Benadic Project

A STUDY ON PERCEPTION OF THE EMPLOYEES TOWARDS
EMPLOYEE RETENTION STRATEGIES WITH SPECIAL

REFERENCE TO M/s. POMONA INDUSTRIES LTD.,
COIMBATORE
Submitted in partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
M.N.KRISHNADAS
(Enrolment. No. 08AMBHR2014)
(Reg. No.08NHR7014)
HUMAN RESOURCE MANAGEMENT
TN0218- SETHUPATHI INSTITUTE OF HIGHER

STUDIES -P , 469 R V COMPLEX, PEELAMEDU,
COIMBATORE - 641 004.
Under the guidance of

Mr. M. PRASAD, M.Sc., M.B.A., M.Phil., PGDOR.,
Lecturer in Department of Master of Business Administration,
KSR College of Arts and Science, Tiruchengode-637215
SCHOOL OF DISTANCE EDUCATION

BHARATHIAR UNIVERSITY
COIMBATORE-641 046
APRIL 2010
i
Certificate
CERTIFICATE
This is to certify that the project work entitled “A STUDY ON
PERCEPTION OF THE EMPLOYEES TOWARDS EMPLOYEE RETENTION
STRATEGIES WITH SPECIAL REFERENCE TO M/s. POMONA INDUSTRIES
ii
LTD., COIMBATORE, submitted to Bharathiar university in partial fulfillment of the
requirements for the award of the degree of Master of Business Administration in Human
Resource Management is a record of the original work done by Mr. M.N.Krishnadas,
(08AMBFM2014) (Reg.No.08NHR7014) under supervision and guidance and that this
project work has not formed the basis for the award of any Degree/Diploma/Associate
ship/Fellowship or similar title to any candidate of any university.
Mr. M. PRASAD, M.Sc., M.B.A., M.Phil., PGDOR.,

Lecturer in Department of Master of Business Administration,
KSR College of Arts and Science, Tiruchengode-637215.
Forwarded by
Director
School of Distance Education
Bharathiar University
Coimbatore-46
Submitted for University Examination held on________________
Internal Examiner External Examiner
iii
Declaration
DECLARATION
I hereby declare that this project work titled “A STUDY ON
STRATEGIES WITH SPECIAL REFERENCE TO M/s. POMONA INDUSTRIES
LTD., COIMBATORE” under the guidance of Mr. M.PRASAD and that this project
work has not formed the basis for the award of my degree/Diploma/ Associate ship/
Fellowship or similar title to any candidate of any university.
iv
Signature of the candidate
Name : M.N.Krishnadas
Enrolment No : 08AMBHR2014
Course with specialization : MBA (Human Resource Management)
DATE:
Countersigned by
Signature of the Guide Signature of the Centre-Coordinator
(Mr. M. PRASAD)
v
Dedication
vi
Dedicated to the true voice of
youth
vii
Acknowledgement
Acknowledgement
I wish to please record of my deepest sentiments of gratitude to all those who
have whole hearted by contributed to the successful completion of this project work.
I express my thanks to “Pomona Industries Limited” at Coimbatore, for
promoting me to do my project in their organization.
I express my sincere and special thanks to Coordinator of Sethupathi Institute of
Higher Studies, School of distance education, Bharathiar University for extending help
in conducting the study.
My project would not have seen the light of day, if it was not the efforts of my
faculty guide Mr. M. Prasad, Lecturer in Department of Master of Business
Administration, KSR College of Arts and Science, Tiruchengode. Who has been my
guiding force throughout the course of the project.
I sincerely thank Mr. SHIVASHANKARAN (HR Manager) and team,
M/s. Pomona Industries Ltd., Coimbatore for their valuable guidance and
support.
I express my sincere gratitude to all my respondents and to all my friends who
helped me to complete this project successfully.
viii
M.N.Krishnadas
Contents
CONTENTS
PAGE
CHAPTER NO. TITLE
NO.
ix
CHAPTER-I
PART-A
INTRODUCTION 1-9
Meaning 4
Definition 4
HR Practices to retain employees 5
Corporate practices 8
Infosys 8
Taj group of hotels 9
Thejo Engineering Ltd. 9
PART-B REVIEW OF LITERATURE 10-13
CHAPTERII RESEARCH METHODOLOGY 14-22
Introduction 14
Formulation of research problem 14
Need for the study 15
Pilot study 16
History of the organization 16
Aim of the study 17
Objectives of the study 17
Hypotheses 18
Research design 19
Operational definitions 19
Universe 20
Sampling procedure 20
Inclusion criteria 20
Exclusion criteria 21
Method of data collection 21
Tools of data collection 21
Statistical analysis 22
Problems faced by the researcher 22
Limitations of the study 22
Chapterization 22
CHAPTER-III DATA ANALYSIS AND INTERPRETATION 23-54
FINDINGS, SUGGESTIONS AND
CHAPTER-IV 55-63
CONCLUSION
Findings 55
Suggestions 61
Conclusion 63
BIBLIOGRAPHY 64-67
APPENDIX
x
List of Tables
LIST OF TABLES
TABLE
TITLE PAGE NO.
NO.
DISTRIBUTION OF THE RESPONDENTS BY THEIR
1 23
AGE
2 25
DEPARTMENT
3 DISTRIBUTION OF THE RESPONDENTS BY THEIR 27
xi
MARITAL STATUS
4 29
EDUCATIONAL QUALIFICATION
5 31
SALARY
6 33
FAMILY INCOME PER MONTH
DISTRIBUTION OF THE RESPONDENT BY THEIR
7 35
TYPE OF FAMILY
8 37
SIZE OF FAMILY
9 39
RESIDENCE
10 41
EXPERIENCE IN PRESENT COMPANY
11 43
TOTAL WORK EXPERIENCE
ONE WAY ANALYSIS OF VARIANCE AMONG THE
AGE OF THE RESPONDENTS WITH REGARD TO THE
12 45
PERCEPTION TOWARDS EMPLOYEE RETENTION
STRATEGIES
STUDENT’S ‘t’ TEST BETWEEN MARRIED AND
UNMARRIED RESOPONDENTS WITH REGARD TO
13 46
THE PERCEPTION TOWARDS EMPLOYEE
RETENTION STRATEGIES
EDUCATIONAL QUALIFICATION OF THE
14 47
RESPONDENTS WITH REGARD TO THE PERCEPTION
TOWARDS EMPLOYEE RETENTION STRATEGIES
SALARY OF THE RESPONDENTS WITH REGARD TO
15 48
FAMILY INCOME/MONTH OF THE RESPONDENTS
16 49
WITH REGARD TO THE PERCEPTION TOWARDS
EMPLOYEE RETENTION STRATEGIES
17 STUDENT’S ‘t’ TEST BETWEEN THE TYPE OF 50
FAMILY OF THE RESOPONDENTS WITH REGARD TO
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STUDENT’S ‘t’ TEST BETWEEN THE SIZE OF
FAMILY OF THE RESOPONDENTS WITH REGARD TO
18 51
STUDENT’S ‘t’ TEST BETWEEN THE RESIDENCE OF
THE RESOPONDENTS WITH REGARD TO THE
19 52
STRATEGIES
YEAR OF EXPERIENCE IN THE COMPANY WITH
20 53
REGARD TO THE PERCEPTION TOWARDS
EMPLOYEE RETENTION STRATEGIES
ONE WAY ANALYSIS OF VARIANCE AMONG TOTAL
EXPERIENCE OF THE RESPONDENTS WITH REGARD
21 54
TO THE PERCEPTION TOWARDS EMPLOYEE
xiii
List of Charts
LIST OF CHARTS
CHART NO. TITLE PAGE NO.
DISTRIBUTION OF THE RESPONDENTS BY
1. 24
THEIR AGE
2. 26
THEIR DEPARTMENT
3. 28
THEIR MARITAL STATUS
4. 30
THEIR EDUCATIONAL QUALIFICATION
5. 32
THEIR SALARY
6. 34
THEIR FAMILY INCOME PER MONTH
7. 36
TYPE OF FAMILY
8. DISTRIBUTION OF THE RESPONDENTS BY 38
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THEIR SIZE OF FAMILY
9. 40
THEIR RESIDENCE
10. 42
THEIR EXPERIENCE IN PRESENT COMPANY
11. 44
THEIR TOTAL WORK EXPERIENCE
Chapter – I
xv
Part - A
Introduction
Chapter – I
xvi
Part - B
Review of literature
Chapter – II
Research methodology
xvii
Chapter – III
Analysis & Interpretation
Chapter – IV
xviii
Findings, Suggestions &
Conclusion
xix
Bibliography
xx
Appendix
CHAPTER – I
PART - A
INTRODUCTION
The most challenging job for the present day HR manager in a highly competitive
business environment is to identify, recruit and retain high quality of employees for the
business enterprise. In many large organizations, HR recruitment and retention strategy
revolves around creating a competitive compensation and benefits package, or instituting
an employee appreciation and recognition program. On the other hand, the smaller
companies think that attracting the best talent is lost cause of them because they cannot
offer the competitive compensation packages that their big brothers offer. While
compensation package is an important factor to attract good talent, from the employee’s
point of view, it is not the sole factor influencing the decision to join a company. Some
companies have an extraordinary flair to recruit and retain highly capable employees.
These companies are described as ‘Talent Magnets’-the employer of choice for the highly
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talented people. Such companies realize that the key to attracting and retaining quality
employees is not merely compensation and benefits packages but other non-pecuniary
factors. They attract and retain competent employees by satisfying the key human needs
that influence performance and loyalty. They satisfy these needs by leading and
managing these skilled employees appropriately.
Employees are the internal customers of the organizations and the ability of the
organization to satisfy their needs reflects the HR philosophy of the company. The key to
marketing and customer service success lies in understanding what the customer wants,
and then delivering the product or service that is designed to meet the customer’s need.
Similarly, competing in the labour market requires understanding of the employees’
needs, and development of HR retention strategies to recruit and retain the best talent and
motivate them to contribute their best to the organization. Pride in the establishment
where they work and what they do; meaningful work; respect – both personal and
professional; and sincere expressions of appreciation – are some of the things the talented
employees expect from an organization. Above all, the opportunity to make a significant
contribution that can benefit the company goes a long way in making the employee
committed to the organization.
Companies that produce mediocre products or provide poor service have
limitations in attracting and retaining excellent workers despite having benefits and
compensation package that are generous. Conversely, companies that offer superior
quality products and services are far more likely to attract and retain the best brains even
though their compensation may be relatively low.
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Meaningful work and purpose inspires talented employees far more than a
generous benefits package. Challenging work kindles the inner drive an urge of an
individual and the employee propels himself to a higher trajectory of performance.
Talent Magnet organizations address this issue through powerful vision. The
organizations commitment to its missions and vision captures the hearts and souls of their
workforce. Such organizations continuously communicate three missions and vision to
the employees and the important role each employee has in making the vision a reality.
The employees are given the tools and freedom to make a difference in the company.
The organizational culture is open and transparent, where the employees shed all
importantly, talent magnet organizations make a conscious attempt to ensure that there is
goal congruence of the individual with that of the organization so that both the
organization and the individual mutually benefit from their relationship.
Opportunities to learn and grow are powerful motivators to inspire talented
workforce. When work allows employees to use their minds, acquire new skills, and face
situations that enable them to grow, they become enthusiastic about the work. Talent
Magnet organizations address this fundamental need by providing employees with
ongoing learning opportunities through formal training and cross training, and also by
assigning appropriate projects and responsibilities. Even production work that might not
be considered ‘knowledge work’, gains an importance that satisfies the individual need
for recognition. The employee does not feel that he is a mere a ‘clog in the wheel’ using
a team model, production workers in some enterprises are given the important job of
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having the first contact with the customer that in turn determines the customer’s first
impression of the organization.
The image of the company is a critical component to attract good talent. Great
companies retain great people. If the company has strong brand image in the market it
automatically builds strong brand in the labour marketplace. The quality of internal
control to a large measure influences the ability to attract talented people. Outdated
technology, inadequate resources, inefficient work processes, and stifling bureaucracy
drive away the able individuals. On the other hand, when a company is open to learning
and is willing to foster a congenial environment, employees stretch that extra bit to
perform well and stay committed to the organization.
How well the management team treats the employees is a very important factor.
In many companies there is the practice to promote technically adapting people to
management positions, even if they have virtually no people skills. The problem is
further compounded because the mangers are not given opportunities to develop their
people management skills through management training and coaching that are designed
to help the managers to bring out the best in their workers. Worse, many companies turn
a blind eye to disrespectful or even abusive behavior by managers. The importance of
having a top notch management team and great supervisors cannot be over emphasized.
Retention is one of the important aspects of an organization. The subject
retention deals about identification of human behavior and indicate their personnel
feeling, it is a process in which the employees are encouraged to remain with the
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organization for the maximum period of time or until the completion of the project. A
good employer knows how to attract and retain his employees. This is one of the hottest
topics for the corporate leaders of all fields in India and across the world. Some
organizations are on the top because they value their employees and know how to keep
them glued to the organization. Whatever the reason, personal or professional, the
employers should take care of employees. If they don’t, they could leave without enough
good employees. The supervisors must be prepared to be collaborative, supportive, and
nurturing their people, the ‘my-way-or-the-highway’ style of management is a thing of
past. Employee retention involves being sensitive to people’s needs and demonstrating
the various strategies, as told in Roger Herman’s classic book on employee retention.
The environment, relationship, support, growth and compensation are the various
measures to be taken to encourage employees to remain with the organization for the
maximum period of time.
All the companies are planning to increase their turnover every moment. While in
all this workout of increasing the turnover, they forget about their loss incurred by the
resignation of employees and the expenses of hiring new employees (hiring cost, training
cost, productivity less, etc.). This hiring of a new employee normally costs around 35 per
cent or more of the average employee salary. Nearly 90 per cent of the bosses think their
employees quit making more money, but 90 per cent of the bosses are wrong. HR people
can tell about their top issue these days, and it is likely to be retention. That is no
surprise. The cost in dollars and disruption of replacing a trained employee is enormous.
One of the studies identified the following six ‘real’ reasons why employees leave.
 Job not as expected.
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 Job doesn’t fit talents and interests.
 Little or no feedback/coaching.
 No hope for career growth.
 Feel overworked and stressed out.
 Lack of trust or confidence in leaders.
Retaining valuable staff is becoming increasingly difficult in today’s
environment. Global Hunt proudly talks about its retention policy, 80 per cent of the
companies are proactively planning and practicing to improve the employee retention rate
by themselves or with the help of specialized skill and knowledge personals who walk
through their doors every morning, and walk out every night.
MEANING
Employee retention means a process in which the employees are encouraged to
remain with the organization for the maximum period of time or until the completion of
the project. Employee retention is beneficial for the organization as well as the employee.
DEFINITION
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"An effective Employee Retention Program is a systematic effort to create and
foster an environment that encourages employees to remain employed by having policies
and practices in place that address their diverse needs."
-Definition by Employee Retention Workgroup
Employees of today are different. They are not the ones who don’t have good
opportunities in hand. As soon as they feel dissatisfied with the current employer or the
job, they switch over to the next job. It is the responsibility of the employer to retain their
best employees. If they don’t, they would be left with no good employees. A good
employer should know how to attract and retain its employees.
HR PRACTICES TO RETAIN EMPLOYEES
Increasing the organization’s level of professionalism: Employees leave companies
where intra-organizational interactions are unstructured, and decisions, ad-hoc and driven
more by personal prejudice rather than professional consideration. By adopting systems
that introduce an element of objectivity into its internal operations, a company can create
a better workplace.
Moving from family to professional management: In most family-managed organizations,
professional managers leave because they cannot see themselves holding key positions,
or functioning with the level of independence that their designations merit. By inducting
professionals into senior management positions, a company can lower its attrition-rate.
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Making performance appraisals objective: Employees like to know how, when, and by
whom their performance is going to be measured. An appraisal process that lists objective
and measurable criteria for performance appraisal removes the uncertainty in the minds
of employees that their superiors can rate their performance any way in which they
please.
Involving employees in the decision-making process: People like to work in
organizations where their opinions count. The higher an employee's involvement in
decision-making, the higher the organization’s retention-level. If a participative decision-
making process is good then the total empowerment will be better.
Ensuring a match between authority and accountability: Most companies fall into the trap
of holding an employee accountable for a specific activity without empowering her with
the authority to perform it well. Often, the situation is exacerbated by the fact that they
vest another employee with the same authority, but do not hold him accountable!
Measuring employee satisfaction: Obsessed with catering to the demands of their external
customers, companies ignore their internal customers. Periodic employee satisfaction
surveys can highlight the potential flash-points, and enable the company to take
corrective action.
Achieving a match between individual and organizational goals: Many companies fall
into the trap of expecting their employees to subsume their individual objectives before
the organizational one. This forces employees to leave. The best companies achieve a
balance between the two.
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Designing a competitive compensation package: Money is not a motivator, but it is an
effective de-motivator. While organizations that pay best-in-industry salaries may find
themselves unable to use that fact to motivate their employees, those that do not could
find their best employees leaving.
Increasing organizational transparency: People do not like to work in black-box like
organizations, where information is rationed out on a need-to-know basis. They prefer a
transparent organization that is willing to share every aspect of its functioning with its
employees.
Promoting employees from within: A company that constantly fills vacancies by hiring
from outside is certain to face retention problems. Employees who realize that they are
unlikely to be promoted to fill the vacancies will leave the organization. Growing your
own is a sound retention strategy.
Helping employees acquire new skills: As the job-profiles and desired skills-sets for a
particular job change, companies may feel the need to hire employees with new skills, or
retrain their existing employees. Companies that choose to do the latter will find it easier
to retain their people since the training signals that the organization values their
contribution, and is willing to invest in upgrading their skills.
Offering stock options: ESOPs are a sign that the organization recognizes the role of the
individual in its performance, and is willing to share the benefits with her.
Focusing on welfare measures: Employees are not just warm bodies; they are individuals
with families and lives of their own outside the workplace. Organizations that recognize
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this will help employees to achieve a better balance between life and work and is likely to
face fewer problems than those that do not.
Across industry-types, increasing the organization’s level of professionalism,
instituting an objective performance appraisal system, and ensuring a match between
responsibility and authority are the 3 most-used techniques to improve retention. In
addition, InfoTech companies focus their efforts on 3 more techniques: increasing
employee satisfaction, designing competitive compensation-packages, and involving
employees in decision-making.
Hi-tech companies differ from other industries in one another aspect. Most
manufacturing, marketing, and services companies are not able to achieve the desired
level of performance along any of the retention techniques they adopted, but InfoTech
and telecom companies exceed the desired level. High potential attrition-rates and the
growing demand for trained InfoTech professionals is, evidently, a motivation enough for
companies operating in this sector to focus on retention management.
Competitive pay and benefits: Although pay is not the prime motivator, it definitely
influences one’s decision to stay in the organization or not, especially when it is not
competitive. If the pay levels do not match others or the best in the industry it will
become the source of dissatisfaction.
Opportunities to develop one’s career: The power of intrinsic motivators cannot be
undervalued in the present context. Employees are constantly exploring various avenues
to develop their skills so that they can be promotable and employable in the fast changing
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times. An organization need to consider individual learning needs and address them
suitably by creating learning opportunities for them. Moreover, the employees need to be
given opportunities to apply their newly acquired skills in the workplace so that they can
prove their worth to the organization. This would boost their self-esteem.
Job security: Job security assumes greater importance in this turbulent age marked by
massive lay-offs, downsizing, and closure. Some of the enlightened organizations
provide job security to such a great degree that others in the industry cannot even imagine
matching them. These companies resort to various alternatives like redeployment and
reducing the pay levels and perks in order to avoid retrenchments and lay-offs. For
example, Southwest Airlines assures job security to all employees even in the downtimes.
Hiring those who fit to the organizational culture well: Hiring should not only be based
on education, knowledge, skill and previous experience but also on the compatibility of
the person with the company’s culture. An important question needs to be answered
while hiring an employee is “Does he or she share the company’s values, and can he or
she adapt the workplace?”
Flexible work design: Work can be designed to suit the convenience of employees with
options like flexible work hours, telecommuting, job sharing, location preference etc.
Exit interviews can help to correct causes of discontent: Organizations are always
interview employees before hiring them, but the issue is doing they interview them at the
time they quit? Exit interviews fulfill two goals: a) First of all it helps the organization to
assess leadership style practiced and work environment that exists in the organization; b)
It also motivates and employee to leave with a ‘clean slate’ since he gets an opportunity
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to voice his complaints/grievances/sources of dissatisfaction as well as suggestions. That
is why an exit interview is regarded as an opportunity to unearth important information
that otherwise might not be possible for an organization to acquire.
Best practices. The best companies focus on professionalisation, appraisal, employee
satisfaction, and participative decision-making. However, their higher-than-average
retention levels can be attributed to the way in which they go about these initiatives rather
than the choice of initiatives themselves. So, the best companies set themselves stretch
targets on each dimension, and then, try and better them.
CORPORATE PRACTICES
INFOSYS
All the HR practices at Infosys are carefully aligned to the overall corporate
strategies of continuous growth through new customer acquisitions, market expansion,
satisfying the customers and continuous improvement in the business process. Unlike
other industries, the IT Company’s success depends purely on attracting and retaining
skilled workers who are the best in the field.
All the HR programs at Infosys carefully designated to address the critical HR
issues to ensure maximum utilization of HR. This is the evident from fact that Infosys
won many awards including ‘Best HR Practices Awards’.
 Empowerment
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 Learning and development
 Recognition of employees’ contribution
 Transparent functioning
 Developing emotional bond
o Family wing
o Infosys club
o Celebrating together/periodic gatherings
o Concierge services
o Classifieds
TAJ GROUP OF HOTELS
In March 2001, the Taj Group launched an employee loyalty program called the
‘Special Thanks And Recognition System’ (STARS). STARS was an initiative aimed at
motivating employees to transcend their usual duties and responsibilities and rewarded
hard working employees who had achieved excellence in their work.
The Taj Group always believes that their employees are their greatest assets and
the very reason for the survival of their business. In 2000, to show its commitment to and
belief in employees, the Taj Group developed the ‘Taj People Philosophy’ (TPP), which
covered all the people practices of the group. TPP considered every aspect of employees’
organizational career planning, right from their induction into the company till their
superannuation.
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THEJO ENGINEERING LTD
In 2005 company started implementing more retention strategies than their usual
practice. Company started get-togethers and picnics to their employees to motivate them.
They also started monthly meeting to review each and every department’s performance
and the company also uses this meeting as open session to ventilate employees’ feeling.
PART - B
REVIEW OF LITERATURE
A review of literature hopefully contributes for an understanding of researches
made on retention strategies. It provides different dimensions of results analyzed by
eminent researchers on the topic of present study and also makes the researcher aware of
the importance of the study. In addition it paves the way in formulating the research
design, specifying the objectives, developing theoretical background, adopting the right
methodology for the purpose of obtaining accurate inferences and making a meaningful
conclusion. In order to fulfill these, relevant literature has been reviewed and presented
in the study.
xxxiv
Meenakshi S Nair (2007) conducted a study on ‘Employee Retention Strategies’
and found that the employees, they care deeply about the organization to which they give
their time, energy and career investments and they crave knowledge about how their
efforts are paying off the company. According to what workers/employees believe most
important to them in their jobs are interesting job, full appreciation of work done, feeling
of being in on things, job security, good wages, promotion/growth in the company, good
working conditions, personal loyalty to employees, tactful discipline and help with
personal problems. There is a disconnect in the management thoughts on employee’s top
priority as ‘Good Wages’. This ‘disconnect’ is costly to companies, and is at the heart of
most organizations’ misunderstandings of the type of communication most valued by
employees.
Darke International, North America (2006) conducted a study on ‘Employee
Retention’, found innovative solutions can create a successful retention program that will
reduce staff turnover. As identified in this “whitepaper”, many issues are at taken
retention is not consciously prioritized. From a damaged company reputation to low
employee productivity, high turnover is negative and costly. Keeping employees who
outperform beyond expectation reduces the need to recruit and cuts related hiring and
training costs. Put simply - you’ll have a successful company if you treat your employees
well so they want to stay with you. Hiring top-performing and enthusiastic employees
requires a certain knack. But keeping those employees is an art. Increasing retention
requires careful planning and implementation resulting in a solid program which
incorporates many or all of the solutions mentioned in this whitepaper. Incorporating
xxxv
these techniques into your internal company planning does not necessarily enquire
expenditure.
RTS Consultants (UK) Ltd in association with The Institute of the Motor
Industry (2005) conducted a study on ‘Employee Retention in the Retail Motor Industry’
and found that A significant Frequency of leavers leave within the first six months of
joining the dealership. This suggests poor recruitment practice and/or poor induction
processes. Attrition rates, as suspected from anecdotal sources, are confirmed as being
higher than for other sectors. However there is very little evidence of systematic
monitoring beyond this research, and only one dealership interviewed urgently sets
targets. If there is no measure of the current situation, it is not possible to assess the
impact of any actions taken to improve it. This is an untenable position for any
organization to be in, given the link between retention and profitability.
Boxall, et al. (2003) found the main reason by far for people leaving their
employer was for more interesting work elsewhere. It is generally accepted that the
effect of job satisfaction on turnover is less than that of organizational commitment.
Martin (2003) investigates the determinants of labour turnover using
establishment-level survey data for the UK. Martin indicated that there is an inverse
relationship between relative wages and turnover (i.e. establishments with higher relative
pay had lower turnover).
xxxvi
The Recruitment Communication Company (2002) conducted a study on
‘Understanding Employee Retention’ and found that mainly 3 aspects are influencing
attraction and attrition. They are;
External influence: Those outside the organization, such as the regional labour
market or overall economic climate
Individual influences: Characteristics of individual employees that may indicate
the likelihood of their joining and staying with a given employer.
Organizational influences: employment program policies and the variety of other
factors which make up the working climate or culture in an employer.
Of the three influencing categories, organizational practices are the most
controllable and it is given an understanding of what is currently happening and
what will happen. Although it may not be possible (or legal!) to control individual
attributes it is relatively easy to identify links between them and job satisfaction
and then modify organizational practices accordingly.
Canadian Labour and Business Centre (2002) the education of First Nation
peoples living on reserve has become an issue of high priority in recent years. The
effective recruitment and retention of teachers for on-reserve education is seen as pivotal
to the delivery of education at a standard that is comparable to that in provincial schools.
The teacher shortage and high turnover rates threaten educational quality, thereby
slowing efforts to reduce the gap in education attainment levels between First Nations
and other students. Concerted efforts will be required to solve shortage and reduce the
gap, but there is currently little available information on challenges and barriers to
xxxvii
teacher recruitment and retention for on-reserve education. This report aims to identify
and better understand institutional perspectives on barriers and challenges, particularly
labour-related ones.
Elangoven (2001) noted that the notion of job satisfaction and organizational
commitment being causally related has not been incorporated in most turnover models.
His study indicated there were strong causal links between stress and satisfaction (higher
stress leads to lower satisfaction) and between satisfaction and commitment (lower
satisfaction leads to lower commitment). He further noted a reciprocal relationship
between commitment and turnover intentions (lower commitment leads to greater
intentions to quit, which in turn further lowers commitment). In brief, only commitment
directly affected turnover intentions.
British Columbia Ministry of Health (2001) The modified Physician
Recruitment and Retention Program provides funding for recruitment, retention and on-
call service in rural and small urban communities as per the recommendation of the Alan
Hope QC Mediation Report, November 2000. The purpose of the program is to offer
premium incentives to enhance the supply and stability of physician services in rural and
small urban communities.
Kirschenbaum & Mano-Negrin (1999) much of the research on perceived
opportunities has been found to be associated with intentions to leave but not actual
turnover. One of the possible reasons is that intentions do not account for impulsive
xxxviii
behaviour and also that turnover intentions are not necessarily followed through to lead to
actual turnover.
Lum, et al. (1998) study has reported a significant association between
organizational commitment and turnover intentions.
Griffeth & Hom (1995) conducted a meta-analysis of some 800 turnover, which
was recently updated by Griffeth et al (2000). Their analysis confirmed some well
established findings on the cause of turnover. These include, job satisfaction,
organizational commitment, comparison of alternatives and intention to quit. And found
that overall job satisfaction modestly predicted turnover.
Allen & Meyer (1990) investigated the nature of the link between turnover and
the three components of attitudinal commitment. Effective commitment refers to
employees’ emotional attachment to, identification with and involvement in the
organization. Continuance commitment refers to commitment based on costs that
employees associate with leaving the organization and normative commitment refers to
employees’ feelings of obligation to remain with the organization. Put simply,
employees with strong affective commitment stay with an organization because they
want, those with strong continuance commitment stay because they need to, and those
with strong normative commitment stay because they feel they ought to.
xxxix
Mobley, et al. (1979) noted that the relationship between intentions and turnover
is consistent and generally stronger than the satisfaction-turnover relationship, although it
still accounted for less than a quarter of the variability in turnover.
CHAPTER – II
RESEARCH METHODOLOGY
INTRODUCTION
Research is defined as a ‘Systematic effort to gain new knowledge’. It is an
academic activity and as such the term should be used in a technical sense. Research
comprises of defining and redefining problems, formulating hypothesis and suggesting
solutions, collecting, organizing and evaluating data, making deductions, reaching
conclusions, and at last carefully testing the conclusions. It refers to the systematic
method consisting of enunciating the problem, formulating a hypothesis, collecting the
fact or data analyzing the fact and teaching certain conclusion either in the form of
solutions towards the concerned problem or in certain generalization for some theoretical
formulation.
In this research, the researcher attempts to study the perception of the employees
towards employee retention strategies in Revathy Equipments Ltd., Coimbatore.
xl
FROMULATION OF THE RESEARCH PROBLEM
Emerging trends in today's fast changing corporations are pointing urgently to the
need that business and human performance experts must address not only survival and
security needs, but also the higher-level needs for respect, recognition, achievement, and
life-long learning. These work place motivators and satisfiers are potent determinants of
retention. Employee retention is now a very crucial issue, because in the 21st century,
the only sustainable source of competitive advantage for any organization is 'Human
Resource'. To maintain a stable workforce, employers must deliberately engage in
retention activities.
These efforts range from offering attractive compensation packages to involving
employees in every sphere of the functioning of the organization. Today's employers
prefer to have stable, committed, flexible workforces who are willing to learn and
develop. Since sophisticated skills are scare, there is always heavy competition among
the employers to attract the best talents to enhance their competitive positions in the
market. Becoming an 'Employer of Choice' and using 'Employer Branding' are some of
the efforts made by the employers to create a tangible work atmosphere in order to attract
and retain the best talents available in the market.
Retention is the inevitable part of an organization. Each person working in the
organization has his own perception towards the retention strategies applied by the
management. Attrition may hamper productivity, lower morale of workers, causes more
continued attrition. Method of handling attrition plays an important role in reducing and
avoiding employee turnover problems.
xli
Hence the researcher understood that there is a much need of study in the field of
retention to find out major perception of the employees towards employee retention
strategies, so formulated the problem of the present study.
NEED FOR THE STUDY
HR personnel have to face the problem of employee turnover, retention, attrition
etc. The study will help them to choose appropriate retention strategies. Today’s work
force is entirely different from old days. If the attrition is not under control then the
company will not withstand with present competitive world. A wise employer will learn
how to attract and retain people with them. Now the attitude of the management towards
employees has changed. The old style of ‘my-way-or-the-highway’ style of management
is a thing of the past. Non-effective employee retention strategies make a huge flow of
company’s capital in various ways.
For a company, the workforce is like a intellectual property, both in term of skills
and money. A trained and content workforce can lead a company to new heights while
an opposite once can hamper it badly. So every resignation saved is every dollar earned.
The change in the nature of workforces has brought up more, not fewer retention issues.
Dearth of skilled and professional employees, forecasted labour shortages as a result of
nearing retirement age of baby boomers changing expectations of new workforce, lack of
stability in terms of jumping from one organization to another, workforce diversity,
globalization have contributed to attrition. Another reason for the organization to retain
their employees and curb employee turnover is the cost attached to it.
xlii
The study mainly focuses on the perception of the employees towards employee
retention strategies. The study will help the organization (M/s. Pomona Industries Ltd.),
as it gets a clear picture on their employees’ perception towards employee retention
strategies.
PILOT STUDY
The researcher had made a pilot study to find out how effective the study could
be. The researcher discussed with his research guide and a few HR professionals about
the feasibility of the study.
The personal profile in the questionnaire was carefully and selectively designed
after consulting with the research guide, some notable academicians and experienced HR
practitioners. The researcher used the tools of data collection after confirming its validity
and reliability from researcher who used this previously in their research.
All these efforts helped the researcher to narrow down his research problem and
to specify the objectivity and tools of data collection.
COMPANY PROFILE
M/s. Pomona Industries Ltd. is an RBS Group Company, established to cater
the requirements of sheet metal fabrication. The RBS Group, was promoted by the
Saboo family and a joint family venture among 4 brothers. The Group covers a wide
spectrum of activities ranging from assembling of electronics to Components & Spare
Parts, from Ball Bearings to export of Home furnishings, and from manufacture of
plywood to Sheet metal fabrication.
xliii
The RBS Group has always stood for excellence in all the business areas it
operates. Due to its strong and healthy track record, The RBS Group companies enjoy a
high level of trust and confidence of all its stakeholders.
The RBS Group has its head office in Delhi and presence in all major cities of India.
The Group has the following diversified activities and its Interests are:-
 M/s Phoenix Udyog Pvt. Ltd. is a Sheet metal unit. The company was started
in 2004 and has its head office in Delhi and works at Kala-Amb, Himachal
Pradesh.
 The oldest interest of the group is SKF Ball Bearing distribution and the group
has its offices in Delhi, Faridabad, Kolkatta, Mumbai, Barielly and Tinsukia
 The Group has a Plywood manufacturing plant in Tinsukia (Assam)
 Plastic Injection moulded furniture unit in Guwahati (Assam)
 Television assembly unit at Guwahati (Assam)
 Chemical processing unit at Guwahati (Assam).
 Fashion garments and home furnishing manufacturing unit at Delhi
 Horticulture farm at Coimbatore (Tamil Nadu).
 A Sales & Service Franchise for Blue Star Products like Air conditioners, Cold
rooms, Deep Freezers, Water Coolers etc. in Okhla Delhi.
xliv
Having vast exposure with sheet metal fabrication, the group establishes its modern
sheet metal fabrication unit at Coimbatore in the name of Pomona Industries Ltd, having
all in house facilities under one roof.
With a built-up area of 40,000 sq ft factory, which has world-class equipments, state
of art technology, proven track record, trained Operators, technical competence and
Modern facilities, which guarantee utmost satisfaction to the customers.
AIM OF THE STUDY
The main aim is the study to assess the level of perception of the employees
towards employee retention strategies with special reference to M/s. Pomona Industries
Ltd., Coimbatore.
OBJECTIVES OF THE STUDY
1. To study about the personal profile of the respondents.
2. To study the perception of employees towards the retention strategies of the
company.
3. To find out whether the personal profile of the respondents influencing the
perception of employees towards employee retention strategies.
HYPOTHESES
2.1 There is no significant difference among the age group of the respondents
with regard to the perception towards employee retention strategies.
xlv
2.2 There is no significant difference between married and unmarried
respondents with regard to the perception towards employee retention
strategies.
2.3 There is no significant difference among the educational qualification of
the respondents with regard to the perception towards employee retention
strategies.
2.4 There is no significant difference among the salary of the respondents with
regard to the perception towards employee retention strategies.
2.5 There is no significant difference among the family income/month of the
strategies.
2.6 There is no significant difference between the types of family of the
strategies.
2.7 There is no significant difference among the size of family of the
strategies.
xlvi
2.8 There is no significant difference between the residences of the
strategies.
2.9 There is no significant difference among the year of experience in the
company with regard to the perception towards employee retention
strategies.
2.10 There is no significant difference among the total experience of the
strategies.
RESEARCH DESIGN
Descriptive and diagnostic research designs were adopted for the study.
Descriptive research design describes the characteristics of particular individual or of a
group. This study attempts to describe the personal characteristics of workers like age,
experience, educations etc.
Diagnostic research design determines the frequency in which something occurs
or it associates with something else. This study attempts to diagnose the perception level
and whether the personal profile influences the perception of the respondents.
OPERATIONAL DEFINITIONS
EMPLOYEES
According to the study the Employees are the persons who are designated under
Worker Grade-I, II, III and IV (Worker, Sr. Operator, Jr. Operator, Machinist, Welder,
xlvii
Fitter etc) and have a minimum of two years of experience at M/s. Pomona Industries
Ltd., Coimbatore.
PERCEPTION
According to the study the Perception means the employees’ attitude towards the
various strategies applied by the management of M/s. Pomona Industries Ltd.,
Coimbatore.
According to the study the Retention Strategies means various strategies
pertaining to salary, bonuses, promotion opportunities, training programs, performance
evaluation system, work environment, timelines etc, applied by the management of M/s.
Pomona Industries Ltd., Coimbatore to retain their employees with the organization.
UNIVERSE
The researcher collected the list of workforce of M/s. Pomona Industries Ltd.,
Coimbatore from HR department. Total workforce of the organization is 253. Out of
which 22 are in Manager Category and 94 are in Staff Category (supervisory staff-22,
administrative staff-63 and clerical staff-9). There are 137 in Worker Category. The
researcher considered only Worker Category for his study. Out of which 110 employees
have satisfied the inclusion criteria and were considered for the study.
SAMPLING PROCEDURE
xlviii
The researcher adopted systematic random sampling technique for selecting the
respondents. For this purpose, researcher prepared source list of 110 employees with
serial numbers and selected every odd numbers of employees. Totally 55 samples were
taken by the researcher.
INCLUSTION CRITERIA
1. Employees in Worker Category are included for the study.
2. Employees who completed 2 years in the company are included for the study.
3. Employees who are in permanent category are included for the study.
EXCLUSION CRITERIA
1. Employees who are belonging to Manager and Staff Category are excluded from
the study.
2. Employees who did not complete of 2 years in the company are excluded from the
study.
3. Contract labours are excluded from the study.
METHOD OF DATA COLLECTION
The source of data collection was primary. The data required for the study was
collected directly from the respondents using a questionnaire. Before data collection the
researcher obtained permission from the HR department of M/s. Pomona Industries Ltd.,
Coimbatore. The researcher took fifteen days (15th March 2010 to 30th March 2010) to
xlix
collect data from the respondents. Secondary sources like records, personnel files and
documents were also used for collecting the details of the universe.
TOOLS OF DATA COLLECTION
The researcher adopted questionnaire method for data collection. The
questionnaire consists of two parts. The first part consists of personal profile of
respondents like Age, Department, Marital Status, Sex, Qualification, Salary etc.
The second part is a standard questionnaire, which is developed by Premjith. S.
Nair (2006), HR Practitioner. The 5 point scale questionnaire was used to measure the
level of employees’ perception towards employee retention strategies and its scoring is as
follows: Strongly Disagree-1, Disagree-2, Undecided-3, Agree-4 and Strongly Agree-5.
This questionnaire contains 22 statements, which all are positive. The maximum possible
score is 110 and the minimum possible score is 22.
STATISTICAL ANALYSIS
After data collection the data was coded and transferred into master chart. Per
cent analysis was computed for personal data and to find out the dominating style in
terms of personal data. Statistical measures such as ANOVA (Analysis of variance),‘t’
test were computed to find out whether there is any relationship or any difference
between variables.
PROBLEMS FACED BY THE RESEARCHER
 The researcher had the problem with language.
l
 The researcher had difficulty to convince the respondents about the purpose of
study.
LIMITATIONS OF THE STUDY
1. The study conducted only in Revathy Equipments Ltd., Coimbatore. So its
findings cannot be generalized to other PSUs and private sector companies.
2. The study was conducted on workers in manufacturing sector so the results could
not be generalized to all employees.
CHAPTERIZATION
The chapter scheme of the study deals with
Chapter I : Part A- Introduction
Part B- Review of Literature
Chapter II : Research Methodology
Chapter III : Analysis and Interpretation
li
Chapter IV : Findings, suggestion, and Conclusion
CHAPTER – III
ANALYSIS AND INTERPRETATIONS
INTRODUCTION
The data collected were subjected to statistical analysis in the light of the research
questions raised and the hypotheses formulated. The specific results obtained in the
statistical testing of the hypothesis and the result presented hereunder.
TABLE NO. 1
DISTRIBUTION OF THE RESPONDENTS BY THEIR AGE
lii
Sl. No. Age in years Frequency Percentage
1. Up to 25 12 21.8
2. 26-30 17 30.9
3. 31 and above 26 47.3
Total 55 100.0
The Table No.1 shows the distribution of the respondents by their age. 47.3 per
cent of the respondents were belonging to the age group of above 31 years, 30.9 per cent
of respondents were belonging to the age group of 26-30 years and 21.8 per cent of
respondents were belonging to the age group of less than 25 years. The mean age of the
respondents is 29.76.
Youth are the asset to the growth of the organization. In this company majority
(52%) are below 30 years.
liii
CHART NO. 1
DISTRIBUTION OF THE RESPONDENT BY THEIR AGE
47.3
50
45 30.9
40
35 21.8
30
Percentage
25
20
15
10
5
0
Up to 25 26-30 Above 31
Age
TABLE NO. 2
liv
DEPARTMENT
Sl. No. Department Frequency Percentage
1. Production 54 98.2
2. QA 1 1.8
Total 55 100.0
The Table No. 2 exhibits the distribution of the respondents by their department.
Majority (98.2 per cent) of the respondents are working in Production department and
only one worker is working in QA department.
lv
CHART NO. 2
DISTRIBUTION OF THE RESPONDENT BY THEIR DEPARTMENT
98.2
100
90
80
70
Percentage
60
50
40
30 1.8
20
10
0
Production QA
Department
lvi
TABLE NO. 3
DISTRIBUTION OF THE RESPONDENTS BY THEIR MARITAL

STATUS
Sl. No. Marital Status Frequency Percentage
1. Married 38 69.1
2. Unmarried 17 30.9
Total 55 100.0
The Table No. 3 shows the distribution of the respondents by their marital status.
Majority (69.1 per cent) of the respondents are married and 30.9 per cent of them are
unmarried.
lvii
CHART NO. 3
DISTRIBUTION OF THE RESPONDENT BY THEIR MARITAL STATUS
30.9%
69.1%
Married Unmarried
ABLE NO. 4
lviii
Educational
Sl. No. Frequency Percentage
Qualification
1. Below +2 9 16.4
2. ITI 12 21.8
3. Diploma 34 61.8
Total 55 100.0
The Table No. 4 shows the distribution of the respondents by their educational
qualification. 61.8 per cent of the respondents have studied Diploma courses, 21.8 per
cent of the respondents have studied ITI course and 16.4 per cent of the respondents have
studied below Plus Two level.
Even though the minimum qualification for a worker in the company is ITI,
maximum number of (34) workers have studied diploma courses and few have studied
below plus two level.
lix
CHART NO. 4
61.8
70
60
50
Percentage
40
21.8
30 16.4
20
10
0
9th to +2 ITI Diploma
Educational Qualifications
TABLE NO. 5
lx
DISTRIBUTION OF THE RESPONDENTS BY THEIR SALARY
Salary in
Rupees
1. Below 2500 3 5.5
2. 2501 to 5000 45 81.8
3. 5001 & above 7 12.7
Total 55 100.0
The Table No. 5 shows the distribution of the respondents by their monthly
salary. 81.8 per cent of the respondents’ salary is in between 2501-5000 rupees, 12.7 per
cent of the respondents’ salary is 5001 rupees & above and only 5.5 per cent of the
respondents’ salary is below 2500 rupees.
Only seven workers are getting above 5001 salary, all other workers are getting
below Rs. 5000.
lxi
CHART NO. 5
DISTRIBUTION OF THE RESPONDENTS BY THEIR SALARY
81.8
90
80
70
60
Percentage
50
40
30 12.7
5.5
20
10
0
Below 2500 2501 to 5000 5001 & above
Salary
lxii
TABLE NO. 6
DISTRIBUTION OF THE RESPONDENTS BY THEIR FAMILY

INCOME PER MONTH
Family
Sl. No. Income/Month Frequency Percentage
in Rupees
1. Below Rs.5000 5 9.1
2. Rs.5001 to
45 81.8
10000
3. Rs.10001 &
5 9.1
above
Total 55 100.0
The Table No. 6 shows the distribution of the respondents by their family income
per month. 81.8 per cent of the respondents’ family income was rupees 5001 to 10000,
9.1 per cent of the respondents’ family income was rupees 10001 and above, and 9.1 per
cent of the respondents’ family income was rupees below 5000.
Majority of the respondents’ salary is in between Rs. 2500 to 5000, they have
additional income of another 5000 from his wife, other family members, income from
other asset etc.
lxiii
CHART NO. 6
DISTRIBUTION OF THE RESPONDENTS BY THEIR FAMILY
INCOME PER MONTH
81.8
90
80
70
60
Percentage
50
40
30 9.1 9.1
20
10
0
Below Rs.5000 Rs.5001 to 10000 Rs.10001 & above
Income/Month
lxiv
TABLE NO. 7
DISTRIBUTION OF THE RESPONDENT BY THEIR TYPE OF

FAMILY
Type of
family
1. Nuclear 45 81.8
2. Joint 10 18.2
Total 55 100.0
The Table No. 7 shows the distribution of the respondents by their type of family.
81.8 per cent of the respondents were from nuclear type family and 18.2 per cent of the
respondents were from joint family.
In this modern world people prefer nuclear family system.
lxv
CHART NO. 7
DISTRIBUTION OF THE RESPONDENTS BYTHEIR TYPE OF
FAMILY
18.2 %
81.8 %
Nuclear Joint
TABLE NO. 8
lxvi
DISTRIBUTION OF THE RESPONDENTS BY THEIR SIZE OF
FAMILY
Size of
family
1. Below 4 44 80.0
2. 5 and 6 11 20.0
Total 55 100.0
The Table No. 8 shows the distribution of the respondents by their size of family.
80.0 per cent of the respondents were having below 4 members in their family and 20 per
cent of the respondents were having 5 and 6 six members in their family.
Govt. of India insists their people to follow small family norms to control
population. The table shows that majority of the workers having up to 4 members in their
family.
lxvii
CHART NO. 8
DISTRIBUTION OF THE RESPONDENTS BY THEIR SIZE OF
FAMILY
80
80
70
60
Percentage
50
40 20
30
20
10
0
Below 4 5&6
Size of Family
lxviii
TABLE NO. 9
DISTRIBUTION OF THE RESPONDENTS BY THEIR RESIDENCE
Sl. No. Residence Frequency Percentage
1. Rural 36 65.5
2. Sub-urban 19 34.5
Total 55 100.0
The Table No. 9 shows the distribution of the respondents by their residence.
65.5 per cent of the respondents were residing in rural area and 34.5 per cent of the
respondents were residing in sub-urban area.
The Company is situated in the out skirt of the city. Most of the workers are from
rural area. Sub-urban residences are less and there are no urban residents.
lxix
CHARTNO. 9
DISTRIBUTION OF THE RESPONDENTS BYTHEIR
RESIDENCE
34.5%
65.5%
Rural Sub-urban
lxx
TABLE NO. 10

Experience in
Frequenc
Sl. No. Present Percentage
y
Company
1. 2-3 yrs 16 29.1
2. 4-5 yrs 28 50.9
3. Above 5 yrs 11 20.0
Total 55 100.0
The Table No. 10 shows the distribution of the respondents by their experience in
present company. 50.9 per cent of the respondents have had 4-5 years of experience,
29.1 per cent of the respondents have 2-3 years of experience and 20.0 per cent of the
respondents have had above 5 years of experience in present company. The mean
experience of the respondents in the company is 4.95.
lxxi
CHART NO. 10
50.9
60
50
29.1
40
Percentage
20
30
20
10
0
2-3 yrs 4-5 yrs Above 5 yrs
Experience in Present Company
lxxii
TABLE NO. 11
DISTRIBUTION OF THE RESPONDENTS BY THEIR TOTAL

WORK EXPERIENCE
Total Work
Experience
1. Below 5 yrs 10 18.2
2. 6 to 10 yrs 32 58.2
3. 11 & above 13 23.6
Total 55 100.0
The Table No. 11 shows the distribution of the respondents by their total work
experience. 58.2 per cent of the respondents have 6 to 10 years of total work experience,
23.6 per cent of the respondents have 11 years & above work experience and 18.2 per
cent of the respondents have below 5 years of work experience. The mean total work
experience of the respondents is 2.05.
lxxiii
CHART NO. 11
DISTRIBUTION OF THE RESPONDENTS BY THEIR TOTAL
WORK EXPERIENCE
58.2
60
50
40
Percentage
23.6
30 18.2
20
10
0
Below 5 yrs 6 to 10 yrs 11 & above
Total Work Experience
lxxiv
TABLE NO. 12
ONE WAY ANALYSIS OF VARIANCE AMONG THE AGE OF THE

Mean Sum of Mean Statistical

Variance df
Squares Square Inference
Between
247.412 2 123.706
Groups G1 80.50 F = 0.544
G2 79.00 (P > 0.05)
Within G3 83.73 Not significant
11814.115 52 227.195
Groups
G1 = Up to 25 years, G2 = 26 to 30 years and G3 = above 31 years
HYPOTHESIS 2.1
There is no significant difference among the age group of the respondents
lxxv
To test the hypothesis one way ANOVA was worked out. The ANOVA result
shows that the calculated F-ratio value is 0.544 which is less than the table value of 3.175
at 0.05 level. Hence the hypothesis (2.1) is accepted.
Though there is no significant difference the mean scores indicate that workers who have
above 31 years of age have got good perception towards employee retention strategies.
TABLE NO. 13
STUDENT’S ‘t’ TEST BETWEEN MARRIED AND UNMARRIED

RESOPONDENTS WITH REGARD TO THE PERCEPTION
No. of
Group Mean df Standard deviation No.
respondents
Married 38 82.21 15.01

t = 0.476
53 (P > 0.05)
Unmarrie Not significant
17 80.12 15.15
d
HYPOTHESIS 2.2
lxxvi
There is no significant difference between married and unmarried
strategies.
The ‘t’ test was applied to test the hypothesis. The ‘t’ test result shows that the
calculated ‘t’ test value is 0.476 which is less than the table value of 2.006 at 0.05 level.
Hence the hypothesis (2.2) is accepted.
Though there is no significant difference the mean scores indicate that workers
who are married having good perception towards employee retention strategies.
TABLE NO. 14

EDUCATIONAL QUALIFICATION OF THE RESPONDENTS WITH
REGARD TO THE PERCEPTION TOWARDS EMPLOYEE

Variance df
Between
163.125 2 81.563
Groups G1 79.67 F = 0.356
G2 79.17 (P > 0.05)
11898.402 52 228.815
Groups
G1 = Below Plus Two, G2 = ITI and G3 = Diploma
lxxvii
HYPOTHESIS 2.3
There is no significant difference among the educational qualification of the
respondents with regard to the perception towards employee retention strategies.
Though there is no significant difference the mean scores indicate that workers who have
studied diploma level have got good perception towards employee retention strategies.
TABLE NO. 15
ONE WAY ANALYSIS OF VARIANCE AMONG THE SALARY OF

THE RESPONDENTS WITH REGARD TO THE PERCEPTION

Variance df
Between
537.235 2 268.618
Groups G1 84.00 F = 1.212
G2 80.18 (P > 0.05)
11524.292 52 221.621
Groups
G1 = Below Rs. 2500, G2 = Rs. 2501 to 5000 and G3 = Rs. 5001 & above
lxxviii
HYPOTHESIS 2.4
There is no significant difference among the salary of the respondents with
regard to the perception towards employee retention strategies.
Though there is no significant difference the mean scores indicate that workers who are
getting Rs. 5001 and above salary got good perception towards employee retention
strategies.
TABLE NO. 16
ONE WAY ANALYSIS OF VARIANCE AMONG THE FAMILY

INCOME/MONTH OF THE RESPONDENTS WITH REGARD TO
THE PERCEPTION TOWARDS EMPLOYEE RETENTION
STRATEGIES

Variance df
Between G1 73.80 F = 1.274

563.349 2 281.675
Groups G2 81.62 (P > 0.05)
lxxix
Within
G3 88.80 11498.178 52 221.119 Not significant
Groups
G1 = Below Rs. 5000, G2 = Rs. 5001 to 10000 and G3 = Rs. 10001 & above
HYPOTHESIS 2.5
There is no significant difference among the family income per month of the
respondents with regard to the perception towards employee retention strategies.
having monthly income above Rs. 10001 per month have got good perception towards
employee retention strategies.
TABLE NO. 17
STUDENT’S ‘t’ TEST BETWEEN THE TYPE OF FAMILY OF THE

lxxx
No. of
respondents
Nuclear 45 81.22 15.54

t = 0.356
53 (P > 0.05)
Not significant
Joint 10 83.10 12.49
HYPOTHESIS 2.6
There is no significant difference between the type of family of the
strategies.
who are coming from joint family system having good perception towards employee
retention strategies.
TABLE NO. 18
STUDENT’S ‘t’ TEST BETWEEN THE SIZE OF FAMILY OF THE

lxxxi
No. of
respondents
Up to 4 44 81.20 15.68
t = 0.353
53 (P > 0.05)
Not significant
5 and 6 11 83.00 12.11
HYPOTHESIS 2.7
There is no significant difference among the size of family of the respondents
who are having 5 and 6 members in their family have got good perception towards
TABLE NO. 19
lxxxii
STUDENT’S ‘t’ TEST BETWEEN THE RESIDENCE OF THE
No. of
respondents
Rural 36 84.17 14.09

t = 1.815
53 (P > 0.05)
Not significant
Sub-urban 19 76.63 15.65
HYPOTHESIS 2.8
There is no significant difference between the residences of the respondents
calculated ‘t’ test valued is 1.815 which is less than the table value of 2.006 at 0.05 level.
who are residing at rural area having good perception towards employee retention
strategies.
lxxxiii
TABLE NO. 20
ONE WAY ANALYSIS OF VARIANCE AMONG THE YEAR OF

EXPERIENCE IN THE COMPANY WITH REGARD TO THE
PERCEPTION TOWARDS EMPLOYEE RETENTION STRATEGIES

Variance df
Between
57.096 2 28.548
Groups G1 82.44 F = 0.124
G2 80.57 (P > 0.05)
12004.431 52 230.854
Groups
G1 = 2 to 3 years, G2 = 4 to 5 years and G3 = above 5 years
HYPOTHESIS 2.9
There is no significant difference among the year of experience in the
company with regard to the perception towards employee retention strategies.
having above 5 years of working experience in the organization have got good perception
towards employee retention strategies.
lxxxiv
TABLE NO. 21

EXPERIENCE OF THE RESPONDENTS WITH REGARD TO THE
PERCEPTION TOWARDS EMPLOYEE RETENTION STRATEGIES

Variance df
Between
100.504 2 50.252
Groups G1 78.70 F = 0.218
G2 82.25 (P > 0.05)
11961.023 52 230.020
Groups
G1 = Below 5 years, G2 = 6 to 10 years and G3 = 11 and above years
HYPOTHESIS 2.10
There is no significant difference among total experience of the respondents
having 6 to 10 years of total working experience have got good perception towards
lxxxv
CHAPTER IV
FINDINGS, SUGGESTIONS AND CONCLUSION
FINDINGS
PERSONAL PROFILE
AGE
It is inferred from table no. 1that, 47.3 per cent of the respondents were belonging
to the age group of above 30 years, 30.9 per cent of respondents were belonging to the
age group of 26-30 years and 21.8 per cent of respondents were belonging to the age
group of less than 25 years.
DEPARTMENT
It is inferred from table no. 2 that, 98.2 per cent of the respondents were
belonging to Production department and only one respondent was from QA department.
MARITAL STATUS
It is inferred from table no. 3 that, Majorities (69.1 per cent) of the respondents
are married and 30.9 per cent of them are unmarried.
SEX
It is inferred from the data that, 100 per cent of the respondents are male.
QUALIFICATION
lxxxvi
It is inferred from table no. 4 that, 61.8 per cent of the respondents had studied
Diploma, 21.8 per cent of the respondents had studied ITI and 16.4 per cent of the
respondents had studied below Plus Two.
SALARY
It is inferred from table no. 5 that, 81.8 per cent of the respondents were in the
income group of 2501-5000 rupees, 12.7 per cent of the respondents were in the income
group of 5001 rupees and above.
FAMILY INCOME PER MONTH
It is inferred from table no. 6 that, 81.8 per cent of the respondents were in the
income group of rupees 5001 to 10000, 9.1 per cent of the respondents were in the
income group of rupees 10001 and above and 9.1 per cent of the respondents were in the
income group of rupees below 5000.
TYPE OF FAMILY
belonging to the nuclear family and 18.2 per cent of the respondents were belonging to
the joint family.
SIZE OF FAMILY
belonging the group of below 4 members and 20.0 per cent of the respondents have 5 and
6 members in their family.
RESIDENCE
lxxxvii
It is concluded from the table no. 9 that, 65.5 per cent of the respondents were
residing in rural area and 34.5 per cent of the respondents were residing in sub-urban
area.
EXPERIENCE IN THE ORGANIZATION
It is inferred from the table no. 10 that, 50.9 per cent of the respondents have had
4-5 years of experience, 29.1 per cent of the respondents have had 2-3 years of
experience and 20.0 per cent of the respondents have had above 5 years of experience in
organization.
TOTAL EXPERIENCE
It is inferred from the table no. 11 that, 58.2 per cent of the respondents have had
6 to 10 years of work experience, 23.6 per cent of the respondents have had 11 years &
above work experience and 18.2 per cent of the respondents have had below 5 years of
work experience.
HYPOTHESES FINDINGS
ONE WAY ANALYSIS OF VARIANCE AMONG THE AGE OF THE
TOWARDS EMPLOYEE RETENTION STRATEGIES.
It is seen from the table no. 12 that the calculated F-ratio accepts the hypothesis
2.1, that there is no significant difference among the age of the respondents with regard
to the perception towards employee retention strategies. The mean scores indicate that
lxxxviii
workers who have above 31 years of age have got good perception towards employee
STUDENT’S ‘t’ TEST BETWEEN THE MARRIED AND
UNMARRIED RESOPONDENTS WITH REGARD TO THE
STRATEGIES.
It is inferred from the table no. 13 that the calculated ‘t’ test accepts the
hypothesis 2.2, that there is no significant difference between the married and unmarried
respondents with regard to the perception towards employee retention strategies. The
mean scores indicate that workers who are married having good perception towards
EDUCATIONAL QUALIFICATION OF THE RESPONDENTS WITH
REGARD TO THE PERCEPTION TOWARDS EMPLOYEE
RETENTION STRATEGIES.
It is seen from the table no. 14 that the calculated F-ratio accepts the
hypothesis2.3, that there is no significant difference among the educational qualification
of the respondents with regard to the perception towards employee retention strategies.
The mean scores indicate that workers who have studied diploma level have got good
perception towards employee retention strategies.
lxxxix
ONE WAY ANALYSIS OF VARIANCE AMONG THE SALARY OF
THE RESPONDENTS WITH REGARD TO THE PERCEPTION
2.4, that there is no significant difference among the salary of the respondents with regard
to the perception towards employee retention strategies. The mean scores indicate that
workers who have above 31 years of age have got good perception towards employee
ONE WAY ANALYSIS OF VARIANCE AMONG THE FAMILY
INCOME PER MONTH OF THE RESPONDENTS WITH REGARD
TO THE PERCEPTION TOWARDS EMPLOYEE RETENTION
STRATEGIES.
It is seen from the table no. 16 that the calculated F-ratio accepts the
hypothesis2.5, that there is no significant difference among the family income per month
of the respondents with regard to the perception towards employee retention strategies.
The mean scores indicate that workers who are having monthly income above Rs. 10001
per month have got good perception towards employee retention strategies.
STUDENT’S ‘t’ TEST BETWEEN THE TYPE OF FAMILY OF THE
xc
hypothesis 2.6, that there is no significant difference between the type of family of the
mean scores indicate that workers who are coming from joint family system having good
STUDENT’S ‘t’ TEST BETWEEN THE SIZE OF FAMILY OF THE
hypothesis 2.7, that there is no significant difference between the size of family of the
mean scores indicate that workers who are having 5 and 6 members in their family have
got good perception towards employee retention strategies.
STUDENT’S ‘t’ TEST BETWEEN THE RESIDENCE OF THE
hypothesis 22.8, that there is no significant difference between the residence of the
mean scores indicate that workers who are residing at rural area having good perception
ONE WAY ANALYSIS OF VARIANCE AMONG THE YEARS OF
EXPERIENCE IN THE COMPANY WITH REGARD TO THE
xci
STRATEGIES.
2.9, that there is no significant difference among the years of experience in the company
with regard to the perception towards employee retention strategies. The mean scores
indicate that workers who are having above five years of working experience in the
organization have got good perception towards employee retention strategies.
EXPERIENCE OF THE RESPONDENTS WITH REGARD TO THE
STRATEGIES.
2.10 that there is no significant difference among total experience of the respondents with
regard to the perception towards employee retention strategies. The mean scores indicate
that workers who are having 6 to 10 years of total working experience have got good
SUGGESTIONS
xcii
The organization has good strategies to retain their employees with a sense of
satisfaction to its employees. From the study it was found that the organization has no
negative aspects in retention strategies. Most of the respondents perceive the retention
strategies in a good manner. They think that their employer adopted the most suitable
strategies to retain them. So the organization can adopt similar measures to improve their
current retention strategies and can also implement some innovative strategies.
In view of the study, the researcher has the following suggestions for the company.
 The study reveals that though the minimum qualification for a worker in the
company is ITI, a few (16.4%) respondents have not even passed plus two level.
Hence, the company may review its recruitment and selection procedure.
 The study reveals that the respondents with less salary have a poor perception
towards the employee retention strategies of the company. Therefore, the
company may consider providing higher salary to the workers.
 The study reveals that only 20 per cent of the respondents are working in the
company for more than five years. This shows that though the employees are
satisfied with the employee retention strategies of the company, very marginal
number of workers is staying in the company for a longer duration of time.
 The study shows that only 23.6 per cent of the respondents have a total working
experience of more than 10 years. Hence, the company may take steps to recruit
workers with higher work experience.
xciii
CONCLUSION
The globalization of business is forcing the managers to retain high potential
talents and develop them to be the best workers. The major challenges for manages and
HR leaders is to convert threats into opportunities effectively via best available resources
in order to recruit and retain them in the organization. Besides this, pursue succession
planning and enable a workplace where employee’s expectations are viewed clearly.
Create and employment brand experience that motivates and energizes employees and
can be used to attract new talent. Companies need to identify the routes to ensure
employees feel they are growing with the industry and are not being exploited for a few
bucks.
The project with the title ‘Perception of the Employees Towards Employee
Retention Strategies’ was conducted among the workers of Pomona Industries Ltd.,
Coimbatore. Due to time constraint it is not possible to study more Frequency of
respondents. In spite of these constraints, the researcher compiled the task of data
collection and carried out the systematic analysis.
It is clear from the study that there is no significant difference between personal
variables, namely, age, marital status, and educational qualification, family income, type
of family, size of family and domicile do not influence the perception of the employees
xciv
The organizational factors like, department, salary, experience in the present
company and total work experience are also found to be not influencing the perception of
the employees towards employee retention strategies.
BIBLIOGRAPHY
Books
Allen & Meyer, "Investigated the nature of the link between turnover and the three
components of attitudinal commitment", 1990, pp. 65-69.
Arundhuti Dasgupta, "Global Call Indian Management", Vol.46, 2002, pp. 31-35.
Boxall, et al., "Found the main reason by far for people leaving their employer was for
more interesting work elsewhere", 2003, pp. 40-45.
British Columbia Ministry of Health, "A Study the modified Physician Recruitment and
Retention Program", 2001, pp. 34-40.
Canadian Labour and Business Centre, "A Study on effective recruitment and retention
of teachers", 2002, pp. 32-51.
Darke International, North America, "A Study on Employee Retention", 2006, pp. 787-
94.
Elangoven, "A Study on link between stress and satisfaction", 2001, pp. 53-55.
Griffeth & Hom, "A meta-analysis of some 800 turnover", 1995, pp. 344-347.
John K. Shank & Eric A. Spiegel, "Strategic Value Analysis for Competitive
Advantage", 1998, pp. 23-44.
xcv
Kirschenbaum & Mano Negrin, "A Study on Employee Turnover", 1999, pp. 45-55.
Lum, et al., "A Study has reported a significant association between organizational
commitment and turnover intentions", 1998, pp. 38-42.
Meenakshi S. Nair, "A Study on Employee Retention Strategies", 2007, pp. 41-56.
Mobley, et al., "A Study the relationship between intentions and turnover", 1979, pp. 67-
82.
Martin, "Investigates the determinants of labour turnover using establishment-level

survey data for the UK", 2003, pp. 23-37.
Journals
Babu P Ramesh, "Cyber coolies in BPO Insecurities and vulnerabilities of Non

Standard work", Economic and Political weekly, Vol.34, 2004, pp. 492.
Chandran Mohan, "The Taj's People Philosophy and Star System" HRD Review, Vol.
24, 2003, pp. 52-56
David John, "An Illustration from the Petroleum Industry", Mckinsey Quarterly, Vol. 21,
2003, pp. 32–39.
Dutta Andrew, "Strategies for Retaining Employees", HRM Review, Vol. 25, 2004, pp.
31-35.
Harris Jim, "Ten Trends Impacting Employee Retention", ICFAI Press, Vol. 20, 2003,
pp.40-43.
Kodwar Amitabh and Kuma Senthil, "Employee Retention: Issues and Challenges",
HRM Review, Vol. 25, 2004, pp. 15-20.
xcvi
Mamidenna Sireesha, "In Defense of Long-term Employment", HRM Review, Vol. 24,
2004, pp. 27-30.
Mandal, "Employee Retention", HRM Review, Vol. 30, 2009, pp. 59-62.
Mishra Paresh, "Tapping Talents", HRM Reviews, 2008, Vol. 24, pp.25-29.
Murthy, G.R.K., "Talent Retention: Businesses Gotta Make Work Passionate", HRM
Review, Vol. 25, 2004, pp. 21-26.
RTS Consultants (UK) Ltd in association with The Institute of the Motor Industry,
"A Study on Employee Retention in the Retail Motor Industry", Motor Industry, 2005,
pp. 27-52.
Raju, P.V.L., "Talent Management in Strategies", HRM Review, Vol. 24, 2003, pp. 19-
20.
Raju, P.V.L., "Talent Management: How to Attract and Retain Star Employees", HRM
Review, Vol. 25, 2004, pp. 11-13.
Raghavendra R., "BPO firms Head Hunt in smaller cities", The Economic
Times, 2003, Vol. 23 p.10.
Rajas Kelkar, "India, Ireland Turn Outsourcing Hubs", The Economic Times, 2002, Vol.
20 p. 10.
Sharma, R.A., "Employee Retention Through Employee Engagement and Involvement",

HRD News Letter, 2008, Vol. 24, p. 22.
Shelley Singh & Mitu Jayashankar, "The BPO Boom", Business World, 2002, Vol. 12,
pp. 28-37.
xcvii
Shelley Singh, "Keeping employee from straying", Business World, 2003, Vol. 13, pp.
25-27.
Sharvari Joshi, "BPOs have undergrads in their sights", Times of India, Vol. 34, pp. 1
Tupili, Nithya, "ER (Employee Retention) Vs HR (Human Resources)", HRD News

Letter, Vol. 24, 2008, p. 24.
Venkata Ramani, V., "Approach Towards Talent Management", ICFAI Press, Vol. 24,
2003, pp.21-24
WEB SITES
1. www.managementhelp.org
2. www.refresher.com
3. www.humanresources.about.com
4. www.highretention.com
5. www.employeeretentionstrategies.com
6. www.themanager.org
7. www.retention.naukrihub.com
8. www.amanet.org
9. www.pubmed.com
xcviii
10. www.india-today.com/btoday/22071999/hresource.html
11. www.citehr.com
12. www.cs.state.ny.us/successionplanning/workgroups/Retention/
employeeretentionreport.pdf
xcix
APPENDIX
STRATEGIES
PERSONAL PROFILE
1. Age :
2. Department : Production / QA
3. Marital Status : Married / Un Married / Divorcee / Widow /
Widower
4. Sex : Male / Female
5. Qualification : Below Plus Two / ITI / Diploma
6. Salary : Below 2,500 / 2,501 to 5,000 / 5,001 & above
7. Total family income/month : Below 5,000 / 5,001 to 10,000 / 10,001 & above
8. Type of family : Nuclear / Joint
9. Size of family : Below 4 / 5 & 6 / 7 & above
10. Residence : Rural / Sub-urban / Urban
11. Experience in Revathy Eq. :
12. Total Experience : Below 5 / 6 to 10 / 11 & above
13. Type of employment : Company pay roll / Contract
c
S.No. Particulars SDA DA UD A SA
1. Is your company an employer of Choice

Performance of the employees are measured at periodical
2. intervals
Company recognizes its performers through proper rewards
3. and recognition
Employee turnover happens due to matters other than
4. monetary reward
Employees have ample opportunity to understand how their
5. work contributes to the bottom line of the company.
Employees are provided with opportunities for career growth
6. and self development.
Employees are provided a comfortable, safe work
7. environment
Care for the well-being of employees is a priority of the
8. Company by making their life easier and less stressed.
Superiors are aware of what are the replacement costs for
9. every employee who resigns/needs to be replaced.
The rate of employee turnover in the company is lower than
10. the average in similar industry.
Superiors spent more time and money on retention program
11. than on recruitment
Salaries and bonuses are linked to performance or the
12. development of competences.
Superiors are aware of the job forecast and professional
13. development plan for the next two years.
Employees are aware that they are an asset in which one
14. needs to invest and not a cost to reduce.
Management has created an open and comfortable work
15. environment.
Agree with the timeline chart put forth by my department to
16. achieve the assigned job.
Management recognizes and makes use of employee’s
17. abilities and skills.
18. Employees are treated with respect by management and Peers

Management is flexible and understands the importance of
19. balancing the work and personal life of its employees
The training I received helped me to do my job effectively and
20. efficiently.
The management recognizes that peaceful family life and
times spend with family is important for individual
21. achievements.
I recommend others to join this company and consider it as an
22. employer of choice
ci
SDA- STRONGLY DISAGREE, DA- DISAGREE, UD- UNDECIDED, A- AGREE,
SA- STONGLY AGREE
cii

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A STUDY ON PERCEPTION OF THE EMPLOYEES TOWARDS

EMPLOYEE RETENTION STRATEGIES WITH SPECIAL

(Enrolment. No. 08AMBHR2014)

HUMAN RESOURCE MANAGEMENT

TN0218- SETHUPATHI INSTITUTE OF HIGHER

Under the guidance of

SCHOOL OF DISTANCE EDUCATION

This is to certify that the project work entitled “A STUDY ON

PERCEPTION OF THE EMPLOYEES TOWARDS EMPLOYEE RETENTION

STRATEGIES WITH SPECIAL REFERENCE TO M/s. POMONA INDUSTRIES

Resource Management is a record of the original work done by Mr. M.N.Krishnadas,

(08AMBFM2014) (Reg.No.08NHR7014) under supervision and guidance and that this

ship/Fellowship or similar title to any candidate of any university.

Mr. M. PRASAD, M.Sc., M.B.A., M.Phil., PGDOR.,

Submitted for University Examination held on________________

Internal Examiner External Examiner

I hereby declare that this project work titled “A STUDY ON

PERCEPTION OF THE EMPLOYEES TOWARDS EMPLOYEE RETENTION

STRATEGIES WITH SPECIAL REFERENCE TO M/s. POMONA INDUSTRIES

Fellowship or similar title to any candidate of any university.

Course with specialization : MBA (Human Resource Management)

Signature of the Guide Signature of the Centre-Coordinator

I express my thanks to “Pomona Industries Limited” at Coimbatore, for

promoting me to do my project in their organization.

I express my sincere and special thanks to Coordinator of Sethupathi Institute of

in conducting the study.

faculty guide Mr. M. Prasad, Lecturer in Department of Master of Business

guiding force throughout the course of the project.

I sincerely thank Mr. SHIVASHANKARAN (HR Manager) and team,

I express my sincere gratitude to all my respondents and to all my friends who

helped me to complete this project successfully.

Analysis & Interpretation

business enterprise. In many large organizations, HR recruitment and retention strategy

revolves around creating a competitive compensation and benefits package, or instituting

managing these skilled employees appropriately.

Similarly, competing in the labour market requires understanding of the employees’

committed to the organization.

Companies that produce mediocre products or provide poor service have

though their compensation may be relatively low.

individual and the employee propels himself to a higher trajectory of performance.

workforce. Such organizations continuously communicate three missions and vision to

organization and the individual mutually benefit from their relationship.

Opportunities to learn and grow are powerful motivators to inspire talented

Magnet organizations address this fundamental need by providing employees with

impression of the organization.

technology, inadequate resources, inefficient work processes, and stifling bureaucracy

perform well and stay committed to the organization.

In many companies there is the practice to promote technically adapting people to

a blind eye to disrespectful or even abusive behavior by managers. The importance of

Retention is one of the important aspects of an organization. The subject

good employees. The supervisors must be prepared to be collaborative, supportive, and

nurturing their people, the ‘my-way-or-the-highway’ style of management is a thing of

maximum period of time.

 Job not as expected.

 No hope for career growth.

 Feel overworked and stressed out.

 Lack of trust or confidence in leaders.

Retaining valuable staff is becoming increasingly difficult in today’s

Employee retention means a process in which the employees are encouraged to

foster an environment that encourages employees to remain employed by having policies

and practices in place that address their diverse needs."

-Definition by Employee Retention Workgroup

employer should know how to attract and retain its employees.