SUMMER TRAINING PROJECT REPORT ON “EMPLOYEE’S RETENTION INITIATIVES IN TATA DOCOMO” UNDER THE GUIDANCE OF : UNDER THE SUPERVISION OF : Ms. Smriti Srivastava. Ms. Shruti Mehta (HR Assistant manager)TTSL,LKO. SUBMITTED BY : AREEBA SHOEB 1305670017 2012-14 1
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SUMMER TRAINING PROJECT REPORT
ON
“EMPLOYEE’S RETENTION INITIATIVES IN
TATA DOCOMO”
UNDER THE GUIDANCE OF: UNDER THE SUPERVISION OF:
Ms. Smriti Srivastava. Ms. Shruti Mehta
(HR Assistant manager)TTSL,LKO.
SUBMITTED BY:
AREEBA SHOEB
1305670017
2012-14
BBDNIIT
1
PREFACE
MBA program is one of the most professional courses in the field of management. This course
includes both theory and application content of curriculum.
Project work is an integral part of MBA program at “BBDNIIT” each student is required to do
project and has to prepare and submit report on the work conduct by the student.
This report is the continuation of above tradition. The topic of the project work was
“EMPLOYEE RETENTION INITIATIVES AT TATA DOCOMO”.
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ACKNOWLEDGEMENT
To complete the project is not a easy thing, you have to take the help of others. I would like to
add a few heartfelt words for the people who are the part of this project in numerous ways
people who gave unending support right from the stage the project data was conceived
My special thanks to MR. M.K. Rastogi (HEAD OF THE DEPARTMENT) that
provides gentle encouragement and constant support.
I am extremely thankful to MS SHRUTI MEHTA(Hr assistant manager at TTSL) for
providing me with sense of direction in building this methodical approach in this report,
continuous source of inspiration throughout the project.
I sincerely thank them for the constant cooperation, guidance and incessant
inspiration and their guidance without which this project would have been like a rudderless
boat. Well to put in a nutshell, without their guidance and support this project would have
been futile.
AREEBA SHOEB
M.B.A -Sem
3
DECLARATION
I, Areeba Shoeb, student of M.B.A at BDNIIT LUCKNOW, hereby declare that the project
report on “EMPLOYEE RETENTION INITIATIVES AT TATA DOCOMO” at Lucknow
is an original and authenticated work done by me.
I further declare that it has not been submitted elsewhere by any other person in any of the
institutes for the award or any degree or diploma.
AREEBA SHOEB
Date :
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INDEX
S.No TOPIC PAGE NO.
1. Preface
2. Acknowledgement
3. Company’s profile
Tata Teleservices Ltd
4. Employee Retention
5. Employee Attrition
6. Retention in different sectors
7. Employee retention in Tata Docomo
8. Conclusion
9. Bibliography
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THE INDIAN TELECOM SECTOR
India is the fourth largest telecom market in Asia after China, Japan and South Korea. The Indian
telecom network is the eighth largest in the world and the second largest among emerging
economies. At current levels, telecom intensiveness of Indian economy measured as the ratio of
telecom revenues to GDP is 2.1 percent as compared with over 2.8 percent in developed
economies.
Indian telecom sector has undergone a major process of transformation through
significant policy reforms. The reforms began in 1980s with telecom equipment manufacturing
being opened for private sector and were later followed by National Telecom Policy (NTP) in
1994 and NTP'1999. Historically, the telecom network in India was owned and managed by the
Government considering it to be a natural monopoly and strategic service, best under state's
control. However, in 1990's, examples of telecom revolution in many other countries, which
resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a
change process finally resulting in opening up of telecom services sector for the private sector.
Policy reforms can be broadly classified in three distinct phases" The Decade of 1980's saw
private sector being allowed in telecommunications equipment manufacturing. Mahanagar
Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) were formed
and a Telecom Commission was set up to give focus to telecommunications policy formation.
" In 1990s, telecommunications sector also benefited from the general opening up of the
economy. NTP 1994 was the first attempt to give a comprehensive roadmap for the Indian
telecommunications sector.
Availability of telephones on demand (targeted by 1997).
Universal service covering all villages and one PCO per 500 persons in urban areas at the
earliest (targeted to be achieved by 1997).
Telecom services at affordable and reasonable prices.
Special bonus for successfully completing firm-sponsored certifications
Benefit programs for family support
Child adoption benefits
Flexible benefits
Dependents care assistance
Medical care reimbursement
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Providing conveniences at workplace
Gymnasiums
Athletic membership program
Providing training and development and personal growth opportunities
Sabbatical programs
Professional skills development
Individualized career guidance
High Level Strategies
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Promoting Work/Life Effectiveness
Develop flexible schedules
Part-time schedules
Extended leaves of absence
Develop Support Services
On-site day care facility etc.
Understand employee needs: This can be done through proper management style and culture
Listen to the employee and show interest in ideas
Appreciate new ideas and reward risk-taking
Show support for individual initiative
Encourage creativity
Encouraging professional training and development and/or personal growth opportunities: It can
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be done through:
Mentoring programs
Performance feedback programs
Provide necessary tools to the employees to achieve their professional and personal goals
Getting the most out of employee interests and talents
Higher study opportunities for employees
Vocational counseling
Offer personalized career guidance to employees
Provide an environment of trust: Communication is the most important and effective way to
develop trust.
Suggestion committees can be created
Open door communication policy can be followed
Regular feedbacks on organization’s goals and activities should be taken from the employees by:
Management communications
Intranet and internet can be used as they provide 24X7 access to the information
Newsletters, notice boards, etc.
Hire the right people from the beginning: employee retention is not a process that begins at the
end. The process of retention begins right from the start of the recruitment process.
The new joinees should fit with the organization’s culture. The personality, leadership
characteristics of the candidate should be in sync with the culture of the hiring organization.
Referral bonus should be given to the employees for successful hires. They are the best source of
networking. Proper training should be given to the managers on interview and management
techniques. An internship program can be followed to recruit the fresh graduates.
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Retention Success Mantra
Transparent Work Culture
In today’s fast paced business environments where employees are constantly striving to achieve
business goals under time restrictions; open minded and transparent work culture plays a vital
role in employee retention. Companies invest very many hours and monies in training and
educating employees. These companies are severely affected when employees check out,
especially in the middle of some big company project or venture. Although employees most
often prefer to stay with the same company and use their time and experience for personal
growth and development, they leave mainly because of work related stress and dissatisfactions.
More and more companies have now realized the importance of a healthy work culture and have
a gamut of people management good practices for employees to have that ideal fresh work-life.
Closed doors work culture can serve as a deterrent to communication and trust within employees
which are potential causes for work- Related apathy and frenzy.
A transparent work environment can serve as one of the primary triggers to facilitate
accountability, trust, communication, responsibility, pride and so on. It is believed that in a
transparent work culture employees rigorously communicate with their peers and exchange ideas
and thoughts before they are finally matured in to full-blown concepts. It induces responsibility
among employees and accountability towards other peers, which gradually builds up trust and
pride. More importantly, transparency in work environment discourages work-politics which
often hinders company goals as employees start to advance their personal objectives at the
expense of development of The company as a single entity.
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Quality Of Work
The success of any organization depends on how it attracts, recruits, motivates, and retains its
workforce. Organizations need to be more flexible so that they develop their talented workforce
and gain their commitment. Thus, organizations are required to retain employees by addressing
their work life issues. The elements that are relevant to an individual’s quality of work life
include the task, the physical work environment, social environment within the organization,
administrative system and relationship between life on and off the job.
The basic objectives of a QWL program are improved working conditions for the Employee and
increase organizational effectiveness. Providing quality work life involves taking care of the
following aspects:Occupational health care: The safe work environment provides the basis for
the person to enjoy working. The work should not pose a health hazard for the person. The
employer and employee, aware of their risks and rights, could achieve a lot in Their mutually
beneficial dialogue.
Suitable working time: Organizations are offering flexible work options to their employees
wherein employees enjoy flexi-timings for dedicating their efforts at work. Appropriate salary:
The appropriate as well as attractive salary has always been an important factor in retaining
employees. Providing employees salary at par with the other counterparts of above that what
competitors are paying motivates them to stick With the company for long. QWL consists of
opportunities for active involvement in group working arrangements or problem solving that are
of mutual benefit to employees or employers, based on labor management cooperation. People
also conceive of QWL as a set of methods, such as autonomous work groups, job enrichment,
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and high-involvement aimed at boosting the satisfaction and productivity of workers. It requires
employee commitment to the organization and an environment in which this commitment can
flourish. Providing quality at work not only reduces attrition but also helps in reduced
absenteeism and improved job satisfaction. Not only does QWL contribute to a company's ability
to recruit quality people, but also it enhances a company's competitiveness. Common beliefs
support the contention that QWL will positively nurture amore flexible, loyal, and motivated
workforce, which are essential in determining the company's competitiveness.
Supporting Employees
Organizations these days want to protect their biggest and most valuable asset and they want to
do this in a way that best suits their organizational culture. Retaining employees is a difficult
task. Providing support to the employees acts as a mantra for retraining them. Employers can
also support their employees by creating an environment of trust and inculcating the
organizational values into employees.
The management can support employees directly or indirectly. Directly, they provide support in
terms of personal crises, managing stress and personal development. Management can support
employees, indirectly, in a number of ways as follows:
Manage employee turnover: Employee turnover affects the whole organization in terms of
productivity. Managing the turnover, hence, becomes an important task. A proactive approach
can be adopted to reduce attrition. Strategies should be framed in advance and implemented
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when the times arrives. Turnover costs should also be taken into consideration while framing
these strategies.
Become employer of choice: What makes a company an employer of choice? Is the benefit it
offers or the compensation packages it gives away to its employees? Or is it measured in terms
of how they value their employees or in terms of customer satisfaction? Becoming an employer
of choice involves following a road map which tells where to go as a brand.
Engage the new recruits: The newly hired employees are said to be least engaged in the
organization. Keeping them engaged is an important task. The fresh talent should be utilized to
maximum before they start feeling bored in the organization.
Optimize employee engagement: An organization’s productivity is measured not in terms of
employee satisfaction but by employee engagement. Employees are said to be engaged when
they show a positive attitude toward the organization and express a commitment to remain with
the organization. Employee satisfaction also comes with high engagement levels. So,
organizations should aim to maximize the engagement among employees.
Coaching and mentoring: Employees whose work performance suffers due to poor interpersonal
relationships or because of lack of interpersonal skills should be provided proper coaching by
their superiors. Planed coaching sessions help an individual to work through issues, maximize
his potential and return to peak performance.
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Feedback
Feedback acts as a channel of communication between the employee and his manager. The
amount of information employees receive about how well or how poorly they have performed is
what we call feedback. It is a dialog between a manager and an employee which acts as a way of
sharing information about the performance. It suggests where the employee performance is
effective and where performance has to improve.Managers can provide either positive feedback
or negative feedback to employees. This feedback helps the employee assess his performance
and identify the improvement areas.Positive feedback communicates managerial satisfaction.
Positive recognition for good performance boosts up morale of employees and results in
performance improvement to a higher productivity level. It is believed that positive feedback is
the only type of feedback that generates performance above the minimum acceptable level.
Negative feedback obviously communicates manager’s dissatisfaction. However, negative
feedback sometimes make employee to put more efforts to improve his performance. But such
times are very rare. Moreover this improvement is short term. Some managers do not provide
any kind of feedback to their employees. Due to no feedback, employees may assume that they
are performing productively or they may feel that the manager is satisfied with their
performance. Studies reveal the performance tends be same or even decreases if no feedback is
provided.
Thus, feedback is necessary because:
It builds trust and enhances communication between manager and employee.
It gives managers and employees a way to identify and discuss skills and strengths.
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Positive feedback leads to employee retention and Retention.
It helps in identifying performance areas that need improvement and specific ways to improve
them. It acts as an opportunity to enhance performance by identifying resources for skill
development. It is an opportunity for managers and employees to assess and identify career and
advancement opportunities. It helps employees to understand the effectiveness of their
performance and contributes to their overall knowledge about the work Managers have tendency to
ignore good performances of their employees. Providing no feedback may demotivate employees
and may lead to employee absenteeism. Input from manager’s side is necessary as it help
employees to improve their performance and increase productivity.
Communication Between Employee and Employer
Communication is a process in which a message is conveyed to the receiver by the sender. The
message may be or may not be in a common format or language that both the sender and receiver
understand. So there is a need to encode and decode the message in the process. Encoding and
decoding also helps in the security of the message. The process of communication is incomplete
without the feedback. Communication is the solution to almost everything in this world. Same
applies to employee retention also.
Straight-from-the-shoulder communication is what the employees need from their employers.
Employees look for organizations where communication and process are transparent. Nothing is
hidden and shared with the employees.
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There are 3 categories of employees:
A: Who will leave their current employer in 3 years of their employment
B: Who have a probability of leaving their current employer in next 3 years
C: Who will stay with their current employer in the next 3 years
Category
A: These are the employees who lack communication with their employers.Category
B: These are the employees who have proper, well structured communication with their
employers.
Communication is also the way to win the employees trust in the organization. Employees trust
the employers who are friendly and open to them. This trust leads to employee loyalty and
finally retention. Employers also feel that the immediate supervisors are the most authenticated
and trusted source of information for them. So the organizations should hire managers who are
active communicators.
Communication mediums
Open door policy: Organizations should support open door policies so that the employees feel
comfortable and are able to express their doubts and feeling to their employers.
Frequent meetings and Social gatherings Emails, Newsletters, Intranet and many more
So there should be effective communication across the organization and this communication
should be two-way. Communication alone can lead to unimaginable heights of employee
retention. Importance Of Employee Retention The process of employee retention will benefit an
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organization in the following ways:1. The Cost of Turnover: The cost of employee turnover adds
hundreds of thousands of money to a company's expenses. While it is difficult to fully calculate
the cost of turnover (including hiring costs, training costs and productivity loss), industry experts
often quote 25% of the average employee salary as a conservative estimate.
Loss of Company Knowledge: When an employee leaves, he takes with him valuable knowledge
about the company, customers, current projects and past history (sometimes to competitors).
Often much time and money has been spent on the employee in expectation of a future return.
When the employee leaves, the investment is not realized.
Interruption of Customer Service: Customers and clients do business with a company in part
because of the people. Relationships are developed that encourage continued sponsorship of the
business. When an employee leaves, the relationships that employee built for the company are
severed, which could lead to potential customer loss.
Turnover leads to more turnovers: When an employee terminates, the effect is felt throughout the
organization. Co-workers are often required to pick up the slack. The unspoken negativity often
intensifies for the remaining staff.
Goodwill of the company: The goodwill of a company is maintained when the attrition rates are
low. Higher retention rates motivate potential employees to join the organization.
Regaining efficiency: If an employee resigns, then good amount of time is lost in hiring a new
employee and then training him/her and this goes to the loss of the company directly which many
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a times goes unnoticed. And even after this you cannot assure us of the same efficiency from the
new employee What Makes Employee Leave?
Employees do not leave an organization without any significant reason. There are certain
circumstances that lead to their leaving the organization. The most common reasons can be:
Job is not what the employee expected to be: Sometimes the job responsibilities don’t come out
to be same as expected by the candidates. Unexpected job responsibilities lead to job
dissatisfaction.
Job and person mismatch: A candidate may be fit to do a certain type of job which matches his
personality. If he is given a job which mismatches his personality, then he won’t be able to
perform it well and will try to find out reasons to leave the job.
No growth opportunities: No or less learning and growth opportunities in the current job will
make candidate’s job and career stagnant.
Lack of appreciation: If the work is not appreciated by the supervisor, the employee feels de-
motivated and loses interest in job.
Lack of trust and support in coworkers, seniors and management: Trust is the most important
factor that is required for an individual to stay in the job. Non-supportive coworkers, seniors and
management can make office environment unfriendly and difficult to work in.
Stress from overwork and work life imbalance: Job stress can lead to work life imbalance which
ultimately many times lead to employee leaving the organization.
Compensation: Better compensation packages being offered by other companies may attract
employees towards themselves.
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New job offer: An attractive job offer which an employee thinks is good for him with respect to
job responsibility, compensation, growth and learning etc. can lead an employee to leave the
organization.
Managing Employee Retention
The task of managing employees can be understood as a three stage process:
1. Identify cost of employee turnover.
2.Understand why employee leave.
3.Implement retention strategies
The organizations should start with identifying the employee turnover rates within a particular
time period and benchmark it with the competitor organizations. This will help in assessing the
whether the employee retention rates
are healthy in the company. Secondly, the cost of employee turnover can be calculated.
According to a survey, on an average, attrition costs companies 18 months’ salary for each
manager or professional who leaves, and 6 months’ pay for each hourly employee who leaves.
This amounts to major organizational and financial stress, considering that one out of every three
employees plans to leave his or her job in the next two years.
Understand why employees leave :
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Why employees leave often puzzles top management. Exit interviews are an ideal way of
recording and analyzing the factors that have led employees to leave the organization. They
allow an organization to understand the reasons for leaving and underlying issues. However
employees never provide appropriate response to the asked questions. So an impartial person
should be appointed with whom the employees feel comfortable in expressing their opinions.
Implement Retention Strategy :
Once the causes of attrition are found, a strategy is to be implemented so as to reduce employee
turnover. The most effective strategy is to adopt a holistic approach to dealing with attrition. An
effective retention strategy will seek to ensure:
Attraction and recruitment strategies enable selection of the ‘right’ candidate for each
role/organization
New employees’ initial experiences of the organization are positive
Appropriate development opportunities are available to employees, and that they are kept aware
of their likely career path with the organization
The organization’s reward strategy reflects the employee drivers
How To Increase Employee Retention
Companies have now realized the importance of retaining their quality workforce. Retaining
quality performers contributes to productivity of the organization and increases morale among
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employees/ Four basic factors that play an important role in increasing employee retention
include salary and remuneration, providing recognition, benefits and opportunities for individual
growth. But are they really positively contributing to the retention rates of a company? Basic
salary, these days, hardly reduces turnover. Today, employees look beyond the money factor.
Retention Bonus
Higher attrition rates within a particular industry have forced companies to use some innovative
strategies to retain employees. Retention Bonus is one of the important tools that are being used
to retain employees. Retention bonus is an incentive paid to an employee to retain them through
a critical business cycle. Retention bonuses are becoming more common in the corporate world
because companies are going through more transitions like mergers and acquisitions. They need
to give key people an attractive incentive to stay on through these transitions to ensure
productivity.
Retention bonuses have proven to be a useful tool in persuading employees to stay.A retention
bonus plan is not a panacea. According to a survey, non-management employees generally
receive about 10 percent of their annual salaries in bonuses, while management and top-level
supervisors earn an additional 50 percent of their annual salaries. While bonuses based on salary
percentages are the generally used, some companies choose to pay a flat figure. In some
companies, bonuses range from 25 percent to 50 percent of annual salary, depending on position,
tenure and other factors. Employees are chosen for retention bonuses based on their contributions
to management and the generation of revenue. Retention bonuses are generally vary from
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position to position and are paid in one lump sum at the time of termination. However, some
companies pay in installments as on when the business cycle completes. A retention period can
run somewhere between six months to three years. It can also run for a particular project. A
project has its own life span. As long as the project gets completed, the employees who have
worked hard on it are entitled to receive the retention bonus. For example, the implementation of
a system may take 18 months, so a retention bonus will be offered after 20 months. Although
retention bonuses are becoming more common everywhere, some industries are more likely than
others to offer them. Retail/wholesale companies are the most appropriate to implement stay-pay
bonuses, followed by financial service providers and manufacturing firms. Companies of all
sizes use retention bonus plans to keep knowledge employees retained in the company. To retain
its key senior employees post merger with EDS Corporation, Mphasis is providing cash
component based retention bonus plan for its employees. This is mainly to retain good
employees and provide them a cash incentive to keep them motivated.
Hire Right Talent
employee retention starts with recruitment. Early departures arise from the wrong recruitment
process. Here are a few ways to ensure how to hire the right talent for a particular job.
Hire appropriate candidates. Hire candidates who are actually suitable for the job. For this the
employer should understand the job requirements clearly. Don’t hire under qualified or clearly
overqualified candidates.
Provide realistic job preview at the time of hiring: Mostly employees leave an
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Organization because they are given the real picture of their job responsibilities at the time of
joining. Attrition rate can be reduced if a right person is hired for a right job.Realistic preview of
the job responsibilities can be given to the employment seekers by various methods like
discussions, trial periods, internships etc.
Clearly discuss what is expected from the employee: Before joining the organization, tell the
candidate what is expected from him. Setting wrong expectations or hiding expectations will
result in early leaving of employees.
Discuss what the expectations of the employees are: Ask employees what they expect from the
organization. Be realistic. If their requirements can be fulfilled only then promise them. Or tell
them before hand that their requirements can not be fulfilled. Don’t show them an unrealistic
picture.
Culture fit: Try to judge individual’s capability to adapt to the organization’s culture. A drastic
change in the culture may give a culture shock to the candidate.
Referrals: According to the research, referred candidates stay longer with the organization.
There is a fear of hampering the image and reputation of the person who referred the candidate.
Manager Role in Retention
When asked about why employees leave, low salary comes out to be a common excuse.
However, research has shown that people join companies, but leave because of what their
managers’ do or don’t do. It is seen that managers who respect and value employees’
competency, pay attention to their aspirations, assure challenging work, value the quality of work
life and provided chances for learning have loyal and engaged employees. Therefore, managers
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and team leaders play an active and vital role in employee retention.
Managers and team leaders can reduce the attrition levels considerably by creating a motivating
team culture and improving the relationships with team members. This can be done in a
following way:
Creating a Motivating Environment: Team leaders who create motivating environments are
likely to keep their team members together for a longer period of time. Retention does not
necessarily have to come through fun events such as parties, celebrations, team outings etc. They
can also come through serious events e.g. arranging a talk by the VP of Quality on career
opportunities in the field of quality. Employees who look forward to these events and are likely
to remain more engaged.
Standing up for the Team: Team leaders are closest to their team members. While they need to
ensure smooth functioning of their teams by implementing management decisions, they also
need to educate their managers about the realities on the ground. When agents see the team
leader standing up for them, they will have one more reason to stay in the team.
Providing coaching: Everyone wants to be successful in his or her current job. However, not
everyone knows how. Therefore, one of the key responsibilities will be providing coaching that
is intended to improve the performance of employees. Managers often tend to escape this role by
just coaching their employees. However, coaching is followed by monitoring performance and
providing feedback on the same.
Delegation: Many team leaders and managers feel that they are the only people who can do a
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particular task or job. Therefore, they do not delegate their jobs as much as they should.
Delegation is a great way to develop competencies.
Extra Responsibility: Giving extra responsibility to employees is another way to get them
engaged with the company. However, just giving the extra responsibility does not help. The
manager must spend good time teaching the employees of how to manage responsibilities given
to them so that they don’t feel over burdened.
Focus on future career: Employees are always concerned about their future career. A manager
should focus on showing employees his career ladder. If an employee sees that his current job
offers a path towards their future career aspirations, then they are likely to stay longer in the
company. Therefore, managers should play the role of career counselors as well.
How to Improve Employee Retention
People want to enjoy their work so make work fun and enjoyable.
Understand that employees need to balance life and work so offer flexible starting times and core
hours. Provide 360 feedback surveys and other questionnaires to foster open communication.
Consider allowing anonymous surveys occasionally so employees will be more honest and
candid with their opinions. Provide opportunities within the company for career progression and
cross-training. Offer attractive, competitive benefits and 401(k)s. window.google_render_ad();
Organizations should target job applications for employees who have characteristics that fit well
with the organizational culture. Upon conducting an interview, seek out traits, such as loyalty.
Also, ask the potential employee what motivates them on the job. Having more information
about the potential employee’s expectations can help retain them, should they get hired into the
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company.
Rewards and Recognition
Employees want to be recognized for a job well done. Rewards and recognition respond to this
need by validating performance and motivating employees toward continuous improvement.
Rewarding and recognizing people for performance not only affects the person being recognized,
but others in the organization as well.
Through a rewards program, the entire organization can experience the commitment to
excellence. When the reward system is credible, rewards are meaningful; however, if the reward
system is broken, the opposite effect will occur. Employees may feel that their performance is
unrecognized and not valued, or that others in the organization are rewarded for the wrong
behaviors. Unrecognized and nonvalued performance can contribute to turnover. Recognition for
a job well done fills the employees' need to receive positive, honest feedback for their efforts.
Need for Rewards and Recognition Recognition should be part of the organization's culture
because it contributes to both employee satisfaction and retention. Organizations can avoid
employee turnover by rewarding top performers. Rewards are one of the keys to avoiding
turnover, especially if they are immediate, appropriate, and personal. A Harvard University study
concluded that organizations can avoid the disruption caused by employee turnover by avoiding
hiring mistakes and selecting and retaining top performers.
One of the keys to avoiding turnover is to make rewards count. Rewards are to be immediate,
appropriate, and personal. Organizations may want to evaluate whether getting a bonus at the end
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of the year is more or less rewarding than getting smaller, more frequent payouts. Additionally, a
personal note may mean more than a generic company award. Employees should be asked for
input on their most desirable form of recognition. Use what employees say when it comes time to
reward for performance (St. Amour, 2000).
Designing a Rewards and and Recognition Solution
In designing a rewards and recognition program, the following guidelines should be considered.
Rewards should be visible to all members of the organization.
Rewards should be based on well-defined, credible standards that have been developed using
observable achievements.
Rewards should have meaning and value for the recipient.
Rewards can be based on an event (achieving a designated goal) or based on a time frame
(performing well over a specific time period).
Rewards that are spontaneous (sometimes called on-the-spot awards) are also highly motivating
and should also use a set criteria and standard to maintain credibility and meaning.
Rewards should be achievable and not out of reach by employees.
Nonmonetary rewards, if used, should be valued by the individual. For example, an avid camper
might be given a 10-day pass to a campsite, or, if an individual enjoys physical activity, that
employee might be given a spa membership. The nonmonetary rewards are best received when
they are thoughtfully prepared and of highest quality. Professionalism in presenting the reward is
also interpreted as worthwhile recognition.
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Rewards should be appropriate to the level of accomplishment received. A cash award of $50
would be inappropriate for someone who just recommended a process that saved the
organization a million dollars. Determining the amount of money given is a delicate matter of
organizational debate in which organizational history, financial parameters, and desired results
are all factors. Recognition for a job well done can be just as valued and appreciated as monetary
awards.
Formal recognition program can be used with success. First Data Resources, a data processing
services company that employees more than 6,000 individuals in Omaha, Nebraska, uses a
formal recognition program (Adams, Mahaffey, and Rick, 2002). Rewards are given on a
monthly, quarterly, and yearly basis, and range from Nebraska football tickets, gift certificates,
pens, plaques, mugs, and other items. One of the most popular awards at First Data is called the
"Fat Cat Award" that consists of: $500 gift check
Professional portrait of the employee
Appreciation letter from the CEO and senior management
E-mails, phone calls, and notes from peers
In addition to nonmonetary rewards, employees can be rewarded using money in numerous
ways. Cash is a welcome motivator and reward for improving performance, whether at formal
meetings or on the spot. Variable bonuses linked to performance are another popular reward
strategy. Profit sharing and pay-for-skilis are monetary bonus plans that both motivate
individuals and improve goal achievement. Small acts of recognition are valuable for employee
daily Retention. Sometimes a personal note may mean more than a generic company award. In
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one survey, employees cited the following as meaningful rewards (Moss, 2000):
Employee of the month awards Years of service awards
Bonus pay (above and beyond overtime) for weekend work
Invitations for technicians to technical shows and other industry events
Meaningful and Retentional Rewards
What gives meaning to rewards and recognition? What makes them effective? First, rewards and
recognition should be based on a clear set of standards, with performance verifiable or
observable. The standards for the reward should also be achievable. If the reward is based on an
unachievable result, such as a production goal that is beyond employees' power, then those
employees will not be motivated. Meaningful rewards and recognition that are achievable have
the greatest impact.
Case Studies
Employee Retention Best Practices in Keeping and Motivating Employees
By Lis Beth Claus
Ask any CEO of an organization, “What keeps you awake at night?” and you will get a response
that relates to people management issues. a main concern for any organization (whether small or
large; private, public or nonprofit) is its capacity to attract, engage,
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and retain the right people. The problem of retention is compounded by the predicted talent
shortage resulting from the upcoming retirement of the baby boomers, the scarcity of talent with
relevant work skills for today’s jobs, the changing values about work and the high cost of
turnover. Research and human resource practices provide us with a number of recommendations
to increase employee retention.
How Auditing Company X Works with Retaining Valuable Employees : Swedish Case study
University essay from Högskolan i Jönköping/IHH, EMM (Entrepreneurskap, Marknadsföring,
Management)
Author: Josip Bogic; Elina Armanto; Maja Cassel; [2008]
Abstract: Today, neither employees nor employers seem to take for granted that a person will
stay with the same firm until retirement. Yet, keeping employees for longer periods is an imp-
ortant challenge for firms. One industry where retention is interesting is the auditing industry in
Sweden, this because certain requirements are needed to become an auditor. Firstly, the
employee needs to have a Swedish university degree, including specific courses within au-
diting/accounting. Furthermore, the person needs practical experience for a specific period of
time. Due to these statements the challenge of retaining and motivating valuable em-ployees is
crucial for the auditing firms, which is why we have chosen to do a case study at Auditing
Company X to see how they work with employee retention. We have compared the findings to
our chosen theory, which consist of four categories: the hiring process, in-ternal labor market and
career, motivation and performance, and finally culture and leader-ship. These four categories
are initially based on Leigh Branham?s book: ?Keeping the people who keep you in business: 24
ways to hang on to your most valuable talent? (Bran-ham, 2001).In our conducted case study, at
Auditing Company X, we have been able to conclude that the firm’s retention practices are to a
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great extend in line with the theoretical framework. There are some areas that need further
attention from the company, such as an individua-lized reward system and communication
between managers and employees. Even though there are some parts to work on the most
important aspects of retention, such as having a holistic and long-term orientation, Auditing
Company X seems to have incorporated this into their practices successfully.
Retention: An explanatory study of Swedish employees in the financial sector regarding
leadership style, remuneration and elements towards job satisfaction
University essay from Växjö universitet/Ekonomihögskolan
Author: Sanna Paulsson; Linda Lindgren; [2008]
Abstract: Introduction: Companies today are forced to function in a world full of change and
complexity, and it is more important than ever to have the right employees in order to survive the
surrounding competition. It is a fact that a too high turnover rate affects companies in a negative
way and retention strategies should therefore be high on the agenda. When looking at this
problem area we found that there may be actions and tools that companies could use to come to
terms with this problem. Research told us that leadership, remuneration and elements like
participation, feedback, autonomy, fairness, responsibility, development and work-atmosphere is
important for job satisfaction and retention. Object: The main objective is to increase the
understanding regarding employee’s retention in relation to leadership style, remuneration and
elements such as participation, feedback, autonomy, fairness, responsibility, development and
work-atmosphere in the Swedish financial
Sector. Method: We wanted to investigate how employee of the Swedish financial sector prefers
to be retained, and how they consider and react to the chosen areas. The survey has a quantitative
approach with a web based questionnaire and includes 129 respondents from banks, insurance
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and finance companies. The theoretical framework includes leadership and leadership style,
financial as well as non-financial remuneration and research done in later years regarding
participation, feedback, autonomy, fairness, responsibility, development and work-atmosphere
connected to retention.
Conclusion: The result shows that regarding leadership the respondents prefer leadership based
on relations were they feel appreciation. Both appreciations from the closest manager as well as
the company management influences employee job satisfaction in a positive way. More money
was the most common reason for wanting to change jobs, and when asking how the remuneration
system should be designed, base pay with additional bonus and benefits were preferred. But also
non financial factors such as participation, feedback, autonomy, fairness, responsibility,
development and work-atmosphere must be taken in consideration to satisfy since they seem to
increase employees? Willingness to stay in the company.
What leaders can do to keep their key employees - Retention Management
University essay from Göteborgs universitet/Företagsekonomiska institutionen
Author: Lisa Hedberg; Maria Helnius; [2007-09-03T08:22:31Z]
Abstract: Background: retention management is a highly topical subject and an important
dilemma many organizations might face in the future, if not facing it already. We believe that the
leader plays a key role in employee retention and retention management. The concept of
retention management can both have a narrow, and a broader significance. Both parts of its
significance are generally included in this thesis. The background of the thesis present a few
articles that discuss issues that makes it important for the organization, and the leaders, to work
hard with retention management. The research is based on the leaders in the Finnish case
company Tradeka. Following key questions are intended to be answered: What are the
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consequences between leaders actions and employees retention? Which is the leader’s role when
it comes to retaining employees? Purpose statement: The purpose of the thesis is to investigate
and analyze how company leaders today can retain their key employees. How can the provision
of key human resources develop a long-term relationship that makes top employees stay in the
company? The study aims to establish the procedure leaders apply to retain employees. The
purpose is to compare the qualitative study, made at the case company, with findings from the
thesis theoretical framework. Research method: The study is a qualitative, as well as a theoretical
study where empirical findings and theories has been compared. The intention of investigating
and using the Finnish company Tradeka Limited as a case company, is to make the information
from the theories more valid, and also the interest in how retention management works in
practice. Eleven qualitative interviews were conducted at Tradeka?s financial department, both
with supervisors and employees to get a broader view at the phenomenon retention management.
Result: Leaders and their skill in creating a culture of retention, has becoming a key in why
people stay and what usually drives them away from a company. The leader has become the
main factor in what motivates people’s decision to stay or leave. For organizations to keep its
key employees their number one priority should be to look at their management, because people
leave managers and not companies. Characteristics in a leader that are of importance, as the
leader plays a key role in retention management is: trust builder, esteem builder, communicator,
talent developer and coach, and talent finder. The leader’s relation to the employees plays a
central role in retaining employees, because employees need to feel involvement, and that their
presence count. When retention is a core value, good things happen for customers, employees,
and the company.
AWARENESS OF HR POLICIES
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Chi-Square Test
To find whether there exists a significant relationship between Work Culture of the Company
and interpersonal relationship between employees.
H0: There is a no significant relationship between Work Culture of the Company and
interpersonal relationship between employees.
H1: There is a significant relationship between Work Culture of the Company
and interpersonal relationship between employees.
Calculated value is more than table value therefore accept H0
Result:
There is a significant relationship between overall satisfaction and aspects of job.
KENDALL’S COEFFICIENT OF CONCORDANCE
Null hypothesis (H0): There is a no significant difference in the rank assigned by respondents
towards the attributes that gives them satisfaction in the company.
Alternate hypothesis (H1): There is a significant difference in the rank assigned by respondents
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towards the attributes that gives them satisfaction in the company.
Ranking Based on Satisfaction
K=20
Salary
Superior Role
Team Coordination
Work responsibilities
Rules and Policies
Physical work environment
Training
Calculated value : S= 5815.714
Table value : 1158
Calculated value is more than table value therefore reject H0
Result:
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There is a significant difference in the rank assigned by respondents towards the attributes that
gives them satisfaction in the company.
ONE RUN TEST
Null hypothesis (H0):
The samples are not taken randomly.
Alternate hypothesis (H1):
The samples are taken randomly.
Table:2.5.1
EMPLOYEE’S SATISFACTION REGARDING MONETARY BENEFITS PROVIDED BY
THE COMPANY.
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RESEARCH METHODOLOGY
Research Design
The research design indicates the type of research methodology under taken to collect the
information for the study.
The researcher used both descriptive and analytical type of research design for his research
study. The main objective of using descriptive research is to describe the state of affairs as it
exits at present. It mainly involves surveys and fact finding enquiries of different kinds. The
researcher used descriptive research to discover the characteristics of customers. Descriptive
research also includes demography characteristic of consumer who use the product.
The researcher also used analytical research design to analyze the existing facts from the data
collected from the customer.
Area of study
The area of study is confined to employees of TATA DOCOMO, Lucknow.
Research instrument
The Structured questionnaire is used as the research instrument for the study.
Questionnaire Design
The questionnaire framed for the research study is a structured questionnaire in which all the
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questions are predetermined before conducting the survey. The form of question is of both closed
and open type.
The scales used to evaluate questions are:
Dichotomous scale (Yes or No)
Likert 5 point scale (Highly satisfied, satisfied, Neither
Satisfied nor dissatisfied, Dissatisfied, Highly
dissatisfied)
Category scale (Multiple items)
Ranking type (R1, R2, R3…)
The questionnaire for the research was framed in a clear manner such that it enables the
respondents to understand and answer the question easily. The questionnaire was designed in
such a way that the questions are short and simple and is arranged in a logical manner.
Pilot study
It is appropriate to conduct pilot survey to check the reliability of the questionnaire. So pilot
study was conducted on 5 respondents which is a 10% of the sample.
Sampling design
A Sample design is a definite plan for obtaining a sample from a given population. It is the
procedure used by the researcher in selecting items for the sample.
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Sample size
Sample size=125 samples, variance and confidence methods are used for determining sample
size.
Sampling Technique:
I have adopted simple random sampling for the study.
DATA COLLECTION METHOD
Primary data
Primary data is the new or fresh data collected from the respondents through structured
scheduled questionnaire.
Secondary data
The secondary data are collected through the structured questionnaire, literature review and also
from the past records maintained by the company.
STATISTICAL TOOLS AND TECHNIQUES
PERCENTAGE ANALYSIS:
Percentage = (No. of respondents/ total no. of respondents)*100
WEIGHTED AVERAGE METHOD:
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Formula:
Mean score = total score/no of respondents.
Where total score = no of respondents*weighted average
CHI – SQUARE TEST:
1. Null Hypothesis (Ho): There is no difference in attributes
2. Alternate Hypothesis(H1): There is a difference in attributes
3. Level of significance α = 0.05
4. Degrees of freedom = (r-1)(c-1)
5. Expected frequency:
E = R.T × C.T
G.T
6. Calculation of :
∑ = ∑ (O-E)²
E
7. The tabulated value of at given level of significance with (r-1)(c-1)
Degrees of freedom
ONE RUN TEST
Null hypothesis (H0):
There is a no significant relationship between the variables
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Alternate hypothesis (H1):
There is significant relationship between the variables
µr = 2 n1 n2 + 1
n1 + n2
2 n1 n2- n1- n1
σr = 2 n1n2
(n1+ n2)2 (n1+ n2-1 )
Lower limit = µr + (2.58) σ
Upper limit = µr + (2.58) σ
KENDALL’S COEFFICIENT OF CONCORDANCE:
Null hypothesis (H0): There is a difference in attributes
Alternate hypothesis (H1): There is no difference in attributes
∑ Rj = (Rj-Rj)2
S= Rj = ∑ Rj
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DATA ANALYSIS
&
INTERPRETATION
85
Table No: 1
Working hours are convenient for me
PERCENT
Strongly agree 34
Agree 32
Neither agree nor disagree 18
Disagree 13
Strongly disagree 3
TOTAL 100
CHART 1
34
32
18
133
100
Strongly agreeAgreeNeither agree nor disagreeDisagreeStrongly disagreeTOTAL
Interpretation:
From the above chart and table it is clearly evident that 34% of the respondents strongly agree that
working hours are convenient from them and 32% agree with that and 18% neither agree nor disagree and
13% disagree with the working hours and 3% are strongly against working hours.
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Table No: 2
I'm happy with my work place
PERCENT
Strongly agree 30
Agree 39
Neither agree nor disagree 18
Disagree 8
Strongly disagree 5
100
Chart 2
percent0
102030405060708090
100Strongly agree
Agree
neither agree nor disagree
Disagree
strongly disagree
Total
Interpretation:
From the above table it is clear that 30% respondents strongly agree and 39% respondents agree that they
are happy with their work place only 13% disagreed and 18% have no idea towards their work place.
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Table No: 3
I feel i have too much work to do
PERCENT
strongly agree 7
Agree 9
Neither agree nor disagree 25
Disagree 37
Strongly disagree 22
100
Chart 3
PERCENT0
20406080
100
strongly agree
neither agree nor disagree
strongly disagree
strongly agree
Agree
neither agree nor disagree
Disagree
strongly disagree
Total
Interpretation:
From the above table it is quite clear that the work load is not high, 37% of the respondents disagreed
with the question” I feel I have too much work” and another 22% strongly disagreed, 18% admits they
have too much work and 23% have no idea towards this question.
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Table No: 4
Safety measures provided by the company
PERCENT
strongly agree 28
Agree 31
Neither agree nor disagree 24
Disagree 11
Strongly disagree 6
TOTAL 100
CHART 4
PERCENT0%
20%
40%
60%
80%
100%
Total
strongly disagree
Disagree
neither agree nor disagree
Agree
strongly agree
Interpretation:
From the above table it is evident that the safety measures provided by the organizations are good as 28
and 31% of the respondents agree with that and only 11& 6% disagreed and 24% neither agreed nor
disagreed.
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TABLE NO. 5
My relationship with my supervisor is cordial
PERCENT
strongly agree 30
Agree 41
Neither agree nor disagree 16
Disagree 6
Strongly disagree 7
TOTAL 100
CHART 5
PER-CENT
0 10 20 30 40 50 60 70 80 90 100
Total
strongly disagree
Disagree
neither agree nor disagree
Agree
strongly agree
Interpretation:
From the above table it is clear that relationship between employees and their supervisors are cordial
because 30% of respondents strongly agreed to it and 41% agreed to it and only 13% disagreed and 16%
of respondents have neither agreed nor disagreed.
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TABLE NO 6
My supervisor is not partial
PERCENT
strongly agree 18
Agree 30
Neither agree nor disagree 15
Disagree 19
Strongly disagree 18
TOTAL 100
CHART 6
PERCENT0
102030405060708090
100
Series1
Agree
neither agree nor disagree
Disagree
strongly disagree
Total
Interpretation:
From the above table it is evident that the supervisors are not partial to the employees as 18% strongly
agreed and 30% agreed to the question but 19% disagreed and 18% strongly disagreed this level is quite
high compared to other questions.
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TABLE NO 7
My supervisor considers my idea too while taking decision
PERCENT
strongly agree 26
Agree 43
Neither agree nor disagree 26
Disagree 2
Strongly disagree 3
TOTAL 100
CHART 7
26
43
26
2
3
100
PERCENT
strongly agreeAgreeNeither agree nor disagreeDisagreeStrongly disagreeTOTAL
Interpretation:
From the above table it is clear that 26 and 42% of the respondents agree that supervisors consider their
employees ideas also and only 5% disagreed and 26% neither agreed nor disagreed.
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TABLE NO 8
I'm satisfied with the support from my co-workers
PERCENT
strongly agree 21
Agree 47
Neither agree nor disagree 16
Disagree 9
Strongly disagree 7
TOTAL 100
CHART 8
PERCENT
0 10 20 30 40 50 60 70 80 90 100
Total
strongly disagree
Disagree
neither agree nor disagree
Agree
strongly agree
Interpretation:
From the above table it is clear that relation with co-workers is quite good as nearly 68% of the
respondents agree that they are satisfied with support from co-workers and only 15% disagreed and 16%
have no answer to this.
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TABLE NO 9
People here have concern from one another and tend to help one another
PERCENT
strongly agree 26
Agree 41
Neither agree nor disagree 19
Disagree 9
Strongly disagree 5
TOTAL 100
CHART 9
PERCENT0
102030405060708090
100 strongly agree
Agree
neither agree nor disagree
Disagree
strongly disagree
Total
Interpretation:
From the above table it is clear that in this organization people have concern over each other as 26%
strongly agreed and 41% agreedand only 14% disagreed and 19% neither agreed nor disagreed.
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TABLE NO 10
I'm satisfied with the refreshment facilities
PERCENT
strongly agree 26
Agree 20
Neither agree nor disagree 30
Disagree 15
Strongly disagree 9
TOTAL 100
CHART 10
PERCENT0
102030405060708090
100strongly agree
Agree
neither agree nor disagree
Disagree
strongly disagree
Total
Interpretation:
From the above table it is clear that 26% employees are strongly satisfied with the refreshment facilities
offered by the company as 15% of respondents disagreed and 9% strongly disagreed and 30% neither
agreed nor disagreed and only 20% agreed.
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FINDINGS
From the study, the researcher has come to know that most of the respondents have job
satisfaction; the management has taken the best efforts to maintain cordial relationship with the
employees. Due to the working conditions prevailing in this company, job satisfaction of each
respondent seems to be the maximum. From the study, I have come to know that most of the
employees were satisfied with the welfare measures provided by TATA DOCOMO. The
employees of TATA DOCOMO get more benefits compare to other companies.
The respondents are satisfied with the environment and nature of work
factors .
The respondent’s relationship with the superiors and colleagues are quite
good .
The Respondents are not provided with proper welfare facilities.
The communication and motivation of employees by their superiors in
this organization is reasonable.
The Pay and promotion activities in this organization is also good .
The Respondents are overall satisfied with their job .
The refreshment facilities are also need to be improved
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SUGGESTION AND RECOMMENDATION
In the organization most of employees are satisfied with all the facilities provided by company. But there
are some employees also who are not satisfied with the company.
Management should try to convert unsatisfied employees in to satisfied employees. Because if
employee is not satisfied than the he is not able to give his 100% to his work and the productivity
of employee decrease. So management should try to satisfied his employees because employees
are the assets of the company not a liabilities.
Employee should be provided with proper training.
Employee should be appreciated for good work.
Employee should be motivated to welcome the change.
If any changes are brought in to software or any module is added then proper training
should be given.
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CONCLUSION
Retention is an important concept that has been receiving considerable attention from academicians, researchers and practicing HR managers. In its essence, Retention comprises important elements such as the need or content, search and choice of strategies, goal-directed behavior, social comparison of rewards reinforcement, and performance-satisfaction.
The increasing attention paid towards Retention is justified because of several reasons. Motivated employees come out with new ways of doing jobs. They are quality oriented. They are more productive. Any technology needs motivated employees to adopt it successfully. Several approaches to Retention are available.
Early theories are too simplistic in their approach towards Retention. For example, advocates of scientific Management believe that money is the motivating factor. The Human Relations Movement posits that social contacts will motivate workers. Mere knowledge about the theories of Retention will not help manager their subordinates. They need to have certain techniques that help them change the behavior of employees.
One such technique is reward. Reward, particularly money, is a motivator according to need-based and process theories of Retention. For the behavioral scientists, however, money is not important as a motivator. Whatever may be the arguments, it can be stated that money can influence some people in certain circumstance. Being an outgrowth of Herzberg’s, two factor theory of Retention, job enrichment is considered to be a powerful motivator. An enriched job has added responsibilities.
The makes the job interesting and rewarding. Job enlargement refers to adding a few more task elements horizontally. Task variety helps motivate job holders. Job rotation involves shifting an incumbent from one job to another.
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LIMITATIONS OF THE STUDY
Limitation are as follows-
Data collected is based on questionnaire..
The information collected by the observation method is very limited.
The result would be varying according to the individuals as well as time.
Some respondents hesitated to give the actual situation; they feared that management would take
any action against them
The findings and conclusions are based on knowledge and experience of the respondents
sometime may subject to bias.
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BIBLIOGRAPHY
BOOKS:
Ashwathapa K., Human Resource Management (third edition), Tata Mc Graw Hill
Publication Company Ltd.
Chhabra. , T. N. Human Resource Management, Dhanpat Rai $Co(P)Ltd. India, ninth
edition.
Kothari C.R., Research Methodology, New Delhi; New Age International