“A STUDY ON EMPLOYEE RETENTION IN

APSPDC LTD., TIRUPATI”

Project Synopsis submitted in partial fulfillment of the requirement for the

Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
Of
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY,
ANANTHAPUR

By
Name: N.RAMYA

Reg. No. 17AK1E0082

Under the guidance of

Dr. P. AKTHAR SULTANA, M.A., M.B.A., M.Phil., Ph.D.,

Professor
Department of MBA

DEPARTMENT OF MANAGEMENT STUDIES

ANNAMACHARYA INSTITUTE OF TECHNOLOGY & SCIENCES
TIRUPATI-517520
MBA 2017-2019

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1.INTRODUCTION:

Employee Retention

Employee retention is a process in which the employees are encouraged to remain with the
organization for the maximum period of time or until the completion of the project.
Employee retention is beneficial for the organization as well as the employee.

Employees today are different. They are not the ones who don’t have good opportunities in
hand. As soon as they feel dissatisfied with the current employer or the job, they switch over
to the next job. It is the responsibility of the employer to retain their best employees.

IMPORTANCE OF EMPLOYEE RETENTION

The Cost of Turnover: The cost of employee turnover adds hundreds of thousands of money
to a company's expenses. While it is difficult to fully calculate the cost of turnover (including
hiring costs, training costs and productivity loss), industry experts often quote 25% of the
average employee salary as a conservative estimate.

Loss of Company Knowledge: When an employee leaves, he takes with him valuable

knowledge about the company, customers, current projects and past history (sometimes to
competitors). Often much time and money has been spent on the employee in expectation of a
future return. When the employee leaves, the investment is not realized.

2. INDUSTRY PROFILE

Power is an important tool for economic growth of the country. Power is vital for
every form of human activity-domestic, agriculture and industrial infrastructure such as
telecommunication and transport. The demand for electricity in India is enormous and is
growing steadily. The growth has been slower than country’s economic growth. The big
challenge in front of the power industry is to balance the demand and supply of electricity.
There exists a link between economic growth and per capita consumption of electricity.

The Power Industry Structure in India:

The power system in India is organized as five geographical regions for administrative
purpose, management of transmission system (regional grids), and load dispatch functions
and for the purpose of balancing & settling of inter-state energy transactions. The five

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regional grids are connected by high voltage AC & DC transmission lines thus forming a
unified national grid catering to the inner-state transfer of electricity.

Some of the Electricity Acts In India:

The Indian Electricity Act, 1910

• Provided basic framework for electric supply industry in India.

• Growth of the sector through licensees. License by State Govt.

• Provision for license for supply of electricity in a specified area.

• Legal framework for lying down of wires and other works.

3. COMPANY PROFILE

AP Power Sector Reforms envisage creation of Distribution Companies as Government

Undertakings for the first few years and privatization later on. The Andhra Pradesh Gazette
No.37 published by the Government of Andhra Pradesh on Friday the 31st of March 2000
declared formally formation of Distribution Companies. In this process, Andhra Pradesh
Southern Power Distribution Company was formed for the following six districts of Andhra
Pradesh.

The Corporate Office and Headquarter of APSPDCL are at Tirupati city.

Quality power at economic rates acts a catalyst in transforming the state by fostering growth
in agricultural, industrial and commercial areas while meeting the increasing domestic
demand. On Feb 1, 1999, Government of Andhra Pradesh initiated the first phase of reforms
and restructuring in AP's power sector by unbundling APSEB into APGENCO and
APTRANSCO to cater to Generation and Transmission & Distribution respectively.
APTRANSCO was further reorganized into four distribution companies to cater to the needs
to the different districts of AP.

APSPDCL was formed in April 1, 2000 to serve Krishna, Guntur, Prakasam, Nellore,
Chittoor and Kadapa districts with a vision to become an efficient utility supplying reliable
and quality power, promoting economic development and being self-reliantcommercially.

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BOARD OF DIRECTORS:

    Sri H.Y.Dora was appointed as Chairman & Managing Director on the Board of
Southern Power Distribution Company of Andhra Pradesh Limited. He took charge as
Chairman & Managing Director/APSDCCL on 31st August, 2013.  

       Sri Syed Bilal Basha has taken charge as Director/Financeof Southern Power
Distribution Company of Andhra Pradesh Limited on 6th August, 2012.

Sri T. Ram Singh has taken charges as Director Projects of Southern Power
Distribution Company of Andhra Pradesh Limited on 1st August, 2013.

Sri C. Radha Krishna has taken charges as Director Operations of Southern Power
Distribution Company of Andhra Pradesh Limited on 1st August, 2013.  

Sri J. NageswaraRaju has taken charges as Director - HRD & IR of Southern Power
Distribution Company of Andhra Pradesh Limited on 1st August, 2013.

Sri.P.Pulla Reddy has taken charges as Director/P&MM, IPC &Civil of Southern

Power Distribution Company of Andhra Pradesh Limited on 02 June of 2014.

Vision

"To Create an organization that is profitable, viable, responsive, serving the needs of
the customer, suppliers and employees".                                  

Mission

SPDCL is set to achieve this vision through the following objectives

Commercial Objectives :

 Eliminating pilferage of energy.

 Reducing the exceptional cases.

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 5. Need For the Study

Ask any business owner or human resource manager what they consider to be their
primary staffing objective and they will most likely say that they are focused on hiring only
the best employees into their organisations. While this is an important but often overlooked
objective indeed, there is a key element of personnel management that is every bit as in the
present scenario, world is turning into a global village and whole globe is reachable room any
destination, people are accessing to many job opportunities throughout the world. The
concept of permanent jobs has been vanished. A turnover rate of many industries, particularly
IT industry has been increasing day-by-day due to increasing competition.

Employee turnover results in

 Cost of recruiting new employees.

 Loss of valuable time in hiring new employees.
 Loss of productivity till the time of hiring new employee.
 Training him/her and inducting him to organizations’ practices.
So, there has been aroused a need to study on retention followed in POWER industry to
retain skilled and knowledgeable employees.

6. Scope of the Study

The scope of this study extends in comprising latest retention trends with that of the
organization in improving their retention practices, which in turn influence the work
environment, that employee desire to work in
The finding of exit interviews can be used to make the retention practices better in and
help the organization in knowing the reason why employees are leaving the organization.
The retention practices are not same for all hierarchy so the organisatons have to design
different retention techniques for different levels in the organization.

7. Objectives of study:

 To study whether the employees are satisfied with working conditions.

 To study whether the employees are satisfied with the benefits provided by the organization.

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 To study about the career developmental activities at Andhra Pradesh Southern Power
Distribution Corporation Limited.
 To study opinion of employees on job security at Andhra Pradesh Southern Power
Distribution Corporation Limited.
 To study about the welfare programmes of the employees at Andhra Pradesh Southern Power
Distribution Corporation Limited.

8. Research methodology:

Data sources

Data collection method

Collection of data is the first step in statistics. The data collection process follows the
formulation for research design including the sample plan.

The source of data is classified into two types. They are as follows:

1. Primary Data
2. Secondary Data
1) Primary data collection:

During the course of the study, research can done through observations or
through direct communication with respondents on one form or another through personal
interviews.

I have collected primary data by the means of the Questionnaire. The Questionnaire was
formulated keeping in mind the objectives of the research study.

2) Secondary data collection:

Secondary data means data that is already existed or available which has
already been collected and analyzed by someone else. When a secondary data is used, the
researcher has to look into various sources from where the data can be obtained.
I have collected secondary data through Internet and Books.

A research design is a type of blueprint prepared on various types of blueprints available for
the collection, measurement and analysis of data. A research design calls for developing the

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 most efficient plan of gathering the needed information. The design of a research study is
based on the purpose of the study.

A research design is the specification of methods and procedures for acquiring the
information needed. It is the overall pattern of framework of the project that stipulate,

What information is to collect in sampling?

An integral component of a research design is the sampling plan. Specifically, it addresse

three questions.

 Whom to survey ( The Sample Unit)

 How many to survey ( The Sample Size) &
 How to select them (Sampling Procedure)

Making a census study of the whole universe will be impossible on the account of
limitations of time. Hence sampling becomes inevitable. A sample is only a portion of the
total employee strength.

TYPES OF SAMPLING

Sampling is classified into Probability & Non Probability Sampling.

Probability sampling is also known as random sampling. Under this sampling

design every individual in the organization has an equal chance or probability, of being
choosen as a sample.

Non probability sampling is also known as deliberate sampling, or judgmental

sampling. Non probability sampling is that which does not provide every individual in the
organization with a known chance of being included in the sample.

Sampling area:

Andhra Pradesh Southern Power Distribution Corporation Limited Technologies,

Gachibowli.

Sampling size:

The sample size is limited to 150 due to availability and the busy schedule of the
employees.

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Sampling procedure:

The sampling method used was random sampling. This sampling method was used
because of lack of time and lack of complete knowledge about the universe. The sampling
size was fixed to 150 respondents.

Research Approach:

Survey Approach:

The questionnaire was administrated through direct contact with respondents.

Sampling design:

Sampling size : 150

Sampling procedure : Random Sampling

Research Instrument:

The research instrument that is used in this study is questionnaire consists of a set of
questions presented to the respondents.

Statistical Tool:

Statistical tool : Percentage analysis

Percentage analysis:

In this research various percentages are identified in the data analysis and they are
presented pictorially by way of pie diagrams in order to have a better quality.

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