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A STUDY ON EMPLOYEE RETENTION AT HMT MACHINE TOOLS LTD KALAMASSERY
A SUMMER PROJECT REPORT SUBMITTED BY Miss Vijaya R (REG 08PIT35)
IN PARTIAL FULFILMENT OF THE REQUIREMENTS FORTHE DEGREE OFMASTER OF BUSINESS ADMINISTRATIONIT ORGANISATION AND ADMINISTRATION
UNDER THE GUIDANCE OFMiss Sasikala Devi, M B A
AVINASHILINGAM SCHOOL OF MANAGEMENTTECHNOLOGY
AVINASHILINGAM UNIVERSITY FOR WOMENCOIMBATORE-641043JUNE 2009
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ACKWNOWLEDGEMENT
I acknowledge the chancellor Mr. T. K. Shanmugananthan, B.A, B.L and the Vice Chancellor Dr. Saroja Prabhakaran, M.A, Dip. Ed, Ph.D and the Registrar Dr. Gowri Ramakrishnan, M.Sc, M.Phil, Ph.D of Avinashilingam University for Women, Coimbatore for having given an opportunity to undertake this project work which forms a part of my curriculum.
I express my hearty gratitude to the Dean, Department of Management Studies Dr. Shantha B Kurup, M.Com, M.Phil, Dip.Ed, M.B.A, Ph.D for her support and encouragement.
This work would not have materialized but for the timely guidance given by Miss Sasikala Devi, M.B.A, Lecturer, Department of Management Studies who assisted and extended support through out the project.
I express my heartfelt thanks to all the faculty members of the Department of Management Studies, whose immense support helped a lot to complete the project.
I express my sincere gratitude to
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CONTENTS
CHAPTER NO CONTENTSPAGE NO
1 INTRODUCTION 4
SYNOPSIS 4
INDUSTRY PROFILE 5
COMPANY PROFILE 8
2 OBJECTIVES 25
3 REVIEW OF LITERATURE 25
4 RESEARCH METHODOLOGY 29
5 LIMITATIONS 31
6ANALYSIS & INTERPERETATIONS 32
7 SUMMARY 46
FINDINGS 46
SUGGESTIONS 47
8 ANNEXURE 48
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INTRODUCTION
SYNOPSIS
Employee Retention
Employee retention is the initiatives taken by the management to keep employees from leaving such as rewarding employees for performing their jobs effectively, ensuring good relations between employees and managers and maintaining a safe healthy environment. When you have hired good people trained them, built them into high performing teams you don’t want to loose them.
There are many different ingredients that go into reducing employee turnover. There will be seven strategies focused on: money, building relationships between employers and co-workers, a fearless culture, job satisfaction, opportunities for personal growth, organizational direction,And recognition of work/life balance needs. Retention is successful when emotional bonds are built. Therefore, building relationships between employers and co-workers is important when it comes to employee retention.
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INDUSTRY PROFILE
INDIAN MACHINE TOOLS INDUSTRY
BACKGROUND AND HISTORICAL TRENDS
The machine tools industry in Indian dates back to the world back to
the Second World War. Due to non availability of imported machine tools, a
few British owned general engineering firms took up their manufacturing in
India. This was followed up by start of industrialization in the series of Five
year plans. The process of planning in the economy resulted in a second
phase of machine tools with public sector investment in Machine Tools
(HMT Ltd .1953. These two initial phase of development of Indian Machine
Tool industry saw the production of general purpose machine tools most of
which were produced under technical assistance from Foreign Collaborators
(Loudon, Ward, Herbert, Jones and Shipman, etc)
The 1960 marked the third phase of Machine Tool Industry. During
this phase, the range of product witnessed rapid, growth and various types of
machine tools including SPMs were manufactured(Multi Spindle Automats,
Gear cutting machine, SPMs, presses ,Broaching Machines, etc.).The Fourth
phase begins in the mid 1980s which saw the entry of Japanese Machine
Tools makers in the Indian Market though licensing agreements. (Mori
Seiki, Hitachi Seiki, Nachi fuji-koshi, Mit subshi, etc.
The Fifth and current phase began in the early nineties after the
liberalization of the Indian Economy. With the market share of bigger
companies expanding and the public sector giants shrinking and those of the
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smaller company rising, in house design capability, entrepreneurial spirit,
greater technology freedliness, operational flexibility and lean management,
combined to give a greater competitive edge to the smaller companies setup
by technocrats resulting in a significant shift in machine tools production to
these medium sized companies.
International Trends
While Japan increased its lead over Germany Taiwan
edged part of United States to be among the top five machine tools
manufacturing countries. Italy and China remain in the Second and Third
slot.
Current Status in India
The Indian Machine Tools industry manufactures almost
the complete range of metal cutting and metal forming machine tools.
Customized in nature, the products from the Indian market comprise
conventional machine tool as well as Computer Numerically Controlled
(CNC) machines. Others include special purpose machines, robotics,
handling systems, and TPM-friendly machines.
Efforts with the Industry are now undergoing the
features of CNC machines, and provide further value additions at lower
costs, to meet specific requirement of users.
In India there are about 450 manufacturing complete
machines or their components. There are 150 in the organized sector. Almost
73% of the total machine tool production in India contributed by 10 major
companies in this industry. The industry has an installed capacity of over Rs
10 million and employees a workforce directly and indirectly totaling 65000
skilled and unskilled persons.
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The hub of manufacturing activities concentrated in Mumbai and
Pune in Maharashtra, Chennai, Gujarat, Coimbatore, etc. All global leaders
namely, Makino, DGM, Yamazaki, Haus, Trumpf Daewoo, Schules are
present in India either through marketing agents, technical centers, service
centers or assembly centers.
These are critical issues to this industry.
The competitiveness and quality of machine tools manufacturing depends on
the competitiveness and quality of its sub contractors.
Attracting and retaining talented manpower is an issue since the industry can
grow only with knowledge accumulation.
High fragmentation is leading to low economies of scale.
Indian educational curriculum in the ITI’s or engineering colleges is not
geared to impart the all round technical knowledge required by the engineers
and operator in this sector.
It is well known and often repeated fact that the machine tools
industry forms the pillar for the competitiveness of the entire manufacturing
sector since machine tools which in turn produce the manufacturing goods.
Hence being an integral sector, growth of the machine tools industry has an
immense bearing on the entire manufacturing industry which is crucial for
country’s strategic requirement like Railway, Defense, Space and atomic
space.
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COMPANY PROFILEHISTORY OF THE COMPANY
HMT MACHINE TOOLS LIMITED
By the end of the Second World War, the Government of India was
confronted by a big problem of disposing the colossal war waste. Ultimately
a committee was constituted to enquire into the possibilities. The committee
report of 1948 proposed the establishment of a Government owned machine
tool industry. This was expected to fulfill two aspects. The first was being
utilization of the Rs 4000 Million worth of metallic waste. The second was
the incorporation of state owned infrastructure manufacturing facility. The
result was the birth of the HINDUSTAN MACHINE TOOLS LIMITED,
which diversified in due course of time to the present stature of the multi
core, multi location, multi unit, multi product, industrial gaint HMT Ltd.
The HMT Ltd was started as a single factory to produce Tool room
Lathes at Bangalore in collaboration with M/s Oerlikon of Switzerland in
1953, with a capacity to manufacture around 400 machines per year. Since
then different Collaborations, continued in house R & D and tremendous
marketing efforts brought HMT, to present in status.
The growth of HMT was characterized by backward and forward
integration of technology and product diversification. Thus, the company
that started with manufacturing and selling lathes expanded its machine tools
product range to evolve as the ultimate solution in metal cutting. The
product diversification efforts took the company to the business of watches
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in 1962, Tractors in 1972, presses in 1972 Lamps and Lamp making
machinery in 1980, CNC system in 1986, Ball screw in 1986 and
Reconditioning in 1990.
The multi product activities made HMT Ltd changes its identity as
Hindustan machine tools Ltd. Today, HMT Ltd. has 22 product divisions,
spread through the length and breadth of India. A subsidiary namely HMT
(international) Ltd, undertakes the exports to several other Indian companies.
HMT Ltd was restructured in 1992 to facilitate
better administration of the multi product business activities. Accordingly,
the following business groups were established.
Machine tools business group, to concentrate on metal cutting
machines.
Industrial machinery Business Group, to deal with printing machines, Die
casting and Plastic injection molding Machines, Food processing Machines
and metal forming machines.
Agricultural Business group to concentrate on Tractors.
Engineering components Business Group, to deal with Casting and Ball
Screws.
Customer product Business Group, to deal with watches and Lamps. In
addition to these Business Group, the company owns three subsidiaries as
follows.
HMT (International) Ltd .which undertakes the overseas projects and
exports.
Praga tools Ltd. which manufactures machine tools.
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HMT Bearing Ltd. which manufactures precision Bearing in collaboration
with m/s Koyo Japan.
As per the revival of this public sector Industry a turnaround plan has
introduced in the early days of this millennium and recognized as HMT Ltd
–holding company including Tractors division and presently comprises of
the following subsidiaries.
1. HMT MACHINE TOOLS LIMITED
2. HMT WATCHES LIMITED.
3. HMT CHINAR WATCHES LIMITED.
4. HMT INTERNATIONAL LIMITED.
5. PRAGA TOOLS LIMITED.
1. HMT MACHINE TOOLS LIMITED.
The HMT Machine tools limited is engaged in the manufacture and
marketing of General Purpose Machine tools, Precision machinery systems,
printing machines, Metal forming processes, die casting and Plastic Injection
molding machines, Ferrous and non ferrous casting.
THE PRODUCT RANGE OF HMT MACHINE TOOLS UNITS
BANGALORE
Heavy Duty Lathe.
Single and Multi Spindle Automobile.
Radial Drilling Machines.
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Multi Spindle Drills.
Cylindrical and Surface Grinders.
Laser Cutting Haber’s.
Gear Cutting Machines.
CNC Turn Mill Centers.CNC Wire cut EDM.
Fine Boring Machines/SPMs.
PINJORE
FMS AND FMC.
Horizontal Machinery Centers.
Vertical Machinery Centers.
Milling Machines.
Broaching Machines.
KALAMASSERY
CNC Turning centre.
Turn Mill Centre.
Flexible Turning Cell.
Copying Lathes.
Centre Lathes.
Offset Printing Machines.
Paper Cutting Machines.
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HYDERABAD
Special Purpose Machines.
Horizontal Machining Centre.
FMS.
CNC Horizontal Boring Centre.
Bed Type and Floor Type Boring Machines.
Grinding Machines.
SPM Grinders.
CNC grinders.
MAJOR MACHINES AND INSPECTION FACILITY AVAILABLE IN
DIFFERENT MACHINE TOOLS UNITS
1. CNC Ram Type Plano Millers.
2. Horizontal Machining Centers.
3. Vertical Machining Centers.
4. Horizontal Jig Boring Machines.
5. CNC Turning Centers.
6. Turn Mill Centers.
7. Slide Way Centers.
8. Cylindrical Grinders.
9. Internal Grinders.
10.Precision Gear Shapers.
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11.Precision Gear Hobbes.
12.Gear Grinders.
13.Induction Hardening Machines.
14.3d-co-ordinate Measuring Machines
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2. HMT WATCHES LIMITED:
HMT Watches Ltd manufactures and markets watches including Hand
Wound/ Automatic and Quarts.
3.HMT CHINAR WATCHES:
HMT CHINAR WATCHES LTD is also one of the subsidiaries
engaged in the manufacture of Chinar model watches located in Srinagar,
Kashmir State.
4. HMT BEARING LTD:
HMT Bearing Ltd is one the subsidiaries engaged in the manufacture
of different types of industrial bearing, situated in Hyderabad.
5. HMT INTERNATIONAL LTD:
HMT International is engaged in the export of HMTs ranges of
product Worldwide HMT (I) also marketed other Engineering Products in
the World Market and backed by a good sales and service network also
undertake Turnkey Projects and technical services for developing countries.
6.PRAGA TOOLS LTD:
Praga tools limited is also a subsidiary of HMT Ltd engaged in the
manufacturing of Machine Tools located in Hyderabad.
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PRODUCT PROFILE
THE KALAMASSERY COMPLEX OF HMT, KALAMASSERY.
The Kalamassery Unit, the Forth Machine Tools Ltd was established in
1963 and started production in 1964. The Unit originally manufactured only
two types of Lathes namely, H&LB, but later added special purpose Lathes
like Copying and Turret. Lathes. Model LT-20 was the first product to be
indigenously developed by the unit (1968) and the development of this
product was a landmark in the history of the unit. The production of this
machine was later licensed to M/s QETCOS Kerala, MATOOLS,
Philippines, Ceylon steel corporation Srilanka. The original Centre Lathes H
& Lb were then replaced by a new family of unified series of lathes which
was designed and developed by the unit, incorporating the concept of
typification, standardization and unification.
PRODUCT DEVELOPMENT AT MACHINE TOOL LIMITED
KALAMASSERY.
The following products are developed by the machine tools unit of
Kalamassery indigenously.
YEAR PRODUCT
1969-70 LT-20
1976-77 NH/NL
1976-77 FC-25
1980-81 TL-20
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1981-82 NHCNC
1981-82 SBCNC 35
1982-83 SBCNC 35
1986-87 STC 25
1990-91 STC 15
1991-92 ECONO CNC
1992-93 STC 20
1993-94 STC 20
1994-95 NL 180
1996-97 TS 20 (Tcom Spindle)
1997-98 AUTOCOMP
1997-98 STALLION-200
1999-2000 AUTOMAN
2000-01 STALLION-100
2003 M CELL
2004 SMC WITH GANTORY LODER
2004 STALLION 100s
2007 MEGATURN.
DIVERSIFICATION OF KALAMASSERY UNIT AND BIRTH OF
PRINTING MACHINE DIVISION
During the period of 1972-73, kalamassery unit diversified its product
range to include Printing Machinery division (PMK) was with the two types
of latter presses namely. RTE and RTAFunder collaboration with m/s
Nebiolo of Italy. Auto platen an indigenous development comes up
subsequently. During the ensuring years Printing Machinery Division come
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up with offset presses namely OMIR in collaboration with m/s Nebiolo.
Later indigenous offset presses namely .SOM 136 was introduced in the
market. The first two color machine from HMT was OMIR in collaboration
with M/s Koenig and Bauer of Germany. The latest development of PMK
was paper cutting, Guillotine PG 92 D3 in collaboration with m/s Divano
Binder of Italy
THE CURRENT PRODUCT RANGE
PRODUCT MODEL
OFFSET PRINTING MACHINES SOM 436
SOM 425
SOM 236
SOM 231
SOM 225
SOM 136
SOM 131
SOM 125G
PG-92 D3
PAPER CUTTING MACHINES
The Kalamassery unit of HMT is famous for
development activities. Thus product has always fetched awards and prizes
at different Trade fairs and Competitions. To name a few are prizes begged
in different IMTEX fairs by FC-25, SBC and SBCNC Machines. The CNC
Lathe Model STC -25 has won VASVIK Industrial Research Award 1987
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instituted by the Vivdhalaxi Audyogile Samsodhan Vikar Kendra
(VASVIK) Mumbai for o/s advancement of Science and Technology.
The Machine tool product of this unit has been certified by RWTUV-
Reinsih West Falischer Techniser Uber Wachiengs Verein – an international
certification agency of high repute as confirmining to Total Quality
Management System.
Both the divisions have been awarded ISO 9001 certification by
IRQS
The manufacturing shops at MTK are supplied by various
infrastructural facilities like, High Technology CNC Centers, Testing
facilities, Foundry ,Heat Treatment, Computer system CAD system etc.
Around 800 well experienced form the human resources of the unit keeping
in line with the current corporate trends.
TRAINING CENTRE
This Unit views HRD as one of the concern to increase productivity and
enhance Social Stranding. The company has a well established training
system by personnel of technical and management skills.
The HRD undertaken by them includes the following:-
1. Management Orientation Programmes
2. Supervisory Development programs
3. Customer Training Programmes to equip the customer for the optimum
utilization of HMT Machines.
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4. Periodic awareness Training programmes for employees relating to safety,
quality Advanced Technology, Information Technology etc.
5. Multi-skill Training to Machine Operators.
6. Induction and in plant Training to Fresh recruits and Transferees.
7. Apprentice Training Programmes under the apprentice Act.
8. Project guidance in Management and Technology to students.
THE MARKETING NETWORK OF HMT MTL Ltd.
The Machine Tools Marketing Divisions with its head quarters at
Bangalore and having a wide network of Regional and Divisional offices
spread through –out caters to the marketing needs of this Unit at the primary
level, to co-ordinate the marketing activities at the unit level and to offer
technical support to Machine tools. Marketing, a strong sales and services
team is constituted at unit level .HMT’smajor Customers includes defense,
Railways, Automobile and other Engineering Industries in Various sectors.
MAIN INLAND COMPETITORS FOR THE UNIT’S PRODUCTS
1. Mysore Kirlosker Ltd.
2. ACE Designers.
3. NC Machines Private Ltd.
4. Lakshmi Machine Work.
MAIN FOREIGN COMPETITORS FOR THE UNIT’S PRODUCTS
1. Okuma, Japan.
2. Nori saiki. Co. Ltd Japan.
3. Tukisama, Japan.
4. Muzak, Japan.
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5. Ikegai, Japan.
6. GDM, Germany.
7. Churchill, England.
8. Ernault Toyota, Japan.
9. Victor, Taiwan.
10.Tuma, Korea.
11.EMAS, Germany.
WELFARE MEASURES IN HMT, KALAMASSERY
1. Company Quarters are provided to employees.
2. Subsidized Transport facility is provided for employees residing outside
HMT Township.
3. Company sponsors a central welfare association has subsidiary clubs, that is
Arts and Dramatic Club, Sports club, Social club, Educational society.
ISO 9000:INTERNATIONAL STANDARDS FOR QUALITY
MANAGEMENT
Good quality system consists of sound technical and administration
procedures for assuring quality. QA offers more scope for reducing costs
prerequisites and characteristics of good quality assurance and quality
management. The challenge to a developing nation is to motivate processors
and manufactures to adopt and implement these standards and to establish a
credible nation quality registration scheme, which will be recognized by
trading partners.
In a increasing no of markets and industries third party quality
assessments and registration is becoming a pre requisite for doing
business.ISO 9000 registration is considered the minimum acceptable level
for supplier and those who cannot demonstrate this minimum level may not
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only have difficulty in selling a certain markets they may be barred from
those markets. Not only must a defendant be able to demonstrate that the
product is manufactured consistently with in a system that conforms at least
two internationally acceptable standards.
IN ADDITION, ISO 9000 SERIES STANDARD ALSO:-
Motivates Exporters..
Set a base line
Establishes reasonable standards for Government Procurement.
Focus Training and Professional Development.
Sets general market procedure for regulating health and safety.
Reduces time consuming audits by consumers and regulators.
Raises level of motivation, co-operation, workmanship and quality
awareness.
Improves efficiency reduces scrap and rework
The following topics are dealt within the ISO 9000 series of standards.
1. ISO 9000 – Quality management and quality assurance standard section and
use.
2. ISO 9001 – Model of quality assurance in design /development, production
installation and servicing.
3. ISO 9002 – Model for quality assurance in production and installation.
4. ISO 9003 – Model for quality assurance in final inspection.
5. ISO 9004 –Guidelines on development of quality management system to
minimize costs and maximize benefits.
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Kalamassery unit
The kalamassery Unit was commissioned on October 2nd 1964 with an
initial investment of Rs 7.5 crores in Ernakulum district near the Cochin Port
.The total plot of the unit was 1150 acres. It is the second unit and fourth
division of HMT Company. The kalamassery unit started with machine tool
division since 1965. Then Printing machinery division with additional
investment of Rs 3.3 crores .In 1994 the company earned ISO 9001
certificate.
Welfare facilities
1. HMT School
2. SBT Branch
3. Bharath Gas supply unit (only for employees)
The kalamassery Unit manufactured only2 Types of lathes namely H & LB
but added special purpose lathes like copying and current lathes. Model LT:
20 was first product indigenously developed by the unit in 1968.
Corporate Objectives and goals
1. To encourage the modernization of Indian industry through the supply of
engineering goods and services of world class excellence.
2. To technological leadership through continuous efforts to update product
technology and manufacturing methods.
3. To globalize our operation by developing a mix of international markets and
business.
4. To ensure a satisfactory return on capital employed to meet the growth needs
and aspiration of our share holders.
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5. To present an active and pleasant working environment.
Company Mission
“Quality, Reliability & commitment “is the main mission of the
company .HMT machines are designed to meet the functional requirements
so as to give “maximum customer satisfaction”.
1. To establish as one of the world premier companies in the engineering field
having strong international competitiveness.
2. To achieve market leadership in India through ensuring customer
satisfaction.
3. To achieve sustained growth in the earning of the group on behalf of share
holders.
4. Wealth maximization.
Vision
To be a leading global engineering conglomerate focused on customers
delight in our fields of endeavors.
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ORGANIZATION STRUCTURE
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COMPANY STRUCTURE
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HMT LTD
HMT WATCHES LTD
HMT INTERNATIONAL LTD.BANGLORE
PRAGA TOOLS LTD, HYDERABAD
HMT BERINGS, HYDERABAD
HMT CHINNAR WATCHES,KASHMIR
HMT MTL
FACTORIES
KALAMASSERY
HYDERABAD
BANGLORE AJMIR PINJORE
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OBJECTIVES
1) To know the ways to retain employees in big bazaar Ltd.2) To study various factors that helps in employee retention.
REVIEW OF LITERATURE (EMPLOYEE RETENTION).
1) Employers have a need to keep employees from leaving and going to work for other companies. This is true because of the great costs associated with hiring and retraining new employees. The best way to retain employees is by providing them with job satisfaction and opportunities for advancement in their careers (Eskildesen 2000, Hammer 2000).
2) Employees that are satisfied and happy in with their jobs are more dedicated in doing a good job and taking care of customers that sustain the operation. Job satisfaction is something that working people seek and a key element of employee retention (Marini 2000; Denton 2000).
3) Research has shown that there may be many environmental features that can be created and maintained to give employees job satisfaction. Pay and benefits, communication, motivation ,justice and leisure time all seem to play a part as to whether employees are satisfied with their jobs, according to studies which helps to retain employees. (Brewer 2000; Employee 2000; Money 2000; Wagner 2000).
4) The employees are extremely crucial to the organisation since their value to the organization is essentially intangible and not easily replicated Meaghan et al. (2002). Therefore, managers must recognize that employees as major contributors to the efficient achievement of the organization’s success (Abbasi et al. (2000)).
5) Employee engagement, the organization’s capacity to engage, retain, and optimize the value of its employees hinges on how well jobs are designed, how employees' time is used, and the commitment and support that isshown to employees by the management would motivate employees to stay in organization’s (Johnson et al (2000)).
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6) Knowledge accessibility, the extent of the organisation’s collaborativeness and its capacity for making knowledge and ideas widely available to employees,would make employees to stay in the organisation. Sharing of information should be made at all levels of management.This accessibility of information would lead to strong performance from the employees and creating strong corporate culture Meaghan et al. (2002).
7) Workforce optimization, the organisation’s success in optimizing the performance of the employees by establishing essential processes for getting work done, providing good working conditions, establishing accountability and making good hiring choices would retain employees in their organisation. (Badawy, 1988; Basta and Johnson, 1989; Garden, 1989; Parden, 1981; Sherman, 1986).
8) With increased competitiveness on globalizations, managers in many organizations are experiencing greater pressure from top management to improve recruitment, selection, training , and retention of good employees and in the long run would encourage employees to stay in organizations ( Kanungo,1982).
9)Involvement in terms of internalizing values about the goodness or the importance of work made employees not to quit their jobs and these involvements are related to task characteristics. Workers who have agreater variety of tasks tend stay in the job (Couger, 1988; Couger and Kawasaki, 1980; Garden, 1989; Goldstein and Rockart,1984).
10) Job satisfaction, job involvement and organisational commitment are considered as some employee retention factors (Brooke and Price, 1989).
11) Organisational commitment is an affective response to the whole organisation and the degree of attachment or loyalty employees feel towards the organisation. Job involvement represents the extent to which employeesare absorbed in or preoccupied with their jobs and the extent to which an individual identifies with his/her job (Brooke et al., 1988).
12) Empowerment of employees could help to enhance the continuity of employees in organisations (Malone, 1997).
27
13) Superiors empowering subordinates by delegating responsibilities to them leads to subordinates who are more satisfied with their leaders and consider them to be fair and in turn to perform up to the superior’s expectations (Keller and Dansereau, 1995).
14) Retaining talent is difficult but not impossible. The employees and supervisors are required enough to sensitize the reasons as why do employees quit the organizations and what makes them motivated to stick to them. There is end number of reasons for driving people out of their jobs. But if the employees and supervisors smartly sensitize to the issues related to employee attrition and devise retention strategies judiciously the talented employees can be retained.(Dr S R Chary, Prof Harish Kumar)
15) Retention experts agree that businesses can keep the talented people they
have worked hard to secure, and don't have to spend a lot of money to do so.
"It is not about having to pay exorbitant salaries," says Daniel Dixon of
Consolidated-Products. "It's about creating a vested interest for employees
and that can be done with simple creativity and a little effort."
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REFERENCES
1) Personnel Management, 2 (3):333-342.
2) Badawy MK (1988). "What we’ve learned about managing human resources in R&D in the last fifty years", Res. Technol.Manage. 31(5): pp.19-35.
3) Brooke PP, Russell DW, Price JL (1988). "Discuss validation of measures of job satisfaction, job involvement and organizational commitment", J. Appl. Psychol. 73 (2) : 139-145
4) Couger DJ (1988). "Motivators vs. demotivators in the IS environment", J. Syst. Manage. 39 (6):36-41.
5) Garden AM (1989). "Correlates of turnover propensity of software professionals in small high tech companies", R&D Manage. 19 (4):325-34.
6) Johnson J, Griffeth RW, Griffin M (2000). "Factors discrimination functional and dysfunctional sales force turnover", J. Bus. Ind. Mark.15 (6): 399-415.
7) Keller T, Dansereau F (1995). "Leadership and empowerment: a social exchange perspective". Hum. Rel. 48 (2):127-146.
8) Meaghan Stovel, Nick Bontis (2002), Voluntary turnover: knowledge management-friend or foe? J. intellect. Cap. 3 (3): 303-3229) "The relationship between factors in the workenvironment and turnover propensities among engineering and technical support personnel", IEEE Transactions on Engineering Management, 33: 72-78.
10) Malone TW (1997). "Is empowerment just a fad? Control, decision making, and IT", Sloan Manage. Rev. 38 (2): 23-9.
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11) Image Theory: Decision Making in Personal andOrganizational Contexts, pp. 3-10
12) “Development of the job diagnostic survey” J. Appl. Psychol. 60: 159-70.
13) Kerala Personnel- pp 24-26
14) By Boyens, John ,Publication: Franchising World
15) By Rivenbark, Leigh,Publication: HRMagazine
RESEARCH METHODOLOGY
Research is an organized, systematic, data based investigation into a specific critical, objectives, scientific inquiry or problem undertaken with the purpose of finding answers of solution of it Research design is the blue print for the collection measurement and analysis of data.
RESEARCH DESIGN.
A research design is the measurement, collection and analysis of data. The research comes under descriptive research. Research purpose may be grouped into four categories:
1) Exploratory2) Descriptive3) Diagnostic4) Experimentation
DATA COLLECTION
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Data collection method is the integral part of research design. There are several data collection methods, each with its own advantages and disadvantages. Data can be collected in a variety of ways in different settings from different sources. The data are classified into two categories, primary and secondary data.
PRIMARY DATA Primary data refer to information obtained first hand by the researcher. In this study the researcher used interview method by using structured questionnaires, telephone interviews for collecting the primary data. Here Primary data was collected through questionnaires.
SECONDARY DATA Secondary data can be obtained from the publications, industry analysis offered by the websites, internet and so on. In this survey the secondary data collected from the journals, books & from HMT Machine Tools Ltd, Kalamassery.
TARGET GROUP
Employees of HMT Machine Tools Ltd are the target group for this study.
SAMPLE SIZE
The sample size taken was 100 employees of HMT Machine Tools Ltd, Kalamassery.
SAMPLING EXTENT
The survey was conducted at HMT Machine Tools Ltd, Kalamassery.
SAMPLING TECHNIQUE
In this study the researcher adopted convenience sampling technique. Convenience sampling refers to the collection of information from members of the population who are conveniently available to provide. In this the researcher selected 100 as sample size from the population.
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QUESTIONNAIRE DESIGN AND TESTING
The questionnaire used was mainly quantitative with few qualitative questions. The questionnaire before being used in survey was tested with a pilot study and corrections were made with the help of guide from the organization and from the faculty of Department of Management Studies that made it more effective.
RESEARCH TOOLS
1. Survey- Detailed questionnaire were given to employees to get the primary data for the project.
2. Questionnaire- Primary data were collected by means of questionnaire.
3. Statistical tool- After the data has been collected, an analysis has been done with the data using simple percentage analysis.
LIMITATIONS OFF THE STUDY
1. Getting suggestions from the employees were very difficult as they had only very little free time to spare.
2. Due of the shift system some of the employees were not available for the interview.
3. Some of the employees might not have understood the real purpose behind the survey and hence their answers were vague and not up to the point.
4. The conclusion was made upon the information obtained from 100 employees only. As in any sample it may not be an exact representation of the population and there may be variation in the findings to that extend.
In spite of all the limitations maximum care and effort were taken to make the study scientific and meaningful.
32
ANALYSIS AND INTERPETATION
The data analysis and interpretations were done from the following data collected from the employees.
AGE GROUP OF EMPLOYEES
AGENO OF RESPONDENTS
PERCENTAGE ANALYSIS
BELOW 30 0 030-40 0 040-50 43 4350-60 57 57
33
AGE OF EMPLOYEES
0
10
20
30
40
50
60
BELOW30
30-40 40-50 50-60
AGE
NO
OF
RE
SP
ON
DE
NT
S
NO OF RESPONDENTS
PERCENTAGEANALYSIS
From the above data 57% of employees are aged between 50 and 60, 43% of employees are aged between 40 and 50 and others are zero.
EXPERIENCE IN THE ORGANISATION
YEARSNO OF RESPONDENTS
PERCENTAGE ANALYSIS
BELOW 5 0 05 to 10 0 010 to 15 6 615 to 20 83 83ABOVE 20 11 11
34
EXPERIENCE IN THE ORGANISATION
0
1020
3040
5060
7080
90
BELOW5
5 to 10 10 to 15 15 to 20 ABOVE20
YEARS
NO
OF
RE
SP
ON
DE
NT
S
NO OF RESPONDENTS
PERCENTAGEANALYSIS
From the above data 11% of employees have experience more than20 years, 83% of employees have experience between 15 and 20 years, 6% of employees have experience between 10 and 15 and others are zero.
RATE OF MONETARY BENEFITS IN THE ORGANISATION
RATINGNO OF RESPONDENTS
PERCENTAGE ANALYSIS
VERY GOOD 6 6GOOD 20 20BAD 51 51VERY BAD 23 23
35
RATE OF MONETARY BENEFITS
0
10
20
30
40
50
60
VERYGOOD
GOOD BAD VERYBAD
RATING
NO
OF
RE
SP
ON
DE
NT
S
NO OF RESPONDENTS
PERCENTAGEANALYSIS
51% of employees said that the monetary benefits in the organization is bad, 23% of employees rated monetary benefits in the organization as very bad, 20% rated as good and only 6% rated the monetary benefits in the organization as very good.
RATE OF ADDITIONAL BENEFITS
ADDITIONAL BENEFITSNO OF RESPONDENTS
PERCENTAGE ANALYSIS
TRANSPORTATION ALLOWANCE 29 29IMPROVEMENT IN TOWNSHIP 6 6TRAINING IN OTHER INSTITUTIONS 17 17CANTEEN- FOOD VARIETY 8 8MEDICAL- ACCIDIENT 40 40
36
INSURANCE
RATE OF ADDITIONAL BENEFITS
05
1015202530354045
TR
AN
SP
OR
TA
TIO
N A
LLO
WA
NC
E
TR
AIN
ING
IN
OT
HE
RIN
ST
ITU
TIO
NS
ME
DIC
AL-
AC
CID
IEN
TIN
SU
RA
NC
E
ADDITIONAL BENEFITS
NO
OF
RE
SP
ON
DE
NT
S
NO OF RESPONDENTS
PERCENTAGEANALYSIS
40% rated accident insurance as most important additional benefit required, 29% for transportation allowance, 17% for training in other institutions, 8% for canteen food variety and 6% for improvement in township.
RATE OF REASONS FOR LEAVING THE ORGANISATION
REASONSNO OF RESPONDENTS
PERCENTAGE ANALYSIS
FINANCIAL PROBLEMS 51 51STRESS 6 6BETTER EMPLOYMENT OPPURTUNITY 29 29
37
STAGNATION 14 14
RATE OF REASONS FOR LEAVING THE ORGANISATION
0102030405060
FIN
AN
CIA
LP
RO
BLE
MS
BE
TT
ER
EM
PLO
YE
ME
NT
OP
PU
RT
UN
ITY
REASONS
NO
OF
RE
SP
ON
DE
NT
S
NO OF RESPONDENTS
PERCENTAGEANALYSIS
51% rated financial problem as the major reason for leaving the organization, 6% rated stress, 29% rated better employment opportunity and 14% rated stagnation as the major reason.
POSITIVE MOTIVATIONAL ACTIVITIES WILL INCREASE RETENTION
RATINGNO OF RESPONDENTS
PERCENTAGE ANALYSIS
STRONGLY AGREE 6 6AGREE 38 38NEUTRAL 4 4DISAGREE 44 44
38
STRONGLY DISAGREE 8 8
RATE OF POSITIVE MOTIVATIONAL ACTIVITIES
05
101520253035404550
STRONGLYAGREE
NEUTRAL STRONGLYDISAGREE
RATING
NO
OF
RE
SP
ON
DE
NT
S
NO OF RESPONDENTS
PERCENTAGE ANALYSIS
38% agreed that positive motivational activities will increase retention, 44% disagreed, 8% strongly disagreed, 4% rated as neutral and only 6% strongly agreed to this point.
RATE OF WELFARE SCHEMES IN THE ORGANISATION
RATING NO OF RESPONDENTS PERCENTAGE ANALYSISVERY GOOD 6 6GOOD 45 45BAD 23 23VERY BAD 26 26
39
RATE OF WELFARE SCHEMES
05
1015
202530
3540
4550
VERY GOOD GOOD BAD VERY BAD
RATING
NO
OF
RE
SP
ON
DE
NT
S
NO OF RESPONDENTS
PERCENTAGE ANALYSIS
45% rated welfare schemes as good, 23% as bad, 26% as very bad and 6% rated as very good.
RATE OR ENVIRONMENTAL FACTORS
1) RATING OF VENTILATION, JOB SHIFTS GIVEN TO EMPLOYEES
RATINGNO OF RESPONDENTS
PERCENTAGE ANALYSIS
STRONGLY AGREE 17 17AGREE 46 46NEUTRAL 23 23DISAGREE 8 8
40
STRONGLYDISAGREE 6 6
RATING OF VENTILATION, JOB SHIFTS GIVEN TO EMPLOYEES
05
101520253035404550
ST
RO
NG
LYA
GR
EE
AG
RE
E
NE
UT
RA
L
DIS
AG
RE
E
ST
RO
NG
LYD
ISA
GR
EE
RATING
NO
OF
RE
SP
ON
DE
NT
S
NO OF RESPONDENTS
PERCENTAGE ANALYSIS
17% strongly agreed that proper ventilation, job shifts are provided to them. 46% agreed, 8% disagreed, 6% strongly disagreed and 23% said it as neutral.
2) RATE OF SAFETY MEASURES IN THE ORGANISATION
RATINGNO OF RESPONDENTS
PERCENTAGE ANALYSIS
STRONGLY AGREE 8 8AGREE 17 17NEUTRAL 20 20DISAGREE 43 43STRONGLY 12 12
41
DISAGREE
NO OF RESPONDENTS
8%
17%
20%43%
12%
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
8% of employees strongly agreed that safety is provided to them. 17% agreed, 20% said it as neutral, 43% disagreed and 12% strongly disagreed.
RATE OF JOB SATISFACTION
1) RATE OF WORK EQUIPMENTS PROVIDED
RATINGNO OF RESPONDENTS
PERCENTAGE ANALYSIS
STRONGLY AGREE 11 11AGREE 51 51
42
NEUTRAL 19 19DISAGREE 11 11STRONGLY DISAGREE 8 8
NO OF RESPONDENTS
11%
51%
19%
11%8%
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE
8% of employees strongly disagreed that necessary work equipment are provided to them. 51% agreed, 19% said it as neutral, 11% disagreed and 11% strongly agreed.
2) RATE OF OPPORTUNITY PROVIDED
RATINGNO OF RESPONDENTS
PERCENTAGE ANALYSIS
STRONGLY AGREE 14 14AGREE 43 43NEUTRAL 23 23DISAGREE 14 14STRONGLY 6 6
43
DISAGREE
NO OF RESPONDENTS
14%
43%23%
14%6%
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE
6% of employees strongly disagreed that enough opportunities are provided to them. 43% agreed, 23% said it as neutral, 14% disagreed and 14% strongly agreed.
3) RATE OF EMPLOYEES OPINION CONSIDERED BY ORGANISATION
RATINGNO OF RESPONDENTS
PERCENTAGE ANALYSIS
STRONGLY AGREE 11 11AGREE 14 14
44
NEUTRAL 57 57DISAGREE 12 12STRONGLY DISAGREE 6 6
0
10
20
30
40
50
60
STRONGLY A
GREE
AGREE
NEUTRAL
DISAG
REE
STRONGLY D
ISAGREE
RATING
NO
OF
RE
SP
ON
DE
NT
S
NO OF RESPONDENTS
PERCENTAGE ANALYSIS
6% of employees strongly disagreed that employee’s opinion are considered by the organization. 14% agreed, 57% said it as neutral, 12% disagreed and 11% strongly agreed.
RATE OF RIGHT JOBS GIVEN TO RIGHT PERSON
RATING NO OF RESPONDENTS PERCENTAGE ANALYSIS
YES 52 52
NO 48 48
45
RIGHT JOB TO RIGHT PERSON
46
47
48
49
50
51
52
53
NO OF RESPONDENTS PERCENTAGE ANALYSIS
RATING
NO
OF
RE
SP
ON
DE
NT
S
YES
NO
52% of employees said that right jobs are given to right person whereas 48% said that right jobs are not given to right person.
FEEL AT ANY TIME TO LEAVE THE ORGANISATION
RATING NO OF RESPONDENTSPERCENTAGE ANALYSIS
46
YES 34 34
NO 66 66
LEAVE THE ORGANISATION
0
10
20
30
40
50
60
70
NO OF RESPONDENTS PERCENTAGE ANALYSIS
RATING
NO
OF
RE
SP
ON
DE
NT
S
YES
NO
66% of employees think not to leave the organization whereas others think differently.
SUMMARY
47
FINDINGS
1. The survey reveals that majority of employees working in the organization are aged more than twenty years.2. Majority of employees rate monetary benefits compared to their experience in the organization was bad. From the survey I can find that this was the serious issue of labour turn over in the organization.3. Majority of employees demand that they want additional benefits which will provide some relief to employees.4. Employees agreed that good working environment will reduce attrition rate.5. Majority of the employees rated that the welfare activities in the organization was good.6.Most of the employees agreed that positive motivational activities will increase employee retention.
48
SUGGESTIONS
1. Change the present salary structure so as to make more earning to employees
2. Employees suggested some additional benefits such as: Transportation allowance Accident insurance Training in other institutions3. The reasons employees expressed for leaving the organization
are: Financial problem Stagnation Better employment opportunity
49
ANNEXURE
QUESTIONNAIRE
I Vijaya R , is conducting a study on employee retention in HMT Machine Tools Limited, Kalamassery. As a part of my academic purpose I am conducting a survey. I request your co-operation.
(Make your choice in appropriate option by making a tick mark) 1) Designation----------------------------- 2) Department-----------------------------
3) Mention your gender a) Male b) Female
4) Your age a) Below 30 b) 30-40 c) 40-50 d) 50-60
5) Years of experience in BIG BAZAAR? a) Below 5 years b) 5-10 years c) 10-15 years d) 15-20years
6) Your opinion about monetary benefits existing in BIG BAZAAR a) Very good b) good c) bad d) very bad
7) Do you agree that additional benefits other than salary will prevent you from leaving the organization? a) Yes b) No
8) If agree, grade the benefits according to your preference *(Grade as 1,2,3,4,5. eg 1- Highly preferred, 2 for the one which you think is less preferable when compared to1.) a) Transportation allowanceb) An improvement in townshipc) Training in other institutions
50
d) Canteen- Food varietye) Medical facilities- accident insurance 9) Grade according to your opinion the reasons that make you to leave the Organization *(Grade as 1,2,3,4,5. eg 1- Highly preffered , 2 for the one which you think is less Preferable when compared to1.) a) Financial problemsb) Stress c) Better employment opportunityd) Stagnation
10) Positive motivational activities such as recognitions, appreciations etc from superiors will motivate you to continue in the organization. a) Strongly agree b) agree c)neutral d)disagree e) strongly disagree
11) How do you rate the welfare schemes in the organization? a) Very good b) good c) bad d) very bad
12) ENVIRONMENTAL FACTORS
STRONGLY AGREEE
AGREE NEUTRAL DISAGREE STRONGLY DISAGREE
a) Enough space, ventilation, job shifts are given to youb) Good safety measures are there in the organization
13) JOB SATISFACTION
STRONGLY AGREE
AGREE NEUTRAL DISAGREE STRONGLY DISAGREE
a) Do you have the materials and equipment that you need in order
51
to do your work rightly?b) At work do you have the opportunity to do what you do best everyday?c) At work do your opinions seems to be counted?
14) Do you think higher authorities are giving right jobs to right person? a) Yes b) No 15) Have you ever thought of leaving the organization? a) Yes b) No If yes please reveal the reason in the space provided-------------------------------------- ----------------------------------------------------------------------------------------------------
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