for ways of improving their employee
retention. Among the various ways which have been explored, one realizes that employee
engagement is one of the most sought after formulas for employee retention. So, what is employee
engagement? Although the answer to this lies in the individual needs of the employees, a general
concept presents its meaning as being the involvement of employees with the organization and its
values. Are the employees simply performing their roles or are they an inclusive part of the
organization? The more they are towards the latter, the higher do they stay self motivated, enjoy
their jobs and hence stick to them for longer. It is essential that they are taught to develop self
leadership skills on the basis of their individual motives and goals in their career and life. The
thing that has to be quite evidently known is that compensation is just not enough for employee
engagement. There have to be other factors of motivation which let employees to engage with the
organization’s goals.

It is essential that companies interact with their employees to find out such other things as reasons
why they enjoy working with the company and what are those things about their job profile which
is the most motivating. While it does look quite plain and simple, making employees introspect
and explore the real answers to these questions is a challenging task. Over and above this, the
employer also has to spend some time assimilating feedback from the employees. The feedback
could be about anything about the organization, from its marketing efforts to its HR to its work
environment to much more. This way the employees will feel more accountable towards the
organization, at large, and thus be more engaged. Improving the standards of employee
engagement, across the globe, is Life by Design. The company understands the real value of
engagement and involves itself into Employee Activated Engagement instead of pure employee
engagement. With its efforts and adroitness, it has generated effective and long lasting results for
its clients.
Chapter 2
 2.1 OBJECTIVE OF THE STUDY
 PRIMARY OBJECTIVE:
• To know the importance attached to employee retention in the organization.
 SECONDARY OBJECTIVE:
• Strategies employed by the company to retain the efficient employee.
• To reduce the cost of turnover.
• To maintain the goodwill of the company.
• To analyze employee perception on retention strategies.
• To reduce attrition ratio.
• To satisfy employee.
• To develop new retention strategies.

2.2 RESEARCH METHODOLOGY

The source of the data being Primary data was collected through a questionnaire given to the
respondents, from Bangalore city. The sample size was 100 & was based on convenience sampling.
The questionnaire method was employed to know their satisfaction level & reasons for low
employee retention.
The collected data was first ordered, classified and tabulated to analyze. Cross tabulation method
using SPSS software was used to interpret & draw conclusions keeping in mind, the objectives of
the study.

2.2 RESEARCH DESIGN:

A research design is the arrangement of conditions for collection and analysis in a manner that
aims to combine relevance to the research purpose with economy in procedure. Research design
is the conceptual structure within which research is conducted it constitutes the blueprint for the
collection, measurement and analysis of data. This project uses the descriptive type of research
design which describes the characteristics of group, individual or a situation.

A descriptive study involves the following steps:

1. Formulating the objectives of the study.

2. Defining the population and selecting the sample.
3. Designing the method of data collection.
4. Analysis of the data.
5. Conclusion and recommendation for further improvement in the practices.
2.3 SAMPLING DESIGN:

A sample design is a definite plan for obtaining a sample from a given population. It refers to
the technique or the procedure the researcher would adopt in selecting items for the sample.

2.3TYPE OF UNIVERSE:

The first step in developing any sample design is to clearly define the set of objects called the
universe to be studied. The universe can be finite or infinite. In finite universe the number of
items is certain but in case of an infinite universe the number of items is infinite i.e., we cannot
have any idea about the total number of items. In this project the type of universe is finite.

2.4 SAMPLING UNIT:

A sampling unit has to be decided before selecting sample. Sampling unit may be geographical
one such as state, district, village, etc or a construction unit such as a flat, house, etc or it may be
a social unit such as a family, club, school, etc or it may be an individual. In this the sampling unit
is the manufacturing operations (PLANT) MANATEC ELECTRONICS PVT. LTD.

2.5 SAMPLING SIZE:

This refers to the number of items to be selected from the universe to constitute a sample. The size
of sample should neither be excessively large, nor too small. It should be optimum. An optimum
sample is one which fulfills the requirements of efficiency, representativeness, reliability and
flexibility. From the total number of employees 25 have been selected for this project.

2.6 DATA COLLECTION METHOD:

Primary data are those which are collected for the first time and thus happen to be original in
character. In this primary data are collected using questionnaires.

2.7 STATISTICAL TOOLS:

The data collected from the respondents were analyzed using the statistical technique. They are:

 Crosstab
Limitations:
I. The study was conducted only in Bangalore city.
II. The study was done for a specific age slab.
III. The study is limited to 100 respondents.
IV. The study was based on convenience sampling which may not capture the whole population
V. The study had time constraint.
2.8 The Research Instrument:

2.8.1Questionnaire:

The questionnaire is prepared in such a way that is correct the comprehensive objectives of the
study. Open end, multiple choice of questionnaire adopted in this research.

2.9 Period of study:

The time period of the study is 45 days.

Questionnaire
A STUDY ON THE RETENTION OF EMPLOYEES
Designation:
Age group:
a)18-25 b)26-35 c)36-45 d)46-55 e)Over 55
Gender:
a)Male b)Female
1. How much are you satisfied with the current job?
a)Very high b)Fairley enough c)Moderate d)Very less
2. Do you have Rewards and recognition for your achievements in current company?
a)Yes b) No. If no, Please specify the reason.
3. Is it important that appreciation for your work by your coworkers and supervisors
is necessary?
a)Yes b) No. If no, Please specify the reason………
4. How do you rate the infrastructure and equipment provided by the organization?
a)Excellent b)Very good c)Good d)Poor e)Worst
5.Does the retention bonus have any impact on the motivation levels for an associate?
a)Yes b)No. If no, Please specify the reason……..
6. Do you feel that the company provides opportunities for your growth and development?
a)Yes b) No. If no, Please specify the reason……
 7. Do you think that the implementation of three Rs (recognition, reward, respect) will increase
employee retention?

Never Sometimes Most of the times All the time

Recognition
Reward

Respect

8. What is your opinion on the working environment?

a)Highly Dissatisfied b)Dissatisfied c) Neutral d)Satisfied e)Highly Satisfied

9. Express your level of satisfaction regarding the welfare measures provided by the Company?

a) Highly Dissatisfied b) Dissatisfied c) Neutral d) Satisfied e) Highly Satisfied

10. Have you worked in any other organization previously to this company?

a)Yes b) No
If yes, for what reason you shifted to this company?

11. Benefits
Please rate the following benefits of employment on a scale of 1 to 5 where 1 = not at all
important and 5 = very important
NOT AT ALL NOT VERY NEUTRAL SOMEWHAT VERY
IMPORTANT IMPORTANT IMPORTANT IMPORTANT
Salary/Compensation 1 2 3 4 5

Leave benefits 1 2 3 4 5
(Including sick,
vacation, personal and
paid holidays)
Retirement plans 1 2 3 4 5

Health and related 1 2 3 4 5

benefits
Long term care 1 2 3 4 5
insurance
Deferred compensation 1 2 3 4 5
Employee Assistance 1 2 3 4 5
Program (EAP)
Life works (resource 1 2 3 4 5
and referral)
12. Would you like to plan your further carrier in this organization?

a ) yes b ) No. If no, please specify the reason