1”A STUDY ON EMPLOYEE RETENTION IN AMARA RAJA POWER SYSTEMS LTD

”A STUDY ON EMPLOYEE RETENTION IN AMARA RAJA POWER

SYSTEMS LTD, TIRUPATHI”

Submitted By

S.LUKE NIREEKSHAN

(Reg. No. 11809631041)

Of

Department of Management Studies

VEL TECH MULTI TECH Dr. RANGARAJAN Dr. SAKUNTHALA ENGINEERING

COLLEGE

(ACCREDITED BY NBA & ISO 9001:2008 CERTIFIED INSTIT UTION)

(Approved by AICTE, New Delhi & Affiliated to ANNA UNIVERSITY)

Avadi, Chennai-600 062

A PROJECT REPORT

Submitted To

Faculty of Management Studies

In Partial Fulfilment of the Requirement for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

IN

HUMAN RESOURCE

ANNA UNIVERSITY, CHENNAI – 25

JUNE - 2011

VEL TECH MULTITECH DR.RANGARAJAN DR.SAKUNTHALA

ENGINEERING COLLEGE

(ACCREDITED BY NBA & ISO 9001:2008CERTIFIED INSTITU TION)

(Approved by AICTE, New Delhi & Affiliated to ANNA UNIVERSITY)

Avadi, Chennai-600 062

___________________________________________________________________________

Date: ...../…../2011

BONAFIDE CERTIFICATE

Certified that the project report titled “A STUDY ON EMPLOYEE RETENTION” has

been conducted in “ AMARA RAJA POWER SYSTEMS LTD,TIRUPATHI ” is a

bonafide project work of S.LUKE NIREEKSHAN, (Reg. No. 11809631041) who carried out

research under my supervision certified further, that to the best of my knowledge the work

reported here in does not form part of any other project report or dissertation on the basis of

which a degree or award was conferred on an earlier occasion on this or any other candidate.

INTERNAL GUIDE HEAD OF THE DEPARTMENT

ASSESSED BY

INTERNAL EXAMINER EXTERNAL EXAMINER

ACKNOWLEDGEMENT

First of all I take this opportunity to express my gratitude to our CHAIRMAN

PROF. Dr. R. RANGARAJAN, B.E (Elect), B.E (Mech), and M.S (Auto) PhD, and to the

PRINCIPAL Dr. SIDDHAPPA NAIDU, M.E., PhD, of VEL TECH MULTI TECH

DR.RANGARAJAN DR.SAKUNTHALA ENGINEERING COLLEGE, AV ADI.

I would like to extend my sincere thanks to HOD Dr. N. VIJAY & My Internal

Guide Mrs. SATHYARTHI, MBA, M.PHIL and all my faculties.

I express my sincere gratitude from the depth of my heart to my respectful HR

Ms. M.L.RAMADEVI, of AMARA RAJA POWER SYSTEMS LTD, TIRUPATHI for

providing the valuable guidance and necessary facilities to me for completing this project work

successfully.

I thank all the employees of AMARA RAJA POWER SYSTEMS LTD ,

TIRUPATHI for extending their useful co-operation and support to me during the course of this

project work.

I also thank my parents and my friends who had helped me in doing this project in a

successful manner.

(S.LUKE NIREEKSHAN)

ABSTRACT

The project work has been carried out at AMARA RAJA POWER

SYSTEMS LTD. This report is the outcome of the study conducted on the topic “EMPLOYEE

RETENTION IN AMARA RAJA POWER SYSTEMS LTD” . The tools used in the study for

analysing the collected data are Simple percentage analysis, chi square test and Pareto Analysis.

The study was done on a total of 120 respondents and analysis was conducted.

Employee retention management is a highly typical subject and an

important dilemma in many organizations which might face in the future. The concept of

retention management can both have a narrow and a broader significance.

Recent studies suggest that multinational companies are struggling to

retain employees. So the study on the employee retention is useful for the company in framing

strategies to retain the employees in the organization.

From the study it is found that the Stipend, welfare measures,

transport facilities and Duration of the training programmes are the major problems causing

dissatisfaction among most of the trainees which should be improved.

TABLE OF CONTENTS

CHAPTER NO

CONTENTS PAGE NO

1

INTRODUCTION 1

1.1 Industry Profile 2

1.2 Company Profile 6

1.3 Product Profile 16

1.4 Statement of the Problem 17

1.5 Objective of the Study 18

1.6 Need & Scope of the Study 19

1.7 Limitations of the Study 20

2 LITERATURE SURVEY 21

2.1 Review of Literature 21

3

RESEARCH METHODOLOGY 27

3.1 Type of Project 28

3.2 Target Respondents 29

3.3 Proposed Sampling Methods 30

3.4 Data processing 31

3.5 Tools for Analysis 32

4

DATA ANALYSIS AND INTERPRETATION 34

4.1 Percentage Analysis 34

4.2 Chi-square test 50

4.3 Karl Pearson Correlation Analysis 56

5

CONCLUSION 58

5.1 Summary & Findings 58

5.2 Suggestions & Recommendations 61

5.3 Conclusion 62

APPENDIX

(i) Bibliography A1

(ii) Questionnaire A2

LIST OF TABLES

TABLE

NO

TABLE TITLES PAGE

NO

4.1.1 Table showing the classification of age groups of the respondents. 34

4.1.2 Table showing the satisfaction regarding the working conditions in this

organisation.

35

4.1.3 Table showing the satisfaction regarding the nature of the job. 36

4.1.4 Table showing the wheather the supervisors take care at work. 37

4.1.5 Table showing the wheather the job in this organisation is highly

secured.

38

4.1.6 Table showing the satisfaction level of respondents when prolonged

working hours.

39

4.1.7 Table showing the satisfaction level towards the welfare measures. 40

4.1.8 Table showing the satisfaction regarding salary. 41

4.1.9 Table showing wheather the management assign the tasks which

matches skills of the employees.

42

4.1.10 Table showing the satisfaction regarding the duration of the training

programme.

43

4.1.11 Table showing the level of communication from top management. 44

4.1.12 Table showing the interpersonal relationship in the organisation. 45

4.1.13 Table showing the recognition for work from the management. 46

4.1.14 Table showing the satisfaction level regarding the transport facilities. 47

4.1.15 Table showing the satisfaction level regarding the Safety measures in

the organization.

48

4.1.16 Table showing wheather they are conducting exit interviews for the

employees who are leaving the organisation.

49

4.2.1 Table showing observed frequency of Salary and Duration of training

programme.

50

4.2.2 Table showing expected frequency of Salary and Duration of training

programme.

51

4.2.3 Table showing calculated value of Salary and Duration of training

programme.

51

4.2.4 Table showing observed frequency of Job Security and Recognition for

Work.

53

4.2.5 Table showing expected frequency of Job Security and Recognition for

Work.

54

4.2.6 Table showing calculated value of Job Security and Recognition for

Work.

54

4.3.1 Table showing Analysis for Age and assigning tasks that matches

skills.

56

LIST OF CHARTS

TABLE

NO

CHART TITLES PAGE

NO

4.1.1 Chart showing the classification of age groups of the respondents. 34

4.1.2 Chart showing the satisfaction regarding the working conditions in this

organisation.

35

4.1.3 Chart showing the satisfaction regarding the nature of the job. 36

4.1.4 Chart showing the wheather the supervisors take care at work. 37

4.1.5 Chart showing the wheather the job in this organisation is highly secured. 38

4.1.6 Chart showing the satisfaction level of respondents when prolonged working

hours.

39

4.1.7 Chart showing the satisfaction level towards the welfare measures. 40

4.1.8 Chart showing the satisfaction regarding salary. 41

4.1.9 Chart showing wheather the management assign the tasks which matches skills

of the employees.

42

4.1.10 Chart showing the satisfaction regarding the duration of the training programme. 43

4.1.13 Chart showing the recognition for work from the management. 44

4.1.14 Chart showing the satisfaction level regarding the transport facilities. 45

4.1.15 Chart showing the satisfaction level regarding the Safety measures in the

organization.

46

4.1.16 Chart showing wheather they are conducting exit interviews for the employees

who are leaving the organisation.

47

LIST OF ABBREVATIONS

1 ARPSL AMARA RAJA POWER SYSTEMS LTD

2 MPPL MANGAL PRECISION PRODUCTS PRIVATE LTD

3 AREL AMARA RAJA ELECTRONICS LIMITED

4 GFPL GALLA FOODS PRIVATE LIMITED

5 AIPL AMARA RAJA INFRA PRIVATE LIMITED

6 AISPL AMARA RAJA INDUSTRIAL SERVICES PRIVATE LTD

7 IPS INTEGRATED POWER SUPPLY SYSTEMS

8 SMR SWITCH MODE RECTIFIERS

9 UPS UNINTERRUPTED POWER SUPPLIES

10 NTPC NATIONAL THERMAL POWER CORPORATION

11 NHPC NATIONAL HYDRO-ELECTRIC POWER CORPORATION

12 NEEPCO NORTH-EASTERN ELECTRIC POWER CORPORATION

13 THDC TEHRI HYDRO DEVELOPMENT CORPORATION

14 NPTC NATIONAL POWER TRANSMISSION CORPORATION

1

CHAPTER-1

INTRODUCTION

Employee retention refers to policies and practices companies

use to prevent valuable employees from leaving their jobs. How to retain valuable employees is

one of the biggest problem that plague companies in the competitive marketplace.

Nowadays, businesses often find that they spend considerable

time, effort, and money to train an employee only to have them develop into a valuable

commodity and leave the company for greener pastures.

In order to create a successful company, employers should

consider as many options as possible when it comes to retaining employees, while at the same

time securing their trust and loyalty so they have less of a desire to leave in the future.

Employee retention involves taking measures to encourage

employees to remain in the organization for the maximum period of time. Corporate is facing a

lot of problem in employee retention these days. Hiring knowledgeable people for the job is

essential for an employer. But retention is even more important than hiring. There is no dearth of

opportunities for talented person. There are many organizations which are looking for such

employees. If a person is not satisfied by the job he’s doing, he may switch over to some other

more suitable job. In today’s environment it becomes very important for organizations to retain

their employees.

DEFINITION

According to Get Les McKeon’s employee retention is define as “ 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 divers needs.

2

1.1 INDUSTRY PROFILE

Historical

The Electric Century

Even true visionary even like Thomas A.Edision could not have imagined the level of

sophistication that would be required of equipment used for the transmission and distribution of

electronic power a little more than a century after its invention. Nor could he have anticipated all

of the complex issues facing the electrical industry as it moves into the twenty-first century.

With the only research and development lab in the industry still named after this

prodigious inventor. The Thomas A.Edision technical centre. Cooper power systems are proud to

trace its heritage back to this industry pioneer. Thomas A.Edision. Incorporated, one of Thomas

Edison’s original companies. Combined with McGraw electric company in 1957 to from

McGraw-Edison became part of cooper power systems.

Since its formation in 1985. A Cooper power system has continued to commitment of its

forebears to invention. The Thomas A Edison technical centre embodies Edison’s philosophy of

finding a better way.

Cooper power systems roots. Like any family tree, come from multiple sources: Kyle,

line material, McGraw-Edison. RTE and Kearney. Each company played a key role in the

development of modern distribution systems. Many of the common pieces of equipment and

practices in use today were developed by these companies. Here is a brief overview of cooper

power system’s heritage.

The power electronics is the application of electronic circuit to energy conversion i.e.,

encompasses the use of electronic components, the application of circuit theory and design

techniques and the development of analytical tools towards electronic conversion, control and

conditioning of electronic power. The power electronic market comprises of uninterrupted power

supplies (UPS), AC/DC power supplies. Battery chargers and inverters. In 2003, the total

worldwide power

3

Electronics market was $6351 million, which is expected to grow at a compound annual

growth rate of 6.1% to reach $7203 million by 2006 power electronics is used in computers,

automobiles, military,

The major manufactures in the power electronics industry (India) are:

Exide industries

Hyderabad Batteries Limited.

Amara Raja Power Systems Private Limited.

Tudor Indian limited.

Standard Batteries.

Introduction:

The power sector has registered significant progress since the

process of planned development of the economy began in 1950. Hydro -power and coal based

thermal power have been the main sources of generating electricity. Nuclear power development

is at slower pace, which was introduced, in late sixties. The concept of operating power systems

on a regional basis crossing the political boundaries of states was introduced in the early sixties.

In spite of the overall development that has taken place, the power supply industry has been

under constant pressure to bridge the gap between supply and demand.

Growth of Indian power sector:

Power development is the key to the economic development. The

power Sector has been receiving adequate priority ever since the process of planned development

began in 1950. The Power Sector has been getting 18-20% of the total Public Sector outlay in

4

initial plan periods. Remarkable growth and progress have led to extensive use of electricity in

all the sectors of economy in the successive five years plans. Over the years (since 1950) the

installed capacity of Power Plants (Utilities) has increased to 89090 MW (31.3.98) from meager

1713 MW in 1950, registering a 52d fold increase in 48 years. Similarly, the electricity

generation increased from about 5.1 billion units to 420 Billion units – 82 fold increases. The per

capita consumption of electricity in the country also increased from 15 kWh in 1950 to about 338

kWh in 1997-98, which is about 23 times. In the field of Rural Electrification and pump set

energisation, country has made a tremendous progress. About 85% of the villages have been

electrified except far-flung areas in North Eastern states, where it is difficult to extend the grid

supply.

Structure of power supply industry

In December 1950 about 63% of the installed capacity in the Utilities was in the private sector

and about 37% was in the public sector. The Industrial Policy Resolution of 1956 envisaged the

generation, transmission and distribution of power almost exclusively in the public sector. As a

result of this Resolution and facilitated by the Electricity (Supply) Act, 1948, the electricity

industry developed rapidly in the State Sector.

In the Constitution of India "Electricity" is a subject that falls within the concurrent jurisdiction

of the Centre and the States. The Electricity (Supply) Act, 1948, provides an elaborate

institutional frame work and financing norms of the performance of the electricity industry in the

country. The Act envisaged creation of State Electricity Boards (SEBs) for planning and

implementing the power development programmes in their respective States. The Act also

provided for creation of central generation companies for setting up and operating generating

facilities in the Central Sector. The Central Electricity Authority constituted under the Act is

responsible for power planning at the national level. In addition the Electricity (Supply) Act also

allowed from the beginning the private licensees to distribute and/or generate electricity in the

specified areas designated by the concerned State Government/SEB.

During the post independence period, the various States played a predominant role in the power

development. Most of the States have established State Electricity Boards. In some of these

5

States separate corporations have also been established to install and operate generation

facilities. In the rest of the smaller States and UTs the power systems are managed and operated

by the respective electricity departments. In a few States private licensees’ are also operating in

certain urban areas.

From, the Fifth Plan onwards i.e. 1974-79, the Government of India got itself involved in a big

way in the generation and bulk transmission of power to supplement the efforts at the State level

and took upon itself the responsibility of setting up large power projects to develop the coal and

hydroelectric resources in the country as a supplementary effort in meeting the country’s power

requirements. The National thermal Power Corporation (NTPC) and National Hydro-

electric Power Corporation (NHPC) were set up for these purposes in 1975. North-Eastern

Electric Power Corporation (NEEPCO) was set up in 1976 to implement the regional power

projects in the North-East. Subsequently two more power generation corporations were set up in

1988 viz. Tehri Hydro Development Corporation (THDC) and Nathpa Jhakri Power

Corporation (NJPC). To construct, operate and maintain the inter-State and interregional

transmission systems the National Power Transmission Corporation (NPTC) was set up in

1989. The corporation was renamed as POWER GRID in 1992.

The policy of liberalization the Government of India announced in 1991 and consequent

amendments in Electricity (Supply) Act have opened new vistas to involve private efforts and

investments in electricity industry. Considerable emphasis has been placed on attracting private

investment and the major policy changes have been announced by the Government in this regard

which are enumerated below:

6

1.2 COMPANY PROFILE

AMARA RAJA GROUP OF COMPANIES

RAMACHANDRA N GALLA

Chairman

Amara Raja Batteries Ltd.

Dr. Ramachandra N. Galla is the Patriarch of an illustrious business family of Andhra Pradesh,

Gallas, who have established a name for themselves by successfully setting up Amara Raja

Batteries. Born in 1938, Dr. Ramachandra Galla is an Electrical Engineer from S.V. University,

Tirupati and has to his credit Masters degrees in Applied Electronics, Roorkee, India and

Systems Sciences, Michigan State University, USA.

Dr. Galla started his career as an Electrical Engineer in US Steel Corporation, USA moved on to

Sargent & Lundy, USA as a Consulting Engineer for the Designing of Nuclear & Coal Fired

Power Plant. He initiated various projects in these corporations & mastered the ropes of this

competitive business in a very short time. However, he soon discovered that his natural

inclination was serving his country and as a logical sequel he gravitated towards Chittoor his

native place in India. Dr. Galla laid the foundation of Amara Raja batteries in 1985 in Chittoor.

With his intense zeal and highly focused approach, he propelled Amara Raja Batteries in the top

league of battery companies in India.

In his capacity as the Chairman, Dr. Ramachandra Galla has promoted and established the

following companies from the conceptual stage which are now well established and profit

making:

7

BRANCHES:

Chandigarh

Ghaziabad

Delhi

Jaipur

Lucknow

Guwahati

Ahmedabad

Indore

Patna

Ranchi

Coimbatore

Calcutta

Jamshedpur

Nagpur

Mumbai

Pune

Hyderabad

Vijay Wada

Bangalore

Chennai

Cochin.

8

AMARA RAJA GROUP OF COMPANIES :

� AMARA RAJA POWER SYSTEMS PRIVATE LTD. (APRSL),

Karakambadi, Tirupati.

� MANGAL PRECISION PRODUCTS PRIVATE LTD 1., (MPPL1),

Karakambadi, Tirupati.

� AMARA RAJA ELECTRONICS LIMITED (AREL),

Dighavamgham, Chittoor.

� GALLA FOODS PRIVATE LIMITED (GFPL), Puthalapattu Mandal,

Chittoor.

� AMARA RAJA INFRA PRIVATE LIMITED (AIPL),Tirupati karakambadi.

� AMARA RAJA INDUSTRIAL SERVICES PRIVATE LIMITED (AISPL),

Tirupati.

Dr Galla's finest hour as a businessman came in 1998 when he was presented

BEST ENTERPRENEUR OF THE YEAR 1998 ” – by Hyderabad Management Association,

Hyderabad. He has been bestowed with honorary doctorate degrees from Jawaharlal Nehru

Technical University in 2008 at Hyderabad & Sri Venkateswara University in 2007 at Tirupati.

He has also been conferred with “THE SPIRIT OF EXCELLENCE” award by Academy of Fine

Arts, Tirupati, and various other prestigious awards.

He is passionate about a corporate’s responsibility to society as well as

championing eco-friendly business practices. Dr. Galla has established various charitable trusts

9

like Krishna Devaraya Educational & cultural association (KECA), Rajanna Trust, Mangamma

& Gangul Naidu Memorial Trust. He is dedicated to rural development and improving the

economic conditions of the farmers in Chittoor District, Andhra Pradesh, India. KECA which

was established in 1975 provides scholarship to the poor and needy students to pursue their

higher education. While Rajanna Trust that was established in 1999 to construct check dams and

deepening the tanks to improve the ground water levels. MANGAL TRUST was established in

2003 to provide drinking water facilities, constructing check dams & providing infrastructure

facilities to Petamitta and surrounding villages.

A committed family man with wife, two children & grand children, he loves spending time with

his family and participating in society development project.

JAYADEV GALLA

Managing Director

Amara Raja Batteries Ltd.

Core Purpose:

To transform our spheres of influence and to enrich the quality of life by

building institutions that provides better access to better opportunities. Good and services to

more people all time.

10

AMARA RAJA POWER SYSTEMS LIMITED (ARPSL):

LOGO OF AMARA RAJA POWER SYSTEMS LIMITED (ARPSL)

Amara Raja power systems are a member company in Amara Raja group of companies. Which

has become a leading business, group in India going ahead with its innovative and collaborative

technology and emphasis on human resource development.

BOARD OF DIRECTORS OF ARPSL

Mr.U.V.Warulu Scientist

Dr.Upendranath Naimmlagadda NRI

Mr.P.Lakshman rao Charted accountant

Mr. Arthur F.Nening Jr. Johnson Controls inc. USA

Mr. Douglas C.Brown Johnson Controls inc. USA

Mr.james T.Luke Jonson Controls inc. USA

11

INCORPORATION:

Amara Raja Power Systems Private limited was incorporated in 1984 and

was co promoted by A.P. ELECTRONIC DEVELOPMENT CORPORATION (APEDC). By

virtues of APEDC’s equity participation, ARPSL has become a deemed public limited company

as per section 43 (a) of the companies Act, ARPSLis engaged in the manufacture of

uninterruptible power systems (UPS) Battry charges (BC) and inventers. The company had a

technical collaboration with “H.D.R. power systems inc. USA. The company has entered into a

new collaboration with M/s.Rectifier Technologies, Australia for manufacturing the advanced

switch mode power supply units [SMPS] for battery charging purpose.

An Rs.2 crore unit Amara Raja power Systems ltd. For the manufacture

of uninterrupted power supply systems (UPS), battery chargers, D.C.power supplies and static

inventers. For the year ending 31st march, 2002 this unit achieved a sales turnover of Rs.188

crores and earned cash profit of Rs.18 crores.

Total employee strength of ARPSL is around 505.

CULTURE AND ENVIRONMENT:

Amara Raja is putting in place a number of HRD initiatives to foster a

spirit of togetherness and a culture of meritocracy. Involving employees at all levels in building

organizational support plans and in evolving vision for the organization.

Encouraging initiative and growing young talent allows the organization

to develop innovative solutions.

Amara Raja has now secured the ISO-14001 certification in the year 2002

(evidence of our concern for the world around us and in which our children will live).

Organization network is spread all over the India:

12

CUSTOMER SATISFACTION:

Effective employee selection, employee development, motivation and

recognition improvement and innovation in every element of our business.

QUALITY POLICY :

Our aim is to achieve customer satisfaction through the collective commitment of

our employees in design, manufacture and marketing of reliable power systems, batteries, allied

product and services.

MANGAL PRESSION PRODUCTS PRIVATE LIMITED (MPPL1):

MPPL1 was started in the year (1996-1997) to produce battery components like “copper

connectors, copper inserts, hardware required by ARBL and ARPSL”.

It is having all the “sheet metal processing machinery” it starts from “sheet cutting to

final painting, bending, welding, phosphate and power coating processes”.

The plant is locating Karakambadi village, Renigunta Mandal, Tirupati and is registered

as an ancillary unit to ARBL and ARPSL. The operations of the company are brisk and

satisfactory.

MANGAL PRESSION PRODUCTS PRIVATE LIMITED (MPPL2):

MPPL1 was started in the year (1996-1997) to produce battery components like “copper

inserts, hardware required by ARBL and ARPSL”.

The unit located at Petamitta Village, Talapulapalli Mandal, and chittoor at a distance of

65 kms. From Amara Raja group of companies, Karakambadi.

13

In this the aim is to develop backward villages. It will also produce quality hardware for “

Automobile Manufacture Company” up near Chennai.

AMARA RAJA ELECTRONICS LIMITED :

AREL was established in 2000. It was located at Diguvamagham.

AREL manufactures populated printed circuit board assembly for sale to original

equipment manufacturers (OEM).

GALLA FOODS PRIVATE LIMITED (GFPL):

GFPL was incorporated in 11th March 2004 and having its registered office at Rangampet,

Puthalapattu Mandal, Chittoor District, Andhra Pradesh.

It is in the process of standards for extracting natural fruit concentrates from Tropical fruits and

export to USA, Europe and other advanced International Markets.

The company belongs to the Amara Raja Group, which is a pioneer in industrial and automotive

batteries in India.

Amara Raja Group to hire 3,000 in 5 yrs; aims USD 2bn revenue:

New Delhi, Aug 15, (PTI):

Diversified business house Amara Raja is planning to hire 3,000 people in the next five years as

part of its strategy to become a USD 2 billion (over Rs 9,300 crore) entity by 2015.

The group, better known for its automotive battery brand -- Amaron, currently has about 5,000 staff

14

across verticals with a combined turnover of Rs 2,000 crore.

"We have set our vision for 2025 and it is to become a Fortune500 company. As part of this strategy,

we are aiming for a total turnover of USD 2 billion in the next five years," Amara Raja Group Vice

President (Human Resources) Jaikrishna B told PTI.

The group has expanded at 55-60 per cent during the last five years and the growth rate is expected to

continue for some more time, he added.

"To meet our target, we will also have to increase our manpower. From the current 5,000 employees,

it will expand to about 8,000 people in next five years," Jaikrishna said.

Established in 1985, the Amara Raja Group has seven entities. It has presence in packaged foods and

beverages, electronics products manufacturing, infrastructure sector, power system production and

fabrication of sheet metal products and fasteners.

"Besides expanding our existing businesses, we are contemplating to enter into a couple more areas,

“he said.

The group is planning to foray into providing private security guards to big installations.

"We are targeting to have strength of 500 security officials and aiming a revenue of Rs 125 crore from

this business in the next five years," Jaikrishna said.

The conglomerate is also setting up a 500-acre digital city for electronics goods manufacturing at

Chittoor in Andhra Pradesh, entailing a total investment of Rs 1,700 crore in the next 10 years.

The economic activity in the digital city project is expected to be over Rs 10,000 crore per annum,

besides providing employment to more than 20,000 people.

Amara Raja Group is also planning to foray into the health drink and frozen food category as part of

its plan to become a pan-India FMCG player.

15

AWARDS:

� “The spirit of Excellence”- Awarded by academy of fine arts, Tirupati.

� “Best Entrepreneur of the year 1998”-awarded by Hyderabad Management Association.

� “Industrial Economist Business Excellence Award-1991”-Awarded by the industrial

economist, Chennai.

� “Excellence Award”-by institution of economic studies (ES), New Delhi.

� “Excellence in Environmental Management in June 2002 by Andhra Pradesh Pollution Control

Board.

� Amara raja received 5 Awards at the Mumbai Advertising club Awards 2003 for the Amaron

Hi-Life advertising campaign including campaign including campaign of the year Award,

Advertiser of the year Award and 2 silver and 1 Gold Abby in other categories.

� Amara raja received Best 5s Practices Implementation award from CII, southern Region.

� MPPL received award in recognition of excellence in cleaner production technologies and

adoption of climate change mitigation measures from AP Pollution Control Board.

� Employee Branding Awards: “Awards for best HR strategy in line with business” and “Award

for continuous innovation in HR Strategy at Work”.

16

1.3 PRODUCTS PROFILE:

1. Conventional chargers

Applications:

Power process industries

Power Generating Stations

Oil and Natural gas plants

Sub-Stations

Sea-shore platforms

2. Switch mode rectifiers (SMR)

Applications:

EPBX

Telecom exchanges

Scabbier systems

3. Integrated power supply systems (IPS)

Applications:

Signalling

Telecoms

Axile counter

Traction

Customers: BSNL, VSNL, SIEMENS, RELIANCE, LG

17

1.4 STATEMENT OF THE PROBLEM

The problem in the study is to know why employee retention is low in Amara Raja

Power Systems Ltd. In this competitive world retention of valuable employees is very important

for all the companies as it decreases the rate of employee turnover and increases efficiency and

good working environment. So this project guides the company in order to know the factors

regarding low employee retention in their organization and so that the company can improve the

satisfaction of the employees in the organisation.

18

1.5 OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVES:

� To study the employee retention in Amara Raja Power Systems Ltd.

SECONDARY OBJECTIVES:

� To study reasons why employees are leaving the organisation.

� To find various factors that influences the retention of employees.

� To identify what employees look from their jobs in their organisation.

� To give suggestions to reduce retention in the organization.

19

1.6 SCOPE OF THE STUDY

1. It is confined to employees of Amara Raja Power systems Ltd only.

2. Employee retention helps to create organization welfare and job satisfaction among the

employees.

3. This helps the company to reduce the employee turnover rate which would in turn

increase the efficiency of the organization.

NEED FOR THE STUDY

In the present scenario, world is turning into

global village and the whole globe is reachable from any destination. In this small world

even companies are reachable to the people and vice versa. And so their jobs are easily

accessible for everyone. In this situation, the biggest challenge for a company is to retain

workforce intact especially the knowledge banks (valuable employees).

The study of employee retention is useful for the

company to prevent employees from leaving their jobs. By this research it’s more useful

to know the policies & practices companies use to prevent the valuable employees from

leaving their jobs.

It also helps in understanding how to retain valuable

employees which is one of the biggest problems that plague the companies in the

competitive market place.

20

1.7 LIMITATIONS OF THE STUDY

� The project duration is considered as a major limitation to collect data from all the

trainees.

� The respondents may have some bias in answering the questions.

� The sample size being limited to trainees in ARTS may not accurately represent the entire

organization.

DELIVERABLES

The research focuses on the employee retention in the Organization. The

Study will show the areas that are causing problems for less employee retention and also to

provide suggestions to the Organization for retaining the employees. It will provide ideas for

improving the retention of employees through our survey which helps in developing strategies to

retain employees for the Organization.

21

CHAPTER-2

2.1 REVIEW OF LITERATURE

1. The organizational culture values varied significantly among the firms. The

variation in cultural values had a significant effect on the rates at which the newly hired

employees voluntarily terminated employment. The relationship between the employee’s job

performance and their retention also varied significantly with organizational culture values.

The cultural effects were stronger than the combined exogenous influences of the labor

market and the new employee’s demographic characteristics. The cultural effects are

estimated to have resulted in over six million dollars differences in human resources costs

between firms with different cultural values.1

2. The author says that “retaining employees is much cheaper than replacing

them”. The two important themes he said in his book were First retention matters. A

continual effort to replace departing workers-keeping the revolving door full, instead of

stopping it altogether-is bleeding business dry. It’s expensive to constantly replace people.

The cost of attracting, recruiting, hiring, training and getting new people up to speed is

tremendously more costly and more wasteful than most realize. Second, Productivity is

directly tied to retention.

Companies with high turnover are at risk for low productivity. Employees who

have an above average attitude towards their work will generate 38% higher customer

satisfaction scores, 22% higher productivity, and 27% higher profits for their companies.

And he says lower the expense of continually hiring and training new people.2

1 John E. Sheridan-“Organizational culture and Employee Retention”- Academy of Management- December, 1992

2 Gregory P. Smith- “Here Today, Here Tomorrow”- Dearborn Trade- October, 2001

22

3. He stated eight steps for retaining the most talented employees. The eight steps

given by him are

1. Measure and monitor turnover and retention data.

2. Develop fully loaded costs of turnover.

3. Diagnose causes and needs for retention improvement.

4. Explore range of solutions.

5. Match solutions to need.

6. Forecast value of retention solutions.

7. Calculate ROI of retention solutions and

8. Make adjustments and continue.3

4. They underlined that employee retention is a process in which the employees

are encouraged to remain with organization for the maximum period of time or until the

completion of the project. Employee retention is beneficial for the organization as well as the

employee.

Employees today are different. They are not the ones who don’t have good

opportunities in hand. As soon as they feel dissatisfied with the current employer or the job,

they switch over to the next job. It is the responsibility of the employer to retain their best

employees. If they don’t, they would be left with no good employees. A good employer

should know how to attract and retain its employees. Retention involves five major things

such as Compensation, Good Environment, Good Relationship and Support.4

5. In his review the author says that “Employee retention involves being sensitive

to people’s needs”. Employee attrition is running wild in today’s tight labour market. However,

3 Jack J.Philips-“Managing Employee retention: A Strategic Accountability Approach (Improving Human

Performance)- Butterworth”-Heinemann- June, 2003 4 Beverly Kaye, Sharon Jordan –Evans- “Love Employees or lose Employees: Getting Good People to stay”- Berrett-

Koehler Publishers- January, 2008

23

the companies that keep their employees have found that what matters most is not the pay,

benefits, or perks, but the quality of the relationship between employees and their direct

supervisors. The bottom line is people leaves managers, not companies.5

6. The authors underlined that “Hiring Knowledgeable people for the job is

essential for employer. But retention is even more important than hiring. There is no dearth of

opportunities for a talented person. There are many organizations which are looking for such

employees. If a person is not satisfied by the job he’s doing, he may switch over to some other

more suitable job. In today’s environment it becomes very important for organizations to retain

employees.6

7. Retaining and motivating valuable employees requires employers to evaluate

their situation and work environment. The extrinsic rewards are the most tangible—salaries,

benefits, promotions—yet these incentives alone are not enough. Employees judge the quality of

their job on the intrinsic satisfaction (the personal “reward” they reap from their work), and on

whether they feel their work environment is supportive.7

8. Dr. Saurabh Gupta in his study entitled employee retention has underlined

that, the cost employee turnover is from 40-100% of an employee’s annual salary, when we

consider lost productivity, recruiting costs, training costs, reduced efficiency in transition and

time. Workers shortage continues to escalate. Each and every day good employees quit their

employers for better jobs elsewhere.

Today’s labour force is different. Supervisors must take responsibility for

their own employee retention. If they don’t, they could be left without enough good employees.

5 Roger Herman- “Keeping Good People”- Academy of Management Review

6 Ed Michaels, Helen Handfield-Jones, Beth Axelrod- “The War for Talent”- Harvard Business School Press-

September- 2001 7 Robin Thompson- Secrets to Keeping Good Employees

24

A wise employer will learn how to attract and keep good employees, because in the long run, this

workforce will make or break a company’s reputation.

New supervisors must be trained to be collaborative, Supportive, and

nurturing of their people and make them understand what it really takes to retain employees.8

9. 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. The saying, good

help is hard to find, is even truer these days than ever before because the job market is

becoming increasingly tight (Eskildesen 2000, Hammer 2000).

Eskildsen and Nussler (2000) suggest that employers are fighting to get talented

employees in order to maintain a prosperous business. Ray Hammer (2000) as well as

many other researchers/authors agree. Mark Parrott (2000) believes that, there is a

straight line between employee satisfaction and customer satisfaction. He believes that

today’s employees pose a complete new set of challenges, especially when businesses

are forced to confront one of the tightest labor markets in decades. Therefore, it is

getting more difficult to retain employees, as the pool of talent is becoming more-andmore

tapped-out. The research below, which focuses primarily on employee retention

through job satisfaction, supports this contention.

Employees that are satisfied and happy in with their jobs are more dedicated to

doing a good job and taking care of customers that sustain the operation (Hammer

2000; Marini 2000; Denton 2000). Job satisfaction is something that working people

seek and a key element of employee retention.

Every person will have his or her own definition of what it means to be satisfied

With a job. Studies show that employees who are satisfied with their jobs are more

productive, creative and be more likely to be retained by the company (Eskildsen & 8 Dr.Saurabh Guptha- “Employee Retention Needs a Proper Strategy”-

www.retentionconnection.com/articlesretention.php - November, 2005

25

Dahlgaard 2000; Kim 2000; Kirby 2000; Lee 2000; Money 2000; Wagner 2000).

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 (Brewer 2000; Employee 2000; Money 2000; Wagner 2000), motivation,

justice (Kirby 2000; Tristram 2000) and leisure time (Rabbit 2000; Wilson 2000) all

seem to play a part as to whether employees are satisfied with their jobs, according to

studies.

The second goal of this research is to help readers find his or her definition of job

satisfaction. I believe that this compilation of data will educate and inform the working

masses to see the benefits of creating workplaces that derive more job satisfaction,

retaining employees and in turn, keeping our economy healthy and our society happier.

There is a definite need to analyze the elements of employee retention through

job satisfaction. Considering the positive effects on the economy that can be derived

from satisfied-happy employees. Promotional materials for presentation can be

created, highlighting these recommendations for employee satisfaction practices for

both employers and employees.9

10. Key employee retention is critical to the long term health and success of your business.

Managers readily agree that retaining your best employees ensures customer satisfaction, product

sales, satisfied coworkers and reporting staff, effective succession planning and deeply imbedded

organizational knowledge and learning. If managers can cite these facts so well, why do they

behave in ways that so frequently encourage great employees to quit their jobs?

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

knowledge; mourning, insecure coworkers and a costly candidate search aside, failing to retain a

key employee is costly. Various estimates suggest that losing a middle manager costs an

organization up to 100 percent of his salary. The loss of a senior executive is even more costly. I

have seen estimates of double the annual salary and more.

9 Paul L. Gerhardt Jr- “Employee Retention through Job Satisfaction”

26

Employee retention is critically important for a second societal reason, too. Over the next few

years while Baby Boomers (age 40 to 58) retire, the upcoming Generation X population numbers

44 million people (ages 25-34), compared to 76 million Baby Boomers available for work.

Simply stated: there are a lot fewer people available to work.

Employee retention is one of the primary measures of the health of your organization. If you are

losing critical staff members, you can safely bet that other people in their departments are

looking as well. Exit interviews with departing employees provide valuable information you can

use to retain remaining staff. Heed their results. You’ll never have a more significant source of

data about the health of your organization.10

10

http://humanresources.about.com/od/retention/a/more_retention.html

27

CHAPTER-3

RESEARCH METHODOLOGY

Research is a growing need in any organization of the present world. It is helpful in

identifying the consumer needs and wants so as to launch a product or to bring about

improvements in the existing products. This is done to gain competitive edge over others.

Success of the research depends upon the methodology adopted. The study was based on

descriptive research.

• The research methodology deals with the

1. Data collection

2. Research technique

3. Sampling methods

4. Analysis and Interpretation of research work.

RESEARCH DESIGN:

A research design is purely and simply the frame work of

plan for a study the guides the collection and analysis of data. It is a blue print for a complete

study. It resembles the architects blue print map for a constructing a house.

28

3.1 TYPE OF PROJECT

DESCRIPTIVE REASEARCH DESIGN

A descriptive research is undertaken in order to

ascertain and be able to describe the characteristics of the variable of interest in a situation.

Descriptive research is also undertaken to understand the characteristics of organizations that

follow certain common practices. The goal of a descriptive research is to offer to the researcher a

profile or to describe relevant aspects of the phenomena of interest from an individual,

organizational, industry-oriented, or other perspective.

SAMPLING TECHNIQUE:

A sample is a subset of population and it comprises some

members selected from it. Sampling is the process of selecting a sufficient number of elements

from the population.

SAMPLE SURVEY:

A survey which is carried out using a sampling method, i.e.,

in which a proportion only and not the whole population, is surveyed.

SAMPLING DESIGNS:

There are two types of sampling designs. They are probability

and non- probability sampling.

• PROBABILITY SAMPLING:

In probability sampling the elements in the population have

some known chance or probability of being selected as sample subjects.

• NON- PROBABILITY SAMPLING:

The elements in the population do not have any probability

attached to their being chosen as sample subjects. This means that the findings from the study

of the sample cannot be confidently generalized to the population.

29

3.2 TARGET RESPONDENTS

SAMPLE

A sample is a finite part of a statistical population whose properties are studied

to gain information about the whole. When dealing with people, it can be defined as a set of

respondents (people) selected from a larger population for the purpose of a survey.

A population is a group of individual’s persons, objects, or items from which

samples are taken for measurement.

SAMPLING

Sampling is the act, process, or technique of selecting a suitable sample, or a

representative part of a population for the purpose of determining parameters or characteristics of

the whole population.

POPULATION: KARAKAMBADI (TIRUPATHI)

SAMPLE SIZE: 120

The sample size taken is 120.

30

3.3 PROPOSED SAMPLING METHOD

Convenience sampling:

It refers to the collection of information from members of the population who

are conveniently available to provide it. The most easily accessible members are chosen as

subjects. Convenience sampling is the best way of getting some basic information quickly and

efficiently.

31

3.4 DATA PROCESSING:

Data is collected from two sources:

1. Primary Data

2. Secondary Data

1. Primary Data :

The primary data are those, which are collected afresh and for the first time and thus

happen to be original in character.

2. Secondary Data:

o The Secondary data consists of information that already exists somewhere having

been collected for another purpose and researcher begins the research work by

first going through the secondary data.

o Here Secondary data is collected from the COMPANY, Company’s website.

COLLECTION OF DATA THROUGH QUESTIONNAIRE:

This method of data collection is quite popular. In this method a set or a series of

questions in logical order is asked to the respondents and the researcher collects the desired

information. The questions may be asked verbally or in writing and the responses may be either

form and it is mainly constructed for the purpose of mailing.

Questionnaires need to be carefully developed, tested and debugged before they are

administered on a large scale.

ANALYSIS AND INTERPRETATION

After collecting data we have arranged and managed it on a SPSS sheet and analysed it

using various tool of this software. The basic research techniques used are:

32

3.5 TOOLS FOR DATA ANALYSIS:

Analysis techniques are used to obtain finding and arrange information in a logical

sequence from the raw data collected. After the tabulation of data the tools provide a scientific

and mathematical solution to a complex problem.

Statistical tools adopted for the study

The statistical tools adopted in the research are:

� Percentage analysis

� Chi-square test

� Karl Pearson Correlation analysis

1. CHART

Bar Charts, Pareto Chart are used for analysis to get a clear idea about the

tabulated data.

2. PERCENTAGE ANALYSIS

Percentage analysis shows the entire population in terms of percentages. It reveals

the number of belonging is a particular category or the number of people preferring a

particular thing, etc., in terms of percentage. In this study, the number of people who

responded in a particulars manner is interpreted in the form of percentages.

Each table has been calculated on the basis of percentage.

33

No of respondents

Percentage = ------------------------------ * 100

Total respondents

• Cross tabulations – cross tabs give the relation between the two variables in a tabular form.

It is a very effective tool for data analysis as we can simultaneously study two or three variables

are draw conclusions based on it.

• Chi square test – it is done to understand if there is any significant relation between the

variables which have been used in the cross tabs.

O = Observed frequency of the event

E = Expected frequency of the event.

34

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

4.1 Percentage Analysis:

Table-4.1.1: AGE

Table shows the classification of age groups of the respondents.

AGE

NUMBER OF RESPONDENTS IN PERCENTAGE

20 and below

28 23%

20-29

42 35%

30-39

39 32%

40 and above

11 10%

TOTAL

120 100%

(Source: - primary data computed)

Chart-4.1.1:

CHART 1

23

3532

10

0

5

10

15

20

25

30

35

40

20 n below 20-29 30-39 40 n above

AGE

IN %

INFERENCE: From the above table, total number of respondents is 120.From that 23% of the respondents are 20yrs and below, 35% of the respondents are 20-29yrs, 32% of the respondents are 30-39yrs ,and 10% of the respondents are 40yrs and above.

35

Table-4.1.2: WORKING CONDITIONS

Table shows the satisfaction regarding the working conditions in this organisation.

WORKING CONDITIONS


Highly Satisfied

33 28%

Satisfied

69 58%

Dis Satisfied

14 11%

Highly Dis Satisfied

4 3%

TOTAL

120 100%


Chart-4.1.2:

CHART 2

28

58

113

0

10

20

30

40

50

60

70

HS S DS HDS

WORKING CONDITIONS

IN %

INFERENCE:

From the above table, total number of respondents is 120.Out of which 28% of the respondents are Highly Satisfied, 58% are satisfied, 11% are Dis Satisfied, and 3% are Highly Dis Satisfied.

36

Table-4.1.3: NATURE OF JOB

Table shows the satisfaction regarding the nature of the job.

NATURE OF JOB


Highly Satisfied

20 17%

Satisfied

73 61%

Dis Satisfied

15 12%


12 10%

TOTAL

120 100%


Chart-4.1.3:

CHART 3

17

61

12 10

0

10

20

30

40

50

60

70

HS S DS HDS

NATURE OF JOB

IN %

INFERENCE:

From the above table out of 120 respondents, 17% of the respondents are highly satisfied, where as 61% of the respondents are satisfied, 12% are Dis Satisfied, and 10% of the respondents are Highly Dis Satisfied.

37

Table-4.1.4: SUPERVISORS TAKE CARE AT WORK

Table shows wheather the supervisors take care at work.

SUPERVISORS TAKE CARE AT WORK

NUMBER OF RESPONDENTS

IN PERCENTAGE

YES 87 73%

NO 33 27%

TOTAL 120 100%


Chart-4.1.4:

CHART 4

73

27

0

10

20

30

40

50

60

70

80

YES NO

SUPERVISORS TAKE CARE AT WORK

IN %

INFERENCE:

From the above table out of 120 respondents, 87 respondent’s i.e., 72.5% said YES and the remaining 33 respondent’s i.e., 27.5% said NO.

38

Table-4.1.5: JOB SECURITY

Table shows wheather the job in this organisation is highly secured.

JOB SECURITY


YES 81 68%

NO 39 32%

TOTAL 120 100%


Chart-4.1.5:

chart 5

68

32

0

10

20

30

40

50

60

70

80

YES NO

JOB SECURITY

IN %

INFERENCE:

From the above table out of 120 respondents, 81 respondent’s i.e., 67.5% said YES and the remaining 39 respondent’s i.e., 32.5% said NO.

39

Table-4.1.6: PROLONGED WORKING HOURS

Table shows the satisfaction level of respondents when prolonged working hours.

PROLONGED WORKING HOURS


Highly Satisfied

7 6%

Satisfied

13 11%

Dis Satisfied

63 52%


37 31%

TOTAL

120 100%


Chart-4.1.6:

CHART 6

611

52

31

0

10

20

30

40

50

60

HS S DS HDS

PROLONGED WORKING HOURS

IN %

INFERENCE:


40

Table-4.1.7: WELFARE MEASURES

Table shows the satisfaction level towards the welfare measures.

WELFARE MEASURES NUMBER OF RESPONDENTS IN PERCENTAGE

Highly Satisfied

5 4%

Satisfied

23 19%

Dis Satisfied

64 54%


28 23%

TOTAL

120 100%


Chart-4.1.7:

CHART 7

4

19

54

23

0

10

20

30

40

50

60

HS S DS HDS

WELFARE MEASURES

IN %

INFERENCE:


41

Table-4.1.8: SALARY

Table shows the satisfaction regarding salary.

SALARY NUMBER OF RESPONDENTS IN PERCENTAGE

Highly Satisfied

4 3%

Satisfied

21 18%

Dis Satisfied

38 32%


57 47%

TOTAL

120 100%


Chart-4.1.8:

CHART 8

3

18

32

47

0

10

20

30

40

50

HS SALARY DS HDS

SALARY

IN %

INFERENCE:


42

Table-4.1.9: ASSIGNING TASKS THAT MATCHES SKILLS

Table shows wheather the management assign the tasks which matches skills of the employees.

ASSIGNING TASKS THAT MATCHES SKILLS


IN PERCENTAGE

YES 87 73%

NO 33 27%

TOTAL 120 100%


Chart-4.1.9:

CHART 9

73

27

0

10

20

30

40

50

60

70

80

YES NO

ASSIGNING TASKS THAT MATCHES SKILLS

IN %

INFERENCE:

From the above table out of 120 respondents, 87 respondent’s i.e., 73% said YES and the remaining 33 respondents i.e., 27% said NO.

43

Table-4.1.10: DURATION OF THE TRAINING PROGRAMME

Table shows the satisfaction regarding the duration of the training programme.

DURATION OF THE TRAINING PROGRAMME


IN PERCENTAGE

Highly Satisfied

3 3%

Satisfied

11 9%

Dis Satisfied

47 39%


59 49%

TOTAL

120 100%


Chart-4.1.10:

CHART 10

39

39

49

0

10

20

30

40

50

60

HS S DS HDS

DURATION OF THE TRAINING PROGRAMME

IN %

INFERENCE:


44

Table-4.1.11: COMMUNICATION FROM TOP MANAGEMENT

Table shows the level of communication from top management.

COMMUNICATION FROM TOP MANAGEMENT


IN PERCENTAGE

Very Good

63 53%

Good

49 41%

Bad

5 4%

Very Bad

3 2%

TOTAL

120 100%


Chart-4.1.11:

CHART 11

53

41

4 2

0

10

20

30

40

50

60

Very Good Good Bad Very Bad

COMMUNICATION FROM TOP MANAGEMENT

IN %

INFERENCE:

From the above table out of 120 respondents, 53% of the respondents said Very Good, where as 41%% of the respondents said Good,4% said Bad, and 3% of the respondents said Very Bad.

45

Table-4.1.12: INTERPERSONAL RELATIONSHIP

Table shows the interpersonal relationship in the organisation.

INTERPERSONAL RELATIONSHIP


Very Good

57 48%

Good

49 41%

Bad

9 7%

Very Bad

5 4%

TOTAL

120 100%


Chart-4.1.12:

chart 12

4841

74

0

10

20

30

40

50

60

Very Good Good Bad Very Bad

INTERPERSONAL RELATIONSHIP

IN %

INFERENCE:

From the above table out of 120 respondents, 48% of the respondents said Very Good, where as 41%% of the respondents said Good,7% said Bad, and 4% of the respondents said Very Bad.

46

Table-4.1.13: RECOGNITION FOR WORK

Table shows the recognition for work from the management.

RECOGNITION FOR WORK NUMBER OF RESPONDENTS IN PERCENTAGE

YES 61 51%

NO 59 49%

TOTAL 120 100%


Chart-4.1.13:

CHART 13

51

49

48

48.5

49

49.5

50

50.5

51

51.5

YES NO

RECOGNITION FOR WORK

IN %

INFERENCE:

From the above table out of 120 respondents, 61 respondent’s i.e., 50.8% said YES and the remaining 59 respondents i.e., 49.2% said NO.

47

Table-4.1.14: TRANSPORT FACILITIES

Table shows the satisfaction level regarding the transport facilities.

TRANSPORT FACILITIES NUMBER OF RESPONDENTS IN PERCENTAGE

Highly Satisfied

3 3%

Satisfied

15 12%

Dis Satisfied

43 36%


59 49%

TOTAL

120 100%


Chart-4.1.14:

CHART 14

3

12

36

49

0

10

20

30

40

50

60

HS S DS HDS

TRANSPORT FACILITIES

IN %

INFERENCE:

From the above table out of 120 respondents, 3% of the respondents are highly satisfied, where as 12% of the respondents are satisfied, 36% are Dis Satisfied, and 49% of the respondents are Highly Dis Satisfied of Transport Facilities.

48

Table-4.1.15: SAFETY MEASURES

Table shows the satisfaction level regarding the Safety measures in the organization.

SAFETY MEASURES NUMBER OF RESPONDENTS IN PERCENTAGE

Highly Satisfied

8 7%

Satisfied

19 16%

Dis Satisfied

52 43%


41 34%

TOTAL

120 100%


Chart-4.1.15:

CHART 15

0

10

20

30

40

50

HS S DS HDS

SAFETY MEASURES

IN %

INFERENCE:

From the above table out of 120 respondents, 7% of the respondents are highly satisfied, where as 16% of the respondents are satisfied, 43% are Dis Satisfied, and 34% of the respondents are Highly Dis Satisfied of Safety Measures.

49

Table-4.1.16: CONDUCTING EXIT INTERVIEWS

Table shows wheather they are conducting exit interviews for the employees who are leaving the organisation.

CONDUCTING EXIT INTERVIEWS NUMBER OF RESPONDENTS IN PERCENTAGE

YES 00 0%

NO 120 100%

TOTAL 120 100%


Chart-4.1.16:

CHART 16

0

100

0

20

40

60

80

100

120

YES NO

YES

IN %

INFERENCE:

From the above table out of 120 respondents, all the 120 respondents said NO i.e., 100% and nobody said YES.

50

4.2 CHI-SQUARE TEST

SALARY AND DURATION OF THE TRAINING PROGRAMME

AIM:-

To know whether there is any relationship between Salary and Duration of training programme.

STEP 1

Null hypothesis

There is no significant relationship between the Salary and Duration of training programme.

Alternative hypothesis

There is a significant relationship between the Salary and Duration of training programme.

STEP 2

Table no: 4.2.1

Table showing observed frequency: (Oi)

SALARY

DURA OF TRAINING PROG

HS S DS HDS TOTAL

HS 1 2 0 0 3 S 1 4 3 3 11

DS 1 9 18 19 47 HDS 1 6 17 35 59

TOTAL 4 21 38 57 120

HS: HIGHLY SATISFIED S: SATISFIED DS: DIS SATISFIED HDS: HIGHLY

DISSATISFIED

51

STEP-3

Expected frequency = row total * column total

Grand total

Table no: 4.2.2

Table showing expected frequency: - (Ei)

SALARY

DURA OF TRAINING PROG

HS S DS HDS

HS 0.1 0.52 0.95 1.42 S 0.37 1.92 3.48 5.23

DS 1.57 8.23 14.89 22.33 HDS 1.97 10.33 18.68 28.03

Table no: 4.2.3

Table showing calculated value:-

Observed value(Oi)

Expected value (Ei)

(Oi- Ei) (Oi –Ei)^2 (Oi – Ei)^2

Ei

8 5.28 2.72 7.4 1.4 6 8.71 -2.71 7.34 0.84 10 9.8 0.2 0.004 0.004 18 14.89 3.11 9.67 0.65 19 22.33 -3.33 11.09 0.5 7 12.3 -5.3 28.09 2.28 17 18.68 -1.68 2.82 0.15 35 28.03 6.97 48.58 1.73

TOTAL 7.554

52

Degrees of freedom = (R-1) * (C-1)

= (4-1) * (4-1)

= 9

Level of significance = 0.05%

Table value = 16.919

Calculated value = 7.554

RESULTS:-

Table value > calculated value

Since calculated value of chi-square is less than the table value, null hypothesis is accepted and

alternate hypothesis is rejected

Hence Accept Ho

INFERENCE:-

There is no significant relationship between the Salary and Duration of training programme.

53

JOB SECURITY AND RECOGNITION FOR WORK

AIM: - The analysis is done to know whether there is significant relationship between

the Job security and recognition for work.

STEP 1:-

NULL HYPOTHESIS:

There is no significant relationship between the Job security and recognition for

work.

ALTERNATE HYPOTHESIS:

There is a significant difference relationship between the Job security and

recognition for work.

STEP 2:-

Analysis for Job Security and recognition for work

Table no: 4.2.4

Table showing observed frequency: (Oi)

RECOGNITION FOR

WORK

JOB SECURITY

YES

NO

TOTAL

YES 43 38 81

NO 18 21 39

TOTAL 61 59 120

54

Table no: 4.2.5

Table showing expected frequency: - (Ei)

RECOGNITION FOR

WORK

JOB SECURITY

YES

NO

YES 41.17 39.82

NO 19.82 19.17

STEP-3

Expected frequency = row total * column total

Grand total

Calculation for Job Security and recognition for work

Table no: 4.2.6

Observed (o) Expected(E) O-E (O-E)2 (O-E)2/E

43 41.17 1.83 3.34 0.08

38 39.82 -1.87 3.49 0.09

18 19.82 -1.79 3.20 0.16

21 19.17 -1.91 3.64 0.18

Total 0.51

Calculated value of chi-square was found to be 0.51

DEGREE OF FREEDOM =(R-1) (C-1)

= (2-1) (2-1)

=1*1

=1

55

Table value at 5% level of significance at degree of freedom 1 is 3.841

3.841>0.51

Since calculated value of chi-square is less than the table value, null hypothesis is

accepted and alternate hypothesis is rejected.

RESULT:

Table value > calculated value

Hence Accept Ho

INFERENCE:

There is no significant relationship between the Job security and recognition for work.

56

4.3 KARL PEARSON CORRELATION ANALYSIS

The analysis is done to know whether there is significant relationship between the Age

and Assigning tasks that matches skills.

NULL HYPOTHESIS :

There is no significant relationship between the Age and Assigning tasks that matches

skills.

ALTERNATE HYPOTHESIS :

There is a significant difference relationship between the Age and Assigning tasks that

matches skills.

Table no: 4.3.1

Table showing Analysis for Age and assigning tasks that matches skills:

ASSIGN TASKS THAT MATCHES SKILLS AGE

YES

x

NO

y

xy

X2

Y2

20 and below

17 11 187 289 121

20-29

29 13 377 841 169

30-39

32 7 224 1024 49

40 and above

9 2 18 81 4

TOTAL

87 33 806 2235 343

57

Standard deviation of x = √∑x2/n – (∑x/n)2

=√2235/4 – (87/4)2

=23.17

Standard deviation of y=√∑y2/n-(∑y/n)2

=√343/4-(33/4)2

=8.80

Cov (x, y) =∑xy/n-(∑x/n)(∑y/n)

=806/4-(87/4) (33/4)

=201.50-179.44

=22.06

Coefficient of correlation r =Cov (xy)/⌐x*⌐y

=22.06/203.89

=0.1081

Since the ‘r’ value exist between -1 and +1 the correlation is present

Result:

There is a significant relationship existing between the Age and Assigning tasks that match skills.

58

CHAPTER-5

5.1 FINDINGS:

� According to the analysis out of 120 respondents 23% of the age of the respondents are

20yrs and below, 35% of the respondents are 20-29yrs, 32% of the respondents are 30-

39yrs, and 10% of the respondents are 40yrs and above.

� According to the analysis, 28% of the respondents are Highly Satisfied, 58% are satisfied,

11% are dissatisfied, and 3% are Highly Dissatisfied of the working conditions in the

organisation.

� From the analysis, 17% of the respondents are highly satisfied, where as 61% of the

respondents are satisfied, 12% are Dis Satisfied, and 10% of the respondents are Highly

Dis Satisfied regarding the nature of the job.

� From the data analysis 87 respondent’s i.e., 72.5% said YES and the remaining 33

respondent’s i.e., 27.5% said NO regarding supervisors take care at work in the

organisation.

� According to the study, 81 respondent’s i.e., 67.5% said YES and the remaining 39

respondent’s i.e., 32.5% said NO regarding the job security in the organisation.

� According to the analysis of satisfaction level of respondents towards the welfare

measures, 4% of the respondents are highly satisfied, where as 19% of the respondents

are satisfied, 54% are Dis Satisfied, and 23% of the respondents are Highly Dis Satisfied.

59

� From the analysis, salary is one of the major problems causing dissatisfaction among the

respondents 3% of the respondents are highly satisfied, where as 18% of the respondents

are satisfied, 32% are Dis Satisfied, and 47% of the respondents are Highly Dis Satisfied.

� From the data analysis we have analyzed that the management assign the tasks which

matches skills of the employees in that out of 120 respondents 87 respondent’s i.e.,

72.5% said YES and the remaining 33 respondents i.e., 27.5% said NO.

� From the data analysis we have analyzed that duration of training programme is one of

the major problems causing dissatisfaction. Out of 120 respondents, 3% of the

respondents are highly satisfied, where as 9% of the respondents are satisfied, 39% are

Dis Satisfied, and 49% of the respondents are Highly Dis Satisfied.

� From the data analysis regarding the level of communication from top management we

have analyzed that out of 120 respondents, 53% of the respondents said Very Good,

where as 41%% of the respondents said Good,4% said Bad, and 3% of the respondents

said Very Bad.

� From the data analysis we have analyzed that out of 120 respondents regarding the

interpersonal relationship, 48% of the respondents said Very Good, where as 41%% of

the respondents said Good,7% said Bad, and 4% of the respondents said Very Bad.

� From the data analysis we have analyzed that out of 120 respondents regarding the

recognition for work from the management, 61 respondent’s i.e., 50.8% said YES and the

remaining 59 respondents i.e., 49.2% said NO.

� From the data analysis we have analyzed that Transport Facilities is one of the major

problems causing dissatisfaction. Out of 120 respondents, 3% of the respondents are

highly satisfied, where as 12% of the respondents are satisfied, 36% are Dis Satisfied,

and 49% of the respondents are Highly Dis Satisfied.

60

� From the data analysis we have analyzed that Safety Measures is one of the major

problems causing dissatisfaction. Out of 120 respondents, 7% of the respondents are

highly satisfied, where as 16% of the respondents are satisfied, 43% are Dis Satisfied,

and 34% of the respondents are Highly Dis Satisfied.

� From the data analysis regarding exit interviews, we have analyzed that out of 120

respondents, all the 120 respondents said NO i.e., 100% and nobody said YES.

61

5.2 SUGGESTIONS:

� It is suggested to the management to increase the salary, as it’s one of the major problems

causing dissatisfaction among majority of the employees in the organisation.

� It is suggested to the management that majority of the respondents showed dissatisfaction

regarding the duration of the training programme. So the management should reduce the

duration of training programme.

� It is suggested to the management to reduce the training programme to 2months and

conduct the exam for the fresher’s.

� The company should also focus more on working hours of the employees to reduce it

from 10hrs to 9hrs.

� The company should focus more on encouraging the employees by recognizing their

work by giving benefits to the employees as it motivates them to perform even better.

� It is suggested to the management to improve the transport facilities especially for the

rural area employees by increasing bus facilities.

� The company should focus more on improving safety measures by setting up fire alarms

and fire extinguishers etc.

� It is suggested to the management to conduct exit interviews to the leaving employees to

know why they are leaving so that it will be helpful to the organisation.

62

5.3 CONCLUSION:

A study on retention in “AMARA RAJA POWER SYSTEMS LTD”

was conducted to find out the factors leading employees leaving the organisation. This research

conducted will provide a framework for evolving future decisions regarding how to retain the

employees in ARPSL. For retaining employees the company needs to understand the

requirements of the trainees which we have collected through our questionnaire.

From the findings of our study, it would enable the management to

enhance the appropriate determinants and factors of employee’s expectations. So it would

increase the satisfaction level among the employee’s.

If the suggestions given are implemented, it may give positive result

in retaining the employee’s inside the organisation.

63

A1

APPENDIX- I

BIBILIOGRAPHY

REFERENCES:

� S.P.Guptha-Statistical Methods-New Delhi.

� John E. Sheridan-Organizational culture and Employee Retention- Academy of

Management.

� Gregory P.Smith-Here Today, Here Tomorrow.

� Robin Thompson-Secrets to Keeping Good Employees.

� Managing Employee retention: A Strategic Accountability Approach (Improving Human

Performance)- Jack J.Philips- Butterworth-Heinemann.

� Love Employees or lose Employees: Getting Good People to stay- Beverly Kaye, Sharon

Jordan –Evans- Berrett-Koehler Publishers.

� Keeping Good People- Roger Herman-Academy of Management Review.

� The War for Talent- Ed Michaels, Helen Hand field-Jones, Beth Axelrod-Harvard

Business School Press.

� Employee Retention Needs a Proper Strategy-Dr.Saurabh Guptha.

� C.R.Kothari, Research and methodology, second edition New Age International

Publication.

� Journals and Publications of Robin Thompson.

� Company records

Websites:

� www.retentionconnection.com/articlesretention.php

� www.citeHR.com/articles

� http://www.managerwise.com/articlecat.phtml?c=Employee%20Retention

� http://humanresources.about.com/od/retention/a/more_retention.html

A2

QUESTIONNAIRE

A STUDY ON EMPLOYEE RETENTION IN AMARA RAJA PVT LIMITED,

KARAKAMBADI

1. Name:

2. Age: [ ]

a) 20 and below [ ]

b) 20-29 [ ]

c) 30-39 [ ]

d) 40 and above [ ]

3. Qualifications:

4. Designation:

5. Experience:

6. Are you satisfied with the working conditions in this organization? [ ]

a) Highly Satisfied [ ]

b) Satisfied [ ]

c) Dissatisfied [ ]

d) Highly Dissatisfied [ ]

A3

7. Are you satisfied with the nature of your job in Amara Raja Power Systems Ltd?

a) Highly Satisfied [ ] [ ]

b) Satisfied [ ]

c) Dissatisfied [ ]


8. Does your Supervisor take care of you at work? [ ]

a) YES [ ]

b) NO [ ]

9. Do you think that the job at Amara Raja Power Systems Ltd is highly secured?

a) YES [ ] [ ]

b) NO [ ]

10. Are you satisfied with working hours? [ ]


b) Satisfied [ ]

c) Dissatisfied [ ]


11. What is your satisfaction level towards the welfare measures? [ ]


b) Satisfied [ ]

c) Dissatisfied [ ]


A4

12. Are you satisfied with your stipend / salary? [ ]


b) Satisfied [ ]

c) Dissatisfied [ ]


13. Does your management assign the task which matches your skills and qualification? [ ]

a) YES [ ]

b) NO [ ]

14. Are you satisfied with the duration of your training program? [ ]


b) Satisfied [ ]

c) Dissatisfied [ ]


15. How is the communication level from the top management? [ ]

a) Very Good [ ]

b) Good [ ]

c) Bad [ ]

d) Very Bad [ ]

A5

16. How is the Inter Personal relationship among peers in the organization? [ ]

a) Very Good [ ]

b) Good [ ]

c) Bad [ ]

d) Very Bad [ ]

17. Is there recognition for your work from the management? [ ]

a) YES [ ]

b) NO [ ]

18. Are you satisfied with the transport facilities? [ ]


b) Satisfied [ ]

c) Dissatisfied [ ]


19. Are you satisfied with the Safety measures in the organization? [ ]


b) Satisfied [ ]

c) Dissatisfied [ ]


A6

20. Are they conducting exit interviews for the employees who are leaving the organization? [ ]

a) YES [ ]

b) NO [ ]

21. In your opinion, why your colleagues are leaving the organization?

Ans:

22. Can you suggest any changes that need to be done by the organization regarding the training period?

Ans:

A7

Documents

1”A STUDY ON EMPLOYEE RETENTION IN AMARA RAJA POWER SYSTEMS LTD