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INTERNATIONAL JOURNAL OF BUSINESS MANAGEMENT AND SCIENTIFIC RESEARCH

VOL : 25, JANUARY, 2017

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A STUDY OF FACTORS AFFECTING EMPLOYEE RETENTION IN

STEEL INDUSTRY OF LUDHIANA

JITESH KUMAR PANDEY

Research Scholar, Deptt. of Human Value, Punjab Technical University, Kapurthala

JAGMEET SINGH

HOD/Assistant Professor, Deptt. Of Human Value, Punjab Technical University, Kapurthala

ABSTRACT

The Research Paper describes the relationship between human resource practices and employees

retention in a given organization. The research reviews relevant literature to identify elements of HR

practices that influence employee retention. Over the past decade, the way in which people are managed

and developed at work has come to be recognized as one of the primary factors in achieving

improvement in organizational performance. This is a live survey with steel industry of Ludhiana to

know the HR policies followed by the organization to retain its employees. The study shows that the

factors which are responsible for employee retention are job satisfaction, welfare measures by

organization, safety measures by organization, working environment of organization etc. Workers as

well as office staff both were asked questions for better results.

INTRODUCTION: Employee Retention means keeping the employees with the company for maximum period of time. It

also involves taking measures to encourage employees to remain in the organization for maximum

period of time. Employee retention is beneficial for the organization as well as the employee. Effective

employee retention is a systematic effort by employers to create an environment that encourages current

employees to remain employed, by having policies and practices in place that address their diverse

needs. Retention of key employees is critical factor for success of any organization. It is a known fact

that retaining the best employees ensures customer satisfaction, increased product sales, satisfied

colleagues and reporting staff, effective succession planning, and deeply embedded 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. The top organizations are on

the top because they value their employees and they know how to keep them glued to the organization.

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.

Employee satisfaction: Job satisfaction is one of the most crucial but controversial issues in industrial

psychology and behavior Management in organization. It ultimately decides the extent of employee

motivation through the development of organization climate or environment job satisfactions has been a

subject of hot chase by researchers. There have been more than three thousand published studies on job

satisfaction during the last 30-40 years. Job satisfaction is the attitude one has towards his or her job.

Sated another way it is one is affective response to the job. Job satisfaction is concerned with the feeling

one has towards the job. The importance of job satisfaction is fairly evident from a description of the

importance of maintaining moral in any industry. If a worker is not satisfied with work, and then both

the quantity and quality of his output will suffer. If the job satisfaction increase then there is

improvement in both the quality and quantity of production. Factories in which the workers are satisfied

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Job Satisfaction and Productivity Historically the concept of human relations assumed that high Job

Satisfaction led to high productivity but later research indicated that his was an incorrect assumption

Satisfied workers turned out to be either high producers, or low producers or only average producers

The satisfaction productivity relationship appeared to be quite complex being influenced by various

intermediate factors such as rewards that an employee receives.

The question has been often raised whether Job Satisfaction leads to performance or performance leads

to Job Satisfaction Lawler and Porter' have developed a model that suggests that productivity leads to

satisfaction.

Relationship of Job Satisfaction and Productivity:Performance leads to rewards, and if these are

perceived to be equitable employee satisfaction is the result. The assumption, which seems most

realistic, is that satisfactions and productivity are in a circular relationship in which each effect the other

using this model, it can be said that high satisfaction indicates a predisposition to productive if effective

leadership is provided. From the various studies a general relationship emerges between Job satisfaction

and productivity as show in fig 2. Line the chart shows the conditions of high productivity and low Job

satisfaction, which can occur when the supervisor pushes the production through techniques of scientific

management such as methods study, time study, and close Supervision Line represents a condition

which believes that satisfied worker are the best workers happy regardless to keep happy regardless of

the effects on organizational goals In this condition, the workers may design much Job Satisfaction but

work may be done, This condition is described by one supervisor as 66 my workers are so happy that

they do not feel like working. The meddle line B appears to be the most desirable arrangement where

high satisfaction and high productivity are combined together.

Figure 1.4 showing relationship between job satisfaction and productivity

There are 3 major theories of job satisfaction. (i) Herzberg' motivation– Hygiene theory

(ii) Need fulfilment theory.

(iii) Social reference - group theory

HERZBERG'S MOTIVATION - HYGIENE THEORY:

This theory was proposed by Herzberg & his assistants in 1969. On the basis of his study of 200

engineers and accountants of the Pittsburgh area in the USA, he established that there are two separate

sets of conditions (and not one) which are responsible for the motivation & dissatisfaction of workers.

When one set of conditions (called 'motivator') is present in the organization, workers feel motivated but

its absence does not dissatisfy them. Similarly, when another set of conditions (called hygiene factors) is





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absent in the organization, the workers feel dissatisfied but its presence does not motivate them. The two

sets are unidirectional, that is, their effect can be seen in one direction only.

ACCORDING TO HERZBERG FOLLOWING FACTORS ACTS AS MOTIVATORS:

Achievement, Recognition, Advancement, Work itself, Possibility of growth & Responsibility

Need fulfillment Theory

Under the need-fulfillment theory it is believed that a person is satisfied if he gets what he wants & the

more he wants something or the more important it is to him, the more satisfied he is when he gets it &

the more dissatisfied he is when he does not get it. Needs may be need for personal achievement, social

achievement & for influence.

Need for personal achievement Desires for personal career development, improvement in one's own

life standards, better education & prospects for children & desire for improving one's own work

performance

Need for social achievement A drive for some kind of collective success is relation to some standards

of excellence. It is indexed in terms of desires to increase overall productivity, increased national

prosperity, better life community & safety for everyone

Need for influence A desire to influence other people & surroundings environment. In the works

situation, it means to have power status & being important as reflected in initiative taking and

participation in decision making

In summary, this theory tell us that job satisfaction is a function of, or is positively related to the degree

to which one's personal & social needs are fulfilled in the job situation

SOCIAL REFERENCES - GROUP THEORY It takes into account the point of view & opinions of the group to whom the individual looks for the

guidance. Such groups are defined as the 'reference-group' for the individual in that they define the way

in which he should look at the world and evaluate various phenomena in the environment (including

himself). It would be predicted, according to this theory that if a job meets the interest, desires and

requirements of a person's reference group, he will like it & if it does not, he will not like it.

A good example of this theory has been given by C.L. Hulling. He measures the effects of community

characteristics on job satisfaction of female clerical workers employed in 300 different catalogue order

offices. He found that with job conditions held constant job satisfaction was less among persons living

in a well-to-do neighborhood than among those whose neighborhood was poor. Hulling thus provides

strong evidence that such frames of reference for evaluation may be provided by one's social groups and

general social environment

REASONS FOR EMPLOYEES TO LEAVE JOBS:

There are certain circumstances that lead to their leaving the organization. The most common reasons

can be:

Job is not what the employee expected to be: Sometimes the job responsibilities don’t come out to be same as expected by the candidates. Unexpected job responsibilities lead to job dissatisfaction.

Job and Person Mismatch: A candidate may be fit to do a certain type of job which matches his

personality. if he is given a job which mismatches his personality, then he would not be able to perform

it well and will try to find out reasons to leave the job.

No Growth opportunities: No or less learning and growth opportunities in the current job will make

candidate’s job and career stagnant. Lack of Appreciation: If the work is not appreciated by the supervisor, the employee feels de-

motivated and loses interest in job.

Stress from Overload of work and work life imbalance: Job stress can lead to work life imbalance





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which ultimately many times lead to employee leaving the organization.

Compensation: Better compensation packages being offered by other company may attract employees

towards themselves.

FACTORS CONTROLLABLE BY MANAGEMENT Adequate Salary, Fringe Benefits, Co-workers , Downward Communication, Working Conditions,

Responsibility, Supervision, Wages, Opportunities for Advancement

Salary: Adequate salary emerges as the most predominant preference of all the job factors among

Indian workmen as is evident in the summary of the comparable Indian studies covering a period of 21st

years from 1951 to 1971. These studies, which report the “expressed preferences” of worker, have led to certain controversies about interpretation of their implications in Indian condition. The security of job,

security of for retirement benefits, security for life and security of finance provided by the management,

the greater will be the job satisfaction to the employees.

Fringe benefits: The job satisfactions are likely to be more it the workers are good. Hence management

and worker all should try to create and maintain good human relations in the industry in order to create

friendly environment.

Co-workers: The job satisfactions are likely to be more it the workers are good. Hence management

and worker all should try to create and maintain good human relations in the industry in order to create

friendly environment

Downward communication: In case downward communication flows adequately and smoothly,

workers are likely to have more job satisfaction.

Working conditions: Where working conditions are better workers get more job satisfaction because

good working conditions leave an impact on the mind of the worker.

Responsibility: Those jobs in which a log of responsibility is involved give more job satisfaction

especially to the educated and highly educated people.

Supervision: Job supervised by good tempered and human relations oriented - supervisors are source of

more job satisfaction whereas ill-tempered supervisors become the source of dissatisfaction to the

workers.

Wages: Jobs carrying attraction wages and pay scales give more job satisfaction. Wages are more

significant as long as physiological needs are not fulfilled.

Opportunities for advancement: Employees especially the ambitions and potential ones get more, job

satisfaction in job offering opportunities for advancement.

EMPLOYEE TURNOVER: Employee turnover refers to the proportion of employees who leave an organization over a set period

(often on a year-on-year basis), expressed as a percentage of total workforce numbers. At its broadest,

the term is used to encompass all leavers, both voluntary and involuntary, including those who resign,

retire or are made redundant, in which case it may be described as ‘overall’ or ‘crude’ employee turnover. It is also possible to calculate more specific breakdowns of turnover data, such as redundancy-

related turnover or resignation levels, with the latter particularly useful for employers in assessing the

effectiveness of people management in their organizations.

Employee turnover costs for business can be measured in many ways, including

The expense of recruiting, hiring and training replacements

The negative effects on a company’s culture

Loss of valuable knowledge about the company's internal operations

The damaging effects on employee morale.





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It's impossible to retain every employee who chooses to move on (for either personal or professional

reasons), but there are actions businesses can take which may mitigate turnover and create a desirable

workplace.

THE TANGIBLES A primary determining factor for many employees is the company's benefits package. When combined

with salary and variable pay, a superior benefits package can help recruit and retain high-quality

employees that your business values most.

What constitutes a "great" benefits package? These days, such key benefits may include a combination

of the following: health insurance, dental and vision coverage, paid time off, a retirement plan, flexible

spending account, and a health savings account. This can serve as a foundation for your own customized

benefits package, but it's always a good idea to survey benefits offered by competitors in your industry.

After all, the employees they attract could likely be the same ones who would prove most valuable to

your company.

How can you determine what a competitive benefits package in your industry might look like? Try

contacting the local Chamber of Commerce or seeing if a local HR association has conducted a survey

on this subject. Insurance and tax professionals in your network are another source for information on

comparable industry benefits. And, of course, you can ask your employees what they would most value

in a benefits package.

Many businesses supplement their benefits package with other proven employee-retention strategies.

Knowing that the best workers often place a high premium on career development, such companies offer

various opportunities for employees to continue their education and training, including tuition

reimbursement—either a percentage of the cost for college courses or the full amount—so employees

can expand the range of skills needed to improve their professional skill sets.

Many businesses also offer wellness initiatives that demonstrate their concern for workers' health.

Smoking-cessation programs, on-site workouts, "fun" competitive walking and running events, and

healthy vending machine snacks have all proven very popular with employees.

THE INTANGIBLES Productive employees crave recognition for the work they do. While it's often desirable to demonstrate

recognition through a raise in salary or a holiday bonus, many employees also respond favorably to

gestures that extend beyond financial rewards. Such programs andinitiatives may include:

Responsibility-based recognition — Invite key employees to head a new project or lead a

committee exploring changes in business operations.

Monthly or annual high-performance awards — Recognize an employee for his or her

contributions at a staff meeting or other departmental gathering.

Peer recognition programs — Encourage fellow employees to nominate a colleague for

outstanding dedication and service.

Professional goals are another intangible. When people are given an honest view of the company's big

picture—its current strategies and long-range vision—they may feel greater motivation to do work that

makes a difference to the business. It's a powerful method for tying individuals to an organization,

particularly when meeting their individual goals can be directly linked to the company's future success.

The free flow of communications can also influence an employee's decision to stay with a business.

Employees value feedback centered on their individual performance as well as opportunities to share

knowledge with the executive team. Employees appreciate having a say (within reasonable guidelines)

about the company's future direction. The more a business shares with employees, the stronger the bond

between them.


http://www.paychex.com/articles/employee-benefits/employee-benefits-and-small-businesses

http://www.tlnt.com/2013/08/01/employee-retention-doesnt-just-happen-5-keys-to-a-clear-strategy/

http://www.boston.com/business/blogs/global-business-hub/2013/02/how_to_curb_emp.html

http://www.entrepreneur.com/article/76456




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Some employees will come and go, regardless of the benefits offered to them. But with the right

combination of tangible and intangible benefits, many businesses can retain the right ones. Those same

benefits may also prove invaluable as part of an aggressive recruiting strategy. Nothing demonstrates an

employer's desirability like a workforce of satisfied and hard-working employees.

LATEST TURNOVER TRENDS Our annual Resourcing and talent planning survey report gives a median ‘crude’ or ‘overall’ employee turnover rate for the UK sample collected, as well as the median turnover figure relating purely to those

who ‘left voluntarily’ (that is, resignations). While voluntary turnover rates have decreased recently as a result of challenging economic conditions,

the flip side of this coin is that redundancy-related turnover has become more common.

However, skills shortages persist for certain occupational groupings even during troubled economic

times, so it is important to be aware of trends in turnover rates for different groups rather than simply

focusing on ‘headline’ figures. Turnover levels can vary widely between occupations and industries. The highest levels are typically

found in retailing, hotels, catering and leisure, call centres and among other lower paid private sector

services groups.

Levels also vary from region to region. The highest turnover rates tend to be found where

unemployment is lowest and where it is relatively easy for people to secure desirable alternative

employment.

MAJOR FACTORS AFFECTING EMPLOYEE RETENTION

Job satisfaction

Job security

Working place of organization

Relationship with superiors ,co-workers and subordinates

Service conditions

Wages and salary

Safety arrangements by organization

Working condition

Grievance readdressal procedure

Job satisfaction: Job satisfaction is concerned with the ' feeling one has towards the job. The

importance of job satisfaction is fairly evident from a description of the importance of maintaining

moral in any industry. If a worker is not satisfied with work, and then both the quantity and quality of

his output will suffer. It his job satisfaction increase then there is improvement in both the quality and

quantity of production.

Job security: Job security is the probability that an individual will keep his or her job; a job with a high

level of job security is such that a person with the job would have a small chance of

becoming unemployed.

Working place of organization: working place of organization means the environment in which the

employees are working .The conditions of the workplace. It includes workplace of the organization,

Friendly environment, cleanliness, supportive environment etc.

Relationship with superiors, subordinates, co-workers: it refers to the relations between the co

workers. Relationship has a great importance in increasing the employee retention. If the relations of the

employees are good with each other, the employees will love to work in that organization and will not

leave the organization.


http://en.wikipedia.org/wiki/Job_(role)

http://en.wikipedia.org/wiki/Unemployed




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Service condition: service condition includes the HR policies being followed by the organization

.mode of selection of employees, recruitment process etc. it also includes training programmes by the

organization.

Wages and salary: The pay scale provided to the organization is also one of the major factors

responsible for employee retention. it includes pay revision period ,bonus provided ,awards of

additional qualification etc.

Welfare measures: it includes the safety measures taken by the company for the betterment of the

employees .it includes provident fund schemes, employee benefit schemes, housing facilities, children

education allowance, maintenance of rest rooms.

Working condition: working condition of the organization means the rest intervals, lightning facilities,

safety arrangements, hours of work etc.

Grievance readdressal procedure: it is the procedure which is followed to hear a complaint. If the

process of hearing of complaint is easy the employees will be happier because their complaints are

solved easily. This will increase employee retention.

HR PRACTICES AND INITIATIVES

The Human Touch: Vardhman Special Steels Ltd aim at giving happiness to all the employees at their

workplace in order to make them comfortable at all the levels so as to reduce the absenteeism & attrition

rate in order to improve the quality of work & to increase the production

Personal Touch: Personal touch is provided at all the levels irrespective of the designation or level. For

example, workers suffering from dengue were donated blood by officers & managers.

Even visits are made to the hospital in order to know how the person is feeling or if any help are

required.

REVIEW OF LITERATURE

A number of researchers investigated the topic related to “Factors Affecting Employee Retention in

Industry” Tracy Machelle Hayes (2015), Chen 2012, Cappelli (2001). Kam, 1998 This was pursued

through a literature review of the more popular theories and models related to job satisfaction. Included

in the review are summaries of Maslow's and Alderfer's need hierarchy theories, achievement

motivation theory, Herzberg's motivation-hygiene theory, expectancy theory, job characteristics

theories, discrepancy theory, equity theory, and studies relating to the clustering of facet satisfactions.

Job satisfaction is simply defined as doing a job one enjoys, doing it well, and being suitably rewarded

forone's efforts. In other words, it is an effective response to a job that consequences from the

comparison of perceived outcomes with those that are desired shortly, job satisfaction describes the

feelings, attitudes or preferences of individuals regarding work. It was recognized that recognized only

one factor is not responsible in management of employee’s retention, but there are several factors that

influence employee’s retention which need to manage congruently i.e. Impulse Buying & Demographic Characteristics. “Influence of learning and working climate on the retention of talented employees” Filip

Dochy, Herman Baert(2010) et.al : he described another framework that manager can use when

communicating with its employees to know that the cause of retention consist of nine different

predictors: organizational processes, role challenge, values, work, life balance, information,

stake/leverage/recognition, management, work environment and product or service. Gaan, (2008)

Muhammad Irshad : Research indicates that the existence of family support (such as alternative

schedules, supervisor support, co-worker support, flex time, work-family culture and family benefits etc)

within the organization helps a lot in the retention of talented employee, and identify elements of HR

practices that influence employee retention. Freyermuth (2007), recommended that organization must

groom leader to support the employees and to well build the work environment where workers want to





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stay. Providing opportunities test their abilities and providing level of performance can enhance

employees‟ capabilities and want to stay in the organization.Lu, While, and Barriball (2006)

mentioned the traditional model of job satisfaction focuses on all the feelings about job of an individual.

However, what makes a job satisfying or dissatisfying does not depend only on the nature of the job, but

also on the expectations that individuals have of what their job should provide.Another approach as

proposed by Herzberg (Herzberg et al., 1959; cited in Huber, 2006) is based on the Maslow’s theory. Herzberg and colleagues built Herzberg’s motivation-hygiene theory of job satisfaction. Theory

proposed that there are two different categories of needs, which are intrinsic (motivators) and extrinsic

(hygiene) factors. Theory postulates that job satisfaction and/or is dissatisfaction is the function of two

need systems. Intrinsic factors are related to the job itself. Intrinsic factors seem to influence positively

on job satisfaction. The motivators include advancement, growth and development, responsibility for

work, challenging, recognition, and advancement. In other words, extrinsic factors are closely related to

the environment and condition of the work. The hygienes relate to job dissatisfaction including

supervision, company policy and administration, working condition and interpersonal relation

(Lephalala, Ehlers, & Oosthuizen, 2008; Shimizu et al., 2005). This theory has dominated in the

study of job satisfaction, and become a basic for development of job satisfaction assessment (Lu et al.,

2005). According to Silbert (2005), well skilled and talented workers may easily find good job, position

and workplace elsewhere however the effective way for retention these talented employees is to enhance

friendly and close working environment and to promote leader support. Clarke, Parker and Wright:

2005 : The aim of this study is also to find out the factors which influence employees’ retention, for this purpose these factors are categorized into organizational factor i.e. supervisor support, organizational

justice, organization image and work environment and Human resource factors i.e. employee value

match, training & development, remuneration & reward, job security and employees promotion aspects.

According to Ramlall,(2003), people are strive to work and to stay in those corporation that provide

good and positive work environment, where employee feel that they are valued and making difference.

Proficient employees of such organizations are dragging together to push the organization forward.

Research conducted by ASID find that physical & work environment play pivotal role in employee’s decision whether to leave the job or stay and consider as a major factor in employee retention. Light has

been identified is a casual factor of job performance, sometime noise disturb the working environments

and create a hitch in office which is harmful to employees psychological & physical welfare,

encouragement and at times productivity. The most plentiful audio grievances are, short of speech

isolation, such as eavesdrop people discussion and receiving the same feeling as well. It is beneficial for

office environment as well as for health to reduce apprehension and stress. Kehr (2003), explains that

the implicit retention factors are spontaneous, expressive and pleasurable behavior and can be divided

into three variables: ‘power’ achievement and affiliation. Power refers to dominance and social control. ‘Achievement’ is when personal standards of excellence are to be met or exceeded and affiliation refers to social relationships which are established and intensified. Implicit and explicit retention factors relate

to different aspects of the person, but both are important determinants of behavior. A few years later

Stein(2000) Beck (2001) : This study lead to find out the factors which influence employees’ retention,

for this purpose these factors are categorized into organizational factor i.e. supervisor support,

organizational justice, organization image and work environment and Human resource factors i.e.

employee value match, training &development, remuneration & reward, job security and employees

promotion aspects. Drucker (1954, ) wrote in his book “Practice of Management” that knowledge workers have become the major creator of wealth and jobs and “…increasingly the success and even the survival of every business will depend on the performance of its knowledge workforce”.





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NEED OF STUDY : 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 their employees. Now the search of salient factors that influence an employee to remain stay with

his present orgnisation is main need of Study.

SCOPE OF THE STUDY

Gathering information and theoretical knowledge is a part of study. It become complete when added

with practical knowledge as the noted truth comes to sight. Hence one becomes more efficient and

effective when a flavor of practical outlook is added to mind. To know the various factors affecting

employee retention in steel industries of Ludhiana. A better view point of the determinants of the factors

affecting Employees Retention in the companies manufacturing steel products in Ludhiana. The ways

through which one can increase the retaining rate of employees in the organization. More over the

practical experience to have some knowledge on day-to-day problem solving.

RESEARCH METHODOLOGY The purpose of this section is to describe the methodology carried out to complete the work. The

methodology plays a dominant role in any research work. The effectiveness of any research

work depends upon the correctness and effectiveness of the research methodology.

OBJECTIVES OF THE STUDY:

To know factors affecting employee retention at steel industries in Ludhiana

To study the HR policies of the companies steel manufacturing in Ludhiana

Research design: Descriptive research The research design is descriptive because each and every

employees was asked questions personally. The behavior of the different employees was studied.

Sampling Technique: - Random sampling: The total no. of employees indulge in steel manufacturing

in Ludhiana is approximately 5000. 50 employees were chosen randomly from the different companies

manufacturing steel in Ludhiana.

Population Population is infinite number of elements which the researcher is going to target in

particular area. It is all the employees of different companies manufacturing steel in Ludhiana.

Target population and Sample size:

Target population is the total no. of employees of steel industries in Ludhiana.

Sample size is the 50 employees from the total employees of steel industries in Ludhiana.

sampling unit: Any employee working in the steel industries in Ludhiana.

ANALYSIS AND INTERPRETATION ATTITUDE TOWARDS JOB:

Mean score

Attributes workers office staff

Nature of work 4 4.38

Job security 4 4.15

Job status 3.778 4.76

Quantum of work 4.3 3.61

Equipments provided for work 4 4.07

Working place of the organisation 3.6 4.3

Other facilities provided in organisation 4.2 3.61

Appreciation of good work 3.62 3.92





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Figure 4.1 Showing Attitudes of Employees towards Work Interpretation: It was found that 41 employees out of 50 employees were satisfied or even more than

satisfied with the work. Nature of work, job security, and job status these factors were given more

importance. Employees of steel manufacturing companies in Ludhiana are more satisfied with job status

in the company. As figure No. 4.1 shows. It also shows that office staff is mainly satisfied with the job

status whereas the workers are mainly satisfied with quantum of work.

ATTITUDE TOWARDS COMPANY

Attributes workers Office staff

Feeling as an employee of steel manufacturing units. 4.18 3.92

Counseling made available 4.25 3.53

Superior's guidance 4.44 3.3

Relationships with superior 4.44 4.15

Relationships with co-workers 4.62 4.46

Relationships with subordinates 4.44 4.23

Personnel policies and procedures 3.55 3.46

Figure 4.2 Showing Attitudes of Employees towards Company

00.5

11.5

22.5

33.5

44.5

5

workers

office staff

0

1

2

3

4

5

workers

office staff





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Interpretation: It was found that the employees of steel manufacturing companies in Ludhiana are very

much satisfied with the company. To know the attitude of the employees towards the company. We

asked the employees certain questions like their relation with the superiors, subordinates, training or

counseling provided to them. More than 44 employees of the companies were satisfied with the

company out of 50 workers and office staffs both are satisfied with the relationship in the organization.

SERVICE CONDITIONS


Recuritment policy in force 3.6 3.76

Mode of selection 3.7 3.76

Training programmes by org. 4.51 4.15

Promotional policy in practice 3.51 3.23

Transfer policy in practice 3.62 3.23

Leave rules 4.183 3.15

Grievence redressal procedure 4.85 3.3

Figure. 4.3 Showing Service Conditions of the Company

Interpretation: This table shows the different policies and rules of the organization. This table shows

the satisfaction level of the employees regarding different policies like recruitment policy, transfer

policy, leave rules etc. according to the table employees are more satisfied with the training programmes

by organization., leave rules and grievance redressal procedure.

WAGE AND SALARY ADMINISTRATION

attributes Workers Office staff

Scale of pay and allowance 3.14 3.38

Amount of annual payment of

bonus given by mgt.

3.37 3.3

Pay revision period 3.51 3.23

Awards for additional

qualification

3.25 3.3

0

1

2

3

4

5

6

workers

office staff





31

Figure 4.4 Showing Wages and Salary Administration

Interpretation: All the factors mainly are more than satisfaction level of employees. But this factor, we

found that employees were not so much satisfied with. They wanted that their salary is less and it should

be considered by the company and salary should be increased. They were also not up to the satisfaction

level in case of annual bonus given by the management, and awards of additional qualification.

WORKERS’ PARTICIPATION IN MGT.

Attributes Workers Office staff

Safety Committee 3.851 3.76

Canteen Committee 3.96 3.69

School Committee 3.111 3

PF Committee 3.185 3.46

Employee Benefit Scheme

Committee 3.111 3.23

Figure . 4.5 Showing Workers’ Participation in Mgt. Interpretation: This table shows that the employees are above normal level with their participation in

mgt. most importantly the employees are near satisfaction level with the Canteen Committee, Provident

Fund Committee.

2.9

3

3.1

3.2

3.3

3.4

3.5

3.6

workers

office staff

0

1

2

3

4

5

workers

office staff





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WORKING CONDITIONS

Attributes workers Office staff

Hour of work 4.222 3.76

Rest intervals 4.074 3.84

Lightning and ventilation

facility

4.222 4

Safety arrangements by org. 4.592 3.92

Work place atmosphere 3.481 3.76

Hour of work 4.222 3.76

Figure 4.6 Showing Working Conditions in Company

Interpretation: Employees were found to be more than satisfied with the working conditions if the

company. Almost every employee answered this question as satisfied or highly satisfied .They are

highly satisfied with the safety arrangements by the organization. Lightning and ventilation facility,

hours of works, rest intervals.

WELFARE MEASURES:


Safety measures by mgt 4.148 3.92

First aid facility 4.51 4

Medical facility 4.66 4.07

Housing facility 3.962 3.38

Employee benefit schemes 3.111 3.3

Provident funds schemes 3.185 3.92

Insurance schemes 2.222 3.92

Children education allowance 3.333 2.61

Uniforms supplied by org. 4.111 2.69

Washing allowance 4.111 2.69

Main room stenance of rest 4.621 2.76

Maintenance of washrooms 4.74 2.76

0

1

2

3

4

5

workers

office staff





33

Figure 4.7 Showing Welfare Measures Adopted by the Company

Interpretation: The most important factors in this parameter are Safety Measures, First aid Facility,

Medical facility, washing allowance etc. It was found that the employees were more than satisfied with

Maintenance of the Washrooms, Medical facilities, and Safety measure.

FINDINGS AND CONCLUSIONS

Some Major Facilities Being Provided by Steel Manufacturers of Ludhiana to Their Employees.

Training session: first of all when employee enters the company they provide a very good

session of training, send people outside for specialization.

Medical facilities are very good. 28 cases of dengue were reported in 2013 but no case became

fatal due to good facilities

Blood donation when required by the entire senior to junior employees.

Never pressurize employees to increase productivity, always motivate in positive sense to give

their best.

Provides loan, free of interest.

If attendance is full rs.300 are give as reward per month.

Full health check up of every employee every month

Birthday events of every employee, cultural events are oraganised for the

Employees .

The working environment of Steel Industry in Ludhiana is very friendly.

Medical facilities being provided to them have no match to any other company.

Employees were highly satisfied with the job safety/security.

Payment of salary is always on time.

Very better facilities and allowances as compared to other companies.

Good relations with superiors and subordinates.

MAIN CAUSES OF DISSATISFACTION:

Wages and salary: The main thing from which the workers of steel industry in Ludhiana were

dissatisfied was their pay. They wanted that their pay should be increased. On this employer said

that they spend a huge on medical facilities, transport facilities etc.

Housing facility: The next problem was that people were coming from far places to work. They

wanted houses or apartments.

CONCLUSIONS

The HR practices being followed in the steel industry in Ludhiana are very much different from other

organizations. Employees are given very much importance in the organization. each and every employee

0

1

2

3

4

5

Safe

ty…

Firs

t aid

…M

edic

al…

Hous

ig…

Epl

oyee

…Pr

ovid

et…

Isu

race

…Ch

ildre

…U

ifor

s…W

ashi

g…M

airo

ost

…M

aite

ace

…LT

C

workers

office staff





34

is given personal touch in the organization. Employees are considered to be the part of the family. There

are many factors like welfare measures, service conditions, wages and salary administration which must

be given due consideration to make an organization employee loving organization.

The productivity of the work force is the most important factor as far as the success of an organization is

concerned. The productivity in turn is dependent on the well being of the employees. In an age of highly

dynamic and competitive world, to be a satisfied person is a difficult task that can affect him on all

realms of life. The growing importance of interventional strategies is felt more at organizational level.

This particular research was intended to study the impact of occupational stress on all the employees of

private and public sector .Although certain limitations were met with the study, every effort has been

made to make it much comprehensive.

RECOMMENDATIONS

The organizations lack the relationship between workers and supervisors, it should be given due

consideration. The organizations also lack on certain factors such as working conditions, Canteen, rest

room facilities, rewards, and recognition and promotion policy. Employee’s welfare measures and Job security should be given utmost importance, so that the employee’s turnover may be restricted. The organizations need to modify the reward system of the employees and promotions must be given based

on merit, educational qualification and experience, and if these factors are given little more care, the

company can maintain good workers with high level of satisfaction, organizational commitment and

involvement. This will in turn lead to effectiveness and efficiency in their work which leads to increased

productivity.

Employees are the assets of an organization and to retain them in organization some Effective measures

should be taken into concern. Factors like Salary, Organizational Culture, Job Stress and job

commitment should be the prime area for a manager and to alleviate the negative consequences of these

factors, more effort on the part of policy makers, practitioners, and organizational management has to

envisage which are as follows:

Salary should be according to job profile and stress level of employees.

Certain modern techniques like Yoga, Instrumental activities should be included in organization

to reduce the job stress.

There must be brain storming between employees and employers relating to their job profile, job

stress, and salary from time to time in order to increase their job-commitment.

Proper award should be given for overtime.

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