Professional Documents
Culture Documents
A Project Report On ATTRITION MANAGEMENT PDF
A Project Report On ATTRITION MANAGEMENT PDF
Project Report
On
ATTRITION MANAGEMENT
At
Submitted By
SHRUTI KUMARI
(Roll No. – 60)
Batch 2013-2015
Submitted To
1
ATTRITION
MANAGEMENT
2
Global Business School & Research
Dr D.Y. Patil University
Pune 411 033
CERTIFICATE
This is to certify that Ms. Shruti Kumari a bonafied student of the MBA
programme of this Institute for the academic year 2013 – 2015 having Roll No.60,
has completed her Summer Internship Project titled “Attrition Management” as
partial fulfilment of the Master of Business Administration Course.
3
GLOBAL BUSINESS SCHOOL & RESEARCH CENTRE
DECLARATION
I, SHRUTI KUMARI, declare that the project work entitled “ATTRITION MANAGEMENT”
submitted to D.Y. PATIL VIDYAPEETH, is a record of an original work done by me. I hereby
declare that all the facts and figures included in the dissertation is a result of my own research
and investigations including formal analysis of the entire project work. The result embodied in
this thesis has not been previously submitted for any examination of this University or any
other University.
This declaration will hold good and in my wise belief with full Consciousness.
4
ACKNOWLEDGEMENT
With utmost sincerity, I would also like to convey my thankfulness to Mr. Sadashib Padhee
(VP-HR) for giving me the opportunity to work with Kirloskar Pneumatic Co. Ltd.
I would like to cease this opportunity to express my heartfelt gratitude towards Mr. Jagdish
Purandare (DGM-HRD), my company guide, for his insightful guidance and for all his
endeavours in supervising my entire project. My sincere thanks to him for showing faith in me.
I would also take the privilege to express deep sense of gratitude to Mrs. Meghana Abdagire
for giving me a brief knowledge about the entire training process and encouraging me
throughout my summer training, Mrs. Nayana Kasbe, for efficiently coordinating the program
and all other personnel of the HR department at KPCL, who had lent a helping hand on various
occasions throughout the duration of the internship.
I am very grateful to Dr. A. Keskar (Advisor) & Dr. K.K. Velluri (Director), D.Y. Patil
Vidyapeeth, G.B.S.R.C., who has been a source of inspiration for summer project of two
months’ time duration.
I would express my gratitude towards Prof. Tapati Sarmah, my faculty guide for sharing her
exceptional knowledge in the domain of Human Resource Management, along with the
members of the placement cell at Dr. D.Y. Patil GBSRC, who facilitated this learning
opportunity for me.
My sincere thanks to Prof. Rachna Gandhi and Prof. Ansumalini Panda for their valuable
guidance and direction in successful completion my project.
Finally, I would like to take this opportunity to express my deepest gratitude to all those who
have directly or indirectly contributed in the completion of this project.
SHRUTI KUMARI
5
INDEX
1 Title page i
2 Cover page ii
4 Company certificate iv
5 Declaration by student v
6 Acknowledgement vi
6
TABLE OF CONTENTS
2 INTRODUCTION 6
Abstract
Theoretical aspects of ‘Attrition Management’
Application of work in the Company
Need for the study
Statement of problem
Survey Methodology
4 INDUSTRY PROFILE 33
5 COMPANY PROFILE 44
6 LITERATURE REVIEW 62
7 RESEARCH METHODOLOGY 66
9 FINDINGS 96
10 LIMITATIONS 99
12 CONCLUSIONS 106
13 ANNEXURE 109
14 REFERENCES 113
7
EXECUTIVE
SUMMARY
8
This project is done on Human Resource Management topic in the area of ““Attrition
Management”. The most challenging job for any manager is to retain their employees. This
report seeks to utilise primary research in order to offer a greater understanding of the complex
issues raised by staff attrition. Specific aims were to:
› Identify trends in leavers' behaviour and the reasons employees change jobs/organisations
A significant difference was established between what employers assumed were key causes of
turnover, and the actual reasons employees gave for leaving. Employers largely failed to take
into account the importance of providing opportunities for development for their employees
and the training required for it.
The top 3 causes apart from Lack of opportunities for personal and career development and pay
benefits were:
What can employers do to minimise the incidence of, and impact of employee turnover?
Identify the level and cost of turnover and benchmarking it against competitors
9
Attrition is a reduction in the number of employees through retirement, resignation or death
refers to attrition. In the best of words, employees would love their jobs, like their co-workers,
work hard for their employers, get paid well for their work, have ample chances for the
advancement, and the flexible schedules so they could attend to personal or family needs as
and when necessary. But then there’s the real world in which employees do leave. Attrition
measures the amount of recurring revenue lost during a particular time frame, expressed on a
monthly/annualized basis.
Decreased
Productivity
Greater
Drivers of
Attrition
Attrition Cycle
Of
Attrition
Cost Increased
Reduction/ Costs/
Austerity Reduced
Revenue
10
COMPENSATION
SUPPORT ENVIRONMENT
Key Areas
in Retention
RELATIONSHIP GROWTH
The review of the literature indicates a wide and diverse range of potential retention strategies.
On the basis of the secondary sources consulted, retention practices can be grouped under the
following categories:
2. Compensation & Benefits systems (e.g. pay for performance; skill-based pay, etc.)
11
9. Manager Training & Accountability
Based on the conclusions derived after the in-depth and comprehensive study, few implications
can be made about employee retention. Employee retention is vital to the long term health and
success of any business organization. Companies can look into various options like bonding
programmes, stronger career path, benefits and communication. Making work a fun place,
sponsoring education and ongoing learning for the workforce.
Employee attrition is significant business concerns for the organisations, one even bigger than
attracting talent, especially in today’s knowledge driven marketplace where employees are the
most important human capital assets. Attrition impacts an organization’s competitive
advantage. A company is not hurt because certain persons have left. The company is hurt
because it takes away certain knowledge, and there is no ready replacement in the market.
However when jobs were scarce, the technology changes were less rapid, voluntary attrition
was small and companies managed it. However, with technology changing rapidly and
manpower costs increasing, attrition is high and hurts badly.
According to my study most of the employees are likely to seek a new employment as the
economy booms. It is likely that the voluntary turnover would rise due to the improving
economy.
12
INTRODUCTION
13
ABSTRACT
Employees are the most valuable assets of an organization. It is they who add value to the
organization in terms of quantity and quality as well. To find, attract, develop and retain the
right talent is a major part of management. Therefore, it is indispensable to maintain a
permanent and promising workforce; which over the years has become a tough task for
employers and thereby increased attrition in the organizations. Attrition is a major problem
which highlights in all the organizations. “Attrition is said to be the gradual reduction in the
number of employees through retirement, resignation or death. It can also be said as Employee
Turnover or Employee Defection”. Whenever a well-trained and well-adapted employee
leaves the organization, it creates a vacuum. So, the organization loses key skills, knowledge
and business relationships. Modern managers and personnel administrators are greatly
interested in reducing Attrition in the organization, in such a way that it will contribute to the
maximum effectiveness, growth, and progress of the organization. Attrition costs a lot. It's one
of the largest costs in all types of organizations, yet it's also one of the least understood.
Organizations need to find new approaches to retain the most effective manpower.
Retaining the employees involves understanding the intrinsic motivators as individuals differ
a lot. Retaining employees is a critical and ongoing effort. Staff requires reinforcement,
direction and recognition to grow and remain satisfied in their positions. Managers must
recognize this and understand that establishing such fundamentals demonstrates their
objectives to support nature and motivate their employees.
This study is an outcome of the topic called “A Study on Attrition Management”. This research
is an attempt to find out the causes of attrition from different dimensions and have proposed
some ways in which this issue can be addressed. It undertakes the effect of the same on
employer and employee both. In this research, I have made an attempt to bring out employee
retention approaches, strategies for retention and the costs related to attrition. Following this
some strange reasons for attrition have been discussed in this regard. The positive side of
attrition has also been discussed upon. Further, the remedial measures have been discussed
herein. Managing attrition is not just a 'nice thing to do', it is the route to survival.
14
TheoreTical aspecTs of “aTTriTion”
INTRODUCTION
What is “ATTRITION”?
Attrition is defined as a gradual reduction of the size of workforce through normal means,
such as retirement, resignation or death. This is normal in any business and industry.
Attrition rate is defined as the rate of shrinkage in size or number.
This type of reduction in staff is one way a company can decrease labour costs: the company
simply waits for its employees to leave and freezes hiring. Attrition of employees in a
limited measure is desirable for influx of new ideas in any type of organization. It helps
organizations to maintain their agility in fast changing environment. It brings in new blood,
opens up new vistas for change, development and improvement, shows avenues to expand
operations and add to the creative lines of the organizations. Attrition in a limited measure
can thus bring gains to the organization. However if attrition increases beyond a certain
level, the gains are transformed into pains. Recruiters explain that high attrition rates
significantly increase the investment made on. Significant investments in time and money
need to be made for acquiring employees in any organization. These can never be translated
into profit when attrition is high.
R- REMUNERATE COMPETITIVELY
N- NUTURE
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. Intelligent employers always realise the importance of retaining the best
talent.
16
Attrition in Manufacturing Industries
Companies in India as well as in other countries face a formidable challenge of recruiting and
retaining talents while at the same time having to manage talent loss through attrition due to
industry downturns or through voluntary individual turnover. Losing talents and employees
result in performance losses which can have long term negative effect on companies especially
if the departing talent leaves gaps in its execution capability and human resource functioning
which not only includes lost productivity but also possibly loss of team-work, harmony and
social goodwill. With attrition rates being a bane of every industry, companies are devising
innovative business models for effective retention of talent. There are a lot of factors
responsible for attrition and employers are getting increasingly conscious of the factors that
can keep an employee committed. Attrition may be defined as gradual reduction in membership
or personnel as through retirement, resignation or death. In other words, attrition can be defined
as the number of employees leaving the organization which includes both voluntary and
involuntary separation. The employee gradually reduces his/her ties with the company than
crib about the underlying factors causing attrition. It is symptomatic of a much deeper malaise
that cuts deeper into the innards of organizations. Attrition rates vary from sector to sector and
industry to industry. Apart from the unavoidable ones like resignation, retirement, death or
disability, the causes are found to be many and varied. They vary according to the nature of
business, the level of the employees and the nature of the responsibility shouldered by them.
The obvious, common and main reasons are the ‘ergonomic discomfort’ experienced by the
employee and the ‘functional incompatibility’ between the corporate management and the
employees. Very often an employee finds himself among colleagues and superiors he is unable
to cope up with. Or he finds himself totally out of tune in his functions with the employee’s
functional requirements, failing to rise to the employer’s expectations. Another important
reason is that the employee’s remuneration is not voluminous enough to bear the brunt and
cushion the concussions of his family and social life.
Employee retention refers to policies and practices companies use to prevent valuable
employees from leaving their jobs. How to retain valuable employees is one of the biggest
problem that plague companies in the competitive marketplace. Not too long ago, companies
accepted the “revolving door policy” as part of doing business and were quick to fill a vacant
job with another eager candidate. Nowadays, businesses often find that they spend considerable
17
time, effort, and money to train an employee only to have them develop into a valuable
commodity and leave the company for greener pastures. In order to create a successful
company, employers should consider as many options as possible when it comes to retaining
employees, while at the same time securing their trust and loyalty so they have less of a desire
to leave in the future. Employees need to be retained because good, faithful, trained and
hardworking employees are required to run business. They have acquired good product
knowledge over the long run and a trained employee can handle customers better and also solve
problems of peers who are new to the organization. When an employee leaves he takes away
with him all company information such as ongoing projects, etc. Goodwill of the company gets
hampered due to more employee turnover rate and the competitors start poking their nose to
recruit best talents from them. Efficiency of work is hampered to a large extent. For example
– If an employee leaves in the middle of an ongoing project it’s very difficult to fill that Vacuum
and a new employee can never replace an old and talented employee so this leads to delayed
completion of projects and less work satisfaction among other team members.
In the present context the present paper is ascertained to study attrition management in
Kirloskar Pneumatic Co. Ltd. (manufacturing industry) in Pune, Hadapsar.
Kinds of Attrition
Voluntary attrition- Voluntary attrition takes place when the employee leave the
organization by their own will. Pull factors like higher emoluments elsewhere, better
opportunities of growth and promotion etc. are responsible for this kind of attrition.
Involuntary attrition- Involuntary attrition takes place when the employees leave the
organizations due to some negative forces or push factors like faulty promotion policy,
biased performance appraisal etc.
Compulsory attrition- It takes place due to the rules and regulations of the government
and that of the organization as well. It includes attrition taking place due to attaining
the age of retirement, completion of tenure etc.
18
Natural attrition- It takes place due to the causes and factors that are beyond the
control of the individual and organization as well. These factors may include end of
life, insanity etc.
Causes of Attrition
a. Biased promotion
b. No / delayed promotion
Transfer
a. Forceful transfer
b. Transfer to a place employee is not willing to go
a. Lack of hygiene
b. Lack of basic facilities like water, canteen, etc.
Task
a. Monotony of task
b. Task – labour mismatch
c. Team issues
d. Lesser job autonomy
Instability in leadership
19
Lack of Flexibility
External causes- These are the causes which are beyond the control of an organization
as they belong to the external environment. These causes may be related to:
a. Better pay
b. Chances of promotion
c. Better perks
d. More fringe benefits in other organizations
Individual/Personal causes
a. End of life
b. Marriage
c. Pregnancy
d. Shift of family
e. Mental imbalance
f. Over - sensitivity
g. Wish to go abroad
h. Attrition of the group members
i. Self-employment
j. Education
20
Some peculiar reasons
A peculiar paradox has been observed in case of ESOP as a motivational tool and the
attrition rate. Generally it is perceived that ESOP on one hand generate funds for the
organization and on the other hand it may curb attrition rate as it increases participation
of employees in management, increase in their financial resources and satiation of their
esteem needs as well which will ultimately lead to their long- term commitment with
the organization. However, while considering an altogether different perspective, ESOP
may increase the rate of attrition as the earning from ESOP may be sufficient for the
livelihood of the employee or it may sometimes exceed his income leading to his
disinterest to continue the job.
Effects of attrition
Effect on Employer/ Organization
a. Loss of productivity
b. Loss of quality
c. Increase in cost
d. Loss of consumers and decrease in brand loyalty
e. Loss of goodwill
21
f. Loss of secrecy in case the key employees leave the organization
g. Loss of key – personnel
h. Lack of competitiveness
Effect on employee
a. Stress from new job
b. Monetary loss
c. Effect on career
d. Effect on family life
e. Loss of skill- if the gap between quitting from one organization to other is long
f. Emotional loss, if the bonding with the staff of previous organization was good
However, it is also possible that the employee gets better environment and remuneration in the
new organization and the things can get positive for him.
22
Lost Sales Costs- These costs are the lost revenue which occurred as a result of project
loss due to key employee attrition.
23
ATTRITION & RETENTION MODEL
Gender
Education
Personal
characteristics Marital Status
Age
Tenure
Attrition of
Employees
Gender
Personal Education
Characteristics Marital Status
Age
Retention of
Employees
Self-Esteem
(Organisational
Participation Outcome)
Accountability
Growth Prospects
Satisfaction
Feeling of
Accomplishment Motivation
Job
Interpersonal Involvement
Characteristics
Relationships
Work
Working Conditions Compatibility
Involvement
Job Security
Amenities
Authority
24
Strategies for Retention
Fostering a Culture of Management Concern- Companies today must show an interest
in helping people develop to their fullest potential. In addition to reducing bureaucracy,
high- performing, high-tech companies provide freedom in scheduled hours, and lifestyle
choices.
Providing Relevant Training- Companies should think of training as career
development.
Job Enlargement- Employees should not be locked into positions because they’re “so
good at it”. Managers must continually ask: “What’s the next step for this employee?” In
other words more tasks and responsibilities should be assigned to make the position more
challenging.
Realistic goals
Defining career path and demystifying career growth- proper succession planning
Rewarding Managers- Many companies say they value people and train their
management team to cope with people issues. Yet these same managers are too often
rewarded solely on their technical skills and financial results.
Strengthening the Team- Marginal performers in management must be weeded out.
Workers’ Participation in Management
Profit sharing
Gain sharing
Fair Performance Appraisal
Clearly identify the people you want to keep- Many executives have focused on whom
they should get rid of rather than on whom they should keep. Unfortunately, those who
decide to leave are often high-impact performers who can find other work quickly.
Effective Communication System
To retain top talent in the future, executives will need to clearly identify, develop, involve, and
recognize key people. Traditional compensation plans must be challenged, needless
bureaucracy should be eliminated, and growth opportunities should be provided. Executives
who create a dynamic, new human resource model will retain the high-knowledge talent needed
to succeed in tomorrow's globally competitive environment.
25
Other Retention Strategies
26
c. Devising and communicating career and growth opportunities
d. Using intrinsic motivation
e. Understanding group dynamics
f. Conducting motivational sessions for the employees
g. Praising the employee publically but criticizing privately
h. Developing a rapport with the workers
Flexibility
Flexibility is necessary for greater degree of co-ordination, ease and smoothness in the
organizational working. It is the demand of time as in the present context it has become very
difficult to manage talent. Undue strictness and rigidity is no more considered the obvious
right of the employer. Flexibility can be related to the following factors-
a. Time
b. Choice of task
c. Transfer
27
d. Targets
e. Leaves
f. Methods
g. Place of work in the organization
h. Number of breaks
28
Customers and clients do business with a company in part because of the people.
Relationships are developed that encourage continued sponsorship of the business. When
an employee leaves, the relationships that employee built for the company are served,
which could lead to potential customer loss.
29
Drivers of
Attrition
Career
Job Related Culture Peer Pressure
Aspirations
Personality
No Learning Pay Package Poaching
Factors
Style of Boss
Job Clarity
Job Stress
Lack of
Independence
30
Application in the company
The success of any manufacturing organization depends largely on the workers, the
employees are considered as the backbone of any company. The study was mainly
undertaken to identify the level of employee’s attitude, the dissatisfaction factors they face
in the organization, why they choose to stay and for what reason they prefer to change their
job. Once the levels of employee’s attitude are identified, it would be possible for the
management to take necessary action to reduce attrition level.
Since they are considered as backbone of the company, their progression will lead to the
success of the company for the long run. This study can be helpful in knowing, why the
employees prefer to change their job and which factors make employee dissatisfy. Since the
study is critical issue, it is needed by the originations in order to assess the overall interest
and the feelings of the employees towards their nature of job and organization.
To address the reasons why attrition occurs, “Stay Survey” was conducted of Grade 61
employees. This study can be helpful to the management to improve its core weaknesses by
the suggestions and recommendations prescribed in the project. This study can serve as a
basis for measuring the organization’s overall performance in terms of employee
satisfaction. The need of this study can be recognized when the result of the related study
need suggestions and recommendations to the similar situation.
Statement of problem
Managing attrition does not mean reducing attrition only. It could also mean bringing down
the negative effects of attrition. To do this the organizations should put up appropriate
retention and capacity utilization or talent utilization tactics. There are various retention
strategies used by the organizations today.
31
The aim of the present report is to study factors like salary, superior – subordinate
relationship, growth opportunities, facilities, policies and procedures, recognition,
appreciation, suggestions, co- workers by which it helps to know the Attrition level in the
organizations and factors relating to retain them. This study also helps to find out where the
organizations are lagging in retaining.
32
SURVEY
METHODOLOGY 6
Generate the Survey Trends
5 Suggested recommendations
4
Analyse Data
The data received was collated & analysed to
get detailed insight
1
participation & the interaction with the engineers was scheduled
33
Overview/Background of my work in the Company
As explained in the above diagram, the project undertaken by me was done in the above
mentioned sequence. As we know attrition is a critical issue in every organization, hence it
requires a detailed study of the problem. I made a detailed study of various articles to gain more
insight about the problem.
Basically what every companies do is conduct a “Stay Interview & Exit Interview”. The basic
reason behind conducting these two types of interview is to know what employees feel about
the workplace, to know their grievances and thereby take steps to overcome their problems.
Employees are assets for every company if treated with care and intelligence. But, at the same
time if they are not handled properly they turn out to be liabilities. Managing employees
requires proper engagement activities to be framed so that both the ends derive adequate
amount of satisfaction. The company should properly plan its work so that the company is
benefited and the objectives are met. On the other hand, the company should also make sure
that the employees also feel benefited in return. The company should know what actually
makes their employees happy and motivated to work.
Companies while conducting “Exit Interviews” try to identify trends in leaver’s behaviour and
the reasons employees change jobs/organisations. On that basis the company frames certain
retention strategies so as to make a positive influence on retention, or least leave with a positive
view of the organisation. The most common questions asked in ‘Exit Interview’ is how the
employees felt working with the company, were they happy with the workplace environment,
how was their relation with their superiors as well as their colleagues, what is the reason for
leaving job etc.
Proactive feedback from the employees as Exit Interview is too late. If you know why an
individual employee stays, you can obviously reinforce those factors. And if you know far
enough in advance what factors might cause them to leave, you can get a head start in ensuring
those turnover causes never occur. Retention is an individualized process that needs to be
handled proactively. This is why “Stay Interviews” are conducted, as a tool used for retaining
the key and talented employees. It may also be known as “Pre-Exit Interview”. What actually
happens is a target employees are chosen to be interviewed, analysis is made and steps are
taken to retain them. Commonly questions relating to workplace and job satisfaction are asked.
34
As explained in the above diagram questions were framed concerning ‘Stay Interview’ as a
tool-kit. These questions are the primary tool of my study. These questions formed the basis
towards managing employee engagement and their retention attributes thereby curbing
attrition. In other words, it is a list of possible “stay questions” to ask the employee, and most
importantly, a list of acceptable retention actions that are available to any manager for
improving an employee’s job and for minimizing possible retention triggers.
After finalising the questions, the target group to be interviewed was selected. Only such
employees are prioritized whom the managers feels and estimates that they might actually
leave. For my project the target employees were the employees of Gr. 61 i.e. G.E.Ts. These
were the employees holding key positions, talented employees as well as the employees to be
groomed as potential future leaders.
Once the target employees were selected, the third step involved sending them a formal
invitation regarding the interaction and seeking their consent for participation. A formal
invitation was sent to the respective employees from the HR department informing them about
the interaction schedule and place.
On the scheduled date the interview was conducted. It was a ‘One-on-One’ interview. The
greatest advantage of conducting this type of interview setting is that employees feel free to
answer the questions. As it is highly personalized, the interviewee feels the confidentiality. The
information thus collected by this means is more accurate and insightful. In this process, I got
to know how the employees feel working at KPCL and also what they expect from the
companies. Employees were even asked to their suggestions as to encourage retention.
The data collected thereof, were thus taken into account for analysis and interpretation. The
trends of attrition and retention factors were analysed.
The final and the last step involved generating the results derived from analysis of the data
collected. On that basis I put forth my recommendations as to few things that the company
should do to manage attrition and retain its talent.
Stay Interviews should be scheduled periodically, usually once a year during a slack business
period. It’s usually a good idea to interview all key employees around the same time, so that
the company can implement common actions at the same time. Conducting them less
frequently can be problematic in periods of high turnover, especially for new hires who
naturally have a higher risk of leaving, conduct stay interviews at four and eight months.
35
If companies are not diligent in fully understanding the factors influencing the intent of their
workforce to stay, they could face a wave of turnover in the near future that could cripple some
companies. And, with studies telling us that 50% of our workforce is looking for another job
or totally disengaged from their jobs, retention has never been more critical.
So, organizations should give some hard thought to its talent management process, whether it
just wants an engagement rate or a benchmark comparison to its competitors, or does it wants
to know the real issues that are affecting its employees and what it can do to impact them?
There is a way to keep your eye on the organization and find out – it’s called the stay interview.
EMPLOYEE TURNOVER
36
Personal Characteristics Job Characteristics
Gender
RETENTION Self Esteem
Education
OF Participation
Marital Status EMPLOYEES
Accountability & Authority
Age
Growth Prospects
Sense of Accomplishment
Prestige
Interpersonal relationships
Working Conditions
Involvement
Satisfaction
Job Security
Motivation
Amenities
Involvement
Work life
compatibility
37
OBJECTIVES
38
Objectives
39
INDUSTRY PROFILE
40
KIRLOSKAR GROUP
HISTORY
The Kirloskar saga began in 1888 when Laxmanrao Kirloskar set up a small bicycle repair shop
(now near the Shreekrishna theatre on Kirloskar road) at Belgaum and later Laxmanrao and his
brothers set up a model industrial colony called ‘Kirloskarvadi’ India’s first industrial
township. In January 1910 when the Kirloskar were being ousted from Belgaum to make room
for a new suburb, they found themselves in dire need of a place to live and work and hence the
birth of Kirloskarvadi.
Laxmanrao Kirloskar, founder of the Kirloskar Industries was born on 20th June, 1869, in a
small village, Gurlahosur in Belgaum District. He started his life as a school teacher and later
on, opened a cycle repair shop in Belgaum. But his ambition and mission could not be satisfied
by a small workshop at Belgaum.
When the Municipality of Belgaum ordered Kirloskar to vacate their place, Laxmanrao
Kirloskar could not find a suitable place for his workshop. But thanks to the timely help of the
Ruler of Aundh who offered him a place arranging loan of ten thousand rupees, he started his
factory in an arid waste land by the side of a renowned railway station, named Kundal Road.
The factory later blossomed into famous Kirloskar Industries and the station came to be called
Kirloskarvadi.
Laxmanrao Kirloskar set foot on 32 acres of barren land strewn with cacti and infested with
cobras. Driven by his faith in human ability, Laxmanrao banded together 25 workers and their
families and succeeded in transforming the barren expanse into his dream village. Ramuanna,
41
Laxmanrao’s brother, planned and administered the township, Shamburao Jambhekar doubled
as engineer and all-round healing man, K.K.Kulkarni, an unsuccessful student, became a
manager, treasurer and odd jobs man, Mangeshrao Rege was the clerk and chief accountant,
Anantrao Phalnikar, a school drop-out flowered into an imaginative engineer. Such was
Laxmanrao’s faith in the human being that, Tukaram Ramoshi and Pirya Mang, both convicted
dacoits, became the trusted guards of Kirloskarvadi! Superstitious farmers were extremely hard
to convince and Laxmanrao Kirloskar took two years to sell his first iron ploughs.
Today Kirloskar brothers are a 1.20 billion US Dollars engineering conglomerate driving
critical industries. They are century old pioneers in areas of specialization like power,
construction and mining, agriculture, industry and transport, oil and gas and environment
protection with a range of world-class industrial products and turnkey services.
They are made up of 8 major group companies, each led by the best engineering and managerial
talent in India. In addition to engineering, they have interests in civic utility systems and in
Information Technology and communication.
The Kirloskar Group is an Indian conglomerate with sales exceeding $2.5 billion. The company
exports to over 70 countries over most of Africa, Southeast Asia and Europe. The flagship &
holding company, Kirloskar Brothers Ltd established in 1888, is India's largest maker of pumps
and valves and also undertakes construction projects through its subsidiary Kirloskar
Construction And Engineers Ltd. The group is headed by Sanjay Kirloskar.
India's first iron plough from the Kirloskar Group, not only became an instrument of wealth
for the entire society but also kick started an industrial revolution in India. Today, building on
its core engineering strength, the group's scope of operations spans across a gamut of industrial
equipment ranging from pumps & valves, eco-friendly diesel engines & silent generating sets,
air & gas compressors, air-conditioning and refrigeration equipment, a wide range of anti-
corrosion coatings and castings for automotive sector.
42
HISTORY
43
Type Private
Industry Conglomerate
Pumps
engines
compressors
chillers
valves
pig iron
Products construction
transmissions
automobiles through a joint venture with Toyota
infrastructure pumping projects
bridges & flyovers
submarine pipelines
construction
Website http://www.kirloskar.com
44
Kirloskar companies
Kirloskar Brothers Ltd.
Kirloskar Brothers Limited (which includes Kirloskar Brothers Ltd, Aban Construction
Company, SPP Pumps (UK), Kirloskar Ebara Pumps Ltd, Braybar pumps Ltd, (South Africa)
and The Kolhapur Steels Ltd is India’s largest pump manufacturer. Kirloskar Brother produces
Centrifugal pumps from 0.1 KW to 26MW with single pumps pumping liquids in excess of
35,000Liters/sec thus producing some of the largest pumps by size and horsepower. Kirloskar
Brothers Limited was established in 1888 and incorporated in 1920. It is the flagship company
of the $ 2.1 billion Kirloskar Group. The market leader in fluid management, KBL provides
complete fluid management solutions for large infrastructure projects in the areas of water
supply, power plants, irrigation, oil & gas and marine & defence. It engineers and manufactures
industrial, agriculture & domestic pumps, valves and hydro turbines.
Incorporated in 1946, Kirloskar Oil Engines Limited (KOEL) is a part of the Kirloskar Group.
KOEL manufactures air-cooled and liquid-cooled diesel engines and generating sets ranging
from a power output of 5 kVA to 625 kVA and 1800 kVA to 6300 kVA. They also offer engines
operating on alternative fuels such as biodiesel, natural gas, biogas and straight vegetable oil
(SVO). Their generating sets are branded as Kirloskar Green Gensets. KOEL also offers
customized power solutions including both standby and prime power requirements. KOEL is
one of the world's leading players in the generating set market.
KFIL is the flagship company of the Kirloskar Group. KFIL was promoted by Kirloskar Oil
Engines Limited & Shivaji Works Limited (SWL). KFIL was incorporated with the objective
of catering to the requirement of high quality Pig Iron and intricate, thin walled grey iron
castings to the emerging in Tractor, Auto, Engine and other related segments.
45
Kirloskar Proprietary Limited.
Kirloskar Proprietary Limited was established in the year 1965. Kirloskar Proprietary Ltd. is
the registered owner of intellectual property consisting of various trademarks and copyrights
in India and many foreign countries. It has granted licenses thereof to several companies in
Kirloskar group. Besides protecting and defending these marks from infringers it also looks
after enhancing the image of Kirloskar brand
For more than 3 decades, customers in the Middle East, Africa and South East Asia have been
using various products manufactured by the Kirloskar Group in India.
There was continuous need to establish an identity in the Middle East region, which will be
close to the end customers as well as the distributors in the region with the basic objective to
give quick response to the customers’ requirements and make the products & services available
at their door step.
With this vision, Kirloskar Middle East FZE (KMEF) was born in November 1996. It was
decided that Marketing set up and Warehousing facility would be established simultaneously,
so that a range of products would always be available for customers without delay. KMEF is
now expanding operations to include packaging of compressor engineered sets and pump sets
in UAE.
Kirloskar Pneumatic Co Ltd (Kirloskar Pneumatic) was established in 1958 to manufacture air
compressors and pneumatic tools in collaboration with Broom and Wade, UK. In 2002, it was
merged with K G Khosla Compressors Ltd and the new entity was renamed Kirloskar
Pneumatic.
46
Kirloskar Integrated Technologies Limited. (KITL)
KITL was founded in 2008 and is based in Pune, India. They have extensive research
background in “renewable energy” and have filed several patents in this area. The customers
range from farmers in rural areas, to governments and defence, as well as independent power
producers, among others.
Produces centrifugal chillers from 250 TR to 2400 TR and air-cooled and water-cooled screw
chillers from 40 TR to 550 TR for air conditioning and process cooling applications. It also
offers products for hot water generation including chillers with super heaters & heat pumps.
Established in 1995, Kirloskar Chillers is the largest chiller manufacturer in India, and the first
to have its products certified under the AHRI 550/590 certification program. The factory at
Saswad, near Pune, also has the first AHRI-certified chiller test facility in India. It is also the
only Indian company to manufacture centrifugal & screw chillers under one roof.
Toyota Kirloskar Motor Private Limited (TKML) produces Toyota Vehicles in India
47
Products & Services
The Kirloskar group of companies was one of the earliest industrial groups in the engineering
industry in India. The group produces pumps, engines, compressors, screw & centrifugal
chillers, lathes and electrical equipments like electric motors, transformers and generators (it is
the world's largest genset manufacturer). While he established the group, his son also played a
role in the leadership of the company.
The company under Shantanurao Laxmanrao Kirloskar achieved one of the highest growth
rates in Indian history, with 32,401% growth of assets from 1950–1991.
In 1988, Rajiv Gandhi, the then Prime Minister of India released a commemorative stamp
marking the Kirloskar Group's 100th anniversary.
The Kirloskar Group also set up India's second oldest township Kirloskarvadi in Maharashtra,
which is now a 100-year-old township in 2010.
Engines, Gensets and Power Solutions Pumps and Fluid Handling Solutions
Compressors, Refrigeration and Process Gas Systems Solutions for Pump Packages
48
API Process Pumps and Steam Turbines Centrifugal & Screw Chillers
Trading and After Sales Services of Kirloskar Products Educational Institute (Management)
49
Achievements
The groups two largest companies, Kirloskar Brothers Limited and Kirloskar Oil Engines
Limited, own many patents.
Kirloskar Brothers Ltd created the world’s largest irrigation project which was commissioned
in March 2007 (the Sardar Sarovar Dam project for the Gujarat Government. This was done
for Sardar Sarovar Narmada Nigam) and on 14 March 2008 commissioned the world’s second
largest water supply system with the world’s highest head in Andhra Pradesh. Kirloskar
Brothers is associated with India's nuclear program and has made canned motor pumps for
pumping heavy water which are deployed at Indian Nuclear Power Plants. Kirloskar Brothers
Limited is also a supplier of FM UL certified pumps along with its subsidiary SPP Pumps
(UK). It was the first Indian company to get FM certification for its valves. Kirloskar Brothers
has a presence is numerous countries including Egypt.
Kirloskar Brothers is also one of the first pump companies to have an all women operated and
managed manufacturing plant at Coimbatore, which is the second largest metropolitan city of
state Tamil Nadu in India. The company was one of the country's top ten wealth creators in
2007.
Kirloskar Brothers won the first "best of all" Rajiv Gandhi National Quality Award in 1992.
50
COMPANY
PROFILE
51
KIRLOSKAR PNEUMATIC COMPANY LIMITED
HADAPSAR, PUNE
History
Kirloskar Pneumatic Co Ltd (Kirloskar Pneumatic) was established in 1958 to manufacture air
compressors and pneumatic tools in collaboration with Broom and Wade, UK. In 2002, it was
merged with K G Khosla Compressors Ltd and the new entity was renamed Kirloskar
Pneumatic.
The doyen of Indian industry Late Shri Shantanurao L. Kirloskar incorporated Kirloskar
Pneumatic Co. Ltd. (KPCL) on 27th March 1958. Today it is a well-diversified engineering
company. The company started its operations with the manufacture of Air Compressors and
Pneumatic Tools and soon branched off in manufacture of Air Conditioning and Refrigeration
equipment, Process Gas equipment and Hydraulic Power Transmission machinery. The
company also earned an enviable reputation for its Systems Engineering and Turnkey Project
expertise. KPCL has the distinction of acquiring advance technologies from world over,
adapting them to suit Indian conditions and continuously updating them to maintain the highest
standards of quality and reliability.
KPCL has its Head Office & Factory at Hadapsar, Pune, one plant at Saswad (20 Kms from
Hadapsar-HO) and one plant in Nasik. Sales & Service offices are situated in major cities in
India. It was certified for ISO 9001 Quality Systems by the Indian Register Quality Systems
(IRQS) in February 1993 and re-certified in 1996, 1999,2002,2005,2008. In the year 2008,
KPCL achieved coveted achievement of getting certified for Environment and Occupation and
Health Management System. (EMS (ISO 14001) and OHSAS 18001). KPCL became an IMS
certified company in 2012.
52
Operations
Kirloskar Pneumatics is among the first few company’s in India, to secure the ISO 9001
certification, in all its operations. Also, Kirloskar Pneumatic is certified for Environment
Management System, ISO 14001: 2004 and Occupational Health and Safety management
System Standard OHSAS 18001: 2007.
Company’s Products are manufactures under the survey of renowned inspection agencies such
as Lioyd’s, MMD, IRS, NTPC, EIL, PDIL, DGS&D, RITES and many more, and are well
accepted not only in India but also in the countries of South East Asia, Africa, the Middle East,
West Asia and The United States of America.
53
ORGANIZATIONAL STRUCTURE OF KPCL
Business Head
SBU Head ACR
Refrigeration
CHAIRMAN System
Business Head
AEPSS
SBU Head TRM
Business Head
Vapour
SBU Head PGS Absorption
Chillers
HRD
SBU Head HR
T&D
Head Strategy
Head IT
Head Corporate
QA
Head
Head Finance Communication
54
CORPORATE PROFILE
KEY EXECUTIVES
Mr. Rahul C. Kirloskar, Executive Chairman is a top notch technocrat associated with
Kirloskar Group of Companies for more than twenty three years at senior levels in different
capacities. Participated in an intensive course of top management professionals of major
international companies on Total Quality Management (TQM) in Japan, conducted by Japanese
Union of Scientists and Engineers (JUSE), has given a lot of thrust for reducing overheads and
is taking all possible steps to reduce the overhead cost and thereby further improve the
profitability of the Company and make the products more competitive.
55
The Directorship of Mr. Rahul C Kirloskar in other companies is as follows:
COMPANY SECRETARY:
LOCATION OF PLANTS:
56
CORPORATE PHILOSOPHY
VISION
ACR & PGS will achieve a sale of Rs.8,000 million with a focus on KC compressor exports,
CNG & API compliant Refrigeration & Gas compression packages for the Domestic & Export
markets and entering into Domestic market of Vapour Absorption Chillers.
ACD will achieve a sale of Rs.4500 million by increasing market-share in Rotary Compressor
market and strengthening the leadership position in Reciprocating Compressor market.
TRM will achieve a sale of Rs.1750 million by maintaining the leadership position in Railway
Traction Gears market; strengthening the position in Wind Mill Gear Box market and entering
into Industrial Gear Box business.
MISSION
We will demonstrate an EDGE to all our Stakeholders in our offerings for converting /
transmitting energy.
VALUES
In an ever changing world one thing that will remain constant is our Commitment towards all
our stakeholders.
Customer Focus
Our activities / actions will be focused on enhancing internal / external customer's satisfaction.
57
Commitment
We commit to achieve our targets / goals. We will be responsible / accountable for our
commitment.
Continual Improvement
We will consciously work to improve our procedures, processes and systems with an objective
to improve our business processes.
We will be fair in our dealings with all our stakeholders. It will be based on integrity, honesty
and transparency
58
59
Competitors
Sales Current Market 52-Week
Company Change (%) P/E Ratio
(Rs.Million) Price Cap.(Rs.Million) High/Low
60
PRODUCTS AND SOLUTIONS
Pioneering industrial revolution in India, Kirloskar group has contributed immensely in every
field of its operation during its 120 year-long journey, and holds a place of repute in the industry
for its good business values and customer focus. Established in 1958, Kirloskar Pneumatic
Company Limited started with the manufacture of Air-compressors and Pneumatic tools.
Immediately thereafter, the company expanded its activities in the field of air conditioning and
refrigeration machinery. Further diversification in the manufacture of Hydraulic Power
Transmission equipment followed.
Kirloskar Pneumatic is held in high esteem for Process System Engineering and Turnkey
project expertise. The result of success in this area is reflected in Company’s association with
virtually with every project and industry in the country.
Kirloskar Pneumatic Company Ltd is in compressor business since 1955. From a product
manufacturer in the domestic market to a company offering total solutions – from designing
systems to manufacturing customized products and systems, KPCL has come a long way. The
customer-centric work culture along with technical excellence has been the hallmark of this
success. The graduation was steady and strategically aimed at specific market segments.
Reciprocating Air Compressor Division offers products for a wide range of market segments
such as general engineering to critical operation & processing applications in key sectors like
Railways and process industries like Refineries & Petrochemical Industries.
Screw Air Compressors division caters its niche market segment right from General
engineering workshop till the operation & processing unit in different sectors.
61
Centrifugal Air Compressors
KPCL has a technical tie-up with Cameron Compression of USA for packaging and marketing
Centrifugal Air Compressors in India.
The reciprocating range of refrigerant compressors has wide applications in the area of
industrial refrigeration which includes food & beverage processing and preservation, ice plants,
process refrigeration which includes pharmaceuticals, chemicals etc. The range also caters to
HVAC applications including water chillers etc.
Refrigeration System
62
Gas Compression Solutions
Kirloskar Vapour Absorption Chillers (VAC) is a highly efficient machine. KPCL has
established manufacturing facility at existing Saswad factory, Near Pune. The manufacturing
facilities include Fabrication, Assembly and Performance Testing at full load etc. VAC’s are
used in Power plants, Pharmaceuticals, Chemicals/Fertilizer industries, Tyre industries, Textile
industries, Food Processing sector, Hospitals & Hotel Industries, Paper industries, Paint
industries, Steel industries etc.
TRM is the fast track business unit of KPCL. With 6 products on board, this SBU specially
cater the need of the Rail, Defence and Non-conventional energy sectors. TRM especially hold
its mastery in different types of gears & gear boxes with capacity ranges from sub megawatt to
higher megawatt range.
63
AWARDS & ACCOLADES
Recognition of KPCL for receiving the award for “Best Innovative Project”
64
Recognition for KPCL's – Quality Circle in 26th CII - QC Competition
KPCL received “Consolation Prize – Quality Circle
Competition’’ Trophy at “CII – 26th QC Competition -
Maharashtra state Level” held at Kolhapur on 17th Oct
2013.
65
Recognition of KPCL's – ‘Kaizen’ in NCQC 2013
KPCL received “Excellence Award Trophy” at 27th
National convention on Quality concepts” (NCQC
2013) held at Kolkata.
66
SWOT ANALYSIS
Strength
Weakness
Lack of innovation
Old Machines
Opportunities
Threats
67
LITERATURE
REVIEW
68
Review on literature
Despite several studies carried out on attrition management, the strategic human resource
researchers are still investigating the causal mechanisms between HR practices and firm’s
performance mostly related to voluntary turnover as a critical component (Shaw, Gupta and
Delery, 2005) as employee retention plays a vital role in bridging the gap between the macro
strategies and micro behaviour in organizations. This is because it ensures stability and
connects the experiences of individuals in organizations on a continuous basis to the critical
measures of success factors in the organization. The decision of leaving the organization is not
easy for an individual employee as well as significant energy is spent on finding new jobs,
adjusting to new situations, giving up known routines and interpersonal connection and is so
stressful (Boswell, Boudreau and Tichy, 2005). Therefore if timely and proper measures are
taken by the organizations, some of the voluntary turnover in the organization can be prevented.
The reasons for employee turnover may vary from external environmental factors such as
economy that influence the business that in turn affects the employment levels (Pettman 1975;
Mobley, 1982; Schervish, 1983; Terborg and Lee, 1984) to organizational variables such as
type of industry, occupational category, organization size, payment, supervisory level, location,
selection process, work environment, work assignments, benefits, promotions and (Mobley,
1982; Arthur, 2001). The other factors that influence employee turnover in organizations
include the individual work variables like demographic variables, integrative variables like job
satisfaction, pay, promotion and working condition (Pettman, 1975; Mobley 1982; Arthur
2001) and the individual non-working variables such as family related varibles (Pettman,
1975; Mobley, 1982).
Any of the above factors could be the reasons, but the decision process to leave or stay in the
organization is to be periodically examined to understand the specific reasons that prompted
them to take such a step and the organizations should be mainly concerned about voluntary
turnover and not involuntary turnover as it is within their control.
Also it is found that employees who perform better and are intelligent enough have more
external employment opportunities available compared to average or poor performance
employees and thus they are more likely to leave (Trevor, 2001). High rates of voluntary
turnover of such employees are often found to be harmful or disruptive to firm’s performance
(Glebbeck & Bax, 2004). When poor performers, choose to leave the organization, it is good
69
for the organization (Abelson & Baysinger, 1984), thus it is important to differentiate between
functional and dysfunctional turnover and accordingly encourage or discourage employee
turnover. Further voluntary turnover of critical work force is to be differentiated into avoidable
and unavoidable turnover (Barrick & Zimmerman, 2005). Estimates of the loses for each
employee vary from a few thousand dollars to more than two times the person’s salary
depending on the industry, the content of the job, the availability of replacements and other
factors (Hinkin & Tracey, 2000).
In some industries chronic shortage of qualified employees has driven up the costs of turnover.
Therefore the acquisition, development and retention of talent form the basis for developing
competitive advantage in many industries and countries (Pfeffer, 1994, 2005). Organizations
failing to retain high performers will be left with an understaffed, less qualified workforce that
ultimately hinders their ability to remain competitive (Rappaport, Bancroft, & Okum, 2003).
Three studies incorporated attitudinal and/or behavioural changes over time to better predict
turnover. Sturman and Trevor (2001) found that quitters’ performance over time did not
significantly change while stays’ performance slope was positive. Demographic factors cannot
be ignored as age, tenure, level of education, level of income, job category, gender have
influenced employee retention and have been found to have stable relationship with turnover
intention. Of the above demographic factors, age, tenure and income level was found to be
negatively related to turnover intention (Arnold & Feldman, 1982; Cotton & Tuttle, 1986;
Gerhart, 1990: Mobley et. Al, 1979; Price & Mueller, 1986; Wai & Robinson, 1998; Weil
& Kimball, 1995); level of education is positively associated with turnover, the more educated
the employees there is a tendency to quit (Berg, 1991; Cotton & Tuttle, 1986); with respect
to job category, (Wai & Robinson, 1998 and Price and Mueller, 1986) found that non-
managerial employees are more likely to quit than managerial employees.
Relationship between gender and turnover showed mixed result. Cotton and Tuttle (1986)
and Weisberg and Kirshenbaum (1993) found females more likely to leave than males.
Miller and Wheeler (1992) and Wai and Robinson (1998) reported no relationship between
gender and turnover. However the reasons for employee turnover vary from one organization
to the other and from one person to another as they are not getting what they expect from the
organization (Ongori, 2007; Mobley 1982 and Dickter, Roznowski and Harrison 1996) also
called for more research and theory pertaining to how the turnover process occurs over time.
70
The following chart indicates the attrition trends for the financial year 2012-13 & 2013-14 for
different industry sectors and across different levels of department. This survery was conducted
by Deloitte in which 209 organisations from 18 sctors participated. The graph shows that the
highest attrition rate is experienced by ITes and Media industry for both the financial year.
Whereas the average attrition trend is 13.4% for the financial year 2013-14 which is 0.8% less
than the previous financial year.
The next part of the graph indicates the voluntary attrition trends across different levels
comprising of Clerical Level, Junior Management, Middle Management, Senior Management
and Top Management. According to the survey the highest attrition is at Clerical level.
The second graph shows the reasons for attrition according to the survey. It is revealed that the
major contributors to attrition are career prospects, personal reasons and better utilization of
skills.
Also the measures taken to curb attrition are highlighted. Apart from this, the major HR
challenges are shown namely Career Mangement, Attraction and Developing Potential
Leaders. It is suggested that industries need to initiate faster growth opprtunities, performance
linked incentives and skill enhancement training programs.
71
OVERALL INDUSTRY ANALYSIS
72
RESEARCH
METHODOLOGY
73
Scope of the Study
This study provides to understand factors affecting attrition and retention of employees of
KPCL. The study mainly focuses on the employees of Gr.61 i.e. Sr. Engineers. Moreover, only
selected facets of job characteristics have been considered for the study. Therefore the scope
of the study is limited to the geographical location of the sample size and also to the selected
dimensions of personal characteristics. The study throws light through valuable suggestion to
decrease attrition level in the organization. This study can help the management to find the
weaker parts of the employee feels towards the organization and also helps in converting those
weaker part in to stronger by providing the optimum suggestions or solutions.
This study has a wider for scope in any kind of organization since “attrition” is general one and
makes the employees to put forth their practical difficulties and need factors in the organization.
This study can help the management to know for which the reason employees tend to change
their job, through dissatisfaction factors faced in the organization and also helps to recover by
providing the optimum suggestions or solutions.
Research Process
Review of Literature
Review previous
Research Findings
Feedback
74
Research Methodology
Research methodology is a way to systematically solve the research problem. It is understood
as a science of studying how systematically a research is done scientifically. In it we study
steps that are generally adopted by the researcher in studying the research problem along with
the logic behind them.
Normally two types of data are used for the purpose of carrying out research. For this survey
also I have collected these data i.e.
a. Primary data
b. Secondary data
Primary Data:
Primary data is one, which is collected from fresh sources and for the first time while
conducting the research.
For the project, primary survey has been undertaken through a survey instrument consisting of
structured questionnaire filled by employees by the way of personal interviewing
Secondary data:
Secondary data is that data which has been collected for some other purpose.
a. Internal sources
b. External sources
Internal sources of secondary data includes the data generated within the organisation
External sources of secondary data are the sources outside the organisation
75
Research methodology
Survey Method
Area of study-
The survey was carried out in Kirloskar Pneumatics Company Limited, Pune. A survey was
effective to study the attrition management in the company.
Research-
Data Source-
Research Technique-
One-on-One interview
Target respondents-
Sample size-
The sample is 25 employees which includes the employees of Gr. 61 (Sr. Engineers)
Sampling method-
Sample of study-
The sample is a basic unit consisting of the elements of the population to be sampled. Sample
population includes employees from KPCL in Pune. The population includes the employees of
the various department in the organisation.
76
Sample design-
To select the samples, the sampling technique used was Simple Random Sampling. The main
benefit of Simple Random Sampling is that it guarantees that the sample chosen is a
representative of the population. This ensures that the statically conclusions will be valid.
In this technique each member of the population has an equal chance of being selected as
subject. The entire process of sampling is done in a single step with each subject selected
independently of the other member of the population.
The research instrument used in this study is structured questionnaire which consists of 14
questions. It was predetermined before conducting the survey. The questions are open ended.
77
DATA ANALYSIS
&
INTERPRETATION
78
This survey was conducted with a sample size of 25 employees.
Q.1. What are the top 3 factors you might consider important that will continue to keep you here
at KPCL?
0 10 20 30 40 50 60 70
INTERPRETATION:
The above graph represents that most of the employees feel the work culture and the
organization’s reputation as the prime reason to continue working with the company. Whereas
if we further see. We find that 32% employee feel that they get better training and development
programs at KPCL, which is why they choose to work with the company. 28% employees feel
that they are paid well in this company and like their work tasks.
79
Q.2. What do you love best about your work / working in?
24%
16%
12% 12%
8% 8% 8%
4% 4%
INTERPRETATION:
The above graph depicts that 32% employees like the trainings imparted to them and they feel
that they get more development opportunities at KPCL. The next thing that employees love
about their job is the task allotted to them. Around 24% employees love work in their present
areas of job. The third reason that the employees stated was interaction with the
clients/customers. 16% of the interviewee feel that in the process of interacting with the
customers they actually get to know their demands, which helps them to design and deliver
customer specific products and satisfy customer requirements. This gives them a sense of
accomplishment. Meanwhile they also develop better communication skills in the processes of
interaction.
80
Q.3. What will motivate you to excel further in your current position & make your job more
satisfying?
Motivators
28%
30
24% 24%
25
20 16%
15 12%
8% 8%
10
4% 4%
5
0
INTERPRETATION:
The top 3 motivators as indicated in the graph is Work tasks, Recognition, Leadership and
Learning & Development. 28% of the interviewed employees feel motivated by their work
tasks. They love to do their work and the challenges in their work. 24% employees said the
support of their seniors motivates them and the leadership they are given to handle projects
motivates them. While, the next 24% employees feel motivated by the appreciation received
from seniors and colleagues and also they get motivated when their ideas are accepted. The
third major motivator is the learning and development imparted to the employees.
81
Q.4. Does KPCL adequately support your career goals?
16%
24%
60%
INTERPRETATION:
60% of the employees feel that KPCL adequately supports their career goals and is providing
them enough opportunities to groom their skills. Whereas 24% of the employees feel that they
the company is not supporting their career objectives and 16% employees feel somewhat
supported in their career goals
82
Q.5. Does KPCL fully utilize your talent?
Skills Utilization
Yes 20%
40%
No
40%
To some
extent
INTERPRETATION:
The above graph represents a mixed view regarding skill utilization. About 40% of the
employees feel that KPCL gives them sufficient opportunities to utilize their skills. At the same
time 40% employees feel that their skills are not utilized to its maximum potential. 20% of the
employees are of the opinion that they are utilizing their skills to some extent.
83
Q.6. How can KPCL support your career goals?
20
16%
15
10 8%
5 4% 4% 4%
0
Learning & Resources Leadership Career Work Life Communication Recognition
Development opportunities Balance
INTERPRETATION:
As a part of suggestion for supporting the career goals, 28% employees suggest that more
technical training should be imparted so that the employees gain skills for their work and they
should be given site knowledge. Also they suggest that the company should sponsor education
to more employees. The second category of suggestion that 24% employees gave was the need
for resources. Employees feel that they are not equipped with the modern tools and techniques
which lowers the productivity. Hence they require more and better resources so as to utilise
their skills efficiently and effectively. The third suggestion is given in the area of leadership.
16% employees suggest that there is an urge for formulating better plans and prompt decisions
so that the work culture is not delayed.
84
Q.7. If given a choice to choose your own career path in the future, which function or career
path that you think you will like to embark on so that you can contribute your very best
to KPCL?
CAREER PATH
36%
28%
24%
16%
8%
INTERPRETATION:
According to the survey 36% employees fantasise doing the research and designing work. They
want to do the technical work. Whereas 28% employees feel satisfied with their current profile.
They feel that they are working are working in the area of their interests. Furthermore as shown
in the graph, 24% employees want to completely move to other areas of work i.e. job rotation.
Few wanted to move to PGS and manufacturing department, while few hold opinion of getting
linked with the corporate department. Moving down we can see that 16% employees want job
enlargement i.e. they want more authority and responsibility to execute their work and also
they want leadership in handling projects. 8% employees want a job rotation in branch.
85
Q.8. Are the training & development provided by the company adequate & met your needs?
8% 4%
48%
40%
INTERPRETATION:
The graph shows that 48% employees are satisfied with the training and development
programs. While 40% employees are not happy with the trainings imparted. 8% employees feel
that the training and development is average and not up to mark. Only 4% employees haven’t
received any trainings till now.
86
Q.9. What are your suggestions for improvement in the area of Training & Development?
Suggestions
Others
28%
Behavior
4%
Skill
60%
Knowledge
8%
INTERPRETATION:
60% employees suggest that more technical training should be imparted to the employees so
that they gain more knowledge about their work and execute it properly. Employees suggest
that more advanced and skill development trainings should be given. 8% employees suggest
that IMS Training and awareness programmes should be conducted. 4% employees suggest
that certain motivational trainings should be conducted by the company. The other reasons
stated by the employees were regarding the time constraint and few felt that the content of
training was missing.
87
Q.10. Do you have enough recognition for your contributions?
Recognition
8%
4%
8%
12%
68%
INTERPRETATION:
The graph shows that most of the employees are recognised for their contribution. The
company takes a deal of effort and ensures that contribution of the employees are recognized.
The chart clearly states that 68% employees have been recognized for their contributions.
While 12% employees feel that their contributions are not recognized by the company. 8%
employees feel that there were moments when they have been rewarded, yet they feel that there
were moments when they feel that they had made an impact which was not recognized. 4%
employees do not feel the need for recognition, whereas 8% employees said that they haven’t
made any impact that needs recognition.
88
Q.11. What kind of recognition do you prefer?
Recognition Preferred
4%
Any type
4%
No expectation
4%
Add. Responsibility
4%
Spontaneous award
4%
Kaizen
4%
Movie ticket
8%
Employee of the month
20%
Monetary
24%
Trophy
32%
Certificates
40%
Appreciation
0 5 10 15 20 25 30 35 40 45
INTERPRETATION:
Of the various kinds of rewards given by the company, 40% employees feel that only an
appreciation for their work by their managers motivates them and makes them feel proud. 32%
employees prefer certificates as a part of recognition. They feel that these letters of credit adds
to their achievements. 24% employees prefer trophy, while only 20% employees prefer to have
monetary rewards for their contributions. 8% employees prefer “Employee of the Month” as a
part of recognition. And 4% employees prefer to be rewarded with movie tickets, Kaizen award
& Spontaneous award. Apart from these, 4% employees want more responsibility as a part of
recognition, while the rest employees prefer to be rewarded with any type of reward and few
do not have any expectations.
89
Q.12. What do you like or respect most about your supervisor?
Supervisor's Strength
32%
24%
20%
12%
8% 8% 8% 8%
4% 4% 4% 4% 4% 4% 4%
INTERPRETATION:
32% employees feel that their supervisors have very good technical knowledge. Moving
downwards, the graph shows that 24% employees feel that their supervisor provides solution
to their queries and helps them better understand the situation. 20% employees like the
supportive nature of their superiors. They feel that they get enough support from their
supervisors. The rest qualities that employees like about their supervisors includes supervisor’s
management skills, communication skills, his way of thinking, the freedom given at work (to
pursue work in a manner which the feels convenient), decision making ability, co-operative
nature etc. to name a few.
90
Q.13. In which aspects you think your supervisor can do better?
AREAS OF IMPROVEMENT
28%
20%
16% 16%
4% 4%
INTERPRETATION:
The above graph shows that 20% employees feel that their supervisors should interact and
guide them regarding their career prospects rather than only discussing about case to case
progress. 16% employees feel that their supervisors should control their temper and respect
employees. Majority of the employees i.e. 28% employees feel that their supervisors should
improve their communication skills. Down the line, the graph shows that 16% employees feel
that their supervisors should be more competent and a develop decision making ability.
Whereas 4% employees feel that their supervisors are not motivating and also they fail to
deliver their commitments on time.
91
Q.14. Have there been any moments where you were very unhappy working at KPCL?
Unhappy Moments
20%
80%
Yes No
INTERPRETATION:
80% employees felt unhappy moments working in the company whereas 20% employees had
no unhappy moments working at KPCL. The reasons for being unhappy are as follows:
92
Q.15. A. What are the top 3 factors that you might consider leaving KPCL?
24%
20%
12% 12%
8% 8% 8%
4% 4%
INTERPRETATION:
The top 3 reasons stated by the employees for leaving the company is salary. Career
opportunities and the work tasks. 68% employees say that if they are paid higher in other
company they would leave. 60% state career prospects as a major reason for leaving the
company. They feel if they get better career opportunities and more exposure elsewhere they
would leave the company. The major reason that 24% employees said was the job profile.
Employees felt that they were not having a clear job profile and the tasks allotted to them did
not match their profile. 20% employees feel the work culture is not motivating which might be
considered as factor for leaving.
93
B. Internal and external factors constituting employees to leave
FACTORS
45%
45
40
35
30
25
20
15 13%
10
Internal External
INTERPRETATION:
Of the reasons stated for the previous question, 45% employees have shown internal reasons
for leaving the company. Whereas 13% employees stated external reasons for leaving the
company.
94
Q.16. Do you get enough information about the company?
Information Received
4%
4%
Yes
No
Partial
92%
INTERPRETATION:
The company provides enough information regarding the strategies, performances, procedures
etc., this is clearly shown in the graph. 92% employees feel that they get enough information
regarding the company’s policies and procedures. Only 4% feel that the information they get
is not sufficient. While the remaining 4% feel that there is partial flow of information.
95
Q.17. Which communication channel would you prefer to get the information?
Communication Channel
52%
40%
36%
8%
4%
INTERPRETATION:
52% employees stated ‘Shashwat’ as the most preferred communication channel. Whereas 40%
employees prefer ‘Speak-out’ as the preferred channel to get on spot answers to their questions.
The third most preferred communication channel is ‘E-mail’. ‘Susamwad’ and ‘Oracle’ are the
least preferred communication channel.
96
Q.18. Do you think workplace comm. is adequate within your department & interdepartment?
Not good
16%
Good
76%
INTERPRETATION:
As the graph shows there is good communication within the department. 76% employees said
that there is good communication within the department. Only 16% employees said that the
workplace communication was not good within department and 8% employees said the
communication was average in their department.
97
Inter Dept. Communication
Average
4%
Good
44%
Not good
52%
INTERPRETATION:
The graph shows that inter departmental communication is not good. 52% employees face
inter departmental communication problem. While 44% employees feel the communication is
good inter department. The rest 4% employees consider interdepartmental communication as
average.
98
Q.19. If you were given a free hand to make changes what changes would you make in the
organisation?
Org. Changes
84%
36%
20%
16% 16%
8% 8%
Simplify Young Work Canteen Technology 5 Days Week Engagement Work Tasks
Processes Force activity
INTERPRETATION:
36% workforce consider the processes in the company is complex and lengthy. Hence it needs
to be modified. Whereas 20% employees think that there is an urge of recruiting more youths
in the organisation. They feel that the old employees are not contributing much to the
production. 16% employees said they would improve the canteen food and also the technology.
Whereas 8% employees would implement the MNC culture and some recreational activity as
a part of engagement activity. 84% employees feel that work is not allocated as per the profile,
hence they require a clear job profile. Also deadlines should be set for every work so that
employees don’t waste time in unproductive work.
99
Q.20. Suggestions for enhancing work environment
24%
16%
12%
8% 8% 8% 8% 8%
4% 4% 4% 4%
100
INTERPRETATION:
The graph shows that there is need for effective communication so as to ensure smooth working
and the company should also recruit fresh talents. This would lead to inflow of new ideas. 24%
employees feel that modern technology should be adopted so as to simplify the work processes.
16% employees feel that the work tasks should be better qualified. Deadlines should be set and
there should be proper time management. Another major factor to enhance the workplace
environment is cooperation among co-workers and need for motivation which12% employees
stated.
101
Q.21. Suggestions to encourage Retention
Retention
Salary
Conveyance 52
Recognition 72
Increment
Explore knowledge
Training 24
Resources
8
Dept. change 8 16
8 8 16
Others
INTERPRETATION:
52% employees said that salary would be the most preferred retention factor, which is common
for every company. Another major concern for retention is provision for transport facility. 24%
feel the need for conveyance for their retention. Whereas recognition and increments hold equal
status i.e. 16%. Employees said they should be recognized for their contributions and should
be given proper increments. Apart from these training, resource requirements, department
change etc. were each demanded by 8% employees as retention factors. 72% employees gave
other reasons for their retention which is described in the following chart:
102
FINDINGS
103
Summary of Key Findings
From the analysis I can say that organization culture has a positive impact and at the same
time a high value in the process of employee retention practice compared to other elements.
From the analysis done we can say non-monetary factors also play a positive impact on
employee retention.
From the overall analysis of literature review, we can state that the demographic variable also
plays an important role in employee. Like it is tougher to retain an employee with a higher
qualification and experience than an employee at a graduation and entry level. Another
important element which effect the employee retention is marital status.
Perceived lack of recognition was also cited as a contributor to low job satisfaction. Some
respondents described a climate where bad performance was recognized but good
performance was not. Other workplace climate issues that were often cited as contributing to
poor performance were lack of teamwork and motivation.
When asked what incentives kept them at KPCL, pay and benefits were most frequently cited.
However, a number of respondents also said they liked their work, and found it interesting.
Overall, participants indicated that they had good working relationships and communication
within department is conducive, whereas inter departmental communication is a critical issue.
The most serious problem that arises is technology and need for technical training.
Retention policies followed provides the employees both monetary and non-monetary
benefits.
Various other workshops conducted which helps the employee to be motivated and keep
working.
The exit interviews are conducted as and when required by the company.
104
There is a positive significant relationship between superior support, work environment, work
life balance and recognition on employee retention.
92% employees agree that they get sufficient information about company’s policies,
procedure and performance.
64% employees feel that there is support from superiors and colleagues.
Employees feel that turnover is a serious concern for their organisations’ management.
105
LIMITATIONS
106
Limitations of the Study
107
SUGGESTIONS
&
RECOMMENDATIONS
108
Implications of the Study
Based on the conclusions derived after the in-depth and comprehensive study, few implications can be
made to manage attrition. Employee retention is vital to the long term health and success of any business
organization. Organizational issues such as time and investment involved in training; knowledge lost
due to attrition; mourning and insecure co-workers and a costly replacement of candidate costs a lot to
the organization. Employee retention does matter. The concept of employee retention should be very
distinctly understood and realized by organizations. The retention strategies designed should be such
that the retentive forces are maximized and the debilitating forces minimized. Attempt should be made
not to orchestrate the retention strategies in isolation but ensuring that it forms a part of the overall
strategies for fortifying the pull on the human talent, which include sourcing, staffing and development
strategies in addition. It should also be noted here that retention policies should be highlighted at par
with other policies so as to ascertain that the employees feel they are highly valued. Once the employees
working in the organization are made to feel that the organization holds high degree of attachment
towards them, it shall be easy to incorporate retention strategies, thereby curbing attrition. The
organization should inculcate the value of people asset.
Organizations should have a proactive retention strategy which helps in reducing employee turnover.
Retention plan strategies should be different for different level of employees, because their roles are
different; their needs are different; what motivates them are different and what makes them leave are
also different. The intrinsic motivation and involvement factors, as well as age and education level
contribute to the sustenance of employees in the organization. Thus based on the findings, it can be said
if the employees are motivated and involved in the work they can be retained. The ease of retention
would depend on their degree of motivation and involvement.
Many organisations are adopting some fundamental actions to retain employees, including salary
surveys to stay shoulder to shoulder of the market, culture-building exercises for employees, exit
interviews, counselling, employee development programs, rewards and recognition, as well as increased
pay and benefits. As we know pay is a common reason why employees generally prefer to move to other
organisation. But apart from salary there are certain factors which contributes to attrition. Based on the
primary and secondary data collected upon managing attrition, the following suggestions can be raised.
Like out of 25 respondents, 84% employees’ feel that the work allotted to them does
not match with their job profile. So the organisation should ensure that when assigning
the tasks to the respective employee it should match his competency and interests. If
109
the organization put this into practice it will have a positive effect on employee
retention, at the same time it will be very beneficial for the organization as well.
Taking into consideration career opportunities, 60% said that they need more exposure
and their potential remains under-utilized. The organization should provide exposure
and explore the talents of the employees. Even though the employees are satisfied with
their nature of job, it is identified in the study that many employees prefer to change
their job due to lack of growth opportunities in their job. So the companies can look for
some innovative technologies to decrease their attrition level by providing growth
opportunities.
One way for a company to prevent employees from giving valuable information to
competitors is to make it a policy to enforce strict non-competing and confidentiality
agreements amongst its employees. The existence of such agreements could in fact deter
a competitor from hiring a valuable employ because they might not want to risk possible
legal entanglements with the other company.
Deadlines should be set which will benefit both, the organization as well as the
employees. By the way of setting targets, the employees will be engaged in their
respective works which will help in utilizing the skills of workers as well as the
organization can deliver its commitments on time. Also the best performing or the target
achiever should be awarded which will motivate him to further excel and remain
committed towards his work.
Many employees have suggested improvement in working environment and employee
motivation in the survey. So the companies should give attention to the factors which it
can improve itself internally.
Taking into consideration the elements like modernisation of technology, it would help
the organization in a good manner. If the organization could support the employee in
the above mention element, like if the employees are better equipped with resources
and technology, the end products will be standardized and will give competition to other
similar products. On the other hand wastage can be reduced both in terms of manpower
and time.
Day care assistance should be given. Attrition rate among the female employees can be
reduced to a good level. From the study it was showing that employees does not have
this opportunity.
110
Considering the primary data tool i.e. benefits, we can see conveyance is not offered. If
the organization take a step forward in this practice it will help the employees.
From the secondary data i.e. reviews and articles we could see that an employee –
employer relationship is very important. It plays very crucial role in employee retention.
So the organization should develop and put into practice programmes which help to
improve this area. Some interactive sessions should be organised at regular and frequent
intervals. At the same time the organization should have clear communication process
which will help to solve 90% of the problems faced.
Secondary data also reveals the importance recruitment process. As it is said if the right
person is hired for the position it will be easy for their retention. So the organization
should have strong and apt recruitment process and at the same time it should be well
executed.
Reciprocity is the key. Employees are investors in the company and expect a return on
investment. The return can be in the form of recognition, empowerment and authority.
Each generation of employees has different reasons for staying. For the first time in
modern history, there are varied generations working side-by-side in most companies
of this industry. Generational differences continue to pose new challenges to today’s
employers. Thus, retaining them needs a generation-centric approach.
Train intelligently. Provide on-going retention training in manageable bites – make it a
continuous effort and find ways to size the retention plan to the specific demographics
of the organization. The company may give training like Personality Development and
Self - improvement training to the employees, every three or six months once this status
has to be reviewed and necessary action can be taken. It is better to have such training
in the future. Organizations should focus more on technical training needs.
The companies should conduct regular meetings to know about what exactly employees
expect. Organizations should focus on exit interviews.
Better performance linked incentives and Skill Enhancement Training Programs.
111
Retention strategies used at Kirloskar Pneumatic
Company Ltd.
112
CONCLUSION
113
A Final Word
The main aim of any organization is to earn profit. But to attain the maximum profit, the
organization should concentrate more on employees and the ways to retain them for their long
run. From the study it is identified that Work Tasks, Technology and Technical Training are
the top three factors which might lead to attrition, apart from lack of growth opportunities and
salary which are the common factors for employees to change their jobs in almost every
organization. This study concludes that to reduce attrition, the company should adopt New
Innovative Technologies and Effective Training Programs for the growth of their employees
within the organization.
The company should also think of recruiting people who are in the vicinity of the industry, so
that the family related problems will not lead to attrition. But on the other hand, company
should recruit people from different regions so that it can adopt the culture and work style of
other regions, rather than being specific to a particular state while recruiting.
From the study done we can say that, the best way to improve employee retention is to
understand what the employees want and need from the work place and provide it. Organization
must meet employees demand within limits of course. Management cannot approve all the
demand is a fact, but at the same time they can take efforts to convince the employees.
Organization should also take efforts to bring most of the retention policies into practice which
will give a positive effect on the issue. Even the employees should understand the limits of the
organization and act accordingly. If there is a better understanding between the two parties the
problem of employee retention is solved to a great extent. Both the parties should be aware of
the surroundings and current matters. Every company should understand that people are their
best commodity. Without qualified people who are good at what they do, any company would
be in serious trouble. In the long run, the retention of existing employees saves company’s
money.
One way for a company to prevent employees from giving valuable information to competitors
is to make it a policy to enforce strict non-competing and confidentiality agreements amongst
its employees. The existence of such agreements could in fact deter a competitor from hiring a
valuable employ because they might not want to risk possible legal entanglements with the
other company. Of course, all this could possibly lead to animosity with the employee who
114
could feel that his or her options are being limited. Many employees don't always remember
signing such a document, so a copy of it should always be kept on file for the employee to refer
to. This area could prove to be a highly sensitive one between employer and employee, so
extreme caution is suggested in all instances.
It is clear that there are massive costs associated with attrition or turnover, and while some of
these are not visible to the management reporting or budget system, they are none the less real.
There is no universal attrition management solution for every company. Each organization has
to build its own motivation system based on compatibility between organizational and
individual goals. The following factors can be concluded:
The company should adopt New Innovative Technologies and Effective Training
Programs.
115
ANNEXURES
116
QUESTIONS ANSWERS
117
11 Do you get enough information about the Company?
E.g. on company’s direction, strategies, performance
results, organization changes etc.?
Which communication channel would you prefer to get
this information through?
12 Do you think workplace communication is adequate
within your department & inter-department?
118
REFERENCES
119
BIBLIOGRAPHY
KPCL Induction Handbook
Dr. K. Lavanya Latha, “A Study on Employee Attrition and Retention in Manufacturing
Industries”, Vol.- 5
WEBLIOGRAPHY
www.kirloskarkpcl.com
http://www.google.co.in/search
http://abhinavjuornal.com/management&technology/Jul13/8.pdf Vol. II
www.shri.org.sg/_surveyreports_SETSITR.asp
www.ddiworld.com/.../retaining-talent-a-benchmarking-study_es_ddi.pdf
http://www.citehr.com/human-resource-articles.html
www.reed.co.uk/consulting
www.gjimt.com/GianJyotiE-Journal.htm, GIAN JYOTI E-JOURNAL, Vol. 1, Issue 1
(Oct-Nov 2011)
http://humanresources.about.com/od/retention/Retention_of_Em
ployees_Tips_and_Tools_for_Employee_Retention.htm
http://www.deloitte.com/view/en_IN/in/services/consulting/human-capital-advisory-
services/bc30cd09c073e310VCMgnVCM1000003256f70aRCRD.htm
For Questionnaire:
www.examiner.com
jobsearchtech.about.com
www.businessballs.com
humanresources.about.com
hiring.monster.com
www.tlnt.com
www.blogging4jobs.com
www.recruiter.com
120