Employee Attrition Study at Sri Raghavendra Industries

“A STUDY ON EMPLOYEE ATTRITION RATE AT SRI
RAGHAVENDRA INDUSTRIES”
Dissertation submitted in partial fulfillment of the requirements for the
award of the Degree of
BACHELOR OF BUSINESS ADMINISTRATION OF
BANGALORE UNIVERSITY
Submitted By
NAGARJUN REDDY M
Reg. No : 17PUC26165
Under the guidance of
Nethravathi A
Assistant Professor
DEPARTMENT OF MANAGEMENT
Acharya Institute of Graduate Studies

(Affiliated to Bangalore University)
Bengaluru – 560107
2019-20
DECLARATION BY THE STUDENT
I hereby declare that “A Study on Employee Attrition Rate ” is the result of the
project work carried out by me under the guidance of Mrs. Nethravathi A in
partial fulfillment for the award of Master’s Degree in Business Administration by
Bangalore University.
I also declare that this project is the outcome of my own efforts and that it has not
been submitted to any other university or Institute for the award of any other
degree or Diploma or Certificate.
Place: Name: Nagarjun Reddy M
Date: Register number:

17PUC26165
ACKNOWLEDGEMENT
Any achievement , be it scholastic or otherwise does not depend solely on the

individual efforts but on the guidance, encouragement and co-operation of
intellectuals, elders and friends. A number of personalities, in their own capacities
have helped me in carrying out this project work . I would like to take this
opportunity to thank them all.
First and foremost I would like to thank Prof. Gurunath Rao Vaidya Principal,
AIGS, Bengaluru, for his oral support towards completion of the project.
I express my gratitude to Dr. M. Sudha Associate Professor and Head of

Department of BBA , AIGS, Bengaluru , who has always been a great source of
inspiration.
I am grateful to the guidance and the encouragement given by my Internal guide

Mrs. Nethravathi A Assistant Professor, Department of BBA , AIGS , Bengaluru,
who has helped me in various stages of project, optimizing the report and making
this project a success.
I also extend my sincere thanks to the teaching and non-teaching faculty of the
Department of BBA, AIGS, Bengaluru , who have constantly supported us
throughout the course of my project work.
I am grateful for the guidance and support by the Management of Sri Raghavendra
Industries , Bengaluru, who helped me throughout the project and making this
project a success.I finally express deep sense of thanks to my family and friends
for their moral support.
CONTENTS
CHAPTER NO. PARTICULARS PAGE NO.
Chapter-1 Introduction 1-6
Chapter-2 Profile of the Industry 7-22
Chapter-3 Research Design 23-42
Data Analysis & 43-63

Chapter-4
Interpretation
Chapter-5 Findings, Suggestions & 64-67

Conclusions
Chapter-6 Bibliography 68
Chapter-7 Annexure 69-72

List of Tables
TABLE NO PARTICULARS PAGE NO
Table 2.1.3 Manpower Details 9
Table 2.2 Product List 15
Table 4(a) Which Of The Following Is One Of 44

The Greatest Hrm Challenge Faced
By Your Organization
Table 4(b) Is The Employee Attrition A 45

Recognized Hr Challenge For Your
Organization
Table 4(c) State The Major Reasons For 46

Attrition In Your Company
Table 4(d) Which Of The Following 47

Employees In The Experience
Range Are Most Susceptible To
Attrition
Table 4(e) Which Level Of Employees In 48

Your Organization Are Most
Susceptible To Attrition
Table 4(f) Do The Attrition Trends In Your 49
Company Make You Believe That
It Is Ultimately Money That Is
Influencing The Decisions Related
To Resignations And Retention
Table 4(g) Do You Think That An Increasing 50

Number Of Industries Is Adversely
Affecting Employee Retention In
Your Company And Is Leading To
Higher Employee Attrition
Table 4(h) Has Your Organization Adopted 51

Any Creative Hrm Strategy To
Counter Employee Attrition
Table 4(i) Could The Company Have Done 52

Anything To Encourage You To
Stay
Table 4(j) Does Your Organization Make It 53

Mandatory For The Employees To
Serve A Notice Period
Table 4(k) What Is The Duration Of Notice 54

Period In Your Organization
Table 4(l) Do You Count An Exit Interview 55

Of The Employees Who Resign
From Your Organization
Table 4(m) Does Your Organization Have A 56
Policy To Attempt To Retain The
Resigning Employee By Offering
Increased Benefit
Table 4(n) What Kind Of Benefits Does Your 57

Organization Offer To Resigning
Employees If They Consent To
Continue Their Service
Table 4(o) What Is The Preference Of 58

Employee To Move To A New Job
( New Company )
Table 4(p) What Is Your Satisfaction Towards 59

The Current Job
Table 4(q) How Much Do You Think Attrition 60

Is A Threat To Your Organization
Table 4(r) How Much Does Attrition Affect 61

Your Organization Financially
Table 4(s) Do You Think Attrition At Times 62

Can Prove To Be Healthy For Your
Organization
Table 4(t) Is Your Organization Facing The 63

Problem Of Attrition
List of Charts
CHART NOs PARTICULARS PAGE NO
Chart 4(a) Which Of The Following Is One Of 44

The Greatest Hrm Challenge Faced
By Your Organization
Chart 4(b) Is The Employee Attrition A 45

Recognized Hr Challenge For Your
Organization
Chart 4(c) State The Major Reasons For 46

Attrition In Your Company
Chart 4(d) Which Of The Following 47

Employees In The Experience
Range Are Most Susceptible To
Attrition
Chart 4(e) Which Level Of Employees In 48

Your Organization Are Most
Susceptible To Attrition
Chart 4(f) Do The Attrition Trends In Your 49

Company Make You Believe That
It Is Ultimately Money That Is
Influencing The Decisions Related
To Resignations And Retention
Do You Think That An Increasing 50
Number Of Industries Is Adversely
Chart 4(g)
Affecting Employee Retention In
Your Company And Is Leading To
Higher Employee Attrition
Has Your Organization Adopted 51

Chart 4(h) Any Creative Hrm Strategy To
Counter Employee Attrition
Could The Company Have Done 52

Chart 4(i) Anything To Encourage You To
Stay
Does Your Organization Make It 53

Chart 4(j) Mandatory For The Employees To
Serve A Notice Period
Chart 4(k) What Is The Duration Of Notice 54

Period In Your Organization
Chart 4(l) Do You Count An Exit Interview 55

Of The Employees Who Resign
From Your Organization
Does Your Organization Have A 56

Chart 4(m) Policy To Attempt To Retain The
Resigning Employee By Offering
Increased Benefit
What Kind Of Benefits Does Your 57
Chart 4(n) Organization Offer To Resigning
Employees If They Consent To
Continue Their Service
What Is The Preference Of 58

Employee To Move To A New Job
Chart 4(o)
( New Company )
Chart 4(p) What Is Your Satisfaction Towards 59

The Current Job
Chart 4(q) How Much Do You Think Attrition 60

Is A Threat To Your Organization
Chart 4(r) How Much Does Attrition Affect 61

Your Organization Financially
Chart 4(s) Do You Think Attrition At Times 62

Can Prove To Be Healthy For Your
Organization
Chart 4(t) Is Your Organization Facing The 63

Problem Of Attrition
A Study on Employee Attrition Rate
CHAPTER 1
EMPLOYEE ATTRITION : AN
INTRODUCTION
Human resource is a very important and valuable asset of an organization.
However most of the organizations consider it as a cost center. Employees play a
pivotal role in an organization because all the resources are wasted if they are not
properly and efficiently utilized by the employees. It is the employee who can
create a history by making an organization or by breaking an organization.
Today in a highly competitive and dynamic business world the success of an

organization depends on the ability and stability of competitive human resource.
Maintaining and retaining existing employees is the most challenging issue for
any organization. When employees at the managerial level leave an organization,
it leads to serious problems in the organization. Attrition basically rises due to
many factors like dissatisfaction with the company, insufficient salary, poor
working environment, lack of motivation, poor relations with colleagues and boss,
unhappiness of an employee and many other factors. The attrition level of
employees indicates that something is wrong with the health and climate of an
organization in terms of wages, working conditions, industrial relation, welfare
facilities provided by the employer to the employees etc.
Employee attrition is a challenging issue in the business world. It has a significant

impact on the competitive strength of a company. As per the Report on
Absenteeism, Labour turnover, Employment and labour cost, prepared by the
Ministry of Labour 3 and Employment; Labour Bureau, Employee attrition in the
automobile sector in India is 40 percent1 . Employee attrition creates chronic
problems in an organization. The impact of employee attrition has been realized
by industrialists during the past couple of years.
Higher rate of attrition indicates employee unrest and lack of stability in the
labour force which is not good for competitiveness, growth and development of an
organization. The organization faces uncertain cost, disturbance in production and
Acharya Institute of Graduate Studies Page 1

work atmosphere, cost of recruitment, selection, training and development and so

on.
Overview of Employee Attrition in India:
Organizations in India must give serious thought to what drives employee

commitment," says Mohinish Sinha, leadership and talent practice leader, Hay
Group India. Employee turnover is predicted to rise to 26.9% in 2013 with an
employee base of Rs 3 crore compared with 26% in 2010 on an employee base of
Rs 2.8 crore, according to the study, 'Preparing for Take-Off', conducted in
association with the Centre for Economics and Business Research. It covered 700
million employees in 19 countries. Worldwide, attrition is predicted at 21.2% in
2013 on an employee base of Rs 71.6 crore compared with 20.3% in 2010 on an
employee base of Rs 64.4 crore. The number of workers expected to take flight
will reach Rs 161.7 million in 2014 - a 12.9% increase compared with 2012 - as
growth builds and employment opportunities increase, according to the study.
Comparatively, turnover was minimal between 2010 and 2012. In the next five
years, 49 million employees will leave their employers globally.
In India, sectors like infrastructure and banking - where new players are entering
the field - will continue to suck in talent. In infrastructure, nearly $1 trillion of
investment has been planned in the years to 2018. With half of this expected from
private financing, there will be huge demand for labor in India's finance,
insurance, real estate and construction sectors - totaling 14% of employment in the
organized sector - and raising turnover in these activities, as Sinha points out.
Besides, there is a huge demand for ready talent, he says. But not everyone thinks
it is a function of external growth conditions. "The best insurance against attrition
is not to hope for lack of opportunities outside but to build strong internal
conditions which act like a glue to employees," says Divakar Kaza, president, HR,
Lupin Pharma Nearly 55% of Indian employees expressed concerns about the
fairness of their compensation and the extent to which benefits meet their needs
(48%). One in every three employees expressed concern over a lack confidence in
being able to achieve their career objectives with their current employers (37%);

as a result, they are concerned about opportunities for learning and development
(39%) and supervisory coaching for their development (36%). An analysis of Hay
Group's employee opinion database, covering 5.5 m employees worldwide, threw
up the most consistent predictors of employee engagement and commitment:
confidence in leadership; an opportunity for career development; autonomy;
supportive work environment; and appropriate compensation
Why Do People Leave Job?
There are various factors that affect an individual’s decision to leave a job. While
an employee’s leaving the job is considered attrition by one organization, it is
looked at as talent acquisition by the new organization and to the individual it
means a career move, economic growth and improved quality of life closeness to
family etc. Hence, what is a problem for one may be an opportunity for another?
There are various reasons why people leave their current job. These reasons may
vary from individual to individual and when data are collected from a large
number of individuals leaving or who have left an organization, some
consistencies may be observed providing more insights as to why people leave in
large numbers. If these are controllable-one attempts to control. If these are not
within the control of the organization, the organization should prepare itself for
managing attrition. In today’s contemporary scenario, when an individual leaves
the job, it causes a lot of disturbances in the organization. If it is a small
organization the disturbance is even greater. Hence it is important to understand
and manage attrition. There can be various reasons for people leaving their current
jobs. According to global professional services firm Towers Watson in his report
says, "Attrition in India is at 14 per cent, marginally higher than global and Asia
Pacific countries (11.20 per cent and 13.81 per cent, respectively)," The report
said that 92 per cent of firms in the country experience challenges in attracting
talent with critical skills while over 75 per cent organizations face challenges in
retaining high performing talent. For Indian employers, the top two priorities are
'career advancement opportunities' and 'challenging work environment', while for
employees 'job security' and 'career advancement opportunities' are their main
priorities. "74 per cent of the employers in India feel that their employees are

actively engaged with colleagues who are in different countries as compared to 65

per cent employers globally," it added.
Meaning :
A common attrition rate definition refers to employee or staff turnover, but in a

broader sense, attrition rate is a calculation of the number of individuals or items
that vacate or move out of a larger, collective group over a specified time
frame. Attrition rate is also commonly referred to as churn rate.
Employee attrition is the term used when employees leave the job. Employees
may leave the job because they have found a more suitable one or not satisfied
with the current organization. There can be many reasons for employee attrition
like pay is not great,8 perks are not satisfactory, the infrastructure of the
organization is not great or Manager is a sadist.
Employee attrition can be Organization centric also. The Organization may have
just lost a project and want to reduce costs or terminate the employee because of
poor performance or excessive absenteeism or violation of a workplace policy. In
simple words, employee attrition is the reduction of staff. The attrition rate can be
calculated by dividing the number of employees in a month, with the number of
people who left in a month then multiplying it by 100.
Definition :
A common attrition rate definition refers to employee or staff turnover, but in a

broader sense, attrition rate is a calculation of the number of individuals or items
that vacate or move out of a larger, collective group over a specified time frame.
Attrition rate is also commonly referred to as churn rate. A term often used by
human resources professionals to determine a company’s ability to retain
employees, attrition rate is increasingly used in the marketing world as a figure
that points to the company’s ability to retain customers or to project the number of
new sales necessary to maintain the status quo, accounting for customer churn
or customer attrition.

Calculating Attrition Rate: The Attrition Rate Formula
It’s actually quite simple to calculate attrition rate. It’s generally expressed as a
percentage of customers and typically on a monthly or annual basis.
To calculate your customer attrition rate, use this simple attrition rate formula:
 Number of customers lost by the end of the period divided by the total
number of customers at the beginning of the period
 So as an example, to calculate attrition rate for a company that had 650

customers at the beginning of the month and 600 customers at the end of
the month, the attrition rate formula would be:
 Number of customers lost: 650 – 600 = 50 customers
 Number of customers at the beginning of the period: 650
 Attrition rate formula: 50/650 = .0769 or 7.7%
 Attrition rate is a complimentary figure to retention rate, which refers to

the number of customers retained during a given period, and to customer
acquisition rate, which refers to the number of new customers acquired
during a given period. The three figures together should equal 100 percent.

Pros and Cons of Attrition Rate :
Calculating attrition rate is a simple process for most businesses, and this metric
can be used to formulate company goals and objectives. However, in some
industries and verticals, attrition rate is not as easy to calculate. Marketing
agencies can easily calculate attrition rate by consulting a list of currently active
clients. But for businesses such as retail stores, determining the number of active
customers is somewhat subjective.
Retailers may monitor return customers through online channels, coupon

redemption, or other methods, but cash-paying customers are not as simple to
track.
Relying on the total number of sales is a viable alternative in some circumstances,

although using this calculation blurs the lines between attrition rate and
acquisition rate, as it cannot accurately differentiate new customers from repeat
customers without some form of individual customer identification. When
promotional offers and redemption codes are used, tracking individual customers
and monitoring repeat purchases becomes more accurate.
Companies aim for a low attrition rate. Companies that experience a sudden
increase in attrition rate can use this data to investigate pain points and conduct
further research into the motivations behind customer attrition, identifying
opportunities to prevent customers from churning and retain their business.

CHAPTER 2
PROFILE OF THE INDUSTRY
2.1 Company Profile
2.1.1 The history of Sri Raghavendra Industries :
It established in the year 1993. “Sri. Raghavendra Industries” has

flourished as one of the prominent manufacturers, suppliers and exporters
of Precision Engineering Machined Components and Material Handling
Equipment. Moreover, the company also provides prompt and
reliable Fabrication Services that are rendered as per customer's designs,
drawings and specifications. The objective of the industry is to provide
material handling equipment solutions & structural engineering services to
industries. The company undertakes Design, Engineering, Fabrication,
Supply and Erection of Steel buildings & is well known for the quality and
reliability if its product & services.
They have attained loads of accolades for qualitative delivery of the

products and customer-oriented approach. Their team of dedicated and
hardworking professionals is one of their greatest strengths in making a
timely delivery of the impeccable range of the products. Then, there is a
state-of-the-art infrastructure facility that empowers them to achieve their
productivity targets within prescribed time period.
Owing to quality focus and customer-centric approach, they have gained a

broad client-base across entire Indian Subcontinent. Some of their clients
include Roll Well Conveyors Pvt. Ltd., Delkor Technik India Pvt. Ltd.
(Peenya), Exide Industries Ltd., and Armatic Engineering Pvt. Limited.

 The company undertakes Design, Engineering, Fabrication, Supply and

Erection of steel Buildings, and is well known for the quality and reliability
of its products and services.
 The Company’s Engineering facilities provide comprehensive Design &
Drafting services supported by a Product Development section which is
constantly enhancing quality and product efficiencies
Sri Raghavendra Engineering systems Pvt Ltd (SRES) pride it self on being a
single source for the integration of advanced automation technologies along
with Control Instrumentation, Specialized and Customized Material Handling
Systems. Through years of practical experience they have learned how best to
deploy specific technologies to meet your business requirements.
2.1.2 Vision and Mission Statements :
 Vision:
Their vision serves as the framework for their Roadmap and guides every
aspect of their business by describing what we need to accomplish in order to
continue achieving sustainable quality growth. The vision of the industry is also
to provide high quality services/products that conform to contractual
specifications in line with customer requirements and to increase customer
confidence and loyalty leading to a greater market share through genuine
commitment to quality. To commit, as a team, to the manufacture high quality
structures and to provide the right products and services, at all times.
 Mission :
Their roadmap starts with their mission, which is enduring. It declares
the purpose as a company and serves as the standard against on which they
weigh their actions and decisions. Their mission is also to create value and
make a difference.

 Goal :
Their goal is to exceed the expectations of every customer by offering
outstanding customer service, increased flexibility and greater value, thus
improving operational efficiency in material handling. Their goal also includes
having setup the best conditions for successful business development and
strengthen their position as a leading supplier in all fields of are geared up to
ease your material handling issues.
2.1.3 Manpower details :
Technical Skilled Semi Skilled Admin
10 45 35 8
Table 2.1.3 Manpower Details
 Their group of companies :

1. Sri Raghavendra Industries
2. Sai Engineering Industries
3. Sai Seisakusyo ( Ahmedabad , Gujarat ) – to Suzuki Motors
 Their certification :
1. SSI Certificate
2. ISO Certificate
 Basic Information

Nature of Business Manufacturer
 Exporter
 Service Provider
Additional Business
 Supplier
Company CEO M. Eshwar Reddy
Total Number of Employees 26 to 50 People
Year of Establishment 1992
Legal Status of Firm Individual - Proprietor
Annual Turnover Rs. 10 - 25 Crore
2.1.4 Their Team :

Their team is one of their prime strengths that have driven them to achieve
such a huge professional growth. Owing to the dedication and sheer hard work of
their team members, they have been able to earn the faith of their clients. The
untiring and self motivated efforts of their team have strengthened them to acquire
their organizational goals in a small span of time. Moreover, they have the
aptitude to understand the particular requirements of their clients and craft their
product range accordingly. All of their team members are well aware of their
respective responsibilities due to which they display optimum efficiency and
outstanding performance.

Their team consists of the following professionals:
Proprietor - Mr . M . Eshwar Reddy

Marketing team head - Mr . M . Mallikarjun
Production team head - Mr. M .Sharath Reddy
Administrator - Mrs . Bhavya
Technical advisors - Mr . Sampath
Design team head - Mr . Kiran Kumar
Production in house - Mr . Manjunath / Mr .Sampath
Quality head - Mr. Suresh
Quality control - Mr . Darshan
Supervisor - Mr . Ashok Prasad
2.1.5 Clientele :
Since the day of their inception, client satisfaction has always been their
foremost priority. Owing to their faith in their abilities, they have been able to
achieve such a huge great success in this competitive industry. Their biggest
strength is the ability to design and develop their products as per the specific
requirements of clients. Moreover, they facilitate them by offering different
payment options including Cheque, DD, LC and online transfers. It is because of
their fair and ethical business practices that they have attained a formidable client-
base across the Indian Subcontinent including names like:
 Disa India Ltd. (Hoskote and Tumkur)

 Toyota Tsusho India Pvt. Ltd.
 JSW Steel Ltd. (Thoranagallu Bellary)
 JSPL
 Alufit India Pvt. Ltd
 Roll Well Conveyors Pvt. Ltd.
 Delkor Technik India Pvt. Ltd. (Peenya)
 Exide Industries Ltd.
 Instruments Research Associates Pvt. Ltd.
 Armatic Engineering Pvt. Ltd.

Apart from manufacturing and supplying and exporting Precision

Engineering Machined Components and Material Handling Equipment, they also
undertake labor jobs based on the designs and requirements of their clients.
2.1.6 Research and Development :
Their technologically advanced in-house research and development division

is one of their most important assets. It makes them to stand a step ahead of their
competitors in this highly competitive market. In order to develop their products
as per the latest trends and technology, they have established this well-equipped
research and development unit. They have appointed a team of qualified and
skilled professionals to manage this unit. These professionals are always aware of
latest technical advancements and use the same in their methodology to meet the
ever changing needs of their clients. Moreover, they introduce new improvement
mechanism at all stages of the production through extensive research process. It
also helps them in finding more efficient ways to execute their Fabrication
Services.
2.1.7 Services Offered :
Their organization is amongst leading organizations that are engaged in

offering Fabrication Services that are based on client's drawing and
specifications. They have appointed a specialized team, which responds promptly
to the client's request. Offered at most reasonable prices, these services are
rendered as per the exact specifications of the clients .Their services include:
 Manufacturing of Material handling equipment’s

 Equipment Fabrication
 Machining Components
 Manufacturers and Suppliers of Wear resist, heat resist and corrosion
resistance castings
 Turnkey Factory Pre-Engineering buildings

 Fire fighting (Fire hydrant, sprinkler system, FAS, FDS, smoke

Detector)
 Compressed Air Piping System
 Gas Piping System
 Fuel system
 Water Piping System
 High Pressure Temperature Piping System
 Storage Tanks (Pressurized & Static)
 Air ventilation systems
 Government Body Approvals and licensing
 Utility Piping works (Carbon steel & Stainless Steel)
 Equipment Erection
 Civil Works, Interiors, Road Works and Landscaping
 Furnaces spares
 SS fabrication
 MS fabrication
2.1.8 Quality Assurance :
Quality is their spot of focus in all of their endeavours. They leave no

stone unturned to achieve their objective of bringing forth an impeccable range
of Precision Engineering Machined Components and Material Handling
Equipment. For this, they have appointed a qualified and dexterous team of
professionals, which ensures that these products are in perfect harmony with the
global quality standards. A group of quality analysts are also there to keep an eye
over the entire production process. It supports them in delivering an unmatched
quality collection of products.
Their quality personnel take care of the following while doing product inspection:
 Durability
 Performance
 Efficiency
 Corrosion resistance

2.1.9 Infrastructure & Facilities :
 Manufacturing Facility :
Their organization is backed by a highly advanced and vast
manufacturing facility, which is instrumental in the timely execution of the bulk
orders of the clients. Owing to the large production capacity of their infrastructure,
they are able to undertake the hefty client's order and deliver it within specified
time period. This entire manufacturing unit is armed with latest machinery and is
backed by cutting-edge technology.
They have the following hi-tech machines at our manufacturing plant:
 Lathe 2 meter 10 no
 Center less grinding machine 1 no
 Power hacksaw 2 No
 Thread rolling 75 mm capacity 1 no
 Horizontal boring machine 2 no
 VTL Lathe 1.2 meter capacity I no
 RM 65 drilling machine 01 no
2.2 Product profile :
They are engaged in the manufacturing, supplying and exporting of an

extensive assortment of Precision Engineering Machined
Components and Material Handling Equipment. Their products are manufactured
using high-quality raw material like non alloy, alloy steel, forged steel, aluminum,
cast iron and stainless steel. Moreover, an expert team of professionals enables
them to customize this range in various options to meet client's specifications.
They are recognized as a leading manufacturer, supplier and exporter of a

broad assembly of Precision Engineering Machined Components and Material
Handling Equipment. Manufactured using finest grade raw material, this range of
products is known for its robust construction, high wear & tear resistance and
durability. Moreover , they provide their customers premium and prompt

fabrication Services. Considering the budgetary constraint of their clients, they

offer their products and services at cost-effective prices.
Their range comprises the following products:
Categories Products
 Turned Component
 Threaded Components
 Studs & Bolts
 Stainless Steel Fasteners
 High Tensile Fasteners
 Foundation Bolt
Precision Engineering Machined  Conveyor Component
 Deep Hole Drilling
Component
 CNC Machined Components
 Pulley
 Conveyor Bearing Housing
 Conveyor Shafts
 Conveyor Rollers
 Weighing Feeder
Materials Handling Equipments
 Material Handling & Storage
System
 Mobile Loader
Table 2.2 Product List
Apart from above mentioned products, they also offer their clients other
conveyor components like Pulleys, Idler Base and Screw Conveyors. Their
customers can also avail from them all types of S. S. Components like Vacuum
equipment’s, S. S. Pipe Lines and Vacuum Impregnation Plant.
 Precision Engineering Component :

Their engineers hold immense specialization in producing an
expansive assortment of Precision Engineering Machined
Components. These products find their application in supplementing a

broad range of industrial components for material handling, aerospace

applications, electronics, automotive and textile industry. All of their
products are manufactured using high-grade alloy steel, non- alloy, forged
steel, stainless steel, aluminum and cast iron and are fabricated as per the
specifications given by their clients. Their range of products is known for
its high functionality and reliability.
 Stainless Steel Fasteners :

Their range of Stainless Steel Fasteners is available in a number of grades
such as industrial screws, threaded rod, stainless screws, industrial washers,
stainless washers. Manufactured using stainless steel and nickel alloy, these are
offered in a wide range of sizes and dimensions. This range of Stainless Steel
Fasteners is appreciated for its high tensile strength, rust resistance and
durability, these fasteners are available in different sizes.
 Foundation Belts :
It gives them immense pleasure to manufacture an exclusive series of
Foundation Bolt, which finds its extensive application in heavy engineering
industries and domestic fields. Produced from high-quality raw material, their
range of products is known for its high temperature withstand capacity, high
tensile strength, wear resistance, and minimum maintenance costs. Moreover,
these are made available in different customized forms as per the specifications
of their clients.
 Conveyor Component :
They have introduced a comprehensive assembly of Conveyor
Components in the market. There is a wide marketing network for the
promotion of their brand. These products are made with optimum precision to
successfully cater to the varied needs of the customers. Their team of highly
qualified professionals makes sure that their range of products is branded and
advertised as per the industrial standards.

 CNC Machined Components :

Their clients can avail from us a broad array of CNC Machined
Components, which is also offered in diverse customized forms as per the
requirements and specifications of the clients. Designed in compliance with
international quality standard, these components are comprehensively used in
automobile industry. Their range of products is known for its dimensional
accuracy, corrosion resistance and longer service life.
 Aluminum Pulley :
Backed by a sound infrastructure, they deal in manufacturing, supplying
and exporting a comprehensive array of Aluminum Pulley castings. Their
organization offers these products at low prices to the bulk buyers ensuring
profitable deals. Considering the needs of the clients, these are available in both
standard and custom-built forms. Owing to their precise dimension, sturdy
construction and accurate design, this range of Pulley is highly demanded in the
market.
 Conveyor Bearing Housing :
Known for its advanced features, their range of Conveyor Bearing

Housing is suitable for heavy and light material. Their array of Conveyor
Bearing Housing exhibits a modern design with sprocket at one terminal and a
bearing housing at other. There is a roller shaft that runs through the rollers.
These rollers are mounted on the extruded aluminum rails. The sprocket is
interlocked with the drive chain to ensure the continuous rotation of the rollers.
The roller conveyor extrusions are designed to house the drive chain and its
guide block.
 Conveyor Shafts :
They hold immense expertise in producing an expansive gamut of

Conveyor Shafts. Owing to their flawless finish and durability, these products
are comprehensively demanded in the various industries. Their skilled
engineers make sure, that their range of products is designed in compliance

with the specific requirements of the clients. Moreover, these are made
available in numerous sizes and dimensions.
 Conveyor Rollers :
Backed by a team of experienced engineers, they put forth a precisely

designed range of Conveyor Rollers. Fitted with high-grade bearings, these
Conveyor Rollers exhibit superb tensile strength, reliable operations, optimum
performance and corrosion resistant finish. Their range of products finds its
comprehensive utilization in warehouses for handling of cartons and transfer of
heavy loads.
 High Tensile Fasteners :

Customers can avail from them an expensive assortment of High Tensile
Fasteners, which is offered in number of customized forms as per the
specifications of the clients. Available in a multitude of sizes,grades and
dimensions, their range of High Tensile Fasteners is admired for its dimensional
accuracy and close tolerances. Precisely engineered, these fasteners are used in
heavy and long scale industries.
 Deep Hole Drilling :
Recognized as the prominent manufacturers of India, they offer their clients a

high quality range of Deep Hole Drilling tools. Being the sole provider of the
single source turnkey solutions for Deep Hole Drilling applications, they give
utmost importance to highest quality standards. Their qualified and experienced
staff is known to offer best customer service for the different tooling
requirements of their clients. Owing to their domain specialization, they offer
their clients single tube, double tube, gun drilling and other specialty drilling
systems.

2.2.1 Fabrication Work :
 Furnaces Spares :
Customers can avail from them diverse kinds of Furnaces Spares

including Heating Elements, SS fans, SS Pots, Furnace lining Anchors and Fan
Assemblies. They offer both designing and installation services of the same.
Their range of Furnace Spares is widely demanded for their corrosion
resistance, easy installation and user friendliness. Offered at industry leading
prices, these spares parts are designed and developed as per specific client's
requirements.
 Handling Tackles :
They hold expertise in offering their clients a wide range of Material

Handling Tackles that comprises Eye hook, I bolt, D & Bow Shackles, Turn
buckle, Lifting clamps Thimble, U- clamp, rope kappy (pulley blocks) ferule
and swivel. Their array of tackles is known for attributes like corrosion
resistance, dimensional accuracy and tensile strength. To ensure longer service
life, they make use of premium quality raw material to produce these Handling
Tackles.
 MS Fabrication :
Backed by sound technical expertise, they undertake MS Fabrication
work for a wide range of industrial equipment. Their company provides tailor-
made services that are based on the specifications and drawings given by the
clients. Offered at industry leading prices, a team of experts makes sure that the
complete work is executed as per the exact requirements of the clients.
 SS Fabrication :
They provide their customers proactive and reliable SS Fabrication

services. The range of railings that they install is widely appreciated for its
perfect finishing and unique designs. To meet the decorative requirements of
the clients, they make use of premium grade aluminum finish that adds elegance
to the structure.

 Structural Fabrication :
They hold optimum specialization in providing their clients a wide

assortment of Structural Fabrication, which is available in a multitude of
customized forms to cater to the diverse requirements of the clients. Owing to
its precise designs & superior quality, their range of Structural Fabrication finds
its application in varied industries including food processing units, chemical
industry, metallurgy units and textile & dye industry. These fabrications have
attained huge admiration for corrosion & rust resistance, high tensile strength
and longer service life.
2.2.2 Material Handling Equipments :
 Material Handling and Storage System :
They bring forth a wide range of Material Handling & Storage Systems.
Their range of products is fast and convenient to assemble. It offers a perfect
solution for all your storage needs from small components to heavy cartons.
Owing to their modular design with a bolt-free lock-in system, these systems
require no special tools and ensure maximum storage.
 Weighing Feeder :
Customers can avail from them a complete assortment of Weighing
Feeder, which is offered in a number of customized forms as per client's
specifications. Precisely engineered, these are specifically designed and
developed to cater to the varied industrial requirements. Their team of experts
makes sure that these products are in sync with the latest market trends,
innovations and expectations.
 Mobile Loader :
Their sound infrastructure enables them to produce an impeccable range

of Mobile Loaders. A team of experts make sure that these products are at par

with the global quality standards. Owing to its precise crafting, their range of
products is extensively appreciated for its superior performance and durability.
Moreover, they hold specialization in customizing their products in different
forms to suit varied requirements of the clients.
2.2.3 Precision Turned Components :
 Turned Component :
Customers can avail from them an extensive collection of automotive

metal Turned Component, which is also available in multiple customized forms.
All of their products are produced using premium quality raw material obtained
from reputed vendors. Precisely engineered to suit various clients’
requirements, these products are highly durable and sturdy. Their range is
available at competitive rates.
2.2.4 Metal Bolts :
 Studs and Bolts :
They offer a wide series of Studs and Bolts, which finds it’s various
applications in diverse industries. Available in various shapes and dimensions,
their range of products is known for its corrosion resistance and durability.
They make use of premium grade metals and alloys to manufacture these
products. Moreover, these are precisely designed as per the specific
requirements of the clients.
2.2.5 Brass Components :
 Threaded Components :
Supported by a group of expert professionals, they provide their clients

a durable range of Threaded Components. These products are used as hardware

fastener with a threaded hole. In order to fasten a load of parts together, nuts are
used opposite a mating bolt. Then, the two partners are held together with a
combination of the thread's friction, a slight stretch of the bolt, and compression
of the parts. The set of nuts is graded with strength ratings having compatibility
with their respective bolts.
2.2.6 New Equipment :
Their range of products include Centerless Grinding Machines,

Conventional Milling Machine, U Clamp, Bolt, Rail Clamp and Structural
Steel Fabrication.
 Structural Steel Fabrication :
They are engaged in offering highly reliable and world class Structural
Steel & Fabrication Erection services that are highly appreciated in heavy
industries. These fabricating & erecting services are performed in a timely
manner by their expert team working on-site. These services are executed
accurately as per the specifications of their customers at affordable prices. They
offer these services at par with industry standards.
 Design Fabrication Painting Supply Engineered Buildings

:
Their Fabrication Services group is a leading provider of piping

solutions and the world's largest supplier of storage tanks and vessels for the oil
and gas, water and wastewater, and power generation industries. They have the
most extensive global experience of any tank construction company in the
industry, offering turnkey solutions for atmospheric, refrigerated and pressure
storage.

CHAPTER 3
RESEARCH DESIGN OF DISSERTATION
3.1 Review of Literature :
(Brayfield and Crockett, 1955) have highlighted the positive relationship between
attitudinal variables and voluntary turnover. It is seen that attitude-based turnover
models have a direct link between employee attitudes and the act of leaving the
organization.
(Arthur, 1994) the key employees, who have done amazing in their education and
are hardworking, always feel the need to be rewarded and recognized for their
performance in the organization. Their enthusiasm to work and perform better
depends a lot on the organizations‟ way of rewarding and recognizing them. So, if
an organization has an environment that provides prospects for further
development and self-actualization, this would reduce the chances of an employee
leaving the organization.
(Magner etal., 1996) emphasized that the employees stay longer in the same
organization where they feel they are involved in the decision making process.
This involvement gives them the satisfaction to be part of something really
important.
(Herman, 1999) has highlighted five main reasons because of which employees
leave their current organization. Insufficient support, incompatible corporate
culture, unsatisfactory relationships with coworkers, dissatisfaction with
compensation offered, and inadequate opportunities for growth are the reasons
because of which employees leave.
(Sahu and Gupta, 1999) Length of service, expectation reality match, turnover
perception and outside career opportunities are also responsible for deciding to
quit or to stay with the company.

(Abbasi and Hollman, 2000) talked about five reasons that facilitates employee
turnover. Toxic workplace environment, hiring practices, lack of recognition,
managerial style, and lack of competitive compensation systems are the reasons
which results in employee turnover.
(Walker, 2001) has identified seven factors which boosts retention. These factors
are compensation and appreciation of the work performed, recognition of
capabilities and performance contributions, challenging work, good
communication, opportunities to learn, positive relationships with colleagues, and
good work-life balance.
(Arora et al., 2001) in their study observed that virtually it is becoming difficult
for all firms to retain the talented pool of professionals. Even the compensation
given to them (which is ideally above Indian standards) is not reducing their
turnover.
(Ramlall, 2003) accentuated that inadequate compensation, payment below

prevailing market rate and inadequacy in the internal and external equity was the
common reason because of which employees leave an organization.
(Mano-Negrin and Tzafrir, 2004) claim that employees leaves their organization
because of the economic reasons, and one can use these reasons to understand and
further envisage the employee turnover in the market.
(Oldham and Hackman, 2005) highlighted that employees leave their jobs only
when they face continuous problems pertaining to work related matters. For
instance, over-controlling supervisors or an unsatisfactory compensation.
(Hora, 2005) talked about the importance of understanding employee

expectations. It is important for the HR Managers to understand the importance of
their employees and to understand the areas that interests them.
(Udechuk wu and Mujtaba, 2007) gave a mathematical model that explained

employee turnover by focusing on internal (employer) and external (social
affiliate) determinants which influence an employee‟s decision to leave an
organization.

(Kim and Stoner, 2008) emphasized that employees intend to leave because of
factors related to individual (e.g. demographic factors or personality), job (e.g.
nature, content or design of job) or organization (e.g. pay, supervisor or co-
worker). Social support and job autonomy might have a direct negative impact on
the employee turnover intention.
(Adhikari, 2009) identified the factors affecting employee attrition in the IT and
ITES industry. The paper identified four factors. Work related issues have the
greatest impact on attrition. The other three being employer related issue, skill of
employees and the compensation. Compensation seemed to have the least effect
on attrition. (Ho et al., 2010) emphasized the relevance of push and pull factors
while understanding employee attrition in the Malaysian service industry. Work
stress, improper work-life balance, and poor relations with co-workers are some of
the factors which comes under the umbrella of push factors and promotion
opportunities, better compensations, desire for higher studies, and interesting work
are some of the pull factors.
(Deepa and Stella, 2012), in their exploratory study on “Employee turnover in the
IT industry with special reference to Chennai city”, highlighted a number of
factors which contribute to employee turnover. Demographics, Organization‟s
performance, Organization‟s culture (in terms of its reward system, leadership,
shared goals etc.), Employees personal traits (like desire to learn, change in
personal life, new job offer etc.), Job characteristics, Unrealistic expectations are
the factors that are perceived to enhance employee turnover in the IT industry.
(Joy P. and Radhakrishnan 2012) in their study on marketing executives of

financial product companies identified six factors which affects attrition. 58.77
percent of variance was jointly explained by all the six factors. Work specific
attrition, human resource policy of the organization, boss behaviour with sub-
ordinates, prevailing economic forces, fellow employee influence and
opportunities in the society are the six factors identified in this study. A positive
relationship among all the factors was supported by the correlation matrix. (Zahra,
et al., 2013) have highlighted the significance of commercialization of education
which leads to faculty turnover. As the number of Universities are increasing there

is a paradigm shift which is increasing the staff turnover because of abundant

opportunities.
(Vinit et al., 2013) highlighted that factors like appraisal, openness, training, and
flexibility act as key influencers for employee turnover. Thus these are the
parameters on which an employ ee thinks before deciding to leave an
organization.
(Saleem and Affandi, 2014)investigated the impact which Human Resources

practices have on the employee attrition. Fairness of rewards and growth
opportunities were considered to be the key factors influencing the employees‟
decision to leave an organization.
3.2 Statement of the problem :
The study is conducted to assess the attrition rate of the employees at Sri
Raghavendra Industries , Peenya Industrial Area .The study helps to know the rate
of attrition at the industry .
High attrition is a big human resource challenge faced by software companies .

Most companies suffer high attrition problem . Engaged and satisfied employees
are more likely to stay with their companies . Identifying motivation and
satisfaction factors for software professionals and high attrition , is therefore of
great importance in increase employee employee retention . Organizations invest
lots on their employees in terms of induction and training , developing ,
maintaining and retaining them in their organization . Therefore , managers at all
costs should minimize employee’s attrition . Therefore , there is a need to develop
a full understanding of the attrition.
3.3 Objectives of the study :
 To find out the specific reasons why the attrition occurs and the possible
way to reduce it

 To analyse the attrition rate in different departments

 To suggest the area of improvement
 Comparative attrition rate analysis between different departments
 To identify the factors which make employees dissatisfy.
 To find out the ways to reduce attrition at Sri Raghavendra Industries
3.4 Hypothesis :
 The compensation package including cash benefits such as health

insurance and pension always affects the employee’s decisions to stay in
firms
 The age is negatively associated with employee attrition
3.5 Scope of the study :

 The success of any organization depends largely on the
employees , the employees are considered as the backbone of
Sri Raghavendra Industries
 The attrition rate of the company is 20% . So , this study
focuses on why attrition occurs and the possible ways to reduce
it.
 The study was mainly undertaken to identify the level of
employee’s attitude , the dissatisfaction factors that they face in
the organization 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 actions
to reduce attrition level . Since they are considered as the
backbone of the organization , their progression will lead to the
success of the organization 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
 This study can serve as a basis for measuring the organization’s
overall performance in terms of employee satisfaction
3.5 Operational definition of the concept :
 Attrition:
Attrition is defined as the loss of employees: the gradual reduction of the size of a
work force that occurs when personnel lost through retirement or resignation are
not replaced.
 Cost Per Hire (CPH):
The CPH is a metric designed to measure the costs associated with the sourcing,
recruiting and staffing activities borne by an employer to fill an open position in
the organization. CPH is a ratio of the total dollars expended (in both external and
internal costs) to the total number of hires in a specified time period. Or, in
formula representation:
CPH = Sum[External Costs] + Sum[Internal Costs] / Total Number of Hires in a

Time Period
 E-economy:
E-economy based largely on online business transactions an economy that is

characterized by extensive use of the Internet and information technology.
 Employee:
Employee is a person who is hired to provide services to a company on a regular

basis in exchange for compensation and who does not provide these services as
part of an independent business.

 Employee Engagement:
Employee engagement is a property of the relationship between an organization

and its employees. An "engaged employee" is one who is fully absorbed by and
enthusiastic about their work and so takes positive action to further the
organization's reputation and interests
 Employee Retention:
Employee retention refers to the various policies and practices which let the
employees stick to an organization for a longer period of time.
 Former Employee:
Former employee is someone who worked for a company in the past but no longer
does. They are also known as ex-employees, boomerangs, corporate alumini.
 Human Resources Development (HRD):
Human Resource Development (HRD) is thee part of human resource

management that specifically deals with training and development of the
employees. Human resource development includes training an individual after
he/she is first hired, providing opportunities to learn new skills, distributing xiv
resources that are beneficial for the employee's tasks, and any other developmental
activities.
 Human Resource Management (HRM or HR):
Human resources managemen is the management process of an organization's

workforce, or human resources. It is responsible for the attraction, selection,
training, assessment, and rewarding of employees, while also overseeing
organizational leadership and culture and ensuring compliance with employment
and labor laws. In circumstances where employees desire and are legally
authorized to hold a collective bargaining agreement, HR will also serve as the
company's primary liaison with the employees' representatives (usually a trades
union).

 Knowledge Economy:
The knowledge economy is the use of knowledge to generate tangible and

intangible values. Technology and in particular knowledge technology (Artificial
Intelligence) help to transform a part of human knowledge to machines. This
knowledge can be used by decision support systems in various fields and generate
economic values. Knowledge economy is also possible without technology.
 Knowledge Worker:
Definition of knowledge worker is defined as an employee in knowledge-based

industry: somebody working in an industry such as management consultancy,
healthcare or IT/ITES or any service industry that produces wealth through
knowledge than goods.
 Portal:
Portal is a term, generally synonymous with gateway, for a World Wide Web site
that is or proposes to be a major starting site for users when they get connected to
the Web or that users tend to visit as an anchor site. There are general portals and
specialized or niche portals. Some major general portals include Yahoo, Excite,
Netscape, Lycos, CNET, Microsoft Network, and America Online's AOL.com.
Examples of niche portals include Garden.com (for gardeners), Fool.com (for
investors), and SearchNetworking.com (for network administrators).
 Recruitment:
Recruitment refers to the process of attracting, screening, selecting, and

onboarding a qualified person for a job. At the strategic level it may involve the
development of an employer brand which includes an "employee offering". It is
also known as hiring or employing.
 Reemploying:
The act of employing a former employee is known as reemploying. This is also

referred to as rehiring or rerecruiting.

 Referral Hiring:
Referral hiring is an internal recruitment method employed by organizations to

identify potential candidates from their existing employees' social networks. An
employee referral scheme encourages a company's existing employees to select
and recruit the suitable candidates from their social networks. As a reward, the
employer typically pays the referring employee a referral bonus.
3.5.1 Importance of employee attrition :
 Employee attrition is the speed of which organizations and/or company's

hiring and open fire employees to either symbolize their company or leave
their firms. It is also described the worker turnover rate.
 Employee attrition rate is also known as employee turnover. This rate
shows how often the employees at a place of business change during the
period of per month. Usually companies choose a minimal attrition rate,
but the rates differ predicated on the industry. For instance, an easy food
restaurant will have an increased employee turnover in comparison to a
law firm. A lower staff turnover rate allows a business to keep coherence
over the entire year.
 The attrition rate is definitely a sensitive issue for all organizations.
Calculating worker turnover rate isn't that simple as it seems to be. No
common formulation can be utilized by all the organizations. A method
needed to be devised keeping in view the nature of the business and
various job functions. In addition, determining attrition rate isn't just about
devising a mathematical formula. It also has to take into account the root
of the situation by heading back to the hiring stage. Most organisations do
not develop strong measurements for calculating the expense of labour
turnover or a poor hire. The facts of information required and the
dimension metrics aren't common formulae, but need to be designed in
keeping with the nature of the business and various job functions. As a
result, most organisations do not plan to mislead by disclosing statistics
which might not exactly be true; it is merely that perhaps they believe that

those to be true. It really is imperative to develop the knowledge of

measurement before the solution itself.
3.5.2 Reasons for employee attrition :
 Low pay and no recognition

 Demotivated employees
 Lack of career growth
 Retirement
 Poor working conditions
 Termination of inefficient employees
3.5.3 Types of Attrition :

Employee attrition is classified into five types, namely:
 Internal versus External Attrition :

Like Recruitment attrition can also be classified into Internal and External
attrition. Internal attrition involves employees leaving their current position in the
organization and they take up new position inside the organization. This could
happen either in positive as well as negative aspect. In the case of Positive
aspect of employee attrition it could be because of increase in employee morale,
appreciation of employees, etc. The negative aspect of employee attrition
would be due to project or relational disruption and lack of expertise in a
particular department. Internal attrition can be moderated and controlled by
typical HR mechanisms such as Succession Planning. On the other hand,
External attrition refers to employees leaving the organization for better terms of
employment status or preferring higher salary. External attrition creates more
impact to the organization and the employer is more concerned about it.
 Skilled versus Unskilled Employee Attrition :

Unskilled positions often have high attrition, and employees can
generally be replaced without the organization incurring any loss of
performance. The ease of replacing these employees provides little

incentive to employers to offer generous employment contracts; conversely,

contracts may strongly favor the employer and lead to increased attrition
as employees seek, and eventually find, more favorable employment.
However, high attrition rates of skilled professionals may pose a risk to the
business or organization, due to the human capital lost - skills, training,
and knowledge lost. Notably, given the natural specialization of skilled
professionals, these employees are likely to be re-employed within the same
industry by a competitor .Therefore, attrition of these individuals incurs
both replacement costs to the organization, as well as a competitive
disadvantage to the business.
 Functional and Dysfunctional Attrition :
Functional attrition doesn’t hurt the company. Employees who elect to leave their
jobs might be part-time employees without unique skills, or they’re simply not top
performers. The loss of their talents doesn’t prevent work from getting done
effectively. If they’re poor performers, the company can even benefit by
replacing them with better performers and improving the quality outcome of
the affected jobs. With functional attrition, the benefits gained by replacing
outgoing employees exceed the costs incurred. Dysfunctional attrition does hurt
the company. The costs exceed any potential benefits. Some employees who are
leaving might be top performers whose work has proved to have a direct impact
on profitability. Others might have unique skills that are hard to come by, making
it difficult – and costly – to recruit and hire replacements. Losing too many
minority group members can affect the diversity of a company’s workforce.
When a company loses too many employees that fit any of these scenarios, the
costs associated with replacing them combine with other costs, such as those
associated with quality problems and customer complaints. Dysfunctional
attrition can be avoidable or unavoidable. The attrition might be unavoidable if
it is caused by employees leaving to address family or health issues, to
move to new locations, to go to school full-time, or for other reasons over
which the company has no control. The attrition is avoidable when the company
does have control – employees choose to leave because the company is not

satisfying their job or career needs. Examples of avoidable attrition might

include poor pay scales or the lack of opportunities to advance.
 Voluntary versus Involuntary :

Voluntary attrition or voluntary attrition means employees leave the organization
out of their
own will. They may tend to leave the job due to various factors such as lack of
interest, salary
problems and various problems with their peer groups, supervisors etc.
Involuntary attrition
refers to the employee discharge by the organization and it happens for various
reasons such
as retirement, unethical behavior, suspension, dismissals, corporate changes
etc. There is
another form of attrition known as compulsory attrition where the
employees leave the organization due to the implementation of government rules
and regulations and the impact of those rules on the organization.
 Pull and Push form of Attrition :

The employee attrition is also interpreted in terms of causes arising from
which aside – the employee side or the employer side? When an employee
leaves his job/employment in an organization for his own reasons it is
labeled as the Drag or Pull form of Attrition – the reasons for leaving
drag the employee out of his job and the organization. On the other hand,
the attrition is labeled as Drive or Push form of Attrition when the
employer takes the initiative to ask the employee to quit the job and the
organization. This classification of employee attrition does not make any
distinction between the employees – anyone can be affected by the drag or
drive factors .

3.5.4 Factors causing attrition:

The factors causing employee attrition have been studied by different researchers
from time
to time and have been classified into different groups. They are,
 Monetary Considerations:
The expectations of employees are increasing day by day. One of the main reasons
is high demand of employees in the organizations. Many people who leave the
organization because they have been offered a high salary. In the current
competitive scenario, it is easy for employees to find positions that leverage
their experience and pay better.
 Lack of Career Mobility and Challenges:

Given the choice between money and a challenging job, many employees may
still prefer the latter as it allows them an opportunity to broad base their domain
expertise and also provides an opportunity to work with cutting-edge technology.
If the organizations do not deliver on these expectations, employee exodus cannot
be contained.
 Slow Career Growth for Internal Talents:

Employees with prior relevant experience are a precious commodity in today’s
fast growing market. Therefore, it is not unusual for fast growing companies to fill
new jobs with external applicants who have a prior relevant experience with
other companies, bringing them in at one level higher than their current level
or providing them a new role with greater responsibilities. This contributes to
the perception by "passed over" internal talent that career growth is slow in the
current organization, which results in further attrition.
 Working Environment:
An employee may leave an organization if the fairness of the system does not
inspire his/her confidence. Attrition due to the work environment is typically due
to a lack of trust in the

fairness of the system, issues around safety and care of employees,

effectiveness of the channels to address employee grievances, accessibility of the
senior management team and other related environmental issues.
 High Levels of Stress and Lack of Work-Life Balance:

Companies in the zeal to squeeze out every little ounce of productivity from the
employees and further increase profitability. Sooner or later this makes employees
stressed out and they rethink about their priorities and join an organization that
promises a relaxed pace work and a breathing space.
 Shift timings :
The majority of the work offshored to India has typically been from the United
States (though share from Europe is growing) necessitating night-shift work due
to time zone differentials. The proportion of employees who can work during the
Indian work-day is low. Continuous night shifts affect the health of some, while
others just cannot adjust to them. As a result of cultural and social factors, some
women employees leave because they are not able to convince their families
of the need to work nights.
 Monotony:
In general, work (especially work that has been offshored) has been repetitive,
mechanical, service-level-driven and involves high transaction volumes.
Younger recruits find it monotonous once they have mastered the process.
 Inadequate training and development opportunities:

Though not one of the top reasons for attrition increases, the lack of ample
opportunities to learn new skills or undergo training or further education is
occasionally cited as a reason for leaving.
 Lack of Employee-job Fit:

Employee’s innate talent & aptitude are given a short shrift. There is a widespread
notion that the employee’s natural flair is not as important as new skills and

knowledge acquired on the job: that with the learning attitude and training
employees can do wonders in any job, but it is not true and it creates immense
frustration in employees, as employees demonstrate a good deal of commitment,
job satisfaction, self-motivation and productivity when they are assigned a job
that is in tune with their natural talents.
 Lack of Role Clarity:

Nothing can be more frustrating or discouraging for an employee than the lack
of a clear understanding of what is expected of him on the job. In a performance
driven workplace a lack of clarity regarding job duties and expectations can
cause fear and anxiety among employees who are unclear of what is expected
of them. Even worse outright anger can occur when a team member receives a
negative performance evaluation based on expectations and job duties that he or
she was unaware of or unclear about.
3.5.6 Different reasons for attrition :
 No flexible work routine

 Lack of respect or regards
 Less supportive co-workers
 Organization more worry about business
 Increase favoritism or partiality
 Absence of appreciation
 Lack of challenges in occupation
 Mismatch between employment and employee
 Less training
 Lack of feedback or criticism
3.5.7 Impacts on organisation if its employee leave:
 Loss of productivity or efficiency

 Replacing qualified workers
 Cost of over time or temporary help

 Recruiting cost
 Interviewing cost
 Time spent in orientation and induction
3.6 Research Methodology :
 Research definition :
Research is a careful investigation or inquiry specifically through search for new

facts in any branch of knowledge . It is an original contribution to the existing
stock of knowledge making for its advancement.
Research can be simply defined a task of searching from available data to modify
a certain result or theory .
 Research methodology refers to :

 A systematic study
 Defining a problem
 Formulating a hypothesis
 Collecting and analyzing data
 Deductions and conclusions
 Objectives of the research :

 To gain familiarity or achieve a new insight towards a certain topic
 To verify and test important facts
 To analyze an event , process or phenomenon
 To identify and cause and effect relationship
 To find solutions to scientific , non-scientific and social problems
 To determine the frequency at which something occurs
 To find solutions to scientific , non-scientific and social problems
 To determine the frequency at which something occurs
What makes people do research?
 Desire to get a research degree

 Desire to solve unsolved and challenging problems

 Desire to get intellectual joy of doing creative work

 Desire to be of service to the society
 Desire for innovation and recognition
Different reasons for attrition :
 No flexible work routine

 Lack of respect or regards
 Less supportive co-workers
 Organisation more worry about business
 Increase favouritism or partiality
 Absence of appreciation
 Lack of challenges in occupation
 Mismatch between employment and employee
 Less training
 Lack of feedback or criticism
Impacts on organisation if its employee leave:
Loss of productivity or efficiency  Replacing qualified workers  Cost of over time or

temporary help  Recruiting cost  Interviewing cost  Time spent in orientation and
induction
3.6.1 Research Design :
 The term research design and research methodology are often used
interchangeably even by researchers to mean the same thing. According to
Cooper (2006) a research design is “A plan for data collection, the
instrument for gathering information, how information gathered would be
processed and analyzed to give meaning to research finding”. Research
design is a planned structure and strategy of investigation (Kerlinger,
1973).
 According to Young (1973), “The design result from controlling
general scientific model into varied research problem is called research
design”. The essence of research design is to guide the researcher on the

type of data to collect, how to collect, process and analysis them in order
to answer the research problem. A research design can be descriptive,
exploratory or causal. Research Methodology on the other hand describes
how something will be done. It is therefore wide in scope and
encompasses the research design. It provides direction for the research and
a logical conclusion or solution to a research problem. The role of research
design in research is to assist to define the problem and selection of proper
measurements. It helps to include relevant and exclude irrelevant facts
.The present research would be exploratory as well as descriptive in
nature.
 Exploratory Study is an effective mean to find out what is happening
and to seek new insights. The present study is formulated to understand the
level of employee satisfaction at Sri Raghavendra Industries and find out
the important determinants that affect the level of satisfaction among the
employees. More practical significance of the problem has no meaning
unless it is based on theory (Neogi, 2011). The present study is also based
on various theoretical aspects of employee satisfaction from content to
process approach. It provides theoretical base to the hypothesis.
3.7 Data Collection :

Data collection is the process of gathering the relevant information about
the subject from research participants. According to Martins (1999), the
data gathering may vary from relatively simple observation at a specific
location to an extensive survey. The collected data would be both
secondary as well as primary in nature.
Types of data collected
 Primary data :
Questionnaires are prepared and personal interview was conducted . The

structured interview method was undertaken . The interview was conducted in
English as well as in Kannada . Proper care was taken to frame the interview
schedule in such a manner it should be easily understood in view of educational

level of the employees. Generally 20 questions were prepared and asked to the
employees of Sri Raghavendra Industries .
 Secondary data :
Secondary data was collected from internets , various books , journals and
company records.
3.8 Sample design :
A sample design is a definite plan for obtaining a sample from a given population
. A sample design is the framework, or road map, that serves as the basis for the
selection of a survey sample and affects many other important aspects of a survey
as well. The sample design provides the basic plan and methodology for selecting
the sample. A sample design can be simple or complex.
3.8.1 Sample Size :
The main concern in the sampling is representativeness. Another concern

mentioned by Blanche (2006) is sample size. The sample should be large enough
to allow inferences to be made about the population. A very small random sample
(Blanche, 2006) note may be quite unrepresentative and the same is true for a
large non random sample. Sample size is determined in part by practical
constraints such as the number of the population, finance and time available. The
sample size by the researcher can serve as a guide that will be adequate for the
purpose of a research
The sample size of this study is 40 respondents .
3.8.2 Period of study :
The study on employee satisfaction was conducted during the period of 14 days.
3.9 Limitations of the study :
 Due to the limitation of the time the research could not be made more
detailed

 Due to confidentiality of some information accurate response was not

revealed by some of the respondents
 Some of the replies of the respondents may be biased
 Respondents had marked the answers in questionnaires which may be
socially incorrect irrespective of their actual feelings

CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
Data analysis and interpretation is the process of assigning meaning to the

collected information and determining the conclusions, significance and
implications of the findings. It is an important and exciting step in the process of
research. In all research studies, analysis follows data collection.
According to C.R.Kothari (1989), “The term analysis refers to the

computation of measures along with searching for patterns of relationship that
exist among data-groups”. Analysis involves estimating the values of unknown
parameters of the population and testing of hypotheses for drawing inferences.
Data analysis is, therefore, a process that involves examining, and molding
collected data for interpretation to discover relevant information, draw or propose
conclusions and support decision-making to solve a research problem. This
involves interpreting data to answer research questions and making research
findings be ready for dissemination. Data analysis also serves as a reference for
future data collection and other research activities. During data analysis:
 data collected is transformed into information and knowledge about a

research performed
 relationships between variables are explored
 meanings are identified and information is interpreted.
This chapter is allocated for analysis and interpretation of data. Preparing

percentage analysis, two-way table and chi-squire test does the analysis of job
satisfaction, which is directly extracted from the questionnaire. The variations in
the extent of the consumer satisfaction can be measured with the variables such as
job secured, promotional opportunity, relationship with management, and
satisfaction factors of the respondents.

TABLE 1 : WHICH OF THE FOLLOWING IS ONE OF THE GREATEST

HRM CHALLENGE FACED BY YOUR ORGANIZATION
Count of Which of the following is the greatest HRM

challenge faced by your organization ?
Employee Absenteeism 7
Employee Attrition 13
Lack of Employee
Engagement 2
Low Employee Morale 10
Performance
Management 8
Grand Total 40
Table 4(a)
Analysis : From the above table we can say that 7% of the respondents feel that
employee absenteeism , 13% of them feel it is employee attrition , 2% feel it is
lack of employee engagement , 10% feel it is low employee morale and 8% feel it
is performance management that is one of the greatest HRM challenge faced by
the organization.
CHART 1 : WHICH OF THE FOLLOWING IS ONE OF THE GREATEST

HRM CHALLENGE FACED BY YOUR ORGANIZATION
14 13
Employee
12 Absenteeism
10 Employee Attrition
10
8
8 7 Lack of Employee
6 Engagement
Low Employee Morale
4
2
2 Performance
Management
0
Chart 4(a)
Interpretation :From the above graph we can tell that 13% of the employees feel
that employee attrition is the major HRM challenge faced by their organization .

TABLE 2 : IS THE EMPLOYEE ATTRITION A RECOGNIZED HR

CHALLENGE FOR YOUR ORGANIZATION
Count of Is the employee attrition a recognized HR challenge for

your organization ?
No 5
Yes 35
Grand
Total 40
Table 4(b)
Analysis : From the above table we can tell that 35% of the respondents agree and
5% of the respondents disagree that employee attrition is a recognized HR
challenge faced by their organization .
CHART 2 : : IS THE EMPLOYEE ATTRITION A RECOGNIZED HR

CHALLENGE FOR YOUR ORGANIZATION
40
35
35
30
25
20 No
15 Yes
10
5
5
0
No Yes
Chart 4(b)
Interpretation :From the above graph it is evident that majority of the employees
feel that the problem of attrition is a recognized HR challenge for their
organization .

TABLE 3 : STATE THE MAJOR REASONS FOR ATTRITION IN YOUR

COMPANY
Count of State the major reasons for

attrition in your company
Absence of conductive
workplace environment 2
Employee's expectations of the
job 6
Lack of proper compensation 5
Mismatch of job profile 13
Odd working hours 4
Stress and work-life balance 10
Grand Total 40
Table 4(c)
Analysis : From the above table we can say that 2% of the respondents feel that
absence of conductive workplace environment , 6% of them feel it is employee’s
expectations of the job , 5% feel it is lack of proper compensation , 13% feel it is
mismatch of job profile , 4% feel it is off working hours and 10% feel it is stress
and work-life balance that are the major reasons for attrition in their company .
CHART 3 : STATE THE MAJOR REASONS FOR ATTRITION IN YOUR

COMPANY
14 13
Absence of
12 conductive
10
10 workplace
environment
8 Employee's
6 expectations of
6 5
4 the job
4
2 Lack of proper
2 compensation
0
Chart 4(c)
Interpretation :From the graph it is evident that is the mismatch of job profile
which is the major reason for attrition .

TABLE 4 : WHICH OF THE FOLLOWING EMPLOYEES IN THE

EXPERIENCE RANGE ARE MOST SUSCEPTIBLE TO ATTRITION
Count of Which of the following employees in the experience
range are most susceptible to attrition ?
12-14 years of
experience 2
15+ years of
experience 2
2-5 years of
experience 16
5-8 years of
experience 12
8-12 years of
experience 8
Grand Total 40
Table 4(d)
Analysis :From the above table we can tell that 2% of the respondents in the
experience range of 12-14 years , 2% of the respondents in the experience range
of 15+ years , 16% of the respondents in the experience range of 2-5 years , 12%
of the respondents in the experience range of 5-8 years and 8% of the respondents
in the experience range of 8-12 years are most susceptible to attrition.
CHART 4 : WHICH OF THE FOLLOWING EMPLOYEES IN THE

EXPERIENCE RANGE ARE MOST SUSCEPTIBLE TO ATTRITION
18
16 12-14 years of
16 experience
14 15+ years of
12
12 experience
10 2-5 years of
8
8 experience
6 5-8 years of
4 experience
2 2
2 8-12 years of
experience
0
Chart 4(d)
Interpretation : From the above graph it is evident that the employees in the
experience range of 2-5 years are most susceptible for attrition .

TABLE 5 : WHICH LEVEL OF EMPLOYEES IN YOUR

ORGANIZATION ARE MOST SUSCEPTIBLE TO ATTRITION
Count of Which level of employees in your organization are most

susceptible to attrition ?
Junior
management 13
Middle
management 18
Senior
management 6
Top
management 3
Grand Total 40
Table 4(e)
Analysis : From the above table we can say that 13% of the junior level
management , 18% of the middle level management, 6% of the senior level
management and 3% of the top level management employees are most susceptible
to attrition in the organization .
CHART 5 : WHICH LEVEL OF EMPLOYEES IN YOUR

ORGANIZATION ARE MOST SUSCEPTIBLE TO ATTRITION
20
18
18
16
14 13
Junior management
12
Middle management
10
Senior management
8
6 Top management
6
4 3
2
0
Chart 4(e)
Interpretation :From the above graph it is evident that 18% of the middle level
management are most susceptible to attrition in their organization.

TABLE 6 : DO THE ATTRITION TRENDS IN YOUR COMPANY MAKE

YOU BELIEVE THAT IT IS ULTIMATELY MONEY THAT IS
INFLUENCING THE DECISIONS RELATED TO RESIGNATIONS AND
RETENTION
Count of Do the attrition trends in your company make you believe

that it is ultimately money that is influencing the decisions related to
z Resignations and Retention ?
May
be 18
No 6
Yes 16
Gra
nd
Tota
l 40
Table 4(f)
Analysis : From the above table we can tell that 18% of the respondents feel
maybe , 6% respondents disagree and 16% of the respondents agree that it is
ultimately money that is influencing the decisions related to resignations and
retention in the organization.
CHART 6 : DO THE ATTRITION TRENDS IN YOUR COMPANY MAKE

YOU BELIEVE THAT IT IS ULTIMATELY MONEY THAT IS
INFLUENCING THE DECISIONS RELATED TO RESIGNATIONS AND
RETENTION
20 18
16
15
Maybe
10 No
6 Yes
5
0
Chart 4(f)
feel that maybe it is money that is influencing the decisions related to resignations
and retention in their organization.

TABLE 7 : DO YOU THINK THAT AN INCREASING NUMBER OF

INDUSTRIES IS ADVERSELY AFFECTING EMPLOYEE RETENTION
IN YOUR COMPANY AND IS LEADING TO HIGHER EMPLOYEE
ATTRITION
Count of Do you think that an increasing number of industries is

adversely affecting employee retention in your company and is
leading to higher employee attrition ?
Maybe 15
No 7
Yes 18
Grand Total 40
Table 4(g)
maybe , 7% respondents disagree and 18% of the respondents agree that an
increasing number of industries is affecting employee retention in their company
and is leading to higher employee attrition.
CHART 7 : DO YOU THINK THAT AN INCREASING NUMBER OF

INDUSTRIES IS ADVERSELY AFFECTING EMPLOYEE RETENTION
IN YOUR COMPANY AND IS LEADING TO HIGHER EMPLOYEE
ATTRITION
20 18
15
15
Maybe
10 No
7
Yes
5
Chart 4(g)
agree that an increasing number of industries is adversely affecting employee
retention in their company and this is leading to higher employee attrition.

TABLE 8 : HAS YOUR ORGANIZATION ADOPTED ANY CREATIVE

HRM STRATEGY TO COUNTER EMPLOYEE ATTRITION
Count of Has your organization adopted any creative HRM

strategy to counter employee attrition ?
No 20
Yes 20
Grand
Total 40
Table 4(h)
Analysis : From the above table it is evident that 20% of the respondents disagree
and 20% of the respondents agree that their organization has adopted any creative
HRM strategy to counter employee attrition.
CHART 8 : HAS YOUR ORGANIZATION ADOPTED ANY CREATIVE

HRM STRATEGY TO COUNTER EMPLOYEE ATTRITION
25
20 20
20
15
No
Yes
10
Chart 4(h)
Interpretation :From the above graph it is evident that the organization must
adopt to new and creative HRM strategies to counter employee attrition their
organization.

TABLE 9 : COULD THE COMPANY HAVE DONE ANYTHING TO

ENCOURAGE YOU TO STAY
Count of Could the company have done anything to encourage you

to stay ?
No 10
Yes 30
Grand
Total 40
Table 4(i)
Analysis : From the above table we can tell that 10% of the respondents disagree
and 30% of the respondents agree that their company could have done anything
more too encourage them to stay.
CHART 9 : COULD THE COMPANY HAVE DONE ANYTHING TO

ENCOURAGE YOU TO STAY
35
30
30
25
20 No
15 Yes
10
10
5
0
Chart 4(i)
are disappointed and they feel that the company could have done anything more to
encourage them to stay.

TABLE 10 : DOES YOUR ORGANIZATION MAKE IT MANDATORY

FOR THE EMPLOYEES TO SERVE A NOTICE PERIOD
Count of Does your organization make it mandatory for the

employees to serve a notice period ?
No 15
Yes 25
Grand
Total 40
Table 4(j)
Analysis : From the above table we can tell that 15% of the respondents disagree
and 25% of the respondents agree that their organization makes it mandatory for
their employees to serve a notice period.
TABLE 10 : DOES YOUR ORGANIZATION MAKE IT MANDATORY

FOR THE EMPLOYEES TO SERVE A NOTICE PERIOD
30
25
25
20
15 No
15
Yes
10
Chart 4(j)
Interpretation :From the above graph it is evident that the organization makes it
mandatory for the employees to serve a notice period.

TABLE 11 : WHAT IS THE DURATION OF NOTICE PERIOD IN YOUR

ORGANIZATION
Count of What is the duration of notice period in your

organization ?
30 days 12
45 days 11
60 days 3
more 2
No notice
period 12
Grand Total 40
Table 4(k)
Analysis : From the above table it is we can tell that 12% of the respondents tell
that 30 days , 11% of the them tell that 45 days , 3% of the them tell that 60 days ,
2% of the them tell it is more than 60 days and 12% of them tell that these are the
duration of notice period given by their organization.
CHART 11 : WHAT IS THE DURATION OF NOTICE PERIOD IN YOUR

ORGANIZATION
14
12 12
12 11
30 days
10
45 days
8
60 days
6
more
4 3
2 No notice period
2
0
Chart 4(k)
Interpretation :From the above graph it is evident that the employees are not
happy with the duration of notice period given by the organization.

TABLE 12 : DO YOU COUNT AN EXIT INTERVIEW OF THE

EMPLOYEES WHO RESIGN FROM YOUR ORGANIZATION
Count of Do you conduct an exit interview of the employees who

resign from your organization ?
No 25
Yes 15
Grand
Total 40
Table 4(l)
Analysis : From the above table we can tell that 25% of the respondents disagree ,
15% of the respondents agree that their organization conducts an exit interview of
the employees who resign from their organization.
CHART 12 : DO YOU COUNT AN EXIT INTERVIEW OF THE

EMPLOYEES WHO RESIGN FROM YOUR ORGANIZATION
30
25
25
20
15
15 No
Yes
10
0
No Yes
Chart 4(l)
disagree to the above question that an exit interview is not conducted to the
employee who resigns from their organization.

TABLE 13 : DOES YOUR ORGANIZATION HAVE A POLICY TO

ATTEMPT TO RETAIN THE RESIGNING EMPLOYEE BY OFFERING
INCREASED BENEFIT
Count of Does your organization have a policy to

attempt to retain the resigning employee by
offering increased benefit ?
Depends on the
individual's cost and
value in the organization 19
No 11
Yes 10
Grand Total 40
Table 4(m)
Analysis : From the above graph we can tell that 11% of the respondents disagree
, 10% of the them agree and 19% of them feel that the retaining of employees
depends on the individual’s cost and value in the organization.
CHART 13 : DOES YOUR ORGANIZATION HAVE A POLICY TO

ATTEMPT TO RETAIN THE RESIGNING EMPLOYEE BY OFFERING
INCREASED BENEFIT
20 19
Depends on the
individual's cost
15
and value in the
11 organization
10
10 No
5
Yes
0
Chart 4(m)
feel that the retaining the resigning employee depends upon an individual’s cost
and value in the organization.

TABLE 14 : WHAT KIND OF BENEFITS DOES YOUR ORGANIZATION

OFFER TO RESIGNING EMPLOYEES IF THEY CONSENT TO
CONTINUE THEIR SERVICE
Count of What kind of benefits does your organization

offer to resigning employees if they consent to continue
their service ?
A promotion 10
A retention bonus 9
An improved remuneration 16
Other potential benefits 5
Grand Total 40
Table 4(n)
Analysis : From the above graph we can tell that 10% of the respondents feel that
promotion , 9% of them feel that retention bonus , 16% of them feel that improved
remuneration and 5% feel that other potential benefits are offered by the
organization to the resigning employees if they consent to continue their service.
CHART 14 : WHAT KIND OF BENEFITS DOES YOUR ORGANIZATION

OFFER TO RESIGNING EMPLOYEES IF THEY CONSENT TO
CONTINUE THEIR SERVICE
18
16
16 A promotion
14
12 A retention bonus
10
10 9
8 An improved
6 5 remuneration
4 Other potential
2 benefits
0
Chart 4(n)
are happy with the benefits offered by the organization to the resigning employees
if they agree to continue their service.

TABLE 15 : WHAT IS THE PREFERENCE OF EMPLOYEE TO MOVE

TO A NEW JOB ( NEW COMPANY )
Count of What is the preference of employee to move to a

new job ? (new company)
Career growth 11
Flexible
timings 6
Lack of other
benefits 7
Salary 8
Work
environment 8
Grand Total 40
Table 4(o)
career growth , 6% of them feel flexible timings , 7% of them feel lack of other
benefits , 8% feel salary and 8% feel work environment are the preference of the
employee to move to a new job.
CHART 15 : WHAT IS THE PREFERENCE OF EMPLOYEE TO MOVE

TO A NEW JOB ( NEW COMPANY )
12 11
10 Career growth
8 8
8 7 Flexible timings
6
6 Lack of other benefits
4 Salary
2 Work environment
0
Chart 4(o)
Interpretation :From the above graph it is evident that career growth is main
reason for the employees to move to a new job.

TABLE 16 : WHAT IS YOUR SATISFACTION TOWARDS THE

CURRENT JOB
Count of What is your satisfaction towards the

current job ?
Moderate 20
Not at all 4
Very high 12
Very less 4
Grand
Total 40
Table 4(p)
Analysis : From the above table we can tell that 20% of the respondents feel that
their satisfaction towards the current job is moderate , 4% of them feel they are
not at all satisfies , 12% of them have very high level of job satisfaction and 4% of
them feel they have very less job satisfaction towards their current job.
CHART 16 : WHAT IS YOUR SATISFACTION TOWARDS THE

CURRENT JOB
25
20
20
Moderate
15
12 Not at all
Very high
10
Very less
5 4 4
Chart 4(p)
Interpretation :From the above graph we can tell that the employees are not
satisfied towards their current job .

TABLE 17 : HOW MUCH DO YOU THINK ATTRITION IS A THREAT

TO YOUR ORGANIZATION
Count of How much do you think attrition is a threat to your

organization ?
No effect 1
To a large extent 19
To a medium
extent 14
To a small extent 6
Grand Total 40
Table 4(q)
Analysis : From the above table we can tell that 1% of the respondents feel there
is no effect , 19% of them feel there is a large extent of threat , 14% of them feel
there is a medium extent of threat and 6% of them feel that there is a small extent
of threat that attrition can cause threat to their organization.
CHART 17 : : HOW MUCH DO YOU THINK ATTRITION IS A THREAT

TO YOUR ORGANIZATION
20 19
No effect
15 14
To a large extent
10
To a medium
6 extent
5
To a small extent
1
0
Chart 4(q)
feel that attrition is a threat to their organization .

TABLE 18 : HOW MUCH DOES ATTRITION AFFECT YOUR

ORGANIZATION FINANCIALLY
Count of How much does the attrition affect your

organization financially ?
No effect 2
To a medium
extent 17
To a small extent 6
Grand Total 40
Table 4(r)
Analysis : From the above table we can tell that 2% of the respondents feel there
is no effect , 15% of them feel there is a large extent of threat , 17% of them feel
there is a medium extent of threat and 6% of them feel that there is a small extent
of threat that attrition can affect their organization financially.
CHART 18 : HOW MUCH DOES ATTRITION AFFECT YOUR

ORGANIZATION FINANCIALLY
18 17
16 15
14
12 No effect
10 To a large extent
8 To a medium extent
6
6 To a small extent
4
2
2
0
Chart 4(r)
Interpretation :From the above graph it is evident that almost all the employees
feel that attrition is affecting their organization financially.

TABLE 19 : DO YOU THINK ATTRITION AT TIMES CAN PROVE TO

BE HEALTHY FOR YOUR ORGANIZATION
Count of Do you think attrition at times can prove to be healthy

for your organization ?
Always 12
Never 3
Sometimes 25
Grand
Total 40
Table 4(s)
attrition can always prove to be healthy , 3% of them feel it can never prove to be
healthy and 25% of them feel that it can sometimes prove to be healthy for the
organization.
CHART 19 : DO YOU THINK ATTRITION AT TIMES CAN PROVE TO

BE HEALTHY FOR YOUR ORGANIZATION
30
25
25
20
Always
15 Never
12
Sometimes
10
5
3
Chart 4(s)
feel that attrition at times can prove to be healthy for their organization.

TABLE 20 : IS YOUR ORGANIZATION FACING THE PROBLEM OF

ATTRITION
Count of Is your organization facing the problem of

attrition ?
No effect 1
To a medium
extent 23
To a small extent 3
Grand Total 40
Table 4(t)
they are not facing the problem of attrition , 13% of them feel that they are facing
it to a large extent , 23% of them feel they are facing it to a medium extent and 3%
of them feel that they are facing the problem of attrition to a small extent .
CHART 20 : IS YOUR ORGANIZATION FACING THE PROBLEM

OFATTRITION
25 23
No effect
20
To a large extent
15 13
10 To a medium
extent
5 3 To a small extent
1
0
Chart 4(t)
feel that they are facing the problem of attrition in their organization.

CHAPTER 5
FINDINGS , SUGGESTIONS AND

CONCLUSIONS
In this chapter key findings and conclusions of this research are

recapitulated. Based on these findings few suggestions have been proposed for
improving the morale of the employees at Sri Raghavendra Industries Peenya
Industrial Area .
5.1 Findings :
 13% of the employees feel that employee attrition is the major HRM
challenge faced in their organization .
 35% of the employees feel that the problem of attrition is a recognized HR
challenge for their organization .
 13% of the employees feel that mismatch of job profile is the major reason
for attrition .
 16% employees in the experience range of 2-5 years are most susceptible
for attrition
 18% of the middle level management are most susceptible to attrition in
their organization.
 18% of the employees feel that maybe it is money that is influencing the
decisions related to resignations and retention in their organization.
 18% of the employees agree that an increasing number of industries is
adversely affecting employee retention in their company and this is leading
to higher employee attrition.
 20% of the employees feel that the organization must adopt to new and
creative HRM strategies to counter employee attrition.

 30% of the employees are disappointed and they feel that the company
could have done anything more to encourage them to stay.
 25% of the employees agree that the organization makes it mandatory for
the employees to serve a notice period
 12% of the employees are not happy with the duration of notice period
given by the organization.
 25% of the employees disagree to the above question that an exit interview
is not conducted to the employee who resigns from their organization.
 19% of the employees feel that the retaining the resigning employee
depends upon an individual’s cost and value in the organization.
 16% of the employees are happy with the benefits offered by the
organization .
 11% of the employees feel that career growth is main reason for the
employees to move to a new job.
 20% of employees are not satisfied towards their current job .
 19% of the employees feel that attrition is a threat to their organization .
 17% of the employees feel that attrition is affecting their organization
financially.
 25% of the employees feel that attrition at times can prove to be healthy
for their organization.
 23% of the employees feel that they are facing the problem of attrition in
their organization.
5.2 Suggestions :
 The compensation package can be revised as it was considered as the

important reason for attrition in the company .Most of the employee are
dissatisfied with the compensation or salary policy .
 Management should be able to find the people who have intention to leave
the organization and has to enquire about the reason and try to meet their
expectation and try to solve their problems if possible in order to retain
them.

 Promotion and the monetary rewards can be considered more as the

reward for the performance the employees as those are preferred by most
of the employees.
 Management should help the employees to overcome their personal
barriers helping him to perform well in his work and in his personal life.
 The organization must reduce employees work pressure and provide
flexible working time to them.
 Management can organize many more recreational facilities and employee
engagement activities so that the employees can enjoy their workplace.
 Management should consider employees valuable suggestions and should
be able to implement it.
 Conduct survey about employee satisfaction to check the functioning of
the company.
 Management should create a effective grievance settlement mechanism to
solve organization grievances.
 Organization should find out the main reason for grievances in
organization and try to dissolve and take a corrective action.
5.3 Conclusion :
In this era of globalization the employees are blessed with good opportunities. As
soon as they feel dissatisfied with the current employer or with the job, they
switch over to the other one. If an employee resigns, then good amount of time is
lost in hiring a new employee and then training him/her and this goes to the loss of
the company directly. Tools for employee retention are developing employee
reward program, career development program; performance based bonus,
employee referral plan, loyalty bonus, employee recreation, gifts at some
occasions, accountability, making the managers effective and easily accessible,
surveys etc.
The last decade has seen the initiation of a Varity of interesting and rigorous
studies that account for some of the complex and dynamic nature of the turnover
process in different types of the industries. Accordingly HRD has adopted

different retention strategies for different organization and for different levels.
Employee turnover is very high in IT organizations in India as skilled workforce
has ample number of opportunity to choose from.
Employee turnover increases the attrition rate and reduces the retention of
employees. Retention of the employees reduces the cost of the product, increase
productivity and condense brain drain of the particular industry. A high rate of
attrition, job hopping, turnover effect the organization in many ways like it leads
to more expenses, loss of company knowledge, interruption of customer service,
as well as the goodwill. The various studies on employee attrition and retention
reveal that the rate of attrition at times increases widely leading to serious concern
for employee retention.
The exponential growth of IT sector in India in the last few decades have
prompted the Organization to focus on employee centred employment relationship
to hold back the employees. In fact, this study is not a full length survey of the IT
industry on the subject, instead a study of IT-units are in and around Pune city.
But the employee attrition and retention have been quite a challenge for IT-units
and HRD should focus on Career growth, work-life-balance, compensation, job
satisfaction, appraisal system and Management Effectiveness retention factors.

CHAPTER 6
BIBLIOGRAPHY
BOOKS :
K. Aswathappa - Human Resource and Personnel Management, Tata

McGraw – Hill Publisher, Fourth Edition
C.R.Kothari - Research Methodology, Wishwa Prakasan Publishers, 2 nd

Edition
Decento.D.David and Robins.P.Stephen - Personnel and Human Resource

Management, Fourth Edition
K. Mallkarjunan - “Employee Attrition: An Overview of the causes and

remedies”
Kiran Kumar - “Attrition Control”
WEBSITES :
www.srprojekts.com/index.html
www.raghavendrasystems.com

CHAPTER 7
ANNEXURES
Name :
Age :
Gender :
1. Is your organization facing the problem of attrition ?

a) To a large extent
b) To a medium extent
c) To a small extent
d) No effect
2. Which of the following is the greatest HRM challenge faced by your

organization ?
a) Performance Management
b) Employee Attrition
c) Employee Absenteeism
d) Low Employee Morale
e) Lack of Employee Engagement
3. Is the employee Attrition a recognized HR challenge for your organization ?

a) Yes
b) No
4. State the major reasons for attrition in your company

a) Employee's expectations of the job
b) Absence of conductive workplace environment
c) Mismatch of job profile
d) Odd working hours
e) Stress and work-life balance
f) Lack of proper compensation

5. Which of the following employees in the experience range are most

susceptible to attrition ?
a) 2-5 years of experience
b) 5-8 years of experience
c) 8-12 years of experience
d) 12-14 years of experience
e) 15+ years of experience
6. Which level of employees in your organization are most susceptible to

attrition ?
a) Junior management
b) Middle management
c) Senior Management
d) Top management
7. Do the attrition trends in your company make you believe that it is ultimately
money that is influencing the decisions related to Resignations and Retention ?
a) Yes
b) No
c) Maybe
8. Do you think that an increasing number of industries is adversely affecting

employee retention in your company and is leading to higher employee
attrition ?
a) Yes
b) No
c) Maybe
9. Has your organization adopted any creative HRM strategy to counter

employee attrition ?
a) Yes
b) No

10. Could the company have done anything to encourage you to stay ?
a) Yes
b) No
11. Does your organization make it mandatory for the employees to serve a notice
period?
a) Yes
b) No
12. What is the duration of notice period in your organization ?

a) No notice period
b) 30 days
c) 45 days
d) 60 days
e) More
13. Do you conduct an exit interview of the employees who resign from your
organization ?
a) Yes
b) No
14. Does your organization have a policy to attempt to retain the resigning
employee by offering increased benefit ?
a) Yes
b) No
c) Depends on the individual’s cost and value in the organization
15. What kind of benefits does your organization offer to resigning employees if
they consent to continue their service ?
a) An improved remuneration
b) A promotion
c) A retention bonus
d) Other potential benefits

16. What is the preference of employee to move to a new job ? (new company)
a) Career growth
b) Flexible timings
c) Lack of other benefits
d) Work environment
e) Salary
17. What is your satisfaction towards the current job ?

a) Very high
b) Moderate
c) Very less
d) Not at all
18. How much do you think attrition is a threat to your organization ?

d) No effect
19. How much does the attrition affects your organization financially ?
d) No effect
20. Do you think attrition at times can prove to be healthy for your organization ?
a) Always
b) Sometimes
c) Never

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“A STUDY ON EMPLOYEE ATTRITION RATE AT SRI

Dissertation submitted in partial fulfillment of the requirements for the

award of the Degree of

BACHELOR OF BUSINESS ADMINISTRATION OF

Acharya Institute of Graduate Studies

Place: Name: Nagarjun Reddy M

Date: Register number:

Any achievement , be it scholastic or otherwise does not depend solely on the

I express my gratitude to Dr. M. Sudha Associate Professor and Head of

I am grateful to the guidance and the encouragement given by my Internal guide

CHAPTER NO. PARTICULARS PAGE NO.

Chapter-1 Introduction 1-6

Chapter-2 Profile of the Industry 7-22

Chapter-3 Research Design 23-42

Data Analysis & 43-63

Chapter-5 Findings, Suggestions & 64-67

Chapter-7 Annexure 69-72

TABLE NO PARTICULARS PAGE NO

Table 2.1.3 Manpower Details 9

Table 2.2 Product List 15

Table 4(a) Which Of The Following Is One Of 44

Table 4(b) Is The Employee Attrition A 45

Table 4(c) State The Major Reasons For 46

Table 4(d) Which Of The Following 47

Table 4(e) Which Level Of Employees In 48

Table 4(g) Do You Think That An Increasing 50

Table 4(h) Has Your Organization Adopted 51

Table 4(i) Could The Company Have Done 52

Table 4(j) Does Your Organization Make It 53

Table 4(k) What Is The Duration Of Notice 54

Table 4(l) Do You Count An Exit Interview 55

Table 4(n) What Kind Of Benefits Does Your 57

Table 4(o) What Is The Preference Of 58

Table 4(p) What Is Your Satisfaction Towards 59

Table 4(q) How Much Do You Think Attrition 60

Table 4(r) How Much Does Attrition Affect 61

Table 4(s) Do You Think Attrition At Times 62

Table 4(t) Is Your Organization Facing The 63

CHART NOs PARTICULARS PAGE NO

Chart 4(a) Which Of The Following Is One Of 44

Chart 4(b) Is The Employee Attrition A 45

Chart 4(c) State The Major Reasons For 46

Chart 4(d) Which Of The Following 47

Chart 4(e) Which Level Of Employees In 48

Chart 4(f) Do The Attrition Trends In Your 49

Has Your Organization Adopted 51

Could The Company Have Done 52

Does Your Organization Make It 53

Chart 4(k) What Is The Duration Of Notice 54

Chart 4(l) Do You Count An Exit Interview 55

Does Your Organization Have A 56

What Is The Preference Of 58

Chart 4(p) What Is Your Satisfaction Towards 59

Chart 4(q) How Much Do You Think Attrition 60

Chart 4(r) How Much Does Attrition Affect 61

Chart 4(s) Do You Think Attrition At Times 62

Chart 4(t) Is Your Organization Facing The 63

Today in a highly competitive and dynamic business world the success of an

Employee attrition is a challenging issue in the business world. It has a significant

Acharya Institute of Graduate Studies Page 1

work atmosphere, cost of recruitment, selection, training and development and so

Overview of Employee Attrition in India:

Organizations in India must give serious thought to what drives employee