LOVELY PROFESSIONAL UNIVERSITY DEPARTMENT OF MANAGEMENT SUMMER TRAINING REPORT On An Analytical Study of Labour Turnover In Vardhman Submitted to Lovely Professional University in partial fulfillment of the requirements for the degree of Masters of Business Administration (MBA) 2010 Submitted by: Nainy Sood SUMMER TRAINING REPORT Page 1
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
LOVELY PROFESSIONAL UNIVERSITY
DEPARTMENT OF MANAGEMENT
SUMMER TRAINING REPORT
On
An Analytical Study of
Labour Turnover
In Vardhman
Submitted to Lovely Professional University
in partial fulfillment of the requirements for the degree of
Masters of Business Administration (MBA)
2010
Submitted by:
Nainy Sood
University R.No. RS1901A06
Department of Management
SUMMER TRAINING REPORT Page 1
ACKNOWLEDGEMENT
Myself, Nainy Sood, student of two years Master of Business Administration course in
“Department of Management”, in Lovely Professional University for the partial fulfillment of
course, underwent a Summer Internship at “Vardhman Spinning And Textile Mills” for six
weeks.
For the same I would like to thank my project guide “Mr. Vineet Kashyap”, without whose
concern and efforts, this internship would never have been possible.
I am also highly grateful to “Mr. Manish Thakur”, Manager, HR Dept., who granted me the
permission to work as internee.
I would like to thank “Mrs. Deepika Sukhija”, my mentor and guide throughout the Internship,
who assisted me throughout my internship and made it a fine learning experience.
Apart from these, I would also like to thank the various workers and staff members who were
there to assist me at every step and to answer my queries.
SUMMER TRAINING REPORT Page 2
TABLE OF CONTENTS
Summary
Objectives
How the study was made
Rationale of the study
Significance of the study
Industry profile
SWOT analysis
Current facts
Company profile
History
Mission
Philosophy
Portfolio
Labour turnover
Literature review
Research methodology
Analysis and interpretation
Results and findings
Suggestions
Conclusion
Questionnaire
References
SUMMER TRAINING REPORT Page 3
SUMMARY
Productivity in construction frequently suffers as a result of high levels of absenteeism and
worker turnover. There is evidence that all concerned-owners, contractors, and workers--are
interested in resolving this problem. This study examines the source and size of the problem, and
makes recommendations to reduce it. For the most part, data for this study were collected from
workers and required the cooperation of owners and contractors. Without exception everyone
cooperated.
Some causes of absenteeism are uncontrollable. The major causes, however, are controllable.
They center on the work-site environment. Such de-motivators as excessive rework, poor
supervision, and unsafe working conditions are reported by workers to be more frequent reasons
for absenteeism than personal illness. These data suggest that absenteeism can be minimized if
managed. Well planned, safe jobsites where an effort is made to recognize workers' individual
skills and utilize employees accordingly will have less absenteeism and inherently enjoy a gain
in productivity.
Worker turnover is also a serious problem in construction and warrants attention. Poor
supervision, unproductive relationships with the boss, poor planning, and generally poor
management are the prime reasons cited by the workers for turnover. As in the case of
absenteeism, this too can be minimized by planning, supervising, and the application of good
management principles. Lower turnover offers a broad range of productivity gains. One other
significant cause of turnover is the attractiveness of nearby jobs offering extended overtime.
Absenteeism and turnover occur on every construction jobsite; however, there is no common
understanding or definition of either. The industry needs to focus on a common definition so that
relative performance may be used as a management guide.
SUMMER TRAINING REPORT Page 4
OBJECTIVES
Human resource management has become one of the more important models of management
applied in the modern organisation. In this study, a closer look on the labour turnover in the
textile industry shall be made. This study intends to establish the relationship of the effective
implementation of human resource management and labour turnover in the industry. In order to
carry out this study, the researcher shall carry out the following objectives.
To find out the reason for the labour turnover.
To find out the satisfaction amongst the workers.
How do the workers regard the company’s performance in terms of:
• Training and Development
• Compensation
• Working Conditions
• Organisation and Productivity
• Empowerment and Employee Involvement
• Communication
• Management and Supervision
• Teamwork
SUMMER TRAINING REPORT Page 5
HOW THE STUDY WAS MADE
The project shall carry out analysis of the possible causes of labour turnover in Vardhman
textiles and General Mills. The discussions shall be divided into five parts.
This first part basically forms part of the introductory elements of this paper. An introduction
to the general problem of turnover in the textile industry, a background of the current
environment of the said industry and the rationale why and how this general problem needs to be
addressed shall be indicated in this part. Hence, the first part shall build the foundation on which
the subsequent parts will relate.
The second part shall provide for the review of related literature pertaining to employee
retention, labour turnover and human resource management. On a more specific note, the
discussions shall fall squarely on how the existing literature points to the concepts and issues
mentioned in the aims and objectives of this project. Moreover, this part will also provide some
description of past studies that shows similarities with the intended ends of this project. These
discussions will then be used to relate to the actual findings of this study.
The third part of the project shall cover the methods and procedures used in this project.
Simply, the discussions on this part shall cover the models used in the data acquisition processes.
Statistical tools as well as other concerns which the researcher encountered during the course of
the study shall be taken into account. This is to provide a transparent account on how the data is
acquired and that the data used in the analysis are credible.
The fourth part shall present, interpret and analyse the data acquired from the respondent
company. In this part of the study, tables and charts shall be used to summarise the findings
made by the research process. Specifically, the processed data from the quantitative research
shall be discussed and related to the objectives of the project. In addition to that, the discussions
shall also relate the findings on the existing theories pointed out in the earlier literature review.
The last part shall be giving out the summary, conclusions and recommendations based on the
findings of presented in the preceding parts. In doing so, this part will specify the implications of
the study on the overall field of organisation and human resource management. The
SUMMER TRAINING REPORT Page 6
recommendations given in this part shall cover the observations and arguments made throughout
the dissertation.
A questionnaire was made of 20 questions to identify reasons for absenteeism and turnover from
the worker's perspective. The questionnaire was designed specifically to measure worker
attitudes about their jobs and to investigate underlying causes for turnover. This questionnaire
was completed by more than 100 workers on their jobsite.
The final questionnaire was divided into two main parts. Part1 asked workers to respond to
questions about demographic items such as name, age, department, token number. Part 2 asked
for information about attitudes toward job factors— e.g., safety aspects, work quality,
supervision, and pay.
SUMMER TRAINING REPORT Page 7
RATIONALE OF THE STUDY
Organisational studies have emphasised time and again of the importance of offsetting the
demands of the external environment with the internal environment of the organisation. This
harmony provides for the overall success of the organisation. The very manifestation of this
stated harmony is seen in the flexibility of the company in dealing with the demands of their
operations. The management and supervision of the environment is thus a given prerequisite.
The internal environment serves as foundation for the company in dealing with the nuances of
the external environment. However, this can only be done if the organisation holds on to a
competent set of workers and employees dedicated to the realisation of organisational goals. The
problem with this requirement is that this rarely takes place. Companies, after training their
employees to meet the standards that they require, do not stay too long in the organisation as they
seek other opportunities elsewhere. Studies have pointed out that employee turnover tends to
increase the costs incurred by the company and at the same time opens it up for significant
losses. This is compounded by the fact that turnover of employees has the propensity to be
driven by personal decisions of the individual employees. Studies have pointed to this
phenomenon as voluntary turnover. Acts like resignation and retirement are among those that
signify voluntary turnover. Hence, retention is deemed as an indispensable ends on which the
company has to achieve.
SUMMER TRAINING REPORT Page 8
SIGNIFICANCE OF THE STUDY
In the past decades, the study on human resource management has become one of the most
contested and debated topics. Scholarly journals and academic articles have assailed every nature
of the model. In the same manner, a good number has been made for the purpose of analysing the
importance of retention and the effects of turnover. This report would be a welcome addition to
this existing literature. In addition, the analyses and findings of this report will fill in the rather
scant studies on the effects of turnover and the importance of retention in the industry.
In this regard, it is important to mention that the study will be focusing on a particular textile mill
in Ludhiana. Hence, the setting of the study will also establish the existing conditions
surrounding the textile industry.. This may trigger an impetus to further improve the knowledge
of the existing environment and the industry on which the respondent company operates. To this
end, the study will beneficial to a number of sectors in society. The implications of the findings
are not limited to organisational studies alone. It affords an advantage to the actual trade and
industry as well as in the academe.
SUMMER TRAINING REPORT Page 9
INDUSTRY PROFILE
Indian Textile Industry is one of the leading textile industries in the world. Though was
predominantly unorganized industry even a few years back, but the scenario started changing
after the economic liberalization of Indian economy in 1991. The opening up of economy gave
the much-needed thrust to the Indian textile industry, which has now successfully become one of
the largest in the world.
India textile industry largely depends upon the textile manufacturing and export. It also plays a
major role in the economy of the country. India earns about 27% of its total foreign exchange
through textile exports. Further, the textile industry of India also contributes nearly 14% of the
total industrial production of the country. It also contributes around 3% to the GDP of the
country. India textile industry is also the largest in the country in terms of employment
generation. It not only generates jobs in its own industry, but also opens up scopes for the other
ancillary sectors. India textile industry currently generates employment to more than 35 million
people. It is also estimated that, the industry will generate 12 million new jobs by the year 2010.
Currently it is estimated to be around US$ 52 billion and is also projected to be around US$ 115
billion by the year 2012. The current domestic market of textile in India is expected to be
increased to US$ 60 billion by 2012 from the current US$ 34.6 billion. The textile export of the
country was around US$ 19.14 billion in 2006-07, which saw a stiff rise to reach US$ 22.13 in
2007-08. The share of exports is also expected to increase from 4% to 7% within 2012
Various Categories
Indian textile industry can be divided into several segments, some of which can be listed as
below:
Cotton Textiles
Silk Textiles
Woolen Textiles
Readymade Garments
Hand-crafted Textiles
Jute and Coir
SUMMER TRAINING REPORT Page 10
SWOT ANALYSIS
STRENGTHS :
Indian Textile Industry is an independent & self-reliant industry.
Abundant raw material availability that helps industry to control costs
and reduces the lead-time across the operation.
Availability of low cost and skilled manpower provides competitive
advantage to industry.
Availability of large varieties of cotton fibre & has a fast growing
synthetic fibre industry.
India has great advantage in spinning sector and has a presence in all
process of operation & value chain.
India is one of the largest exporters of Yarn in international market &
contributes around 25% share of the global trade in Cotton Yarn.
The Apparel Industry is one of largest foreign revenue contributor &
holds 12% of the country’s total export.
Industry has large and diversified segments that provide wide variety
of products.
Growing economy and potential domestic & international market.
Industry has manufacturing flexibility that helps to increase the
productivity
WEAKNESSES:
Indian Textile Industry is highly fragmented industry.
Industry is highly dependent on Cotton.
Lower productivity in various segments.
There is decline in mill segment.
Lack of technological development that affect the productivity & other
activities in whole value chain.
SUMMER TRAINING REPORT Page 11
Infrastructural bottlenecks and efficiency such as, transaction time at
ports and transportation Time.
Unfavourable labour laws.
Lack of trade membership, which restrict to tap other potential
market.
Lacking to generate economies of scale.
Higher indirect taxes, power and interest rates.
OPPORTUNITIES:
Growth rate of domestic textile industry is 6-8% per annum.
Large, potential domestic & international Market.
Product development and diversification to cater global needs.
Elimination of quota restriction leads to greater market development.
Market is gradually shifting towards branded readymade garment.
Increased disposable income & purchasing power of Indian customer
opens new market development.
Emerging retail industry and malls provide huge opportunities for the
apparel, handicraft & other segments of the industry.
Greater investment & FDI opportunities are available.
THREATS:
Competition from other developing countries, especially China.
Continuous quality improvement is need of the hour as there are
different demand patterns all over the world.
Elimination of quota system will lead to fluctuations in export demand.
Threat for traditional market for power loom & handloom products &
forcing them for product diversification.
Geographical disadvantages.
SUMMER TRAINING REPORT Page 12
International labour & environmental laws.
To balance the demand & supply.
To make balance between price & quality
Current Facts on India Textile Industry
Indian Textile Industry is one of the largest and oldest industries in India.
India retained its position as world’s second highest cotton producer.
Acreage under cotton reduced about 1% during 2008-09.
The productivity of cotton which was growing up over the years has decreased in 2008-
09.
Substantial increase of Minimum Support Prices (MSPs).
Cotton exports couldn't pick up owing to disparity in domestic and international cotton
prices.
Imports of cotton were limited to shortage in supply of Extra Long staple cottons.
Indian Textile Industry is highly fragmented industry; at the same time it is an
independent and self-reliant industry that has shown sustainable growth over the years.
Indian textile Industry is valued at US$ 36 Billion with exports of US$ 17 Billion in
2005-2006.
Indian Textile Industry is second largest industry in terms of providing vast employment
opportunities and employs around 35 million people in country after agriculture sector.
The Indian Textile Industry plays vital role in economic development and contributes
14% to industrial production in the country.
Textile Industry contributes around 4% of GDP, 9% of excise collections, 18% of
employment in industrial sector, and has 16 % share in country’s export.
Industry has direct and strong linkage with rural and agriculture sector, therefore it is
estimated that, one of every six households in country is directly or indirectly dependent
on this industry.
Industry contributes around 25% share in the world trade of cotton yarn.
India is evolved as a major contributor in world’s cotton sector. Indian is the world’s
third-largest producer of cotton and second-largest producer of cotton yarns and textiles.
SUMMER TRAINING REPORT Page 13
India is the largest exporter of yarn in the international market and has a share of 25% in
world cotton yarn export market.
India contributes for 12% of the world’s production of textile fibers and yarn.
Indian textile industry is second largest after China, in terms of spindlage, and has share
of 23% of the world’s spindle capacity.
India has around 6% of global rotor capacity.
The country has the highest loom capacity, including handlooms, and has share of 61% in
world loomage.
Including textiles and garments, 30% of India's export comes from this sector.
Indian Textile Industry is one of the largest industries that provides high exports and
foreign revenue.
Large and potential domestic & international market, large pool of skilled and cheap
labor, well-established industry, promising export potential etc. are few strengths of
Indian Textile Industry.
Highly Fragmented, High dependence on cotton sector, Lower productivity, Unfavorable
Labor Laws is few drawbacks of the industry from which it has to overcome.
After the elimination of quota restrictions and implementation of National Textile Policy
2000, it is estimated that the industry will grow with rapid rate and help to strengthen the
Indian economy.
SUMMER TRAINING REPORT Page 14
SUMMER TRAINING REPORT Page 15
Manufacturing units present at all levels
of value chainRaw materialsCotton, wool, silk, jute
Petrochemicals
Fibres and yarn
Man-made fibre/ filament yarn*
Grey fabric
Knittin
g
Weaving
Processed fabric Dyeing
Finishing
Garments
Home textiles
Production unit Spinning mills
Weaving/ knitting units - handlooms, powerlooms, hosiery units
Hand processing units, independent power processing units, units attached to mills