EMPLOYEE ATTRITION AND EMPLOYEE RETENTION (A STUDY WITH REFERENCE TO TTK HEALTHCARE LIMITED) DISSERTATION Submitted In partial fulfillment for the award of the degree of MASTER OF PHILOSOPHY IN COMMERCE By DIVYA. K (REG. NO:R13COE004) Under the Supervision and Guidance of Dr.N.CHANDRAVATHI, M.Com, M.Phil, Ph.D. Associate Professor Department of Commerce SDNB Vaishnav College for Women
DEPARTMENT OF COMMERCE S.D.N.B VAISHNAV COLLEGE FOR WOMEN CHENNAI – 600 044 AUGUST 2014
DEPARTMENT OF COMMERCE S.D.N.B. VAISHNAV COLLEGE FOR WOMEN CHROMEPET, CHENNAI – 600 044
Dr. N.CHANDRAVATHI Associate Professor Department of Commerce SDNB Vaishnav College for Women CERTIFICATE This is to certify that the dissertation “EMPLOYEE ATTRITION AND EMPLOYEE RETENTION (A STUDY WITH REFERENCE TO TTK HEALTHCARE LIMITED)”submitted to S.D.N.B. Vaishnav College for Women in partial fulfillment of the requirement for the award of the Degree of Master of Philosophy is a bona fide record of the independent work carried out byK.DIVYA, under my supervision and guidance. Dr. S.RATHI Head of the Department
Dr.N.CHANDRAVATHI Guide and Supervisor
EXTERNAL EXAMINER
DEPARTMENT OF COMMERCE S.D.N.B. VAISHNAV COLLEGE FOR WOMEN CHROMEPET, CHENNAI – 600 044
DECLARATION I hereby declare that the Dissertation entitled “EMPLOYEE ATTRITION AND EMPLOYEE RETENTION (A STUDY WITH REFERENCE TO TTK HEALTHCARE LIMITED)” submitted by me for the award of Master of Philosophy, S.D.N.B. Vaishnav College for Women, has not formed the basis for the award of any degree, diploma, associateship, fellowship in any other similar titles.
(K.DIVYA) REG.NO: R13COE004
ACKNOWLEDGEMENT
I extend my heartfelt thanks to the Principal Dr. G. RANI, M.Sc., B.Ed., M.Phil, Ph.D., for giving me an opportunity to study in this esteemed institution. I would like to express my sincere thanks toDr.S.RATHIM.Com., B.Ed., M.Phil, Ph.D Head of the Department of Commerce and former Head of the Department of Commerce Dr.N.CHANDRAVATHI, M.Com, M.Phil, Ph.D., of all the help rendered. I would like to express my sincere thanks to my guide Dr.N.CHANDRAVATHI, M.Com, M.Phil, Ph.D, Associate Professor,Department of Commerce for her guidance and support. I also wish to thank all the faculty members of the Department of Commerce for their encouragement and motivation. I sincerely thank all the staff members of “TTK HEALTHCARE LIMITED” for their excellent support. My special thanks to Mr. Suresh Kumar, Assistant General Manager, TTK HEALTHCARE LIMITED for his support to make my research work a success. I wish to thank Dr. JOSHUA DAVID, Associate Professor, Department of Statistics, Madras Christian College, for helping me in statistical analysis. I also thank my parents for their constant support and motivation at all times and above all I thank God Almighty for his Blessings.
PLACE:
K. DIVYA
DATE:
REG. NO: R13COE004
CONTENT
CHAPTER
TITLE
PAGE.NO
I
INTRODUCTION
1
II
COMPANY PROFILE
15
III
REVIEW OF LITERATURE
28
IV
ANALYSIS AND INTERPRETATION OF DATA
46
V
FINDINGS AND SUGGESTIONS
87
VI
CONCLUSION
90
BIBLIOGRAPHY APPENDIX
QUESTIONNAIRE
LIST OF TABLES TABLE NUMBER 4.1 4.2 4.3 4.4
TITLE AGE OF RESPONDENTS DEPARTMENT OF RESPONDENTS GENDER OF RESPONDENTS EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
PAGE NO 47 49 51 53
TABLE NUMBER
4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12
TITLE
EXPERIENCE OF THE RESPONDENTS EMPLOYEE ATTRITION IS A CHALLENGE SATISFACTION WITH THE CURRENT JOB LACK OF ADEQUATE SALARY GOOD WORKING ENVIRONMENT TRAINING PROGRAMME ADEQUATE COMPENSATION FOR THE JOB GOOD COMMUNICATION
PAGE NO
55 57 59 61 63 65 67 69
NECESSARY RESOURCES AND EQUIPMENTS TO 4.13
4.14
PERFORM THE JOBS RIGHT AMOUNT OF RECOGNITION FOR THE JOB
4.15
THE COMPANY OFFERS ADEQUATE AMENITIES
4.16
THE SIGNIFICANCE OF DIFFERENCE BETWEEN THE DEPARTMENT AND SATISFACTION WITH THE CURRENT JOB
4.17
4.18 4.19
THE SIGNIFICANCE OF DIFFERENCE BETWEEN GENDER OF THE RESPONDENTS AND THEIR SATISFACTION WITH THE CURRENT JOB THE SIGNIFICANCE OF DIFFERENCE BETWEEN EDUCATIONAL QUALIFICATION OF THE RESPONDENTS ANDTHEIR SATISFACTION WITH THE JOB THE SIGNIFICANCE OF DIFFERENCE BETWEEN THE CHALLENGE OF EMPLOYEE ATTRITION AND THEIR SATISFACTION WITH THE CURRENT JOB.
71
73 75
77
78
79 80
TABLE NUMBER
TITLE
PAGE NO
KMO AND BARTLETT'S TEST 4.20 4.21 4.22 4.23
81 TOTAL VARIANCE EXPLAINED FACTOR LOADINGS
82 83
FINAL GROUPING OF VARIABLES
85
LIST OF CHARTS TABLE NUMBER 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15
TITLE AGE OF RESPONDENTS DEPARTMENT OF RESPONDENTS GENDER OF RESPONDENTS EDUCATIONAL QUALIFICATION OF THE RESPONDENTS EXPERIENCE OF THE RESPONDENTS EMPLOYEE ATTRITION IS A CHALLENGING SATISFACTION WITH THE CURRENT JOB LACK OF ADEQUATE SALARY GOOD WORKING ENVIRONMENT TRAINING PROGRAMME ADEQUATE COMPENSATION FOR THE JOB GOOD COMMUNICATION NECESSARY RESOURCES AND EQUIPMENTS TO PERFORM THE JOBS RIGHT AMOUNT OF RECOGNITION FOR THE JOB THE COMPANY OFFERS ADEQUATE AMENITIES
PAGE NO 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76
CHAPTER I INTRODUCTION
CHAPTER - I INTRODUCTION “Fascinatingly, as companies begin to struggle, the third category always seems to grow much faster than first. In addition, the sudden wave of “semi –
performance – related attrition” usually happens in companies that claim to have a “super – high talent bar” -
Ben horowitz
Employee attrition is one of the most researched areas. Employee attrition is the rate at which organizations and/or company's hiring and fire employees to either represent their firm or leave their firms. It is also referred to the employee turnover rate. The cost of turnover starts rising in terms of employing and training new staff, the profitability of the organization also declines. The major causes for change are better monetary attractiveness of another job, or dissatisfaction with the current job in terms of supervisor, appraisals etc.This rate shows how often the employees at a place of business change over the course of a month. Usually companies prefer a low attrition rate, but the rates differ based on the industry. For example, a fast food restaurant will have a higher employee turnover compared to a law firm. A lower employee turnover rate allows a company to keep coherence over the year. The attrition rate has always been a sensitive issue for all organizations. Calculating employee turnover rate is not that simple as it seems to be. No common formula can be used by all the organizations. A formula had to be devised keeping in view the nature of the business and different job functions. Moreover, calculating attrition rate is not only about devising a mathematical formula. It also has to take into account the root of the problem by going back to the hiring stage. Most organisations do not evolve robust measurements for calculating the cost of labour turnover or a bad hire.
The details of information required and the measurement metrics are not common formulae, but have to be designed in keeping with the nature of the business and different job functions. As a result, most organizations do not intend to mislead by disclosing statistics which may not be true; it is just that perhaps they believe those to be true. It is imperative to evolve the science of measurement before the measure itself. Research says that most of the employees leave an organization out of frustration and constant friction with their superiors or other team members. In some cases low salary, lack of growth prospects and motivation compel an employee to look for a change. The management must try its level best to retain those employees
who are really important for the system and are known to be effective contributors. It is the responsibility of the line managers as well as the management to ensure that the employees are satisfied with their roles and responsibilities and the job is offering them a new challenge and learning every day. Employees today are different. They are not the ones who don’t have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next job. It is the responsibility of the employer to retain their best employees. If they don’t, they would be left with no good employees. A good employer should know how to attract and retain its employees. Employee retention is a method of taking measures to encourage workers to stay in the company for the highest possible time duration. It is a process in which the workers are motivated to stay with the competition of the particular project or long term. Employee retention technique is beneficial for the company as well as the workers.
The advantages of high employee retention are as follows: 1. A lot of investment is needed to train an employee and to make him productive. If such an employee leaves the organisation, they lose the money invested and also an employee who could have contributed significantly to the organisation. 2. If a person employed in a critical role leaves, then it disturbs the functioning of the organisation. Also, to replace such an employee, involves huge costs. Employee retention is important because: •
Hiring is not an easy process
•
An organization invests time and money in grooming an individual and make him ready to work and understand the corporate culture:
•
When an individual resigns from his present organization, it is more likely that he would join the competitors
•
The employees working for a longer period of time are more familiar with the company’s policies, guidelines and thus they adjust better
•
Every individual needs time to adjust with others
•
Individuals sticking to an organization for a longer span are more loyal towards the management and the organization:
•
It is essential for the organization to retain the valuable employees showing potential. A sound retention strategy has four key elements -
Performance.
Communication.
Loyalty. Competitive advantage
FACTORS AFFECTING EMPLOYEE ATTRITION Compensation Compensation constitutes the major part of the employee retention process. The employees mostly always have high hopes regarding their compensation packages. Compensation varies with the industry. So, an attractive compensation package mostly plays a critical role in the turnover of employees. •
Salary and monthly wages:It is the biggest component of the compensation package. It is also the most common factor of comparison among employees. It includes 1.
Basic wage
2.
House rent allowance
3.
Dearness allowance
4.
City compensatory allowance
Salary and wages represent the level of skill and experience an individual has. Time to time increase in the salaries and wages of employees should be done. And this increase should be based on the employee’s performance and his contribution to the organization.
•
Bonus: Bonus are usually given to the employees at the end of the year or on a festival.
•
Economic benefits: It includes paid holidays, leave travel concession, etc.
•
Long-term incentives: Long term incentives include stock options or stock grants. These incentives help retain employees in the organization's startup stage.
•
Health insurance:Health insurance is a great benefit to the employees. It saves employees money as well as gives them a peace of mind that they have somebody to take care of them in bad times. It also shows the employee that the organization cares about the employee and its family.
•
After retirement: It includes payments that an employee gets after he retires like EPF (Employee Provident Fund) etc.
•
Miscellaneous compensation: It may include employee assistance programs (like psychological counselling, legal assistance etc), discounts on company products, use of company vehicles etc.
Environment For an organization that does not manage its people well, employee attrition is a major problem. Organizations that focus on managing the work environment tend to make better use of the available human assets. People want to work for an organization which provides Appreciation for the work done Ample opportunities to grow A friendly and cooperative environment A feeling that the organization is second home to the employee
o
Employee growth
Growth is an integral part of every individual’s career. If an employee can’t foresee his path of career development in the current organization, chances are that he’ll leave the organization as soon as an opportunity is made available.
o Management support Lack of support from management can many times serve as a reason for employee turnover. Management should focus on its employees and support them not only in their difficult professional times but also in the times of personal crisis. This can be done by providing them recognition and appreciation. Employers can provide valuable feedback to all employees and make them feel valued to the organization. o Work relationship Sometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization. The management is sometimes not able to provide an employee a supportive work environment in terms of personal and/or professional relationships. There are times when an employee starts feeling resentment towards the management or peers due to one or more of many reasons. This decreases employee’s interest and he becomes demotivated. It leads to less satisfaction and eventually attrition.
Job and Work-Life
Many individuals have seen a decline in job security during the past decade. All the downsizings, layoff, mergers and acquisitions, and organizational restructurings have affected employee loyalty and retention. As coworkers experience layoffs and job reductions, the anxiety levels of the remaining employees rise. Consequently, employees start thinking about leaving before they too get cut. Organizations in which job continuity and security
are
high
tend
to
have
higher
retention
rates.
Some jobs are considered "good" and others are thought to be "bad," but not all people agree on which jobs arc good. The design of jobs and peoples' preferences can vary significantly. Job design factors that can impact retention include the following: •
A knowledge, skills, and abilities mismatch, either through overqualification or underqualification, can lead to turnover.
•
Job accomplishments and workload demands that are dissatisfying or stressful may impact performance and lead to turnover.
•
Both timing of work schedules and geographic locations may contribute to burnout of some individuals.
•
The ability of employees to balance work and life requirements affects their job performance and retention.
Numerous examples could be given on how each of these items affect retention, but one comesfrom a survey of Chief Financial Officers on the impact of these issues in their firms - work-life flexibility efforts were seen as creating significant retention, recruitment, and productivity results.
MANAGING EMPLOYEE ATTRITION According to Katie Dodsworth, Occupational Psychologist.The task of managing employee attrition can be split intothree stages: 1. Identify the level and cost of turnover and benchmarking it against competitors 2. Understand why employees leave 3. Implement retention strategies.
KEYS TO LOW EMPLOYEE TURNOVER •
Training and development opportunities
•
A safe working environment
•
A healthy working environment
•
Responsive scheduling
•
Positive employee-supervisor relationships
•
Reasonable job demands
•
Competitive pay and benefits
•
Employee communication and influence
•
Personally rewarding work
•
Job security
•
Thoughtful job design
WHY EMPLOYEES STAY IN THEIR JOB: •
Career growth and learning;
•
Exciting and challenging work;
•
Meaningful work and the opportunity to make a difference;
•
Great co-workers;
•
Being part of team;
•
A good boss;
•
Being recognized for a job well done;
•
Having fun on the job;
•
Autonomy or a sense of control over their own work;
•
Flexibility in work hours and dress code;and
•
MONEY.
REASON FOR EMPLOYEE TO COME TO THE ORGANISATION? • Pay, • Location, • Benefits, • Advancement Possibilities, • Job Security, • Nature Of Work, • Personal/Family Time.
NEED OF THE STUDY:
The success of any organization depends largely on the workers, the employees are considered as the backbone of any company. The study is mainly undertaken to identify the level of employee’s attitude, the dissatisfaction factors 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 action to reduce attrition level. Since they are considered as backbone of the company, their progression will lead to the success of the company for the long run. This study will be helpful in knowing, why the employees prefer to change their job and which factors make employees dissatisfied.
This study will be helpful to the management to improve its core weaknesses by the suggestions and recommendations prescribed in the project. It can measure the organization’s overall performance in terms of employee satisfaction.
OBJECTIVES OF THE STUDY: •
To determine the factors that contributes to the employee attrition.
•
To examine the employee retention policies adopted by the company.
•
To ascertain the responsiveness of the employees towards the retention policies and strategies.
•
To suggest measures for keeping attrition rate at an acceptable level.
METHODOLOGY OF THE STUDY: The study is mainly based on primary data. The primary data was collected through questionnaire. Published information from journals, dailies, books, websites were also obtained. The study was carried during April 2014 to July 2014. The data for the study was collected from 150 employees in TTK HEALTHCARE LIMITED. Non – random sampling method has been used to collect the data.
The sample consists of 100 male and 50 female respondents. 64 respondents belong to the age group 35 - 45, 41 respondents belong to the age group35 – 45, 25 respondents belong to the age group less than 25 years, 20 respondents belong to the age group above 45 years. 46.67% respondents are graduate, 23% of respondents are post graduates, 17% of respondents are professionals, and 13% of respondents are diploma holders. The questionnaire consists of 2 sections. o Section I deals with personal information. o Section II deals with variables relating to employee attrition and employee retention. About 50 statements were applied to study the reasons for employee attrition and how best to retain the employees in the organisation. The respondents were asked to rate each statement on a five point scale - strongly agree, agree, neutral, disagree and strongly disagree (5, 4, 3, 2, 1).
FRAMEWORK OF THE STUDY: The collected data was edited, coded and classified. The analysis was done by applying appropriate statistical techniques. Percentage analysis was applied to the followings: o Age of respondents. o Gender of respondents. o Department of respondents.
o Educational qualification of the respondents. o Experience of the respondents. o Employee attrition is a challenging. o Satisfaction with the current job. o Lack of adequate salary. o Good working environment. o Training programme.
o Adequate compensation for the job. o Good communication. o Necessary resources and equipments to perform the jobs. o Right amount of recognition for the job. o The company offers adequate amenities. Next, chi – square test was applied to find out the significance of difference between o educational qualification of the respondents and their satisfaction with the job o The challenge of employee attrition and their satisfaction with the current job. o Gender of the respondents and their satisfaction with the current job. o the department and satisfaction with the current job
Factor analysis was also applied to identify the factors relating to employee attrition and employee retention.
LIMITATION OF THE STUDY: The study suffers from certain limitation. They are as follows: 1. The data for the purpose of the study were collected only from employees of TTK HEALTHCARE LIMITED. 2. The study concentrates only onsome aspects of employee attrition. 3. The primary data for the study were collected through questionnaire and the results of the study may suffer from the inherent drawbacks of such instrument.
4. Only the view of the employees has been considered not that of executives. 5. The response to the questions depends on the mindset of the respondents and the same may be biased. 6. Non – random sampling has been used in this study. Hence this study suffers from the limitations which are associated with non – random sampling method.
CHAPTER ARRANGEMENT: The dissertation consists of six chapters. Chapter – I Introduction: This chapter states the importance and objectives of the study and the methodology adopted for the study. Chapter – II Company profile: This chapter contains the profile of TTK HEALTHCARE LIMITED. Chapter – III Review of literature:
This chapter provides an extensive review of literature on employee attrition and employee retention. Chapter – IV Analysis and interpretation of data: This chapter deals with the analysis and interpretation of data relating to the employee attrition and employee retention. Chapter-V Findings and suggestion: This chapter deals with the findings of the study and appropriate suggestions. Chapter - VI Conclusion This chapter provides the conclusion of the research study.
CHAPTER II COMPANY PROFILE
COMPANY PROFILE The study was conducted at TTK HEALTH CARE Ltd, hence a brief history and functioning of the company is provided in this chapter. INTRODUCTION: TTK Healthcare, a TTK group company was incorporated in May 1958 as Orient Pharma and later renamed as TTK Pharma in Nov '81. Some of the other companies belonging to the TTK group include London Rubber, TT Textiles, TTK Chemicals, etc. The company concentrate on pharmaceutical, consumer products and hospital care products. The company is the owner of famous WoodwardsGripewater brand. In 1992, the company came out with a rights issue at a premium of Rs 35 aggregating Rs 5.81 cr to finance long-term working capital needs, normal capital expenditure, and product promotion. Products of TTK Healthcare include cardiac care systems, blood management systems, renal care systems, hospital accessories, antibiotics,Woodwards gripe water, animal medicines, etc. It also has a consumer products and food division manufacturing kiwi shoe polishes, snacks, etc. The company has collaborations with a number of foreign corporations such as London International, Kali-Chemi, Germany; Hatu-ICO, Spain; Nicholas Kiwi, US, etc. The products of the company are exported to the UK, Egypt, the US, Germany, Singapore, Malaysia, Carribean countries, etc. The Pallavaram plant of the company has been accredited with the ISO 14002 certification by the Bureau of Indian Standards. Also, one of the group companies, TT Maps and Publications was merged with TTK Pharma in 1993. The company faced some rough weather in Jul.'95 when the MRTPC ordered an inquiry against it for allegedly directing its whole-salers to keep a minimum stock of the company's products and defining their area of operations. During 1996-97, the company has tied up with M/s Mentholatum India Pvt Ltd.
During the year 1999-2000, as a part of the restructuring programme, the paper divison of the company has been disposed off and the merger of TTK Biomed has been approved by the Hon'ble High Court Of Madras with retrospective effect from July 1, 1999. In 2000-01, the company has vacated the bulk drug business
segment by disposing of the Bulk Drugs & Formulations facility at Hyderabad. The High Court, Madras has approved the scheme of amlagamation between TTK Medical Devices Ltd. and the company. During the financial year 2003-04,the Heart Valve division of the company has been awarded ISO 9001-2000 Certification by RWTUV,Germany
COMPANY OVERVIEW: The company's brand wagon consists of products that are sought after by a wide range of customers. The Woodward's Gripe Water brand is the market leader in the baby care category. The Eva range of personal care products (Talc, Deodorant, Skincare) bring together the gentle touch of nature, backed by TTK's extensive research. TTK Healthcare has an All India sales and distribution network for marketing not only their own products, but also the KIWI Brand (Shoecare), Brylcreem (Haircare) and Kohinoor and Durex brands (Contraceptives). The company also specializes in sales and distribution in India as a joint venture partner. It has a successful tie up with Sara Lee Household and BodycarePvt. Ltd. and TTK-LIG Ltd. The company's distribution network comprises of 2800 redistribution stockists who cover both the urban and rural consumers.
THREE STRATEGIC BUSINESS UNITS PharamaceuticalsDivison– TTK Healthcare's Pharmaceuticals Division has many break through •
herbal and
•
allopathic formulations,
across various therapeutic segments. The range includes • calcium supplements, •
haematinics,
•
cervical dilators,
•
thrombolytic agents,
•
rejuvenators,
•
multimineral supplements
•
liver correctives and
•
pain management products.
TTK Healthcare's Pharmaceuticals Division functions through 4 main divisions – Ethical Products Division (EPD), Modern Medicine Division (MMD), Indian Medicine Division (IMD) and VENTURA
The Pharmaceuticals Division's product range comprises many path-breaking medicines like: • Programmed release products like RABULCER D for gastric reflux and ulcer • Anti-inflammatory products like Nimulase and Dolobest OD based on special coating technology • TEFROLIV FORTE for hepatic disorders • ELCARIM for proper growth and development of babies • DELIVERA for dry skin
AYURVEDA: The Division has also developed products based on the ancient and traditional knowledge of ayurveda. The Pharmaceuticals Division is backed by a formidable strength of over 600 well trained field staff who form the interface between the medical fraternity and the pharmaceutical industry. TTK Healthcare's Pharmaceutical products enjoy unsolicited patronage from all segments of doctors. A highly efficient distribution network, with depots across all the states ensures that TTK Healthcare's pharmaceutical products are made available to every nook and corner of India The Division has also developed products based on the ancient and traditional knowledge of ayurveda. The Pharmaceuticals Division is backed by a formidable strength of over 600 well trained field staff who form the interface between the medical fraternity and the pharmaceutical industry. TTK Healthcare's Pharmaceutical products enjoy unsolicited patronage from all segments of doctors. A highly efficient distribution network, with depots across all the states ensures that TTK Healthcare's pharmaceutical products are made available to every nook and corner of India Besides being the first Pharmaceutical Company in India to be awarded the ISO certification by BIS, TTK Healthcare was also the first to launch technology-driven lifesaving products like Urokinase and Dopamine. The Company has also developed medicines like Lactare based on Ayurveda - the ancient traditional system of medicine.
Consumer Products Division - The Consumer Products Division(CPD) markets and distributes Woodward's Gripe Water - the undisputed market leader in the baby care category - and the recently introduced Woodward's Baby Soap. Besides handling the national distribution of Durex and Kohinoor condoms, the division also distributes BrylcreemHaircare and Toiletry Products and Kiwi's shoe care range
The Company's products are marketed by a well-trained sales force, who form an ideal interface between the medical fraternity and the Company's pharmaceutical division. TTK Healthcare's products are trusted and prescribed by a wide segment of healthcare professionals in India. Almost 90,000 doctors are met every month by personnel from the Ethical Products Division(EPD). Biomedical Devices Division- The TTK Heart Valve Division manufactures and distributes India's first indigenous heart valve prosthesis - the tilting-disc TTK Chitra Heart Valve. The only Indian-made heart valve, it is also the most price-friendly and so far nearly 18,000 Chitra valves have been successfully implanted in patients. Initially conceived in 1978, the heart valve being a critical implant, went through the most painstaking development for 12 years at the prestigious SreeChitraTirunal Institute for Medical Sciences and Technology (SCTIMST), Trivandrum, India - an autonomous institute under the Department of Science and Technology, Government of India. The TTK Heart Valve Division manufactures and distributes India's first indigenous heart valve prosthesis - the tilting-disc TTK Chitra Heart Valve. The only Indian-made heart valve, it is also the most price-friendly and so far nearly 18,000 Chitra valves have been successfully implanted in patients. Initially conceived in 1978, the heart valve being a critical implant, went through the most painstaking development for 12 years at the prestigious SreeChitraTirunal Institute for Medical Sciences and Technology (SCTIMST), Trivandrum, India - an autonomous institute under the Department of Science and Technology, Government of India.
The Heart Valve Division also manufactures and markets Clinimesh - a versatile prosthesis for surgical reconstruction of thoracic and abdominal wall defects, Clinistern - stainless steel needled suture for sternum closure and Clinipatch - a versatile prosthesis for surgical reconstruction of septal wall defects.
Food: TTK Ready-to-fry Snack Pellets are available in a variety of flavors, shapes, colours and designs.
TTK manufactures Potato and Cereal based pellets in its state-of -the-art facility, for markets in India and abroad. The production unit is designed not only to assure the highest quality but also to ensure consistency in quality. The Cereal and Potato based pellets come in various shapes, such as Wheels (mini &penta), Tubes (mini, short, long & square), Sticks, 3 Rings, Ribbed, Star, Checks, Chips, Drops etc besides Onion Rings. The customer base for TTK Ready-to-fry Snack Pellets includes multinationals and the trade in India. The Exports division services the foreign countries and the products are regularly exported to the overseas markets
ANIMAL CARE With a motto of "Quest for better veterinary care" we are expanding operations across the country to facilitate availability of quality medicines, vitamins and supplements at affordable prices.
Wide
range
of
quality
Medicines, tonics and
medicines, tonics and
medicines and feed
supplements for your
productivity boosters.
supplements for good
pets.
more...
productivity.
High
more...
more...
TTK Animal Welfare Division is a rapidly growing business unit of TTK Healthcare Ltd. The Animal Welfare Division was established in the year 1982 and has made great strides in the animal health segment since then. The division produces and markets a wide range of products for Livestock, Poultry and Companion segments. Presently the division ranks among the Top 20 leading Animal Health Companies in the nation. Vision To provide quality products and solutions to veterinarians / veterinary practitioners and thereby enhance the health, well being and performance / productivity of animals and to stamp our imprint in the animal health segment nationally by adhering to standard professional business ethics. Mission To serve the professional community and farmers with quality & efficacious animal health products and promote animal well being, in short "Quest for Better Veterinary Care". With a clear intent to facilitate the availability of quality products at affordable prices, the division is now expanding its reach to the nooks and corners of the country. In line with its motto of "Quest for Better Veterinary Care", the Animal Welfare Division of
TTK Healthcare Limited will fully live up to its promise by dedicating itself to satisfy the needs of its customers by offering products of immense quality at affordable prices to enhance the overall well being of animals
Exports: Spreading roots worldwide, TTK Healthcare's products are now sought after in the overseas market too.
the company's products in the Middle East, Africa, Asia, etc. Demand for Ready to fry food pellets has s
from Middle East markets. Herbal pharmaceuticals e.g. Arthrid&Virilex tablets are finding positive acc
Myanmar. TTK Chitra Heart Valves & Hernia Repair Mesh have been successfully lanted in Kenya, Sou Nepal. To cater to the growing overseas market, the Company has set up an Export Division to handle the following products: • • • • •
Pharmaceuticals (Allopathic & Herbal) Biomedical Devices (Artificial Heart Valves, Hernia Repair Mesh etc.) Consumer Products (Gripe Water, Cosmetics, Baby Care Products) Ready to Fry Food Pellets Publications (Maps)
The Export Division is situated at the company's Head Office, Chennai and single window for overseas b overall Group strategy in becoming a global player.
Organisational structure S.No
Name
Designation
1
T TJagannathan
Chairman
2
S Kalyanaraman
Company Secretary
3
K Vaidyanathan
Executive Director
4
K Shankaran
Non Executive Director
5
T TRaghunathan
Executive Vice Chairman
6
R K Tulshan
Non Executive Independent Director
7
K R Srimurthy
Non Executive Independent Director
8
B N Bhagwat
Non Executive Independent Director
9
J Srinivasan
Non Executive Independent Director
10
R Srinivasan
Non Executive Independent Director
COMPANY SECRETARY Mr S Kalyanaraman REGISTERED & BANKERS ADMINISTRATIVE OFFICE Bank of Baroda 6, Cathedral Road Corporation Bank Chennai-600 086.
REGISTRARS & TRANSFER AGENTS M/s Data Software Research Co. Pvt. Ltd. Shree Sovereign Complex 22, 4th Cross Street, Trustpuram
Kodambakkam, Chennai 600 024. FACTORIES i) 5, Old Trunk Road, Pallavaram, Chennai 600 043. ii) 328, GST Road, Chromepet, Chennai 600 044. iii) 3, Tiruneermalai Main Road, Chromepet, Chennai 600 044. iv) 2-B, Hosakote Industrial Area, 8th Kilometre HosakoteChinthamani Road, HosakoteTaluk Bangalore 562 114. v) H-12/13, MIDC Area, Waluj, Aurangabad 431 136. DEPOTS Ahmedabad, Bangalore, Bhiwandi, Chandigarh, Chennai, Cuttack, Dehradun, Ernakulam, Ghaziabad, Guwahati, Hubli, Hyderabad, Indore, Jaipur, Jammu, Kolkata, Lucknow, Madurai, Meerut, Mumbai, Nagpur, New Delhi, Panchkula, Patna, Pune, Raipur, Ranchi, Siliguri, Thane, Vijayawada and Zirakpur.
Product range of the company includes: Personal care- Eva range of women’s personal care products Pharmaceuticals •
Calcium Supplement Range
•
Delivery Care Range
•
Women's Care Range
•
Haematinic Range
•
Pain Management Range
•
Neurotrophic Range
•
Gastro Intestinal Range
•
Male Fertility Range
•
Nutritional Range
•
Cardiac Care Range
Baby Care: •
Woodward’s Baby Bath
•
Woodward’s Gripe Water
Animal Care •
Livestock- Wide range of medicines, tonics and productivity boosters.
•
Poultry- High quality medicines and feed supplements for good productivity
•
Medicines, tonics and supplements for Pets.
Heart Valve - India's first indigenous heart valve prosthesis - the tilting-disc TTK Chitra Heart Valve. Food - TTK Ready-to-fry Snack Pellets are available in a variety of flavors, shapes, colours and designs
Awards: TTK Healthcare's Pharmaceuticals Division has several achievements under their belt including being... • The first Pharmaceutical Company in India to be awarded ISO certification by BIS • The first company to launch technology driven life saving products like UROKINASE and DOPAMINE • The first to develop a product based on traditional knowledge - LACTARE for Lactation
Achievements/ recognition:
•
Besides being the first pharmaceutical company in India to be awarded the ISO certification by BIS, TTK Healthcare was also the first to launch technology-driven life-saving products like Urokinase and Dopamine.
•
The first company to launch technology driven life saving products like Urokinase and Dopamine
•
The first to develop a product based on traditional knowledge - LACTARE for Lactation
CHAPTER III REVIEW OF LITERATURE
REVIEW OF LITERATURE This chapter aims to present the concept, models, theories and previous research to the causes and correlation of employee attrition. The content focuses on employee attrition, the factors that influence the employee attrition: personal characteristics, job satisfaction, organisational commitment and perceived alternative job opportunities and employee retention. According to Hackman & Oldham (1976)1,”employee attrition which is widely used as a framework to study how particular job characteristics impact on job outcomes, including job satisfaction. The model states that there are five core job characteristics (skill variety, task identity, task significance, autonomy, and feedback) which impact three critical psychological states (experienced meaningfulness, experienced responsibility for outcomes, and knowledge of the actual results), in turn influencing work outcomes (job satisfaction, absenteeism, work motivation, etc). According to Price & Muller, (1981)2,” observed that job dissatisfaction influenced actual turnover indirectly through its direct effect on turnover intention. The variables that affect job satisfaction are pay, promotion opportunities, immediate supervisor, fringe benefits, contingent rewards, rules and procedures, relation with coworkers, type of work done, and communication within the organization”. _________________________________ 1
Hackman & Oldham (1976) “Tensions and Variations in Call Centre Management
Strategies.”Human Resource Management,pages: 75–101. 2
Price, J. & Muller, C. (1981).A casual model of turnover of nurses. Academy of
Management Journal, vol: 24, pages: 543-565.
According to Terborg and Lee, (1984)3, “ Organizational variables such as type of industry, occupational category, Organization size, payment, supervisory level, location, selection process,work environment, work assignments, benefits, promotions and The other factors that influence employee turnover in Organizations include the individual work variables like demographic variables, integrative variables like job satisfaction, pay, promotion and working condition”. According to Williams and Hazer, (1986)4,” has differentiated between job satisfaction and commitment by explaining the former as an emotional reaction to specific aspects of job and the latter as an emotional reaction to the whole organization. Both the individual factors as well as the organizational factors influence organizational commitment which eventually influences turnover intentions amongst employees”. According to Guest, (1989)5, “ identified that there must be senior management support for the success of employee attrition. 'Profit through employee attrition' can be produced through attrition tools such as proper training, proper communication between top management and low level management”. ____________________________________ 3
Terborg, J.R., & Lee, T.W., (1984). “A predictive study of Organizational tenure
rates,” Academy of Management Journal, Vol: 27, pages: 793-810 4
Williams, L.J., Hazer, J.T. (1986), "Antecedents and consequences of satisfaction and
commitment in turnover models: a re-analysis using latent variable structural equation methods", Journal of Applied Psychology, Vol: 72 No:1, pages: 219-31. 5
Guest, (1989)The Human Equation, Harvard Business School Press, Boston, MA,
1998
According to Johnson and Gill, (1993)6,“describe motivation in work organizations as “the processes by which people are enabled to and induced to choose to behave in particular ways”. Motivation is therefore coupled with a search for the ways by which members’ job performance and productivity may be enhanced to retain the employee”. According to Weisberg and Kirshenbaum, (1993)7, “ found females more likely to leave than males.and also reported the relationship between gender and turnover. However the reasons for employee turnover vary from one Organization to the other and from one person to another as they are not getting what they expect from the Organization According to Robinson and Rousseau, (1994)8, “found that 55 per cent of their management sample said their psychologicalcontract had been broken by their employer. The consequences are damaging for both the individuals and the organization, and include low job satisfaction, poor performance, high staff turnover, feelings of anger and betrayal and the erosion of trust”.
___________________________________ 6
Johnson and Gill, 1993 “Making More by Doing Less: An Analysis of Outsourcing
and Its Effects on Firm Performance.” Journal of Management vol: 26 (Issue 4 1993): pages; 763 7
Weisberg, J. and Kirschenbaum, A., (1993), “Gender and turnover: A re-examination
of the impact of sextons intent and actual jo0b changes”. Human Relations, vol: 46 (issue 8); pages: 487-1006. 8
Robinson and Rousseau,
1994Retention on EmployeeVol. 4 Indian Journal of
Science and Technology No. 12 (Dec 2011)
According to Cappelli and Rogovsky, (1994)9,”The main principle behind all initiatives for increasing the involvement of workers is to get the lower-level staff
more involved in the decision making and work processes, and to grant these employees greater autonomy and control over job tasks and methods of work “ According to Maslow’s, (1995)10,” theory of motivation, there are five set of needs that satisfy individual and these include physiological, safety, social, esteem and self-actualisation needs. This model predicts that as employees satisfy their needs on one level, they progress to the needs of next level as motivation for their behaviour. Only the unsatisfied needs influence the employee’s not to retain in the organisation”. According to Hall and Nougaim, (1995)11,” found that higher needs are perceived to be the most vital to employee as they advance in career. However, the inability of the Tech Mahindra to satisfy the lower level needs of its employees mostly through industry competitive remuneration, friendly working conditions and possibly job security might have combined which resulted in the high rate of attrition”.
____________________________ 9
Cappelli, Peter and Rogovsky, Nikolai, “Employee Involvement and Organizational Citizenship: Implications for Labor Law Reform and 'Lean Production'.” Industrial and Labor Relations Review, July 1994
10
Maslow’s, 1995., Human resource management by guptha pages: 126
11
Hall and Nougaim, 1995How to generate more valuable employee feedback,
Strategic Communication Management, vol: 13(issue 9),pages 32-35
According toWilliam and Werther, (1996)12, “assert that employee attrition is accelerated when employees are not satisfied with the reward system in an organisation. This is represented in the model of the consequence of reward dissatisfaction by Lawler The outcome of unfair rewarding system isdissatisfaction as shown in Figure 1 which affects employee’s productivity and their quality of life. The desire for excessive rewards might have negative impact on an employee’s
performance as it might lead to reduced performance which also hampers the company’s production targets”. According to Hackman and Suttle,(1997)13,”Supervisors can provide guidance to their subordinates by assisting and guiding them, by making them availa answer for the questions otherwise letting subordinates work things out by themselves Improving life at work”. According toWai, C.T. Teresa and Robinson, (1998)14, “ When poor performers, choose to leave the Organization, it is good for the Organization thus it is important
to
differentiate
between
functional
and
dysfunctional
turnover
andaccordingly encourage or discourage employee turnover. Further voluntary turnover of criticalwork force is to be differentiated into avoidable and unavoidable turnover “. According to John l hun sucker, (1998)15,”introducing a well structured payroll plan will help in curbing employee turnover. However, if attrition does not reduce then the company gains on the monetary end. In introducing any such plan one should take great care in studying the feasibility of the plan, educating the employees regarding the plan, running the plan for a trial period and convincing the employees that the plan is a privilege not a plan”. _______________________________ 12
William and Werther, 1996 Building morale: the key to firm growth, CPA
Management Forum, vol: 7(issue 2), pages 12- 19 13
Prof Hackman and Suttle 1997 Vale University
14
Wai, C.T. Teresa and Robinson, C.D.( 1998), “Reducing staff turnover: A case study
of dialysis facilities.”Health Care Management Review, Vol: 23,issue 4, pages: 2142. 15
profJohn l hun sucker 1998 payroll savings incentive plan vale university. According to Agarwal, N. C., (1998)16, “Employee retention plays a vital role
in bridging the gap between the macro strategies and micro behaviour in Organizations. This is because it ensures stability and connects the experiences of individuals in Organizations on a continuous basis to the critical measures of success factors in the Organization. The decision of leaving the Organization is not easy for an individual employee as well as significant energy is spent on finding new jobs, adjusting to new situations, giving up known routines and interpersonal connection and is so stressful”
According to Dickter, Roznowski and Harrison, (1999)17,”also called for more research and theory pertaining to how the turnover process occurs over time. Keeping in view all the above aspects studied so far, a holistic approach towards understanding attrition is felt important to effectively control attrition in the IT Organization by designing specific employee need based retention strategies. An attempt is therefore made to understand if there is significant difference in response among Indian IT Organizations and MNC to help the HR professionals of IT Organizations to design Employee retention strategies specific to their Organization to control attrition”. According to R PALANI , (1999)18,“Training does not necessarily lead to employee attrition when it is implemented well.This investment. To protect the training investment, HPT professionals should work out a comprehensive plan to link learning to career progress. The plans hould begin with the recruitment and selection procedure of employees and must ensure that training is a process and not an event. Engagement of the employee by the line manager and a competency-based learning culture go a long way to strengthen employee retention.” __________________________________ 16
Agarwal, N. C., 1998 Reward Systems: Emerging Trends and Issues.
Canadian Psychology, vol: 39(issue 1), pages 60-70. 17
American Management Association survey finds cash not the best
retention tool.1999.HR Focus, June 1999, vol: 76, issue 6, pages S4. 18
R PALANI , 1999 Does employee training lead to attrition ., employee attrition. According to Hay (1999)19, Dess et al., (2008),” state that monetary benefits
cannot be ignored, but money should not act as the primary mechanism to attract and retain talent because employees who come only for money will leave to an organisation offering more money. This also means that money may not motivate certain category of employees like those in managerial level; they might get demotivated due to other factors”. According to Delery and Doty, (1996)20,and Godard,(2004),”Employee involvement has received much attention in the area of work organization in recent decades. Although changes in the work organization during the last decades are diverse and difficult to summarize by a few key concepts, there has emerged an agreement that employee involvement and monetary incentive systems are important measures in modern personnel management”
According to William Mercer, (2000)21,“was stated that to demonstrate to Quest Diagnostics that if staff turnover were reduced by just 5 percentage points, this would make an annual profit contribution of US$31 million. Faced with this evidence, managers who had been complacent about the company's staff turnover were shocked into action”. According to Carrell, Elbert and Hatfield(2000)22 ,”Measures to control Attrition:Employees are investments if effectively managed and developed, provide long-term awards for organization hence policies, programs, and practices must be created that satisfy both the economic and emotional needs of employees. A working environment must be created in which employees are encouraged to develop and utilize their skills to the maximum extent ________________________________ 19
Hay (1999) 19, Dess et al., 2008 1999 Effectiveness of employee cross-training as a
motivational technique. ASBM Journal of Management, vol: 2(issue 2), pages:13-146 20
Godard, John and John T. Delaney (2000), Reflections on the ‘high performance’ paradigm’s implications for industrial relations as a field, Industrial and Labor Relations Review Vol: 53,pages : 482-502
21
William Mercer, 2000 Management, vol: 6, no.20, 12 October 2000, pages: 28-34
22
Human Resource Management: Strategies for Managing a diverse and global
Workforce' sixth edition. According to Bamberger, P., &Meshoulam, I., (2000)23,”Employee retention is most critical issue facing corporate leaders as a result of the shortage of skilled labour, economic growth and employee turnover. Retention is defined as “the ability to hold onto those employees you want to keep, for longer than your competitors” According to Trevor, (2001)24, argues that“ local unemployment rates interact with job satisfaction to predict turnover in the market. Role stressors also lead to employees’ turnover. Role ambiguity refers to the difference between what people expect of us on the job and what we feel we should do. This causes uncertainty about what our role should be. It can be a result of misunderstanding what is expected, how to meet the expectations, or the employee thinking the job should be different”. According to Sturman and Trevor (2001)25 found that quitters’ performance over time did not significantly change while stays’ performance slope was positive. Demographic factors cannot be ignored as age, tenure, level of education, level of
income, job category, gender have influenced employee retention and have been found to have stable relationship with turnover intention. Of the above demographic factors, age, tenure and income level was found to be negatively related to turnover intention According to David Guest and Zella King (2001)26,”Impact of retention: Staff turnover creates costs, but these are difficult to measure. When employees leave, output is lost. Costs are then incurred in advertising and interviewing, then training the new recruits. Turnover is often a symptom of low morale, which can reduce corporate profitability by depressing staff performance “. ______________________________________ 23
Human resource strategy: Formulation, implementation, and impact. Thousand Oaks, CA: 24 Trevor 2001. "A career in food service cons: high turnover", Nations Restaurant News, Vol: 35 (issue 21):pages : 147-148. 25 Sturman, M.C., & Trevor, C.O., (2001), “ The implications of linking the dynamic performance and turnover literatures, ”. Journal of Applied Psychology, vol: 86, pages : 684–696. 26 David Guest and ZellaKing impact of attrition HRM review vol: 27, pages:27-35. According to Mitchell, (2001)27, “employee retention focused on the broad array of factors that influence a person’s staying in a job termed as job-embeddedness construct. The dimensions considered show linked the employee has to other people, how she or he fits in the Organization and what the employee would sacrifice on leaving the Organization. He reported that job embeddedness was negatively correlated with intention to leave and predicted subsequent voluntary turnover”. According tofrost& Sullivan, (2001)28, “ This article presents the study on addressing the issue of why there is high employee attrition taking place in an organization like Frost & Sullivan which itself is focused on addressing client's growth objectives. Sometimes it's impossible to ensure the retention of a particular group of employees; in those cases, companies can learn to adopt According to Fusilier &Durlabhji, (2001)29, “ emphasizes on the importance of an individual’s values. Employees should be involved in companies’ internal matters. This would make them feel valuable.Another reason for increase in attrition is HR policies for e.g. companies like Amdocs which have very relaxed HR policies like no dress code, flexible timings, work at home, home pick and drop by cab which
motivates employees to stick to the same company. In Tech Mahindra such policies are missing, so employees don’t stay long”. According toFrost& Sullivan (2002)30,”Skills can be stretched in many directions, but if they are not going in the right direction employees are at risk of becoming dissatisfied and uncommitted IT has been following the Hard HRM practice where emphasizes is given on the full utilization of employees in a formal, calculating and dispassionate manner ___________________________ 27
interdisciplinary journal of contemporary research in business copy right © 2012
institute of interdisciplinary business research November 2001 vol : 4, no 7 pages: 452 28
Harvard business review on finding and keeping the best people, pages: 41.
29
Fusilier &Durlabhji, 2001 Tech Mahindra
30
Harvard business review on finding and keeping the best people, Root Cause of
Attrition: ppages : 180 According to Manu et al. (2004)31, argue that “employees voluntarily quit from organization due economic reasons. Using economic model they showed that people quit from organization due to economic reasons and these can be used to predict the labour turnover in the market”. According to Fulmer, Gerhart& Scott, (2003); Hom, Robertson & Ellis (2004) 32, “a number of trends like globalisation, increase in knowledge work, accelerating rate of technological advancement, as well as labour shortages in critical industries across the globe have emphasized the need for high quality employees for achieving Organizational success. The above situation posed a great challenge to the managers to acquire and retain these valuable human capitals. In response to these developments the managers have implemented human resource policies and practices to avoid avoidable and undesirable turnover According to Prakash and Chowdhury,(2004)33, “ Attrition of employees in a limited measure is desirable for influx of new ideas in any type of organization. It helps organizations to maintain their agility in fast changing environment. It brings in new blood, opens up new vistas for change, development and improvement, shows
avenues to expand operations and add to the creative lines of the organizations. Attrition in a limited measure can thus bring gains to the organization”. ______________________________ 31
Manu CP, Griffeth RW (2004). Eight Motivational Forces and Voluntary Turnover: A
Theoretical Synthesis with Implications for Research. J. Manage., vol: 30(issue 5); pages: 667-683 32
American Society of Interior Designers (2004). “Better sound solutions.” White
paper 33
Prakash, S. and Chowdhury, R. (2004). “Managing attrition in BPO”, In search of Excellence, Cool Avenues, Last accessed on: February 06, 2010
According to Freyermuth, (2004)34, “A number of studies have found that managing turnover is a challenge for organizations, as different organizations using different approaches to retain employees Retention is considered as all-around module of an organization’s human resource strategies. It commences with the recruiting of right people and continues with practicing programs to keep them engaged and committed to the organization According to Neil Conway, (2004)35,” What an organization can promise: •
Pay commensurate with performance.
•
Opportunity for training and development.
•
Opportunities for promotion.
•
Recognition for innovation or new ideas.
•
An attractive benefits package.
•
Respectful treatment.
•
Reasonable job security.
•
A pleasant and a safe working environment”.
According to Georgina Fuller (2005)36,”By treating employees well, organizations profits can rise. A central ethics committee to set up to reinforce the values of respect, honesty, efficiency, care and trust ___________________________________ 34
American Society of Interior Designers (2004). “In the open: How
design can protect privacy.” White paper. 35
'Promises, promises'. People Management, vol 10, no. 23, 25 November 2004,
pages: 42-32 36
the revolution', People Management, vol. 11, no.17, 1 September 2005, pages: 38-
40)
According to Bureau , (2005)37,” the average cost to replace an employee was $13,996 and in the 12 months ending in 2005, 24% of employees left their job voluntarily, (Kung, 2007, pp. 14). Therefore, a manufacturing organization with 1,000 employees would have lost 150 employees in 2005 and the estimated to replace the employees were estimated to be over two million dollars, (Kung, 2007, pp. 14). However these statistics fail to show the true cost of replacing an employee. There are three main components associated with the cost of replacing an employee staffing, vacancy, and training costs”. According to Shaw, Gupta andDelery, (2005)38, “as employee retention plays a vital role in bridging the gap between the macrostrategies and micro behaviour in Organizations. This is because it ensures stability and connect the experiences of individuals in Organizations on a continuous basis to the critical measures o fsuccess factors in the Organization. The decision of leaving the Organization is not easy for an individual employee as well as significant energy is spent on finding new jobs, adjusting to new situations, giving up known routines and interpersonal connection and is so stressful”.
_____________________________ 37
Bureau , 2005 Labor Statistics 2005
38
Shaw, J.D., Gupta, N., &Delery, J.E., (2005), “Alternate conceptualizations of the
relationship between voluntary turnover and Organizational performance,” Academy of management journal, Vol.48, pages: 50-6
According to Moore, and Taylor, (2006)39,in her study on “the cause of an informative report regarding employees turnover and retention on the causes of high employee turnover which affect the most, and the companies can decrease employees turnover in order to cut the hidden cost. Further she highlighted the poor management, low pay, boring repetitive work, with no opportunity for advancement, high turnover of employees is a symptom of a mismanaged company”. According to Duening , (2006)40,”Staffing costs are the cost of recruiting and hiring the person initially, and money that will be spent to recruit and hire the replacement. The vacancy cost is related to the period of time that person isn’t working in the open position resulting in lost productivity and potentially lost business. Employees are not 100% productive from the moment they start. So it is necessary to invest time and resources for training, orientation, and development. It is the responsibility of Human Resources Management to develop employees by training, educating, appraising and preparing employees for present and future jobs. These activities are important for the psychological and economic growth of employees, and the self-realization needed by today’s employees cannot be fully employed by an organization that does not have these developmental activities in place”. ____________________________
39
Moore and TAYLOR, S. 2006 Are you keeping your employees happy? The HR
Director 40
Duening, 2006, HRM review vol: 32 pages: 222.
According to Mehta, A. et al, (2006)41, “Major HR-related issues standing as problems in the various levels of management include attrition, HR policies, absenteeism, performance appraisal, and manpower allocation .In organizing, the major concerns at the lower management level are related to job design and job requirements, like night shifts, monotony, and long hours. At the middle-management level, critical issues were related to HR, organizing, and motivation. Middle-level managers have difficulty retaining good employees, motivating them to put in their best effort, and keeping them happy. Often managers are not trained to work with teams and directing and motivating numerous teams simultaneously is challenging “. According to heath field, (2007)42”The majority of employee turnover occurs within the first five years of employment, and the majority of employees leave their employment for reasons other than direct compensation. The top reasons given by employees that voluntary leave their place of employment are: they have no expectation for career growth, their relationship with their manager is damaged, they are unable to balance work and family, their company functions unethically, their relationship with their co-workers are damaged, their company is facing financial problems, and the stress they face at work is affecting their physical or mental wellbeing”. According tohuczynski, and Buchannan, (2007) 43,”.One of the major problems encountered in today's business world is dealing with high employee attrition. Attrition is the reduction in the number of employees through retirement, resignation
or death. Frost & Sullivan is a global growth consulting company which has over 45 years of experience in assisting clients with their decision making and growth issues”. ________________________________ 41
Mehta, A. et al. (2006) “Challenges and opportunities of Business Process Outsourcing in India.” Journal of Labor Research Vol. XXVII,
42
heath field 2007 HRM review vol: 26 pages : 659
43
huczynski, and Buchannan, HRM REVIEW vol:16 pages; 655
According to Beri G.C (2007)44, “influencing turnover and retention of staff and retention problems for professional have talked about the Working hours, workload and work schedules which are also common concerns to both groups. In addition, career development, promotion and 4appreciation of contribution were important retention factors, while a supportive professional environment, reduction in workload and working hours and more flexible work patterns were important to consultants”. According to William H. Price & Richard Kiekbusch& John,(2008) 45 causes of employees turnover have talked about the causes and the implementation. Further he highlighted that providing a challenging job, and offering realistic promotion opportunities. Other variables that have less impact are schedule input, insurance and family income. Good communication and job satisfaction”. According to Cari McLean, (2008)46, “ Labour Management in Agriculture, in her study knowing the reason why workers leave or edge in improving working condition and have talked about dissatisfaction with work or working condition, select and train new personnel, conducting workers satisfaction survey, find specific problem area to watch and improve”.
_______________________________________________
44
MACAFEE, M. (2007) How to conduct exit interviews.People Management. Human
Resource Tata McGraw New Delhi,2007 in his study on the cause of factor 45
William H. Price & Richard Kiekbusch& John, 2008Hrm BusinessReview.vol: 46
46
Cari McLean(2008) The drivers of staff retention and employee engagement
According to Cosenza, Robert M,(2009)47, in his study on “the causes of the cost of employees turnover due solely to unfairness in the workplace and have talked about the effect of unfairness upon an employee’s decision to leave their employer and the financial to employer due to voluntary turnover. Further he highlighted Recruiting and retaining the best and the brightest Remove the barriers and biases which create unfair workplace”, According to Elanain Abu, (2010)48, the study disclosed that “the perception of organizational justice had an influence on work outcomes. A low degree of turnover intention was observed on employees who showed positive feelings towards procedural and distributive justice”. According to Weil & Kimball, (2010)49; “The level of education is positively associated with turnover, the more educated the employees there is a tendency to quit so the organisation should providing them responsibility and respective post based on their skills. According to rachnagupta , (2010)50 “employee engagement goes beyond the employees intent to leave. It includes the employee’s commitment to the organisation and motivation to contribute to the organisation success. By creating a workforce that is passionately involved with the company, the organisation can create a sustainable competitive advantage for itself”. ____________________________________________ 47
Cosenza, Robert M (2009) Labour turnover rates and costs in the UK in 2008.
48
Elanain Abu, M.H. (2010). Journal of Management Development, 29 (1), 05-27.
49
Weil, P.A. and Kimball, P.A., (2010). “A model of voluntary turnover among
hospital CEOs, “ Hospital and Health Service Administrative, 40(3): 362-385. 50
Rachana guptha, March 2010 about employee engagement in post – separation
human resource HRM review. According to William and rothwell, (2010)51, states “motivation is a topic of perennial interest. As organisational leaders begin a “was for talent”, they need to consider new ways to motivate people to stay. Since much research indicates that people often make decision to leave because of how their supervisor treats them, it only makes sense to consider ways of improving manager’s treatment of workers”. According to Dr.ashishsrivastara and nitusaxena, (2011)52 “employee engagement states emotional and intelligent commitment of employees towards the organisation. It plays a Vitol role in the attainment of organisational objectives and fostering an environment of belongingness mutual respect and trust. Ensuring employee management is thus considered to be the comer stone for successful human resource management in an organisation. According to frank Sunil Justus T and M. Ramesh, (2012) 53“employee engagement practices in an organisation gets increased as companies tend to work with a global workforce. In this changing scenario, the challenges for HR personnel are establish the credibility of the organisation as well as to ensure that its internal customers make significant contribution to the organisation. ___________________________________ 51
Professor William and Rothwell, Pennsylvania state university may 2010 in
organisational challenges 52
Dr. ashishsrivastara and nitusaxena august 2011 about employee engagement in
talent management HRM review volume: XI 53
Frank Sunil Justus T and M. Ramesh, March 2012 in innovative HRM in HRM
review
According to towers perrin, (2012)54, “the evidence of the significant relation between employee engagement and financial performance is undeniable. According to Prof. Purohit Manisha, (2012)55, an attempt is made to study “the evaluation of Human Resource Development Practices in Cooperative Banks which includes training practices, reward & recognition and Employee satisfaction in Pune. An interview schedule has been administered to study the HRD practices of the selected banks. The employees’ satisfaction level will be also helpful for the employee attrition”. According to the survey conducted jointly byAccenture and NGO Pankh, (2012)56, amongst 47 HR representatives from retail organisation shows that employing differentially abled persons reduces attrition. This research witnessed that attrition rate of differentlyabled was 3.3% when compared with the average industry of 68%. According to THE HINDU, (2014)57, “Infosys reported an attrition rate 19.5% for the quarter ended March 2014 from 18.7% in the previous quarter. It wasn’t about salaries alone, their concerns was predictability, career growth and variable pay. In the quarter ended June 2014, over 10627 employees left the company. __________________________________________________________ 54
Towers perrin, march2012 in innovative HRM in HRM review
55
An International Multidisciplinary Research Journal ACADEMICIA:
Year : 2012, Volume : 2, Issue : 8 pages: 186- 195. 56
Accenture and NGO Pankh 2012 Journal of Indian management.
57
THE HINDU, 2014July 12, 2014 page 17
CHAPTER IV ANALYSIS AND INTERPRETATION OF DATA
Analysis and interpretation of data Employee attrition is a method for retaining the employees in the organisation. Employee retention is a method of taking measures to encourage workers to stay in the company for the highest possible time duration. Employee attrition has techniques like proper training, career opportunities, good communication, providing recognition, adequate benefits, good relationship and sufficient tools and resources, etc‌ to retain the employees. The objective of this study is to determine the factors that cause employee attrition and to examine the employee retention policies adopted in TTK HEALTHCARE LIMITED. Hence, a detailed study of the factors contributing to attrition and how to make employees stay in the company has been made. For the purpose of the study, data was collected by issuing a questionnaire to 150 respondents. Percentage analysis has been applied for o Age of the respondents. o Department of the respondent. o Gender of the respondents. o Educational qualification of the respondents.
o Experience of the respondents. o Employee attrition is a challenge. o Satisfaction with the current job. o Lack of adequate salary. o Good working environment. o Training programme. o Adequate compensation for the job. o Good communication. o Necessary resources and equipments to perform the jobs. o Right amount of recognition for the job. o The company offers adequate amenities.
TABLE NO: 4.1 AGE OF THE RESPONDENTS Sl. No. 1
2 3 4
Age
Frequency
Less than 25 years 25 – 35 years 35 - 45 years Above 45 years Total
25
Percentage to total % 16.7
64 41 20 150
42.7 27.3 13.3 100
Source: questionnaire
INTERPRETATION: According to table 4.1 out of 150 respondents, 42.7% of respondents belong to age group of 25 to 35 years, 27.3% of respondents belong to age group of 35 to 45 years, 16.7% of respondents belong to age group of less than 25 years, and 13.3% of respondents belong to age group of above 45 years.
CHART NO: 4.1 AGE OF THE RESPONDENTS
TABLE NO: 4.2 DEPARTMENT OF THE RESPONDENTS Sl. No. 1 2 3 4 5
Department Production H.R. sales Finance other Total
Frequency 21 19 26 25 59 150
Percentage to total % 14 12.7 17.3 16.7 39.3 100
Source: questionnaire
INTERPRETATION: According to table 4.2 out of 150 respondents, 39.3% of respondents belong to other departments, 17.3% of respondents belong to sales department, 16.7% of respondents are belong to finance department, 14% of respondents belong to production department and 12.7% of respondents belong to H.R. department.
CHART NO: 4.2 DEPARTMENTS OF THE RESPONDENTS
TABLE NO: 4.3 GENDER OF THE RESPONDENTS Sl. No. 1 2
Gender Male Female Total
Frequency 100 50 150
Percentage of Total % 66.7 33.3 100
Source: questionnaire
Interpretation: According to table 4.3 out of 150 respondents, 66.7% of respondents are male and remaining 33.3% of respondents are female.
CHART NO: 4.3 GENDER OF THE RESPONDENTS
TABLE NO: 4.4 EDUCATIONAL QUALIFICATION OF THE RESPONDENTS Sl. No.
Educational qualification Diploma holder Graduate Post graduate Professionals Total
1 2 3 4
Frequency
Percentage to total%
20 70 25 35 150
13.3 46.7 16.7 23.3 100
Source: questionnaire
Interpretation: According to table 4.4 out of 150 respondents, 46.7% of respondents are graduates, 23.3% of respondent are Professionals, 16.7% of respondents are post graduate, and 13.3% of respondents are diploma holders.
CHART NO: 4.4 EDUCATIONAL QUALIFICATIONOF THE RESPONDENTS
TABLE NO: 4. 5 WORK EXPERIENCE OF THE RESPONDENTS Sl.No. 1 2 3 4
Experience Less than 5 years 5 to 10 years 10 to 15 years More than 15 years Total
Frequency 44 64 22 20 150
Percentage to total% 29.3 42.7 14.7 13.3 100
Source: questionnaire
Interpretation: According to table 4.5 out of 150 respondents, 42.7% of respondents have 5 to 10 years experience, 29.3% of respondents have less than 5 years experience, 14.7% of respondents have 10 to 15 years experience, and 13.3% of respondents have more than 15 years experience in the organization.
CHART NO: 4.5 WORK EXPERIENCEOF THE RESPONDENTS
TABLE NO: 4.6 EMPLOYEE ATTRITION IS A CHALLENGE Sl. No.
Employee Attrition is a challenge
Frequency
Percentage to Total %
1 2
Yes No Total
92 58 150
61.3 38.7 100
Source: questionnaire
Interpretation: According to table 4.6 out of 150 respondents, 61.3% of respondents state that employee attrition is a challenge in the organisation, and remaining 38.7% of respondents feel that employee attrition is not a challenge.
CHART NO: 4.6 EMPLOYEE ATTRITION IS A CHALLENGE
TABLE NO: 4.7 SATISFACTION WITH THE CURRENT JOB Sl. No. 1 2 3 4 5
Satisfaction with the current job Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied
Frequency 45 75 13 17 0
Percentage to total % 30 50 8.7 11.3 0
Total
150
100
Source: questionnaire
Interpretation: According to table 4.7 out of 150 respondents, 50% respondents are satisfied with the current job, 30% of respondents are highly satisfied with the current job, and 11.3% respondents are dissatisfied with the current job.
CHART NO: 4.7 SATISFACTION WITH THE CURRENT JOB
TABLE NO: 4.8 LACK OF ADEQUATE SALARY Sl. No.
Adequate salary
Frequency
1 2 3 4 5
Strongly agree Agree Neutral Disagree Strongly disagree Total
36 80 29 5 0 150
Percentage to total % 24 53.3 19.3 3.3 0 100
Source: questionnaire
Interpretation: According to table 4.8 out of 150 respondents53.3% of respondents agree that lack of adequate salary is the reason for attrition, 24% of respondents strongly agree,
19.3% of respondents neither agree nor disagree and 3.3% of respondents disagree that lack of adequate salary is the reason for attrition.
CHART NO: 4.8 LACK OF ADEQUATE SALARY
TABLE NO: 4.9 GOOD WORKINGENVIRONMENT. Sl. No. 1 2 3 4 5
Good Working environment Strongly agree Agree Neutral Disagree Strongly disagree Total
Frequency
Percentage to total %
56 44 39 10 1 150
37.3 29.3 26 6.7 0.7 100
Source: questionnaire
Interpretation: According to table 4.9 out of 150 respondents, 37.3% of respondents strongly agree that lack of good work place environment is the reason for attrition, 29.3% of respondent agree, 26% of respondents neither agree nor disagree, 6.7% of respondents disagree and 0.7% of respondents strongly disagree that lack of good work place environment is the reason for attrition.
CHART NO: 4.9 GOOD WORKING ENVIRONMENT
TABLE NO: 4.10 TRAINING PROGRAMME. Sl. No. 1 2 3 4 5
Training programme Strongly agree Agree Neutral Disagree Strongly disagree Total
Frequency 26 63 47 10 4 150
Percentage to total % 17.3 42 31.3 6.7 2.7 100
Source: questionnaire
Interpretation: According to table 4.10, out of 150 respondents, 42% of respondents agree that lacking of training programme is the reason for the attrition, 31.3% respondents neither agree nor disagree, 17.3% respondents strongly agree, 6.7% respondents disagree, and 2.7% of respondents strongly disagree that lack of training programme is the reason for attrition.
CHART NO: 4.10 TRAINING PROGRMME
TABLE NO: 4.11 ADEQUATE COMPENSATION FOR THE JOB Sl. No. 1 2 3 4 5
Adequate compensation Strongly agree Agree Neutral Disagree Strongly disagree Total
Frequency
Percentage to total %
30 98 18 4 0 150
20 65.3 12 2.7 0 100
Source: questionnaire
Interpretation: According to table 4.11 out of 150 respondents, 65.3% respondents agree that employees are receiving adequate compensation for their job, 20% respondents strongly agree, 12% respondents neither agree nor disagree, and 2.7% respondents disagree that employees are receiving adequate compensation for their job.
CHART NO: 4.11 ADEQUATE COMPENSATION FOR THE JOB
TABLE NO: 4.12 GOOD COMMUNICATION BETWEEN SUPERVISORS AND SUBORDINATES Sl. No.
Good communication Strongly agree Agree Neutral Disagree Strongly disagree Total
1 2 3 4 5
Frequency
Percentage to total %
23 85 33 9 0 150
15.3 56.7 22 6 0 100
Source: questionnaire
Interpretation: According to table 4.12 out of 150 respondents, 56.7% of respondents agree that there is a good communication between supervisors and subordinates, 22% of respondents neither agree nor disagree, 15.3% respondents strongly agree, and 6% of respondents disagree that there is good communication between supervisors and subordinates.
CHART NO: 4.12 GOOD COMMUNICATION BETWEEN SUPERVISORS AND SUBORDINATES
TABLE NO: 4.13 NECESSARY RESOURCES AND EQUIPMENTS TO PERFORM THE JOBS Sl. No. 1 2 3 4 5
Necessary resources and equipments Strongly agree Agree Neutral Disagree Strongly disagree Total
Frequency
Percentage to total %
57 46 30 16 1 150
37 30.7 20 10.7 0.7 100
Source: questionnaire
Interpretation: According to table 4.13 out of 150 respondents, 37% respondents strongly agree that there are necessary resources and equipments to perform the job, 30.7% respondents agree, 20% respondents neither agree nor disagree, 10.7% respondents disagree, and 0.7% respondents strongly disagree that there necessary resources and equipments to perform job in the organisation.
CHART NO: 4.13 NECESSARY RESOURCES AND EQUIPMENTS TO PERFORM THE JOBS
TABLE NO: 4.14 RIGHT AMOUNT OF RECOGNITION FOR THE JOB Sl. No.
Recognition
Frequency
1 2 3 4 5
Strongly agree Agree Neutral Disagree Strongly disagree Total
38 50 41 21 0 150
Percentage to total % 25.3 33.3 27.3 14 0 100
Source: questionnaire
Interpretation: According to table 4.14 out of 150 respondents, 33.3% respondents agree that there is a right amount of recognition for doing the job in the organisation, 27.3% respondents neither agree nor disagree, 25.3% respondents strongly agree, and 14% respondents disagree that there is recognition for doing the job.
CHART NO: 4.14 RIGHT AMOUNT OF RECOGNITION
TABLE NO: 4.15 THE COMPANY OFFERS ADEQUATE AMENITIES Sl.No.
Adequate amenities Strongly agree Agree Neutral Disagree Strongly disagree Total
1 2 3 4 5
Frequency 31 50 49 15 5 150
Percentage to total % 20.7 33.3 32.7 10 3.3 100
Source: questionnaire
Interpretation: According to table 4.15 out of 150 respondents, 33.3% respondents agree that the company offers adequate amenities, 32.7% respondents neither agree nor disagree, 20.7% respondents strongly agree, 10% respondents disagree, and 3.3% respondents strongly disagree that the company offers adequate amenities to its workers.
CHART NO: 4.15 THE COMPANY OFFERS ADEQUATE AMENITIES
CHI-SQUARE TEST: The chi-square test is used to test the significance of difference between the two proportions and is used when there are more than two groups to be compared.
Hence, chi-square test has been applied in this study to find out the significance of the difference between the personal characteristics of the respondents on their satisfaction with the current job. Table no: 4.16 The significance of difference between the department and satisfaction with the current job Chi-square Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases
Value
df
7.952a 10.287 1.620
Asymp. Sig. (2-sided) 12 .789 12 .591 1
.203
150
Interpretation: Table 4.16 shows that there is no significant difference between the department in which the respondents are working with the current job.
Table no: 4.17 The significance of difference between gender of the respondent and their satisfaction with the current job. Chi-square Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases
Value 3.257a 3.143 .016
df
Asymp. Sig. (2-sided) 3 .354 3 .370 1
.900
150
Interpretation: Table 4.17 shows that there is no significant difference between gender of respondents and their satisfaction with the current job.
Table no: 4.18 The significance of difference between educational qualification of the respondents and their satisfaction with the job
Chi-square
Value
Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases
11.403a 11.204
df
1.355
Asymp. Sig. (2-sided) 9 .249 9 .262 1
.244
150
Interpretation: Table 4.18 shows that there is no significant difference between educational qualification of the respondents and their satisfaction with the job
Table no: 4.19 The significance of difference between the challenge of employee attrition and their satisfaction with the current job.
Chi-square
Chi-Square Tests Value df
Asymp. Sig. (2-sided)
Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases
22.598a 22.729
3 3
.000 .000
13.000
1
.000
150
Interpretation: There is a significant difference between the challenge of employee attrition and their satisfaction with the current job, because 92 out of 150 respondents strongly feel that employee attrition is a big challenge in their organisation.
FACTOR ANALYSIS: The study measured the opinion of the respondents relating to employee attrition and retention by applying a five point scale - strongly agree, agree, neutral, disagree and strongly disagree. The data was subjected to factor analysis. The results are: TABLE NO: 4.20 KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Approx. Chi-Square Bartlett's Test of df Sphericity Sig.
0.836 2771.128 1225 .000
Table 4.20 shows the KMO adequacy is 0.836. Hence, factor analysis is suitable to all the 50 variables relating to attrition and retention.
Component Total 1 2 3 4 5
12.280 2.042 1.914 1.718 1.651
TABLE NO: 4.21 Total Variance Explained Initial Eigenvalues Extraction Sums of Squared Loadings % of Cumulative Total % of Cumulative Variance % Variance % 24.560 24.560 12.280 24.560 24.560 4.083 28.643 2.042 4.083 28.643 3.828 32.471 1.914 3.828 32.471 3.437 35.908 1.718 3.437 35.908 3.303 39.211 1.651 3.303 39.211
Extraction method: principal component analysis The principal component method of factor analysis and the varimax rotation method have been used to group the 50 variables into 5 factors. Table 4.21 shows the results of the factor analysis where eigen value is more than 1 they have been considered and accordingly 5 factors have been identified. These 5 factors show a total variance of 39.211%.
TABLE NO 4.22 Factor loadings variable Career opportunities reasons for attrition Communication Feedback from employee Good place to work Training programme Odd working hours Adequate resources and equipment Mismatch of job Adequate salary Adequate compensation Management of company Monthly meetings
1 0.613 0.591 0.578 0.537 0.522 0.489 0.455
Component 2 3
4
5
0.457 0.680 0.579 0.535 0.501 0.480
Amenities Morale of workers Extra amenities(women employee) Good management Good supervisor Necessary resources and equipment Good work place Good retirement benefits Adequate benefits Recognition Recognition(awards and honours) giving awards Fair supervisors Career growth Performance appraisal Discount on company products Flexible work schedule Part of the company Ample training opportunity Organising games and function Leave benefits Employee benefits Rewards for creativity and innovation Development Sufficient equipment and tools Good training Good relationship
0.479 0.419 0.661 0.583 0.560 0.476 0.460 0.454 0.436 0.422 0.420
0.553 0.545 0.544 0.480 0.472 0.460 0.431 0.424 0.406
variable 1 Relationship with co-worker Training programme Positive work environment Empathetic and appreciate supervisor Safe and healthy work environment Supervisor enable subordinate to perform best Job security Amenities offered Celebrate festivals Gift vouchers
0.413
2
Component 3
4
5
0.583 0.535 0.507 0.496 0.482
Factors F1
WORK ENVIRONMEN T F2
SALARY
TABLE NO:4.23 Final grouping of variables Variables Career opportunities Any other(reason for attrition) Communication Feedback from employee Good place to work Training programme Odd working hours
Factor loadings 0.613 0.591 0.578 0.537 0.522 0.489 0.455
Mismatch of job Adequate salary Adequate compensation Management of company Monthly meetings Amenities
0.680 0.579 0.535 0.501 0.480 0.479
Good supervisor Necessary resources and equipments Good work place Good retirement benefits Adequate benefits Recognition
0.661 0.583 0.560 0.476 0.460 0.454
Ample training opportunity Organising games and functions Leave benefits Employee benefits Rewards for creativity Career opportunity
0.553 0.545 0.544 0.480 0.472 0.460
F3
RECOGNITION
F4
EMPLOYEE BENEFITS
F5
MOTIVATION
Training programme Supervisor enable subordinate to perform best Job security Amenities offered Celebrate festivals Gift vouchers
0.457 0.583 0.535 0.507 0.496 0.482
Five factors have been extracted by applying factor analysis.
Work environment Salary Recognition Employee benefits Motivation
Table 4.23 shows that work environment is the most important factor and it consists of 7 variables and it explains 24.56% of the variance. The next factor is salary and it consists of 6 variables and it explains 4.08% of the variance. The third factor is recognition and it consists of 6 variables and it explains 3.83% of the variance. The fourth factor is employee benefits and it consists of 6 variables and it explains 3.44% of the variance. The last factor is motivation consisting of 6 variables and it explains 3.30% of the variance.
CHAPTER V FINDINGS AND SUGGESTIONS
Findings Employee attrition combines fundamental management techniques to retain the employees by providing training, career opportunities, necessary equipments and also all benefits. In view of the review of literature on employee attrition and employee retention this study aims at determining reasons for attrition, and techniques to lowering attrition rate regards employees in TTK HEALTH CARE LIMITED, and techniques of employee retention For the purpose of the study a questionnaire was distributed for collection of primary data. 150 questionnaires were collected. The collected data was coded and analysed using the statistical package for social science (SPSS). Analytical techniques like Percentage Analysis, Chi – Square Test and Factor Analysis were used. Major findings of the study are: •
42.7% of respondents belong to age group of 25 to 35 years.
•
39.3% of respondents belong to other departments.
•
66.7% of respondents are male and remaining 33.3% of respondents are female.
•
46.7% of respondents are graduate, 23.3% of respondent are professionals.
•
42.7% of respondents are having 5 to 10 years’ experience in the organisation.
•
61.3% of respondents felt that employee attrition is a big challenge in the organisation.
•
50% respondents are satisfied with the current job, 30% of respondents are highly satisfied with the current job.
•
53.3% of respondents agree that lack of adequate salary is the reason for attrition.
•
37.3% of respondents strongly agree that lack of good work place environment is the reason for attrition.
•
42% of respondents agree that lack of training programme is the reason for the attrition.
•
65.3% respondents agree that employees are receiving adequate compensation for their job.
•
56.7% of respondents agree that there is a good communication between supervisors and subordinates.
•
37% respondents strongly agree that there are necessary resources and equipments to perform the job.
•
33.3% respondents agree that there is a right amount of recognition for the performance of the job in the organisation.
•
33.3% respondents agree that the company offers adequate amenities.
There is no significant difference between the departments in which the respondents are working with their current job. That there is no significant difference between gender of respondents and their satisfaction with the current job. There is no significant difference between educational qualification of the respondents and their satisfaction with the current job. There is a significant difference between the challenge of employee attrition and their satisfaction with the current job.
Five factors have been extracted by applying factor analysis. Work environment is the most important factor and it consists of 7 variables and it explains 24.56% of the variance. The next factor is salary and it consists of 6 variables and it explains 4.08% of the variance. The third factor is recognition and it consists of 6 variables and it explains 3.83% of the variance. The fourth factor is employee benefits and it consists of 6 variables and it explains 3.44% of the variance. The last factor is motivation consisting of 6 variables and it explains 3.30% of the variance.
SUGGESTIONS In view of the major findings the following suggestions are made: Weekly meetings (get to together) to be held in each department. Man of the Month Award The system of performance appraisal in the organization can be made fair and effective. Adequate training and orientation facilities to be provided to the employees. Sponsor higher education of employees and their children. Sports activities can be conducted The company may provide the facility of all indoor games along with a swimming pool for the recreation of the employees. FUN TRIPS can be organised. The company may provide extra amenities for women workers (play school, crèche, child care centre, rest rooms and recreation). Healthy and cordial employer – employee relationship can be maintained.
CHAPTER VI CONCLUSION
CONCLUSION The main aim of any organization is to earn profit. But to attain the maximum profit, the organization should concentrate more on employees and the ways to retain them for their long run. From the study it is identified that lack of career growth opportunities is the major factor which force employees to change their
jobs.This study concludes that to reduce attrition, companies should create some opportunities for the growth of their employees by adopting innovative technologies, adequate training, effective performance appraisal and cordial employer – employee relationship.
“You can’t afford to lose too many people, because that’s where a lot of the profits are gone” - Lesley Renaud “The mission of every company should be to make the employees Feel that their job is very important” - Gallup
BIBLIOGRAPHY
BIBLIOGRAPHY BOOKS: • •
Human Resource Management – C.B.Gupta- Sulthanchand& Sons– 2006 Human Relations And Organisational Behaviour (A Global Perspective – R.S.Dwivedi – Macmillan publishers India Limited - 2010
•
Human Resource Management – L.M.Prasad – Sulthan Chand & Sons – 2006
•
Human Resource Management (Principles & Practices) – P.G. Aquinas – Vikas Publishing House Private Limited - 2007
•
Human Resource Management (Text and Cases) – K.Aswathapa – Sixth Edition – Tata McGraw Hill Education Private Limited - 2010
•
Managing Employee Retention - Jack J. Phillips, Adele O. –Connell Butterworth Heinemann publications- 2003
•
Rethinking Retention In Good Times And Bad - Richard P. Finnegan
-
NicholasBrealey Publications, 2010 •
Employee Turnover: Creating Strategies For Employee Retention - Paula J. Maclean - Silver Creek Press - 2001
•
Employee Turnover - Peter W. Hom, Rodger W. Griffeth - South-Western College Publishes – 1995
•
Transformational Leadership And Employee Retention: An Exploratory Investigation Of The Four Characteristics - Grace E. Mills – Proquest Publishing - 2007
•
Keeping Your Valuable Employees: Retention Strategies For Your Organization's Most Important Resource - Suzanne Dibble - John Wiley & Sons Publishing -23-Sep-1999
•
Keeping Good Employees On Board: Employee Retention Strategies To Navigate Any Economic Storm - Dawn Mccooey - Morgan James Publishing, 15-Nov-2009
•
Employees' Perceptions Of Leaders' Attitudes And Employee Retention: A Quantitative Study On Perceived Attitudes - Sandra Broner – Proquest Publisher - 2009 JOURNALS:
Hackman & Oldham (1976) “Tensions and Variations in Call Centre Management Strategies.”Human Resource Management, Price, J. & Muller, C. (1981).A casual model of turnover of nurses. Academy of Management Journal, vol: 24, pages: 543-565. Terborg, J.R., & Lee, T.W., (1984). “A predictive study Organizational tenure rates,” Academy of Management Journal, Vol: 27, pages: 793-810 Williams, L.J., Hazer, J.T. (1986), "Antecedents and consequences of satisfaction and commitment in turnover models: a re-analysis using latent variable structural equation methods", Journal of Applied Psychology, Vol: 72 No:1, pages: 219-31. Guest, (1989)The Human Equation, Harvard Business School Press, Boston, MA, 1998 Johnson and Gill, 1993 “Making More by Doing Less: An Analysis of Outsourcing and Its Effects on Firm Performance.” Journal of Management vol: 26 (Issue 4 1993): pages; 763 Weisberg, J. And Kirschenbaum, A., (1993), “Gender and turnover: A reexamination of the impact of sextons intent and actual job changes”. Human Relations, vol: 46 (issue 8)pages: 487-1006.Technology No. 12 (Dec 2011) Robinson and Rousseau, 1994Retention on employeevol. 4 Indian Journal of Science and Cappelli, Peter and Rogovsky, Nikolai, “Employee Involvement and Organizational Labour Relations Review, July 1994Communication Management, vol: 13(issue 9),pages 32-35 Maslow’s, 1995., Human resource management by guptha pages: 126
WEBSITES: WWW.ttkhealthcareltd.com www.employeeattrition.com
www.employeeretention.com www.bussinessknowledge.com www.google.com www.hrm.com www.managementparadise.com www.yahoo.com www.wikipedia.com www.issuustudyonemployeeretention.com www.hrmreview.com www.managementstudyguide.com www.purdue.edu
APPENDIX QUESTIONNAIRE
Questionnaire Personal Details: 1. Name ______________________________. 2. Age a. Less than 25 years b. 25 – 35 years c. 35 – 45 years d. Above 45 years 3. Department a. production b. H.R. c. sales d. finance e. other 4. Gender a. Male b. Female 5. Educational qualification a. Diploma holder b. Graduate c. Post graduate d. professionals 6. Experience (in years) a. Less than 5 years b. 5 – 10 years c. 10 – 15 years d. More than 15 years 7. Do you think employee attrition is a challenge in your organisation? a. Yes b. No 8. Are you satisfied with the current job? a. Very high b. Fairly enough c. Moderate d. Very less e. Not at all 9. Generally in your opinion what are the reasons for attrition? particulars Lack of Adequate salary. Lack of career opportunities.
Strongly agree
agre e
neutral
disagree Strongly disagree
Lack of good work place environment. Lack of amenities (transport, canteen, rest places, etc...) Odd working hours. Lack of empathetic and appreciative supervisors. Mismatch of job. Lack of good relationship with coworkers. Insufficient equipment and tools. Lack of training programme. Lack of recognition through awards and honors. Any other. 10. Please indicate your level of agreement with each of the statements (please make a tick mark) particulars Strongly agree neutral disagree Strongly agree disagree I receive adequate compensatio n for my job in the organisation. There is good communicati on between workers and superiors in the company. I have necessary resources and equipments to perform my job. I have the training I need to do my job. I receive the right amount of recognition for my work. My supervisor
enables me to perform my work at my best. I have good career opportunities in my company. The company offers adequate benefits. The company offers adequate amenities (Transport, canteen, rest places, recreation, etc‌) The morale of workers in my company is high. I feel that I am part of the company. particulars
Strongly agree
agree
neutral
disagree
Strongly disagree
I am happy with the management of the company. My supervisor is fair with subordinates. There is job security in my company. The company provides safe and healthy working environment. There is a good retirement benefit. 11. Why have you remained employed with the company? particulars Strongly agre neutral agree e Adequate salary. Good career opportunities. Adequate employee benefits. Good supervisors. Good management. Positive work environment. Good relation with co-workers.
disagree Strongly disagree
Ample training opportunities. Adequate resources and equipment to perform the job. Top management gets feedback from employees regularly Adequate rewards for creativity and innovation. 12. Will you recommend this company as a good place to work (please make tick mark) a. Strongly agree b. Agree c. Neutral d. Disagree e. Strongly disagree
13. Suggestions for lowering attrition rate in your organisation (please make tick mark) particulars Highly satisfied neutral dissatisfie Highly satisfied d dissatisfied Monthly meetings. Organising games and functions. Providing awards. Gift vouchers. Celebrate festivals. Good training. Leave benefits. Good performance appraisal. Extra amenities for women workers (play school, crèche, child care, etc‌) Flexible work schedule. Giving discount on company products.
14. State what do you like the best about working for the company? _________________________________________________________________
_____________________________________________________________________ ______