Project report kullu telecom district

A PROJECT REPORT ON

“EMPLOYEE RETENTION STRATEGIES OF BSNL”

A study on Kullu Telecom District of Himachal Pradesh

SUBMITTED TO

HIMACHAL PRADESH UNIVERSITY BUSINESS SCHOOL, SUMMER HILL,

SHIMLA-171005

Submitted in partial fulfillment for the award of degree of

Master of Business Administration (2013-2015)

Project Guide: Submitted By: - Pankaj Thakur Prof. Jai Singh Parmar Class Roll No: - 2850 University Roll No: - 2649 MBA (2013-15) Himachal Pradesh University Business School, Summer Hill, Shimla-171005

DECLARATION1

I, (Pankaj Thakur), studying in the fourth sem. of M.B.A. course at Himachal

Pradesh University Business School hereby declare that I have completed the project

titled “Employee Retention Strategies of BSNL” as a part of the course requirements

in MBA.

I further declare that the information presented in this project is true and original

to the best of my knowledge.

Date:

Place: Shimla

CERTIFICATE

2

I, Prof. Jai Singh Parmar hereby certify that Mr. Pankaj Thakur a student of fourth

semester of M.B.A. course at Himachal Pradesh University Business School has

completed the project titled “Employee Retention strategies of BSNL”, under my

guidance in the academic year 2014-15.

I further declare that the information presented in this project is true and original

to the best of my knowledge.

Date:

Place: Shimla (Prof. Jai Singh Parmar)

ACKNOWLEDGEMENT

3

I am sincerely thankful to all those people who have been giving me any kind of assistance in the making of this project report.

I express my gratitude to Prof. JAI SINGH PARMAR, who through his vast experience and knowledge has been able to guide me, both ably and successfully towards the completion of the project.

I would hereby, make most of the opportunity by expressing my sincerest thanks to all my faculties whose teachings gave me conceptual understanding and clarity of comprehension, which ultimately made my job more easy. Credit also goes to all my friends whose encouragement kept me in good stead. Their continuous support has given me the strength and confidence to complete the project without any difficulty.

Last of all but not the least I would like to acknowledge my gratitude to the respondents without whom this survey would have been incomplete.

PANKAJ THAKUR

PREFACE

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Education becomes more meaningful when its theoretical aspects are combined with

practical experience. These provide an opportunity to the students to improve their

understanding of the studies.MBA is a course, which combines both its theory and

application as its content of study in the field of Human Resources Development.

This project is the result of my major project, based on the employees retention

strategies adopted by BSNL.

Major project is an integral part of MBA course & it aims at providing a firsthand

experience of the organizations to the students. This practical experience helps the

students to view the real business environment closely which in turn widely influences

their conceptions & perceptions.

TABLE OF CONTENTS

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Chapter-1 Broad definition of Topic 1.1 Executive Summary………….…………………………………………….……7

1.2 Employee Retention………….…………………………………………8 1.3 Employee Retentions Strategies………….……………………….........9

Chapter-2 Introduction to the Industry………………………………………………………….12

Chapter-3 Introduction to the Organization

2.1 BSNL Company Profile……………………………………………......142.2 Aspiration………………………………….……….………....…….....152.3 Vision and Mission of BSNL……………………………………….....152.4 Products/ Services of BSNL……………………………………………162.5 Competitors Information………………..…………………………......192.6 Comparative SWOT Analysis…………………………………………22

Chapter-4 Research Methodology

4.1 Steadfast Philosophy……………………………………….…………24 4.2 KEI’s Employee Retention Wheel…………………………...............244.3 Center of KEI’s Employee Retentions Wheels……………………….264.4 Research Design………………………………………………………27

Chapter-5 Recommendation & Suggestions

5.1 Importance of Retaining Employees………………………………….295.2 Three R’s of Employee Retention…………………………………….305.3 Factors that affect Employee Retention……………………………..............315.4 Ways to retain Employees…………………………………………………….335.5 Solution for Employee Retention………………………………………….....35

Chapter-6 Employee Retention Benefit/Advantage

6.1 Employee Recognition increases retention…………………..............376.2 Retention Strategy help drive revenue growth……………………………….38

Chapter-7 Analysis and Interpretation of data……………………………………….............39

Chapter -8 Facts and findings 8.1 Some examples of new age HR practices……………………………………....52 8.2 Observation & Findings on Employee retention strategies…………………..53

Chapter-9 Conclusion…………………………………………………………..........................55

Chapter-10 Summary of Findings, conclusion and suggestions………………………............56Chapter-11 Appendices…………………………….…………………………………….............57Chapter-12 Bibliography……………………………………………………………………….....61

CHAPTER -1 BROAD DEFINITION OF TOPIC

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1.1 EXECUTIVE SUMMARY

This project is a reflection of the findings of the survey that was conducted to understand what BSNL

is doing towards the retention of their employees.

The project overview encompasses the objective, rationale and methodology adopted for the survey.

It’s a snapshot of why and how the project was carried out.

The brief profile of BSNL aims not only to introduce the organization but also to impart a better

understanding of the telecommunication Sector as a whole. The organization’s Vision, Mission, Values

and Beliefs are mentioned in a nutshell.

The introduction to retention provides the theoretical base to build the project upon, and also to better

understand the significance of the subject, highlighting the need for the organizations today to be more

proactive in retaining their employees. The focus has been on why employees stay so that

precautionary approach adopted by different organizations can be understood.

The survey has also brought out the attempts made by the organizations towards building up of work

environment focusing on employees, their morale, motivation, satisfaction and ability and willingness

to be highly productive. At the same time, several reward and recognition initiatives have been

developed to encourage desired employee behavior benefiting the organizations. The money factor has

also been considered to understand the organization’s approach towards developing their employee

retention strategy around compensation, bonus and incentives etc.

OBJECTIVE

This research was undertaken to understand the various strategic initiatives adopted by different

organizations towards the retention of their employees; with an ultimate objective of analyzing the

retention practices that are adopted by BSNL.

RATIONALE

Having recognized that human assets are the only true differentiator that an organization has, the

retention of these valuable resources have become an area of major concern for every organization. Be

it any stage of business cycle or economic condition; top performers, strategic employees and the

whole lot of the employee’s cargo who are capable of taking the organization to the ambitious heights,

are always the focus of attention for their employees.

1.2 EMPLOYEE RETENTION

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Talented men leave. Dead wood doesn't.

Philosophically, employee retention is important; in almost all cases, it is senseless to allow good

people to leave your organization. When they leave, they take with them intellectual property,

relationships, investments (in both time and money), an occasional employee or two, and a chunk of

your future. Employee Retention Strategies helps organizations provide effective employee

communication to improve commitment and enhance workforce support for key corporate initiatives.

Effective employee retention is a systematic effort by employers to create and foster an environment

that encourages current employees to remain employed by having policies and practices in place that

address their diverse needs. A strong retention strategy becomes a powerful recruitment tool.

Retention of key employees is critical to the long-term health and success of any organization. It is a

known fact that retaining your best employees ensures customer satisfaction, increased product sales,

satisfied colleagues and reporting staff, effective succession planning and deeply imbedded

organizational knowledge and learning.

Employee retention matters as organizational issues such as training time and investment; lost

knowledge; insecure employees and a costly candidate search are involved. Hence failing to retain a

key employee is a costly proposition for an organization. Various estimates suggest that losing a

middle manager in most organizations costs up to five times of his salary.

Intelligent employers always realize the importance of retaining the best talent. Retaining talent has

never been so important in the Indian scenario; however, things have changed in recent years. In

prominent Indian metros at least, there is no dearth of opportunities for the best in the business, or even

for the second or the third best. Retention of key employees and treating attrition troubles has never

been so important to companies.

In an intensely competitive environment, where HR managers are poaching from each other,

organizations can either hold on to their employees tight or lose them to competition. For gone are the

days, when employees would stick to an employer for years for want of a better choice. Now,

opportunities abound.

It is a fact that, retention of key employees is critical to the long-term health and success of any

organization. The performance of employees is often linked directly to quality work, customer

satisfaction, and increased product sales and even to the image of a company. Whereas the same is

often indirectly linked to, satisfied colleagues and reporting staff, effective succession planning and

deeply embedded organizational knowledge and learning.

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Employee retention matters, as, organizational issues such as training time and investment, costly

candidate search etc., are involved. Hence, failing to retain a key employee is a costly proposition for

any organization.

Les McKeon’s defined employee retention as, ‘A systematic effort by employers to create and foster

an environment that encourages current employees to remain employed by having policies and

practices in place that addresses their driver needs.’

As noted by Weinberg (1997), “…an employee survey covering topics such as compensation, benefits,

safety, work rules, manager behavior, and teamwork” can have a dramatic effect in minimizing

employee attrition. These types of surveys provide employees an outlet for concerns and serve as a

means for employers to identify areas in need of change before they become a problem of greater

proportions. He notes that exit interviews given to employees upon resignation can also give

companies insight into the concerns of workers.

Even a simple acknowledgement of an employee’s good work can be quite a motivator.

Clarke highlights that “…a pat on the back or a word of praise after they have worked hard to deliver

for the company goes a long way toward building individual and group morale”.

Paris (2002) agrees, stating that “…incentives provide the ‘golden handcuffs’ that keep from getting

away”

1.3 EMPLOYEE RETENTION STRATEGIES

Strategies on how to minimize employee attrition, confronted with problems of employee attrition,

management has several policy options viz. changing (or improving existing) policies towards

recruitment, selection, induction, training, job design and wage payment. Policy choice, however, must

be appropriate to the precise diagnosis of the problem. Employee attrition attributable to poor selection

procedures, for example, is unlikely to improve were the policy modification to focus exclusively on

the induction process. Equally, employee attrition attributable to wage rates which produce earnings

that are not competitive with other firms in the local labour market is unlikely to decrease were the

policy adjustment merely to enhance the organization’s provision of on-the job training opportunities.

Given that there is increase in and indirect costs of labour attrition, therefore, management are

frequently exhorted to identify the reasons why people leave organization’s so that appropriate action

is taken by the management. Extensive research has shown that the following categories of human

capital management factors provides a core set of measures that senior management can use to increase

the effectiveness of their investment in people and improve overall corporate performance of business:

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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 is shown to employees by the management would motivate employees to stay in

organizations.

Knowledge accessibility: The extent of the organization’s “collaborativeness” and its capacity for

making knowledge and ideas widely available to employees would make employees to stay in the

organization. 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). Therefore; information accessibility would make

employees feel that they are appreciated for their effort and chances of leaving the organization are

minimal.

Workforce optimization: The organization’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. The importance

of gaining better understanding of the factors related to recruitment, motivation and retention of

employees is further underscored by rising personnel costs and high rates of employee attrition

(Badawy, 1988; Basta and Johnson, 1989; Garden, 1989; Parden, 1981; Sherman, 1986). 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

Job involvement: Describes an individual’s ego involvement with work and indicates the extent to

which an individual identifies psychologically with his/her job (Kanungo, 1982). 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 a greater variety of

tasks tend stay in the job. Task characteristics have been found to be potential determinants of attrition

among employees. Involvement would influence job satisfaction and increase organizational

commitment of the employees. Employees who are more involved in their jobs are more satisfied with

their jobs and more committed to their organization.

Organizational commitment: Is an effective response to the whole organization and the degree of

attachment or loyalty employees feel towards the organization. Job involvement represents the extent

to which employees are absorbed in or preoccupied with their jobs and the extent to which an

individual identifies with his/her job (Brooke et al., 1988).The degree of commitment and loyalty can

be achieved if management they enrich the jobs, empower and compensate employees properly.

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Empowerment of employees: Could help to enhance the continuity of employees in organizations.

Empowered employees where managers supervise more people than in a traditional hierarchy and

delegate more decisions to their subordinates (Malone, 1997). Managers act like coaches and help

employees solve problems. Employees, he concludes, have increased responsibility. 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

Employee Retention Strategies helps organizations provide effective employee communication to

improve commitment and enhance workforce support for key corporate initiatives.

CHAPTER-2: INTRODUCTION TO THE INDUSTRY

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2.1 INDUSTRY PROFILE

Background:-

The Indian Telecommunications network with 203 million connections is the third

largest in the world and the second largest among the emerging economies of Asia.

Today, it is the fastest growing market in the world. The telecommunication sector

continued to register significant success during the year and has emerged as one of the

key sectors responsible for India’s resurgent India’s economic growth.

Telecom sector accounts for 1 percent of India’s GDP. Likely to double in 2-

3 years.

Telecom services contribute 30 percent to India’s total service tax revenue

The Indian telecom sector gives direct employment to more than 4,00,000

people, compared to about 6,00,000 people in China.

Not just the enabler of software, BPO and ITeS companies, it is also the

lifeline of a fast growing E-commerce space.

State-of-the-art telecom infrastructure has led to the rise of cities like Mysore,

Mangalore, Jaipur, Ahmedabad, Kochi on the software services map.

This has helped spread the benefits of a booming Indian economy to beyond

metros and large cities, and wealth creation is happening in tier-2 cities.

Internet Services:-

Internet services were launched in India on August 15, 1995. In November 1998 the

government opened up the sector to private operators. A liberal licensing regime was put

in place to increase Internet penetration across the country. Though a large number of

Internet Service Providers (ISPs) has been licensed (389) to operate Internet service

today, just the top 20 ISPs service 98 per cent of subscribers.

Similarly, while internet telephony is permitted to 128 ISPs, only 32 actually provide the

service. The slow growth of internet and broadband will make the target of 18 million

internet subscribers and 9 million broadband connections by 2007 tough to achieve.

The growth of IP telephony or grey market is also a serious concern. Government loses

revenue, while unlicensed operation by certain operators violates the law and depletes

licensed operators market share.

New services like IP-TV and IP-Telephony are becoming popular with the demand likely

to increase in coming years. The scope of services under existing ISP license conditions are unclear.

12

44%

19%

9%

7%

6%

5%

2% 1%5%

Internet Subscriber Base In Per cent

BSNLMTNLSifyBharti AirtelRelianceVSNLYou TelecomHath Way Cable & DataOthers

Bharat Sanchar Nigam Ltd (BSNL) has retained its top position and reported a

subscriber base of 38.12 Lakhs Internet subscribers against 3.55 million during the last

quarter. Mahanagar Telephone Nigam Limited (MTNL) has retained second position

with a subscriber’s base of 1.66 million. Sify Limited is third with a base of 8,06,000

subscriber.

Major Players:-

There are three types of players in telecom services:

• State owned companies (BSNL and MTNL)

• Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)

• Foreign invested companies (Vodafone, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile,

Spice Communications)

20%

21%

18%

16%

10%

8%

7%

Market Share of Wireless Operators

RelianceBharti AirtelBSNLHutchTTSLIDEAOthers

CHAPTER3: INTRODUCTION TO ORGANIZATION

13

3.1 BSNL COMPANY PROFILE

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World’s 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Presently it is one of the largest & leading public sector unit in India.

BSNL has installed Quality Telecom Network in the country and now focusing on improving it, expanding the network, introducing new telecom services with ICT applications in villages and wining customer’s confidence. Today, it has about 47.3 million line basic telephone capacity, 4 million WLL capacity, 49.76 Million GSM Capacity, more than 37382 fixed exchanges, 46565 BTS, 3895 Node B ( 3G BTS), 287 Satellite Stations, 480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602 Districts, 7330 cities/towns and 5.5 Lakhs villages.

BSNL is the only service provider, making focused efforts and planned initiatives to bridge the Rural-Urban Digital Divide ICT sector. In fact there is no telecom operator in the country to beat its reach with its wide network giving services in every nook & corner of country and operates across India except Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier and North-eastern region of the country. BSNL serves its customers with its wide bouquet of telecom services.

BSNL is numero uno operator of India in all services in its license area. The company offers vide ranging & most transparent tariff schemes designed to suite every customer.BSNL cellular service, CellOne, has more than 52.09 million cellular customers, garnering 16.96 percent of all mobile users in its area of operation as its subscribers. In basic services, BSNL is miles ahead of its rivals, with 35.1 million Basic Phone subscribers i.e. 85 per cent share of the subscriber base and 92 percent share in revenue terms.

BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customers who access Internet through various modes viz. Dial-up, Leased Line, DIAS, Account Less Internet (CLI). BSNL has been adjudged as the NUMBER ONE ISP in the country.

BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure that provides convergent services like voice, data and video through the same Backbone and Broadband Access Network. At present there are 0.6 million DataOne broadband customers. The company has vast experience in Planning, Installation, network integration and Maintenance of Switching & Transmission Networks and also has a world class ISO 9000 certified Telecom Training Institute.

Scaling new heights of success, the present turnover of BSNL is more than Rs.351,820 million (US $ 8 billion) with net profit to the tune of Rs.99,390 million (US $ 2.26 billion) for last financial year. The infrastructure asset on telephone alone is worth about Rs.630,000 million (US $ 14.37 billion).

BSNL plans to expand its customer base from present 150 million lines to 250 million lines by December 2020 and infrastructure investment plan to the tune of Rs. 1100 crores in the next three years.

The turnover, nationwide coverage, reach, comprehensive range of telecom services and the desire to excel has made BSNL the No. 1 Telecom Company of India.

3.2 ASPIRATION

Be the leading Telecom Service Provider in India with global presence.

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Create a customer focused organization with excellence in sales, marketing and customer care.

Leverage technology to provide affordable and innovative products/services across customer

segments

Provide a conducive work environment with strong focus on performance.

Establish efficient business processes enabled by IT .

Nature of the business carried:-

BSNL is basically a telecom (land line) service provider. But now a days apart from these services, the

operations of the company has been diversified into several arenas such as 3G,customer care,call

centres, mobile services, etc.

3.3 VISION & MISSION OF BSNL

Vision of BSNL:-

To become the largest telecom service provider in Asia.

Mission of BSNL:-

To provide world class State-of-art technology telecom services to its customers

on demand at competitive prices.

To Provide world class telecom infrastructure in its area of operation and to

contribute to the growth of the country's economy.

Quality Policy:-

BSNL Telecom Factory Mumbai is committed to continually improve through excellence and

customer satisfaction with employee’s participation.

3.4 PRODUCTS/ SERVICES OF BSNL

1. Products of BSNL:-

BSNL LANDLINE 15

BSNL MOBILE

POSTPAID

PREPAID

UNIFIED MESSAGING

GPRS/WAP/MMS

DEMOs

TARIFF

BSNL WLL

INTERNET SERVICES

NETWORK

BROADBAND

WI- F I

CO-LOCATION SERVICE

BSNL WEB HOSTING

DIAL UP INTERNET

SMS& BULK SMS

BSNL BROADBAND

BSNL MANAGED NETWORK SERVICES

BSNL MPLS-VPN

ISDN

LEASED LINE

INTELLIGENT NETWORK

FREE PHONE SERVICE

PREMIUM RATE SERVICE

INDIA TELEPHONE CARD

VIRTUAL PRIVATE NETWORK (VPN)

VOICE VPN

UNIVERSAL NUMBER

UNIVERSAL PERSONAL NUMBER

TELE VOTING

VIDEO CONFERENCING

AUDIO CONFERENCING

TELEX/ TELEGRAPH

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EPABX

EPABX

FREE EPABX

CENTREX

HVNET

INMARSAT

TRANSPONDER

2. Services of BSNL:-

When it comes to connecting the four corners of the nation, and much beyond, one solitary name lies

embedded at the pinnacle - BSNL. A company that has gone past the number games and the quest to

attain the position of a leader . It is working round the clock to take India into the future by providing

world class telecom services for people of India. BSNL is India's no. 1 Telecom Service provider and

most trusted Telecom brand of the Nation.

Driven by the very best of telecom technology from chosen global leaders, it connects each inch of the

nation to the infinite corners of the globe, to enable you to step into tomorrow.

Here is an overview of the World Class services offered by the BSNL:-

Basic Telephone Services:-

The Plain old, Countrywide telephone Service through 32,000 electronic exchanges. Digitalized

Public Switched Telephone Network (PSTN) with a host of Phone Plus value additions.

Internet :-

Keeping the global network of Networks networked, the countrywide Internet Services of BSNL under

the brand name includes Internet dial up/ Leased line access, CLI based access (no account is required)

and DIAS service, for web browsing and E-mail applications. You can use your dialup sancharnet

account from any place in India using the same access no '172233' , the facility which no other ISP

has. BSNL has customer base of more than 1.7 million for sancharnet service.

BSNL also offers Web hosting and co-location services at very cheap rates.

ISDN :-

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Integrated Service Digital Network Service of BSNL utilizes a unique digital network providing high

speed and high quality voice, data and image transfer over the same line. It can also facilitate both

desktop video and high quality video conferencing.

Intelligent Network:-

Intelligent Network Service (In Service) offers value-added services, such as:

Free Phone Service (FPH)

India Telephone Card (Prepaid card)

Account Card Calling (ACC)

Virtual Private Network (VPN)

Tele-voting

Premium Rae Service (PRM)

Universal Access Number (UAN) and more.

I-Net:- India s x.25 based packet Switched Public Data Network is operational in 104 cities of the

country. It offers x.25 x.28 leased, x.28 Dial up (PSTN) Connection) and frame relay services.

Leased Lines & Datacom:-

BSNL provides leased lines for voice and data communication for various application on point to point

basis. It offers a choice of high, medium and low speed leased data circuits as well as dial-up lines.

Bandwidth is available on demand in most cities. Managed Leased Line Network (MLLN) offers

flexibility of providing circuits with speeds of nx64 kbps up to 2mbps, useful for Internet leased lines

and International Principle Leased Circuits (IPLCs).

Cellular Mobile Service :-

Postpaid and Prepaid

BSNL’s GSM cellular mobile service Cellone has a customer base of over 5.2 million. BSNL Mobile

provides all the services like MMS, GPRS, Voice Mail, E-mail, Short Message Service (SMS) both

national and international, unified messaging service (send and receive e-mails) etc. You can use

BSNL Mobile in over 160 countries worldwide and in 270 cellular networks and over 1000

cities/towns across India. It has got coverage in all National and State Highways and train routes.

BSNL Mobile offers all India Roaming facility to both pre-paid and post-paid customers (including

Mumbai & Delhi).18

Wireless in Local Loop:-

This is a communication system that connects customers to the Public Switched Telephone Network

(PSTN) using radio frequency signals as a substitute for conventional wires for all or part of the

connection between the subscribers and the telephone exchange.

Countrywide WLL is being offered in areas that are non-feasible for the normal network.

Helping relieve congestion of connections in the normal cable/wire based network in urban areas.

Connecting the remote and scattered rural areas.

Limited mobility without any air-time charge.

3.5 COMPETITORS INFORMATION:-

Bharat Sanchar Nigam Limited (BSNL) keeps most of India talking. The company provideslocal-

exchange access and domestic long-distance services through a network of more than47 million access

lines covering most of India. (It does not provide service in Delhi andMumbai.) Serving business and

consumer customers, it also offers GSM and CDMA-basedwireless communications, satellite service,

telegraph, data and Internet services, and managednetwork services. BSNL is one of two state-

controlled telcos in India, along with Mahanagar Telephone Nigam Limited (MTNL), which serves

Delhi and Mumbai.

Industries where BSNL competes:-

Telecommunications Services

Fixed-line Voice Services Providers (primary)

Data Services

Teleconferencing Services providers

Telemetry & Telematics Services Providers

Wireless Communications Services

1. Tata Communications Ltd:-

Tata Communications Limited (formerly Videsh Sanchar Nigam Limited, or VSNL) has a hold on the

wholesale voice market in India and beyond. The company, which primarily provides international 19

long-distance telephone service, owns and operates a network service in more than 200 countries. It

also offers network and data services to enterprises and supplies transmission backbone and data

services to other telecommunications companies over one of the largest global IP networks. Tata

Communications is part of Indian industrial conglomerate Tata Group.

2. Reliance Communications Ltd:-

Reliance Communications is one of India's largest providers of integrated communications services.

With more than 48 million customers, the company serves consumers and enterprises with a digital

network supporting voice, data, and video. It’s fixed and wireless communications services include

domestic and international voice, Internet access, messaging, and videoconferencing. It also provides

wholesale capacity, infrastructure, and managed enterprise services through its Reliance Globalcom

division. Reliance Communications is part of the Reliance - Anil Dhirubhai Ambani Group.

3. Bharti Airtel:-

Bharti Airtel is one of the leading alternative providers of telecommunications services in

India.Through its subsidiaries, the company (formerly Bharti Tele-Ventures) operates through three

divisions: mobile, broadband and telephone, and enterprise services. The enterprise servicesgroup

includes units for both long-distance carriers and for corporate clients. Bharti Airtel has nearly 100

million customers in total -- approximately more than 64 million GSM mobile and almost 3 million

fixed-line customers. The company was founded as Bharti Tele-Ventures in1995 and changed its name

in early 2006 to Bharti Airtel Limited. It is a unit of Indian conglomerate Bharti Enterprises.

4. Vodafone:-

Customers have voted with their phones to make Vodafone Group the world's top wireless phone

services carrier by sales with more than 200 million customers; in terms of subscribers, Vodafone trails

only China Mobile. The company does most of its business in Europe where it is a leader in wireless

markets of the UK and Germany. In the US, the group holds a 45%stake in the #2 US wireless

provider Verizon Wireless. Vodafone also serves callers in Asia, Africa, the Middle East, and the

Pacific region through subsidiaries and joint ventures. The group also provides wireless data,

broadband Internet, as well as fixed-line phone services through German subsidiary Arcor.

5. IDEA Cellular:-

IDEA Cellular provides wireless services to about 24 million subscribers in 22 service areas such as

Andhra Pradesh, Delhi, Gujarat, Haryana, and Maharashtra. The company's network covers about 60%

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of the country. IDEA offers contract and pre-paid cellular service options in addition to a number of

value-added services such as mobile Web browsing, video streaming, and multimedia messaging. The

company is controlled by Indian industrial manufacturing conglomerate Aditya Birla Group.

6. Mahanagar Telephone Nigam Limited (MTNL):-

Mahanagar Telephone Nigam Limited (MTNL) can help you call a deli in Delhi, or mumble to a friend

in Mumbai. The company provides fixed-line and wireless telecommunications services for two of the

largest metropolitan areas of India. The company also provides Internet access services. It divides its

operations into two business segments: basic (fixed line, CDMA-based mobile, and Internet access)

and cellular (GSM-based mobile). Outside of India, the company offers services in Nepal (through a

joint venture) and Mauritius. The government of India owns 56% of the company.

7. Aircel:-

The Aircel Group is a joint venture between Maxis Communications Berhad of Malaysia andApollo

Hospital Enterprise Ltd of India, with Maxis Communications holding a majority stake of 74%. Aircel

commenced operations in 1999 and became the leading mobile operator in TamilNadu within 18

months. In December 2003, it launched commercially in Chennai and quickly established itself as a

market leader ± a position it has held since. It began its outward expansion in 2005 and met with

unprecedented success in the Eastern frontier circles. It emerged a market leader in Assam and in the

North Eastern provinces within 18 months of operations. Till today, the company gained a foothold in

17 circles including Chennai, TamilNadu, Assam, North East, Orissa, Bihar, Jammu & Kashmir,

Himachal Pradesh, West Bengal, Kolkata, Kerala, Andhra Pradesh, Karnataka, Delhi, UP(West),

UP(East) and Mumbai. The Company has currently gained a momentum in the space of telecom in

India post the allocation of additional spectrum by the Department of Telecom, Govt. of India for 13

new circles across India. These include Delhi (Metro), Mumbai (Metro), Andhra Pradesh, Gujarat,

Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Rajasthan, Punjab, UP (West) and

UP (East). With over 17 million customers in the country, Aircel has revved up plans to become a full-

fledged national operator by end of 2009.

2.6 COMPARATIVE SWOT ANALYSIS

Structural changes have had a positive impact on the telecommunications sector and a compound

annual growth rate (CAGR) of 13.42 percent is estimated for 2014-15. The future of the industry lies in

the mainline and cellular segments and constant technological innovations such as Internet Protocol

(IP) based services.

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The telecom sector in India has been witnessing a continuous process of reforms since 1991. With the

opening of international long distance services and internet telephony from April, 2002, the process of

liberalization and opening up the sector for competition is complete. Convergence of services is a

major new emerging area.

BSNL is a major player in the rapidly growing Indian wireless market, as well as an emerging leader

among GSM operators worldwide.

2.6.1 How to Perform a Swat Analysis

A SWOT Analysis is an integral part of a marketing plan and can also be part of a business plan.

Knowing what a SWOT Analysis is and how to perform one is very important.

2.6.2 What is a SWOT Analysis?

A SWOT (Strengths, Weaknesses, Opportunities, and Threats) is a tool used to provide a general or

detailed snapshot of a company's health. A SWOT analysis stands for Strengths, Weaknesses,

Opportunities, and Threats and is a simple and powerful way to analyze your company's present

marketing situation. The best way to understand SWOT is to look at an actual example

2.6.3 Why use a SWOT Analysis?

In any business, it is imperative that the business be its own worst critic. A SWOT analysis forces an

objective analysis of a company's position Vis a Vis its competitors and the marketplace.

Simultaneously, an effective SWOT analysis will help determine in which areas a company is

succeeding, allowing it to allocate resources in such a way as to maintain any dominant positions it

may have.

a) Strengths

1. Knowledge. BSNL is ranked fastest growing company in the state of Himachal Pradesh.

2. Relationship selling. We get to know our customers, one by one. Our direct sales force maintains a

relationship.

3. History. It has loyalty of customers and vendors. It is local.

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4. The other company in telecom sector was merged different companies. But BSNL did not take over

any small telecom company. It establishes and develop broad network on its own. It has more than one

million mobile users till December, 2014.

5. In most of the remote areas of HP, BSNL is the only telecom service provider.

b) Weaknesses

1. Company has a large physical network, so some times it is very difficult to manage all this in an idle

manner.

2. In comparison to strong competitors the visibility of BSNL is not satisfactory.

c) Opportunities

1. The financial strength of this is a backbone of India

2. Training. The company provides in-depth training to their employees and frontline sales executives.

3. Service. As BSNL target market needs more service, the competitors are less likely than ever to

provide it. Their business model doesn't include service, just selling.

4. The large number of population which have still do not have mobile could be target customer of BSNL

5. The brand image of BSNL is strong plus point with BSNL so it is a great opportunity in front of

Reliance infocomm that they should avail this brand image.

d) Threats

1. The strong competitors of BSNL are like Reliance Infocomm, Airtel, Idea, Vodafone, Aircel etc

2. Some companies are planning to open provide services at par with BSNL in most of remote locations

of HP. So coming time is going to be very tough for BSNL.

CHAPTER – 4: RESEARCH & METHODOLOGY

4.1 STEADFAST PHILOSOPHY

A steadfast philosophy that sets Employee Retention Strategies apart:

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• Uses only research-based, theory-supported approaches to improving employee engagement. Avoided are gimmicks such as employee of the month, suggestion boxes, prizes or other “carrots.” While commonly used, these short-term fixes fail to produce genuine employee loyalty (more than 60 years’ of research tells us so!).

• Employs an easy-to-understand systems approach to ensure the root causes of turnover are addressed and the potential for lasting change unleashed.

• Customizes all activities to your organization’s unique history, current practices and strategic objectives. Also considered are challenges unique to your industry sector, competitive marketplace issues and talent shortages.

• Involves those responsible for implementing change in actually creating the change, ensuring input and improved shared understanding and support of all initiatives.

• Integrates hands-on, action-oriented approaches that enable organizations to move forward quickly and effectively

• Recognizes the research-proven role of no-cost strategies in developing the “glue” that builds employee loyalty and commitment.

• Brings to your organization leading-edge organization-development best practices to effectively and quickly build a retention-rich culture.

4.2KEi’s EMPLOYEE RETENTION WHEEL

The first step to improving your employee retention is to understand why employees stay with their current employer. Many "experts" dwell on the reasons employees leave, which is not as important or revealing as the reasons they stay. Companies have tried many different programs and perks to hold onto good employees. However, studies show that these efforts are not enough to retain good employees when the support that is needed to achieve job success is not adequate.

Don't Waste Your Money on Things That Don't Make a Difference...

Among the countless inducements offered, only those identified in the center of KEi's Employee Retention Wheel are truly what give employees a consistent reason for saying "no thank you" when tempted with a "sweeter offer." After years of study and experience, KEi has determined, and presented in the Retention Wheel, what factors do have the greatest impact on keeping employees.

KEi has used this information to give employers the tools to meet the core needs that keep employees successful at their jobs, thus reducing the high costs associated with unwanted employee turnover.

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Using the Wheel to Improve Employee Retention

KEi's Employee Retention Strategy is based upon two primary beliefs:

(1) It is difficult for employers to retain good employees if they don't have a process to hire the right people in the first place.

(2) Retention processes must directly support the reasons that successful, satisfied employees stay.

KEi's concentration on the center of the Employee Retention Wheel provides employers with Internet-based tools that give employees systematic, ongoing support to be successful in their work and satisfied with their employment.

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4.3 THE CENTER OF KEI’S EMPLOYEE RETENTION WHEELS: EIGHT FACTORS

Definition of successful: my job is helping me to grow personally, professionally and financially. Definition of satisfied: my employer is providing what I need to perform my job successfully.

These eight central processes of the Employee Retention Wheel are the factors that are most critical to an employee's job performance success.

ATTITUDE FOR EMPLOYING

A process to clearly define the way supervisors are expected to interact with employees; a process to give employees a way to express what is most important to achieve job success; and a process to give employers a way to demonstrate "Employing Values" through employment policies.

This "Employer Mission Statement" is about how and who you hire, how you treat them, and the organization's values as an employer. It is about making sure that the Values for Employing™ are communicated to your employees and consistently implemented throughout your organization. It is about the total employment package that goes beyond salary and traditional benefits.

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http://www.keepemployees.com/concept.htm#values

http://www.keepemployees.com/attitude.htm

http://www.keepemployees.com/attitude.

FINDING CANDIDATES

A process that gives employers a comprehensive way to communicate to job seekers what it takes to achieve short-term and long-term job success, and to attract the candidates who fit this criteria.

27

http://www.keepemployees.com/candidates.htm

http://www.keepemployees.com/candidates.

SORTING APPLICANTS

A process that gives employers a way to confirm whether the attitudes and behaviors of job seekers are a match for their work environment.

28

http://www.keepemployees.com/sorting.htm

http://www.keepemployees.com/sorting.

CHOOSING EMPLOYEES

A process that gives employers a way to define the specific interview questions that prove job seeker abilities to successfully perform the target skills; and a process that gives employers a way to verify the accuracy of resume/application data and interview responses.

29

http://www.keepemployees.com/choosing.htm

http://www.keepemployees.com/choosing.

STARTING EMPLOYEES

A process that provides a way for new employees (before performing the job) to understand "why the employers business exists;" "what makes the business organization successful;" "why the employee's job exists;" and "what it will take for the employee to achieve job success."

30

http://www.keepemployees.com/starting.htm

INFORMING EMPLOYEES

A process that gives employers a way to provide essential information (from five critical information sources) that is needed by employees to make daily work decisions.

IMPROVING EMPLOYEES

A process that gives supervisors and employees a way to work together to build personalized plans for improving each employee's priority job skills; and a process that gives the employer a way to "deliver skills-improving training curriculum" and to "measure the learning effectiveness" from the training experiences.

REWARDING EMPLOYEES

A process that gives employers a way to define and communicate exactly how individual employee salaries are determined; and a process that gives employers a way to provide employees with extra incentive income that is earned through the achievement of cash generating business goals.

4.4 RESEARCH DESIGN:

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http://www.keepemployees.com/rewarding.htm

http://www.keepemployees.com/improving.htm

http://www.keepemployees.com/informing.htm

http://www.keepemployees.com/rewarding.

Research design is the arrangement of conditions for collection & analysis in a manner that aims to

combine relevance to the research purpose with economy in procedure.

4.4.1 Research Instruments: -

-A complete questionnaire is prepared on the basis of consumer behavior & satisfaction.

-The questionnaire was designed keeping the following point / question in mind:

-Is the question required?

-Has the respondent experienced the situation described in the question?

-Is the question testing the respondent’s memory?

-Is the respondent likely to remember such information?

-Will the respondent part with the information voluntary?

-Can a single question be fragmented into small but multiple questions for better understanding?

4.4.2 Sampling Plan: -

a) Sample method: Non-probability sampling (random & stratified)

Sample Size: 50 employees of BSNL Kullu

There are near about 150 BSNL employees in Kullu district at Executive level. So I selected 50 to be

the sample size, which is about one-third of the total size.

A definite plan was drawn up for obtaining a sample from different branches of BSNL. Thus sample

size has been determined using a particular method. The availability of resources in terms of

infrastructure of field force, Time and cost was also taken into account.

b) Sample Design: -

A sample design is a definite plan for obtaining technique or procedure. The researcher would adopt in

selecting items for the sample.

4.4.3 Types of sample design: -

Random sampling: - In random sampling, each of the population has a definite reassigned probability

of being selected in the sample.

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Stratified sampling: - Under stratified sampling the population is divided into several sub population

(strata) that are individually more homogeneous than the total population & then select items from

each stratum to constitute a sample.

4.4.4 Data collection: -

Since the study, undertaken by me is descriptive research, I have concentrated on primary data through

survey and collection secondary data.

4.4.5 Source of data collection:-

Data is collected from two methods: -

a) Primary data: -

The questionnaire for data collection according to the information required from the employees was

designed. The district undertaken for the purpose of research is Kullu. BSNL main Telephone

exchange Kullu was selected for collection of data through questionnaire and interviews.

b) Secondary data: -

Secondary data is collected from books, newspaper, magazine and websites.

CHAPTER – 5: RECOMMENDATIONS &

SUGGESTIONS

5.1 THE IMPORTANCE OF RETAINING EMPLOYEES

The challenge of keeping employees: Its changing face has stumped managers and business owners

alike. How do you manage this challenge? How do you build a workplace that employees want to

remain with … and outsiders want to be hired into?

Successful managers and business owners ask themselves these and other questions because—simply

put—employee retention matters:

➤ High turnover often leaves customers and employees in the lurch; departing employees take a great

deal of knowledge with them. This lack of continuity makes it hard to meet your organization’s goals

and serve customers well.

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RESPECT

RECOGNITION

REWARD

➤ Replacing employees costs money. The cost of replacing an employee is estimated as up to twice

the individual’s annual salary (or higher for some positions, such as middle management), and this

doesn’t even include the cost of lost knowledge.

➤ Recruiting employees consumes a great deal of time and effort, much of it futile. You’re not the

only one out there vying for qualified employees, and job searchers make decisions based on more

than the sum of salary and benefits.

➤ Bringing employees up to speed takes even more time. And when you’re short-staffed, you often

need to put in extra time to get the work done.

5.2 THE THREE R’s OF EMPLOYEE RETENTION

To keep employees and keep satisfaction high, you need to implement each of the “three Rs” of

employee retention: respect, recognition, and rewards.

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Respect is esteem, special regard, or particular consideration given to people. As the pyramid shows,

respect is the foundation of keeping your employees. Recognition and rewards will have little effect if

you don’t respect employees.

Recognition is defined as “special notice or attention” and “the act of perceiving clearly.” Many

problems with retention and morale occur because management is not paying attention to people’s

needs and reactions.

Rewards are the extra perks you offer beyond the basics of respect and recognition that make it worth

people’s while to work hard, to care, to go beyond the call of duty. While rewards represent the

smallest portion of the retention equation, they are still an important one.

While implementing the “three Rs” approach, you will reduce turnover and enjoy the following:

➣ Increased productivity

➣ Reduced absenteeism

➣ A more pleasant work environment (for both employees and you!)

➣ Improved profits

Furthermore, an employer who implements the “three Rs” will create a hard-to leave workplace, one

known as having more to offer employees than other employers. You become a hard-to-leave

workplace—one with a waiting list of applicants for any position that becomes available—

purposefully, one day at a time.

5.3 FACTORS THAT AFFECT EMPLOYEE RETENTION

Most managers understand the importance of employee retention and its impact on the overall health

and vitality of an organization. The importance of retaining top organizational talent will only increase

over the coming years as the massive cohort of baby boomers begin to reach retirement age making it

easy for younger employees to find work.

• Shorten the feedback loop –

Do not wait for an annual performance evaluation to come due to give feedback on how an employee

is performing. Most team members enjoy frequent feedback about how they are performing.

Shortening the feedback loop will help to keep performance levels high and will reinforce positive

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behavior. Feedback does not necessarily need to be scheduled or highly structured; simply stopping by

a team member's desk and letting them know they are doing a good job on a current project can do

wonders for morale and help to increase retention.

• Offer a competitive compensation package –

Any team member wants to feel that he or she is being paid appropriately and fairly for the work he or

she does. Be sure to research what other companies and organizations are offering in terms of salary

and benefits. It is also important to research what the regional and national compensation averages are

for that particular position. You can be sure that if your compensation package is not competitive, team

members will find this out and look for employers who are willing to offer more competitive

compensation packages.

• Balance work and personal life –

Family is incredibly important to team members. When work begins to put a significant strain on one's

family no amount of money will keep an employee around. Stress the importance of balancing work

and one's personal life. Small gestures such as allowing a team member to take an extended lunch once

a week to watch his son's baseball game will likely be repaid with loyalty and extended employment

with an organization.

• Beware of burnout –

Staff adequately to reduce the amount of unwanted overtime a team member must work. Some

employees enjoy the extra money that accompanies overtime hours, while others would rather spend

their time with their families or doing other activities they enjoy. Burnout can be a leading cause of

turnover. Recognize the warning signs and give employees a break when they need it.

• Provide opportunities for growth and development –

Offer opportunities for team members to acquire new skills and knowledge useful to the organization.

If an employee appears to be bored or burned out in a current position offer to train this individual in

another facet of the organization where he or she would be a good fit. Nobody wants to feel stuck in

their position will no possibility for advancement or new opportunities.

• The ability to provide input and be taken seriously –

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Everybody has opinions and ideas, some are better than others. However every team member wants to

feel that their input is welcome and will be taken seriously without ridicule or condescension. Some of

the greatest ideas can come from the most unlikely of places and people. Creating a culture where

input is welcome from all level of the organizational chart will help your organization grow and

encourage employee retention.

• Management must take the time to get to know team members –

It's not a big surprise that one of the greatest complaints that employees express in exit interviews is a

feeling that management didn't know they existed. Nobody wants to feel like just another spoke in a

big wheel. Managers are very busy - everybody is busy, but it is crucial that managers and supervisors

take the time get to know the team members who work under them. Learn and remember a team

member's name, what skills and talents they bring to the table, and what their business interests are.

The time spent by management getting to know team members is well invested and can eliminate the

headaches caused by having to continually hire and re-train new employees.

• Provide the tools and training an employee needs to succeed –

Nothing can be more frustrating to an employee than a lack of training or the proper tools to

successfully complete his or her duties. You wouldn't try to build a house without a hammer, so why

should an office job be any different? Providing a team member with the tools and training she needs

to be successful shows a commitment and investment in that employee and will encourage the team

member to stay with the organization.

• Make use of a team member's talents, skills, and abilities –

All team members have knowledge, skills, and abilities that aren't directly related to their job

description, but are still useful to an organization. Utilizing a team member's talents in areas other than

their current position will indicate to an employee that management appreciates and recognizes all that

an employee has to offer to the organization. This can also provide work variety and helps to break up

the everyday grind of work.

• Never threaten a team member's job or income –

While threatening an employee with termination or demotion might seem like a surefire way to get the

results needed from him or her, doing so will likely cause the employee to leave the organization. Put

yourself in the employee's shoes, what is the first thing you would do if your job was threatened? Odds

are you would probably update your resume and start checking for open job postings expecting the

worst. If a team member's performance is not what you had hoped it would be, work with that team

member on ways to improve his performance, saving termination only as a last resort.

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Take some time and seriously evaluate what your organization is doing to encourage a high retention

workforce. Having a seasoned and well trained workforce can deliver a competitive advantage that is

difficult to replicate. The best part is most of your efforts to retain your employees come free or with

little charge and offer huge returns on a manger's investment in time and resources.

5.4 WAYS TO RETAIN YOUR EMPLOYEE

Retaining key personnel is critical to long term success of an organization. A Retention Strategy has

become essential if your organization is to be productive over time and can become an important part

of your hiring strategy by attracting the best candidates who know of your track record for caring for

employees. In fact, some companies do not have to recruit because they receive so many qualified

unsolicited submissions due to their history of excellence in employee retention.

How do you get your employees to "fall in Love" with your organization? This is a great

question. Some recently conducted research lists these Top Ten Strategies:

1. Treat your employees like you treat your most valuable clients.

It is cheaper to keep your good employees than it is to hire and train new ones. Your top 20-

25% should be courted as you would court and then service your top customers.

2. Get your employees to "Fall in Love" with your organization.

Communicate your vision in a compelling way. Show everyone the role they have to contribute

to this vision. Create opportunities for people to connect with each other for support and to

improve communication in work teams.

Capture the Hearts of your workforce with: Compelling vision/Balance/Celebration-Fun

Open Communication: Internal listening is a priority, multiple lines of communication

(various channels.) This is essential for managing change in a positive way with less

sabotage, anger, resistance, and fear.

Create partnerships: Squash status barriers/Open the books/pay for performance (not

titles), share the "bad" times the "good" times.

Drive Learning: "Guarantee Employability," Encourage Life Long Learning (Train

outside of job description). Loyalty comes from trusting your employees to develop

their skills for the good of the company and for their needs for personal growth and

satisfaction.

Emancipate Action: Freedom to Fail, reduce bureaucracy, challenge the "status quo."

Breathe life into your organization. Do not let your employees stagnate.

3. Strong retention strategies become strong recruiting advantages.

4. Retention is much more effective when you put the right person into the right job. Know

the job! Know the employee and their motivations.

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Half of the Fortune 500 companies are now using assessments to more fully understand each

job and the soft skills that are required for top production within their specific company culture.

These benchmarked skills are then compared against qualified applicants to help determine

who will be successful in the position and fit well within their company's culture. These

assessments are also used as a powerful professional development tool to enhance the training

of continuous life-long learning (which is another powerful retention strategy.) Advanced Fiber

Communication is beginning to use this assessment process in hiring.

5. Money is important but it is not the only reason people stay with an organization.

If your compensation plan is in the top 20-30% of your industry, then money will often not be

the reason why people leave.

6. Employee committees to help develop retention strategies is a very effective strategy.

Get their input! Ask, what do people like about working here? What would you like changed to

make your company a better place to work?

7. Leadership must be deeply invested in retention.

Management must be skillful communicating company policies in a way that creates "buy-in"

from their staff and be open to employee input. Help create "ownership" in your employees.

The companies with the best retention percentages are the same companies that are actively

committed to retention. They know that is costs less to keep good people than to continuously

have to replace unsatisfied employees and managers.

8. Recognition, in various forms, is a powerful retention strategy.

It does not have to cost a lot. US Dept. of Labor - 46% of people leave their jobs because they

feel unappreciated.

9. Remember, the "Fun Factor" is very important to many employees.

Greg Peters, Past President and CEO of Mahi Networks in Petaluma, is one of many executives

who reported that retention is often related to interpersonal connections and amount of FUN in

work teams. The FUN Factor is part of the generation of workers that use activities as stress

management in highly charged production environments where long hours are required. Greg

has encouraged Ping-Pong tournaments and basketball leagues for interpersonal interaction,

fun, and stress management. Though not everyone can participate in physical activities, this

sets the tone in a culture based on competition, health/well-being, and interactions that are

inclusive beyond work.

10. Know the trends in benefit packages. Do your best to offer the ones your employees need.

Consider offering the best of the rest.

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5.5 SOLUTION FOR THE PROBLEM

FINDING THE CAUSE OF ATTRITION

Have a survey among employees to find the reasons for attrition. If possible, have exit interviews to

know the reasons for resignations. If a key employee resigns, it should be taken up on a priority basis

and the senior management should meet the employee to discuss his reasons for leaving and evaluate

whether his issues bear merit and whether they can be resolved. Steps can be taken to avoid similar

reasons from occurring in the case of others, in similar positions.

What can be done?

Though, it is impossible to scrap problems totally, there are certain ways by which BSNL management

can tackle attrition. The organization need to develop innovative ways to tackle the problems. Human

Resources Department must address these issues, and along with the management need to evolve

strategies to retain employees at all levels.

At the time of Recruitment

Select the right people through competency screening.

Use psychometric tests to get people who can work at night and handle the monotony.

Offer an attractive, competitive, benefits package.

Make clear of performance enhanced incentives and other benefits. Keep these promises, later.

AT THE OFFICE

An employee’s work must be communicated to him clearly and thoroughly. The details of the

job, its importance, the way it should be done, maximum time that can be allotted to complete

it etc., must be made clear. If there are changes to any of these, let the employee know at the

earliest

Give the employees necessary tools, time and training. The employee must have the tools, time

and training necessary to do their job well - or they will move to an employer who provides

them.

Have a person to talk to each employee at regular intervals. Listen and solve employee

complaints and problems, as much as possible. Fairness and impartial treatment by seniors is

important. Help employees manage stress, both at work and if possible, off work too. Give

them special concessions, when in need. Treat the employees well & provide dignity of job.

The quality of the supervision an employee receives is critical to employee retention. Frequent

employee complaints arise on this issue.

Provide the employees a stress free work environment. People want to enjoy their work. Make

work and work place cheerful and fun-filled as possible.

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Make sure that employees know that their work is important for the organization. Feeling

valued by their employer is key to high employee motivation and morale. Recognize their

strengths and help them to improve those they lack.

Employees must feel rewarded, recognized and appreciated. Giving periodical raise in salary or

position helps to retain staff.

Offer excellent career growth prospects. Encourage & groom employees to take up higher

positions/openings. If they don’t get opportunity for growth within the organization, they will

look elsewhere for it.

Work-life balance initiatives are important. Innovative and practical employee policies

pertaining to flexible working hours and schemes, granting compassionate and urgency leave,

providing healthcare for self, family and dependants, etc. are important for most people. Work-

life balance policies would have a positive impact on retaining skilled employees, as well as on

attracting high-caliber recruits.

Implement competency models, which are well integrated, with HR processes like selection &

recruitments, training, performance appraisal and potential appraisal.

CHAPTER–6: EMPLOYEE RETENTION

BENEFIT/ADAVANTAGE

6.1 EMPLOYEE RECOGNITION INCREASES RETENTION

It seems that now more than ever employee recognition is limited at best in many organizations.

Unfortunately many managers don't understand the importance of recognizing a team member's hard

work and a job well done. Many might even ask why they should recognize their employees when they

are "just doing their job."

The truth is that recognizing employees for their hard work is one of the least expensive and easiest

ways to improve the level of employee retention in your organization. The return on investment for a

manager's time and limited expenses can be incredible.

Recognizing an employee's performance reinforces positive behavior and encourages additional

positive behavior. If a team member feels that he or she is appreciated they will be much more likely to

repeat their behaviors in the future and even put out more effort than before. When a business leader

understands the power of recognizing his or her employees the culture of an organization reacts to this

recognition and moves in a positive direction helping to retain more employees.

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Employee recognition can be as simple or as extravagant as one desire. The following is a short list of

simple ways to recognize team members for a job well done and improve retention in your

organization.

• A simple "thank you" or "nice job" given in regular frequency can significantly boost team morale.

Often times a team member will greatly appreciate the time you spent to find him at his desk and

deliver the message in person.

• Send a thank you card or e-card. Also photocopy the thank you and document the reason for the

recognition in the employee's file. Let the employee know you did this - it will let her know that her

hard work will not be forgotten.

• Movie tickets, gift certificates, or an engraved gift are excellent rewards for an employee who has

excelled or put in the extra effort to make a project happen.

• Recognize the team member's contribution in front of members of management. This can reduce the

tendency for employees to feel that their supervisors take all the credit for their hard work.

• Recognize loyalty and exceeding expectations. Mention the team member's hire anniversary, large

contract won, or surpassing of a sales goal in the company newsletter or at a staff meeting.

• Know how to recognize your staff. Not all staff members want to be singled out at a gathering of

hundreds of fellow team members, while for others it would make their week. The approach to

recognizing team members can vary greatly by generational cohort. You might seriously embarrass a

baby boomer by having them stand up in front a group of their peers and discuss their recent success,

while a Gen X-er will relish this opportunity.

6.2 RETENTION STRATEGIES HELP DRIVE REVENUE

GROWTH

Employee satisfaction is essential to any effective employee retention strategy - any good HR

manager knows that. However few managers think of the impact that employee satisfaction has on

their customers and ultimately company profits. One can assume that happier, more productive

employees will make more sales, treat customers better, and ultimately make more money for the

company.

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CHAPTER – 7: ANALYSIS & INTERPRTATION

OF DATA

This chapter analysis the data collected with respect to the objectives of the project and draws

appropriate inferences there from.

Q.1) What is your age group?

Age group Number of RespondentsUp to 30 Years 8

31-40 Yrs 1841-50 Yrs 1451-60 Yrs 10

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Number of Respondents

Up to 30 Years31-40 Yrs41-50 Yrs51-60 Yrs

INFERENCEThe graph (1) shows that the respondents are more in the age group of 31-40 Yrs followed by the age group of 41-50 Yrs. This means that BSNL possess a large section of employees who have many years of experience in their fields.

Q.2) What is your Department?

Department Number of RespondentsMarketing 15

HR 15Finance 6

Procurement 5Other 9

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Number Of Respondents

MarketingHRFinanceProcurement

INFERENCE

The above graph shows the employees in various departments of BSNL

Q.3) Gender

Gender Number of RespondentsMale 30

Female 20

45

Male Female0

5

10

15

20

25

30

35



INFERENCE

Above Graph shows that BSNL strives to have a Gender Balance in their organization as evident from above Graph it is evident which clearly proves that out of 50 employees 20 are female employees.

Q.4) How long have you been working in BSNL?

Length of Service Number of Respondents>5 30

3-4 Yrs 152-3 Yrs 61-2 Yrs 4<1 Yr 0

>5 3-4 Yrs 2-3 Yrs 1-2 rs <1 Yr0

5

10

15

20

25

30

35



INFERENCE

From above graph it is clear that there are 30 employees that are working with BSNL for more than 5 years regularly.

Q.5) Is Employee Attrition a recognized HR Challenge for your organization?

Option Number of RespondentsYes 15No 35

46

Yes No0

5

10

15

20

25

30

35

40



INFERENCE

There are 35 employees those who do not think that Attrition is a challenge for BSNL.

Q.6) State the major reasons of attrition in your organization?

Reason of Attrition Number of RespondentsEmployee’s expectation of the job 10Absence of conducive workplace

environment1

Mismatch of Job Profile 2Lack of career growth 1

Odd working hour 1

Lack of proper compensation 0

47


Employee’s expectation of the jobAbsence of conducive workplace environmentMismatch of Job ProfileLack of career growthOdd working hourLack of proper compensation

INFERENCE

Majority of employees who think believe that Attrition is a challenge for HRM thinks that the possible

reason for attrition is the Employees expectation of the job. There are 10 of them who think like this.

Q.7) Are you satisfied with your current job?


Yes No0

5

10

15

20

25

30

35

40

45

50



INFERENCE

There are 45 out of 50 employees who are satisfied with their current job.

48

Q.8) Do you think that employee retention helps the development of organization?

Option Number of RespondentsNever 0

Sometimes 0Most of the times 16

All the times 34


NeverSometimesMost of the timesAll the times

INFERENCE

There are a majority of employees who think that employees retention strategies helps in the

development of the organization and also of the employees. There are about 34 out of 50 employees

who think this way.

Q.9) Do you think BSNL does consider retention issues seriously?


49

Yes No0

5

10

15

20

25

30

35

40

45

50



INFERENCE

Majority of employees think that BSNL does consider when it comes to make policies on the retention

issues.

Q.10) How much flexible is BSNL when it comes in modifying its strategies?

Option Number of RespondentsFlexible 17

Very Flexible 25Somewhat Flexible 4

Rigid 4Very Rigid 0


FlexibleVery FlexibleSomewhat FlexibleRigidVery Rigid

INFERENCE

As of how much flexible BSNL is in modifying the retention strategies 17 respondents think that BSNL

is flexible and 25 think that BSNL is very much flexible.

50

Q.11) Are you encouraged to participate in training to improve your skills and competencies?


Yes No0

10

20

30

40

50

60



INFERENCE

A majority of the employees think that BSNL encourages its employees to participate in the training so

as to improve skills and competencies.

Q.12) Would you like to plan your further career in this organization?


Yes No0

5

10

15

20

25

30

35

40

45

50



INFERENCE

47 out of 50 respondents would like to plan further career in BSNL.

51

Q.13) Rate the factors in a scale of (1-5) for you to retain in BSNL ( lowest to highest)

Option Number of RespondentsFlexibility in Job timing 2

Pay Package 5Growth opportunities 4

Relationship with Peers and the Managers 3Home Location Posting 1


Flexibility in Job timingPay PackageGrowth opportunitiesRelationship with peers and the managersHome location posting

INFERENCE

The respondents at BSNL have kept the Factor of Pay in top place among the factors that would

compel them to retain with BSNL.

Q.14) Do you think the current strategies used with respect to retention are motivating the employees to

stay in the organization?


Yes No0

5

10

15

20

25

30

35

40

45

Number of respondents

Number of respondents

52

INFERENCE

Maximum of the respondents think that the current strategies used with respect to retention are

motivating the employees to stay in the organization. Also there are some which don’t think in the

same way.

Q. 15) Level of Motivation?

Motivation Level Number of RespondentsHighly Motivated 35Slightly Motivated 5


Highly MotivatedSlightly Mitivated

INFERENCE

Out of those who have said that current retention strategies of BSNL are motivating the employees, 35

are highly motivated and 5 of them are slightly motivated.

Q. 16) Do you agree that you are rewarded periodically for your performance?

Option Number of RespondentsStrongly Disagree 0

Disagree 3Neutral 15Agree 16

Strongly Agree 16

53


Strongly DisagreeDisagreeNeutralAgreeStrongly Agree

INFERENCE

Employees when asked about the policy of reward for their performance, majority of the respondents were

agreed or strongly agreed towards the reward policies of BSNL.

Q.17) What do you feel about the working environment?

Satisfaction Level Number of RespondentsHighly Dissatisfied 1

Dissatisfied 4Neutral 15Satisfied 17

Highly Satisfied 13


Highly DissatisfiedDissatisfiedNeutralSatisfiedHighly Satisfied

54

INFERENCE

When asked about the satisfaction level towards the work environment most of them seem to be satisfied or

highly satisfied.

Q.18) How is your relationship between your superiors?

Satisfaction Level Number of RespondentsHighly Dissatisfied 0

Dissatisfied 0Neutral 18Satisfied 22

Highly Satisfied 10


Highly DissatisfiedDissatisfiedNeutralSatisfiedHighly Satisfied

INFERENCE

About the relationship with the seniors and superiors the respondents seem to be satisfied and highly satisfied.

Q.19) Do you feel there needs to be a change in the retention policies undertaken?


55

Yes No0

5

10

15

20

25

30

35



INFERENCE

Out of 50 respondents 31 think that the prevailing retention policies of BSNL are excellent and 19 of them think

that there is a need of altering some Retention policies.

Q.20) If Yes, Specify which strategy

Option Number of RespondentsWorking Environment 6Employee Relationship 5

Employee Support 9Employee Growth 12

Employee Compensation 18


Working EnvironmentEmployee RelationshipEmployee SupportEmployee GrowthEmployee Compensation

INFERENCE

When asked about which Strategy needs to be changed or altered/ amended, majority of them said it’s the compensation that has to be changed or altered/amended.

56

CHAPTER – 8: FACTS & FINDINGS

8.1 SOME EXAMPLES OF NEW AGE HR PRACTICES

LG COMPANY’S RETENTION POLICIES:

To retain employees it is very important to give them a feeling of belongingness in the company. For

this they conduct many activities like:

1. There’s a weekly meeting of every dept where the employees are asked what their expectations

are from the company to make the atmosphere and climate joyful.

2. After every 15 days one day FUN TRIP is conducted (within 50-70 Kms) from the company.

Places like Essel world, Lonavla, Alibagh Beach, Matheran Hill Station etc where the

employee can have fun and relax from their regular work. The destination of the fun trip is

decided by the employee themselves. The expense is held by the company.

3. Every Employee is given a Laptop, Mobile (Rs 500 card free every month) or Landline Phone

free.

4. “MY DAY”- Every week the employee can have 2 “my days”, i.e. for two days a week they can

have their own time away from office after 1.30 pm.

5. Annual Day – The annual day is on 24th December. Every employee gets a gift voucher, Lunch

at some good hotel and a fun tour to Essel world or water Kingdom etc.

6. Annually they also have interdepartmental matches like Cricket Matches, Volleyball Matches

etc to improve team building and feeling of belongingness.

7. Culture: On every Indian festival there’s a big celebration.

a. Ex: On Sank rant they have a “BHARTIYA JEVAN”. They fly colorful kites and have

competition between the employees.

b. Ex: On Diwali they enjoy sweets and crackers with traditional dresses.

8. Departmental Lunch: Everyday one dept have lunch together. Each and every member of the

that Dept eat and drink together. This helps in improving the team spirit and the feeling of

belongingness in the dept.

9. Employee of the week- AWARD:

a. Every week one worker is honored based on the performance of the worker. This

improves their moral and encourages them to work hard for the coming week.

b. Every month one employee is honored as Employee of the Month

c. Annually one employee is honored as Employee of the year.

57

Their names are declared on the Notice board and company magazine which encourages others also to

work better.

10. New employees joining the company are given a training of 8-10 days.

The training consists of induction and orientation program along with a 2 day trip. This is a good

ice breaking session and helps them to know their colleague. The lasts two days training is

conducted in the actual job site.

11. Higher education: If any employee wishes for higher education the company sends the

employee to South Korea for training and encourages them to study hard.

12. Car is provided to the entire manager and above. The petrol expense are taken care by the

company.

13. Annually every employee gets a 5 days paid leave.

14. The company provides the facility of all indoor games along with a Swimming pool for the

refreshment of the employee.

Ex. Table Tennis, Chess, Badminton, Snooker, etc.

15. Quarterly the MD does performance appraisal of every LINE and checks which line has

achieved production as per expectation or more than that. All the members of the line are gifted

and their names are displayed in their annual magazine. This encourages the Line members to

work hard and efficiently.

The Tesco campus at Whitefield in Bangalore also houses a learning centre where employees can

register themselves for a retail certification course from no less than the Indian Institute of

Management (IIM), Bangalore.

8.2 OBSERVATIONS & FINDINGS ON EMPLOYEE

RETENTION STRATEGIES

Employee Turnover is an Inside Job

Ross Blake, “The Employee Retention Manager”

Some employee turnover is inevitable; a spouse gets a promotion in another city or state, or capable

employees decide to change careers.

Many employers undertake efforts to reduce or eliminate external "pull" factors such as inadequate

benefits that prompt good employees to leave for other employers.

However, most employee turnover is caused internally, by reasons employers usually can at least

influence, if not correct.

58

Many employers also undertake efforts to reduce or eliminate internal "push" factors, including poor

work-life balance or boring assignments, that also prompt good employees to leave.

In addition, some employers have managers whose behaviors greatly increase employee turnover, yet

they're unwilling to address them, even though they're very costly.

Study Suggests Employees Leave Bosses, Not Jobs

Careful selection of employees and managers can have a huge impact on your employee retention

efforts and employee turnover costs at your organization.

It has been said more than once, and for good reason, that employees leave their bosses - not their jobs.

A Florida State University study scheduled for full release in the Fall 2007 issue of Leadership

Quarterly confirms this. The study shows that 40% of employees work for bad bosses based on survey

results. The reasons that employers score poorly are varied and many:

• 39% of workers said their supervisor failed to keep promises.

• 37% indicated their supervisor failed to give credit when due.

• 31% said their supervisor gave them the "silent treatment" during the past year.

• 27% report their supervisor made negative comments about them to other employees or managers.

• 24% indicated their boss invaded their privacy.

• 23% said their supervisor blamed other to cover up personal mistakes or minimize embarrassment.

So what does this all boil down to? The effects of having bad bosses in your organization can be

devastating. High turnover, poor employee morale, employee theft, diminished customer service,

substandard employee performance, lower production, and an organizational culture of fear and

mistrust can all be blamed in part on poor bosses and managers.

The costs of having poor managers and bosses can be incredible. Consider the cost of employee

turnover, which is different for all industries and positions, but has been roughly estimated at $15,000 -

$17,000 per employee in low to moderately skilled positions. Having a manager who drives potentially

valuable employees from your organization can have a huge impact on your bottom line, and your

customers.

59

CHAPTER-9: CONCLUSION

CONCLUSION

As employees are the bases for company so retention of employees is a major focus for HR

department. The management should identify the important factors that affect retention and should

take necessary measures to improve these.

It is only the employees that implement and give tangibility to the corporate mission. In other words if

it is the highest rung in the corporate hierarchy that has ideas, it is the employees’ rung that has the

chisel to bring the vision to life.

In the best of worlds, employees would love their jobs. Like their co-workers, work hard for their

employers, get paid well for their work, have ample chances of advancement and flexible schedules so

they could attend to personal or family needs when necessary. And never leave. But then there’s the

real world. And in the real world, employees, do, leave, either because they want more money, hate the

working conditions, hate their co-workers, want a change, or because their spouse gets a dream job in

another state.

Unlike inanimate products and systems that subject themselves to fine tuning without any reaction,

employees would not subject themselves to any measure taken without reaction and analysis. Hence

managing human resources, particularly retaining them, is an art that calls for special skills and

strategies.

Employee survey and exit interviews can be used for assessing the reasons of employee voluntarily

leave. HR interventions such as improving selection process, effective orientation and training, better

employee relation, better career development programs and planning etc should be used to improve

employee retention.

SUGGESTIONS:

1. Following steps/ efforts should be taken by the organization to retain its employees:

o Lucrative opportunities

o Implement good employment practices

o Maintain healthy organizational climate

o Proper training should be provided to employees according to their skills

o Proper salary structure should be there.

2. Need to restructure company’s policy and follow certain process to overcome problems.

3. Should make a hierarchy for various positions.

60

CHAPTER – 10: SUMMARY OF FINDINGS,

CONCLUSION AND SUGGESTIONS

High salaries and incentives is the primary tool for employee retention. Most of the companies

attract the employees by paying them high salaries and other incentives time to time. Monetary

packages are able to attract and retain talent, however, in long run it becomes limiting for the

organization to pay huge cash.

The best and foremost HR practice to retain employees is proper and tangible recognition and

appreciation to employees for their individual performance. The tools like employer of the

year/month, best performer/trainee of the project etc are those appreciations that not only retain

employees but also encourage them for better performance.

For employee satisfaction, the most important aspect to take care by the organization is that the

job profiles offered should match with individual capabilities and aspirations. This makes the

employee feel satisfied and glad in his job.

Better work culture is also very important where the relationship between employee and

employer is such that individual problems and conflicts are properly addressed with time.

Excellent career growth should be provided to the employees to move on the vertical ladder of

organizational hierarchy. The most common reason for leaving the job is the expectation of higher

level of responsibility and position.

Work-life balance initiatives are important. Innovative and practical employee policies

pertaining to flexible working hours and schemes, granting compassionate and urgency leave,

providing healthcare for self, family and dependants, etc. are important for most people. Work-life

balance policies would have a positive impact on retaining skilled employees, as well as on attracting

high-caliber recruits.

Organized training, counseling and development programmes for employees also used to

motivate them for their work. Best performers should be encouraged to share their experiences with

others and guide others. The emphasis is to create the desire to learn, enjoy and be passionate about

the work they do.

61

CHAPTER- 11: APPENDICES

QUESTIONNAIREQ.1) Age group:

a) Up to 30 yrs

b) 31- 40 yrs c) 41-50 yrs d) 51-60 yrs

Q.2) Department:

a) Procurement

b) HR c) Finance

d) Marketing e) Other

Q.3) Gender

a) Male

b) Female

Q.4) How long have you been working in BSNL?

a) > 5 years

b) 3-4 years

c) 2-3 years

d) 1-2 years

e) < 1 year

Q.5) Is Employee Attrition a recognized HR Challenge for your organization?

a) Yes

b) No

62

Q.6) State the major reasons of attrition in your organization?

a) Employee’s expectation of the job

b) Absence of conducive workplace environment

c) Mismatch of Job Profile

d) Lack of career growth

e) Odd working hour

g) Lack of proper compensation

Q.7) Are you satisfied with your current job?

a) Yes

b) No

Q.8) Do you think that employee retention helps the development of organization?

a) Never

b) Sometimes

c) Most of the times

d) All the times

Q.9) Do you think BSNL does consider retention issues seriously?

a) Yes

b) No

Q.10) How much flexible is BSNL when it comes in modifying its strategies?

a) Flexible

b) Very flexible

c) Somewhat Flexible

d) Rigid

e) Very Rigid

Q.11) Are you encouraged to participate in training to improve your skills and competencies?

a) Yes

b) No

Q.12) Would you like to plan your further career in this organization?

a) Yes

b) No

Q.13) Rate the factors in a scale of (0-5) for you to retain in BSNL( lowest to highest)

a) Flexibility in job timing

b) Pay Package

c) Growth opportunities

d) Relationship with the peers and the managers

e) Home location Posting

63

Q.14) Do you think the current strategies used with respect to retention are motivating the employees to

stay in the organization?

a) Yes

b) No

Q. 15) Level of Motivation?

a) Highly Motivated

b) Slightly Motivated

Q. 16) Do you agree that you are rewarded periodically for your performance?

a) Strongly Disagree

b) Disagree

c) Neutral

d) Agree

e) Strongly Agree

Q.17) What do you feel about the working environment?

a) Highly Dissatisfied

b) Dissatisfied

c) Neutral

d) Satisfied

e) Highly Satisfied

Q.18) How is your relationship between your superiors?

a) Highly Dissatisfied

b) Dissatisfied

c) Neutral

d) Satisfied

e) Highly Satisfied

Q.19) Do you feel there needs to be a change in the retention policies undertaken?

a) Yes

b) No

64

Q.20) If Yes, Specify which strategy

a) Working Environment

b) Employee Relationship

c) Employee Support

d) Employee Growth

e) Employee Compensation

65

CHAPTER – 12: BIBLIOGRAPHY

WEBSITES:

www.wikipedia.comwww.humanresource.about.comwww.hrworld.comwww.hrindia.comwww.managementhelp.org.comwww.managementparadise.com www.ehow.comwww.retention.naukrihub.comwww.timesofindia.indiatimes.com www.citehr.comwww.google.comwww.lgindia.comwww.bsnl.co.in

BOOKS:

Human Resource Management VSP RaoResearch methodology C.R.KothariL.M. Prasad.Research Methodology, Wishwa Prakashan Publishers.

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Recruiting & HR

Project report kullu telecom district