“Retention–An Upcoming Issue for ACC”

Page 1

TABLE OF CONTENTS

Introduction 4

Company Profile 7

Preface to the problem 18

Research Methodology 19

Limitations of study 23

Data Analysis & Interpretation 24

Recommendations & suggestions 75

Questionnaire 79

Current Exit Interview Of ACC 83

Suggested NEW Exit Interview Form 84

Bibliography 86

Page 2

INTRODUCTION

Page 3

MAJOR PLAYERS IN CEMENT INDUSTRY

S.No. COMPANY

SYMBOL

1. AMBUJA CEMENT EASTERN LTD. AMCE2. AMBUJA CEMENT RAJASTHAN LTD. DLFT3. ANDHRA CEMENTS LTD. ANCE4. ACC LTD. ACC5. BIRLA CORP LTD. BICR6. DALMIA CEMENT (BHARAT) LTD. DACE7. GUJARAT AMBUJA CEMENTS LTD. GACL8. GUJARAT AMBUJA CEMENTS LTD(DEPOSITORY

SHARES)GACLDS

9. GUJARAT SIDHEE CEMENT LTD. GUEE10. INDIA CEMENT LTD. INCEM11. J K CORP LTD(NEW) JKCL12. J K UDAIPUR UDYOG LTD. JKUD13. JK LAKSHMI CEMENT LTD JKCR14. KALYANPUR CEMENT LTD. KALC15. MADRAS CEMENTS LTD. MCEM16. MANGALAM CEMENT LTD. MCEL17. MYSORE CEMENTS LTD. MYEM18. NARMADA CEMENT COMPANY LTD. NANT19. OCL INDIA LTD. OCDI20. PITTIE CEMENT ` INDUSTRIES LTD. PICE21. PRISM CEMENT LTD. PRCN22. RAASI CEMENT LTD. RAEM23. RAIN COMMODITIES LTD PRCE24. SAGAR CEMENTS LTD. SGCE25. SAURASHTRA CEMENTS LTD. SACM26. SHREE CEMENTS LTD. SHCE27. SHREE DIGVIJAY CEMENT COMPANY LTD. SDCC28. SRI VISHNU CEMENT LTD. SVC

Page 4

BUILD WITH CONFIDENCE

Page 5

COMPANY PROFILE

Figure 1. Old Logo of ACC

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations are spread throughout the country with 3 regions, 14 modern cement factories, 19 Ready mix concrete plants, 19 sales offices, 54 area offices, 194 ware houses and several zonal offices. It has a workforce of about 9500 persons and a countrywide distribution network of over 10,000 dealers. ACC's research and development facility has a unique track record of innovative research, product development and specialized consultancy services. Since its inception in 1936, the company has been a trendsetter and important benchmark for the cement industry in respect of its production, marketing and personnel management processes. Its commitment to environment-friendliness, its high ethical standards in business dealings and its on-going efforts in community welfare programs have won it acclaim as a responsible corporate citizen. ACC has made significant contributions to the nation building process by way of quality products, services and sharing its expertise.

In the 71 years of its existence, ACC has been a pioneer in the manufacture of cement and concrete and a trendsetter in many areas of cement and concrete technology including improvements in raw material utilization, process improvement, energy conservation and development of high performance concretes.

ACC’s brand name is synonymous with cement and enjoys a high level of equity in the Indian market. It is the only cement company that figures in the list of Consumer Super Brands of India.

The company's various businesses are supported by a powerful, in-house research and technology backup facility - the only one of its kind in the Indian cement industry. This ensures not just consistency in product quality but also continuous improvements in products, processes, and application areas.

ACC has rich experience in mining, being the largest user of limestone, and it is also one of the principal users of coal. As the largest cement producer in India, it is one of the biggest customers of the Indian Railways, and the foremost user of the road transport network services for inward and outward movement of materials and products.

Page 6

ACC has also extended its services overseas to the Middle East, Africa, and South America, where it has provided technical and managerial consultancy to a variety of consumers, and also helps in the operation and maintenance of cement plants abroad.

ACC is among the first companies in India to include commitment to environmental protection as one of its corporate objectives, long before pollution control laws came into existence. The company installed pollution control equipment and high efficiency sophisticated electrostatic precipitators for cement kilns, raw mills, coal mills, power plants and coolers as far back as 1966. Every factory has state-of-the art pollution control equipment and devices.

ACC demonstrates the practices of being a good corporate citizen undertaking a wide range of activities to improve the living conditions of the under-privileged classes living near its factories.

Heritage - A Corporate Saga

ACC was formed in 1936 when ten existing cement companies came together under one umbrella in a historic merger – the country’s first notable merger at a time when the term mergers and acquisitions was not even coined. The history of ACC spans a wide canvas beginning with the lonely struggle of its pioneer F. E. Din Shaw and other Indian entrepreneurs like him who founded the Indian cement industry. Their efforts to face competition for survival in a small but aggressive market mingled with the stirring of a country’s nationalist pride that touched all walks of life – including trade, commerce and business.

The first success came in a move towards cooperation in the country’s young cement industry and culminated in the historic merger of ten companies to form a cement giant. These companies belonged to four prominent business groups – Tatas, Khataus, Killick Nixon and F E Dinshaw groups. ACC was formally established on August 1, 1936. Sadly, F E Dinshaw, the man recognized as the founder of ACC, died in January 1936. Just months before his dream could be realized.

F. E. Dinshaw – the founder of ACC

ACC stands out as the most unique and successful merger in Indian business history, in which the distinct identities of the constituent companies were melded into a new cohesive organization – one that has survived and retained its position of leadership in

Page 7

industry. In a sense, the formation of ACC represents a quest for the synergy of good business practices, values and shared objectives. The use of the plural in ACC’s full name, The Associated Cement Companies Limited, itself indicates the company’s origins from a merger. Many years later, some stockbrokers in the country’s leading stock exchanges still refer to this company simply as ‘The Merger’.

A strategic allianceThe house of Tata was intimately associated with the heritage and history of ACC, right from its formation in 1936 upto 2000. Between the years 1999 and 2000, the Tata group sold all 14.45 per cent of its shareholding in ACC in three stages to subsidiary companies of Gujarat Ambuja Cements Ltd (GACL), who are now the largest single shareholder in ACC. This has enabled ACC to enter into a strategic alliance with GACL, a company reputed for its brand image and cost leadership in the cement industry.

Holcim - a new partnershipA new association was forged between ACC and the Holcim group of Switzerland in 2005. In January 2005, Holcim announced its plans to enter into a long-term strategic alliance with the Ambuja Group by acquiring a majority stake in Ambuja Cements India Ltd. (ACIL), which at the time held 13.8 per cent of the total equity shares in ACC. Holcim simultaneously announced its bid to make an open offer to ACC shareholders, through Holdcem Cement Pvt Limited and ACIL, to acquire a majority shareholding in ACC. An open offer was made by Holdcem Cement Pvt. Limited along with Ambuja Cements India Ltd. (ACIL), following which the shareholding of ACIL increased to 34.69 per cent of the Equity share capital of ACC. Consequently, ACIL has filed declarations indicating their shareholding and declaring itself as a Promoter of ACC.

Holcim is the world leader in cement as well as being large suppliers of concrete, aggregates and certain construction-related services. Holcim is also a respected name in information technology and research and development. The group has its headquarters in Switzerland with worldwide operations spread across more than 70 countries. Considering the formidable global presence of Holcim and its excellent reputation, the Board of ACC has welcomed this new association.

The name of company was changed to ACC Limited from “The Associated Cement Companies Limited” with effect from September 1, 2006

New corporate brand identity and logo was adopted from October 15, 2006

Figure 2 New Logo of ACC

Page 8

THREE REGION CONFIGURATION

North, South West and East

Page 9

CEMENT PLANT LOCATIONS

Page 10

ACC's Plant-wise Capacity

S.NO. Units StateCapacity (MTPA)

1. Bargarh ORRISA 0.96

2. Chaibasa JHARKHAND 0.87

3. Chanda MAHARASHTRA 1.00

4. Damodhar WEST BENGAL 0.53

5. Gagal HIMACHAL PRADESH 4.20(Gagal I and II)

6. Jamul CHHATTISGARH 1.58

7. Kymore MADHYA PRADESH 1.70

8. Lakheri RAJASTHAN 0.60

9. Madukkarai TAMIL NADU 0.96

10. Sindri JHARKHAND 0.60

11. Wadi KARNATAKA 2.11

12. New Wadi Plant KARNATAKA 2.60

13. Tikaria UTTAR PRADESH 2.00

Page 11

Page 12

INTERNATIONAL ASSOCIATIONS

Saudi Arabia - Yanbu Cement CompanyNigeria - Dangote IndustriesACC Abroad

  Saudi Arabia - Yanbu Cement Company

Since 1979 ACC has been operating and managing a large cement plant owned by Yanbu Cement Company (YCC) and located near the port city of Yanbu in the Kingdom of Saudi Arabia. The Yanbu plant incorporates sophisticated process control systems. YCC today has a capacity of over 3.30 million tonnes per annum. Cement production at this plant has continued to exceed the guaranteed quantum stipulated in the contract year after year.

Nigeria - Dangote Industries

ACC has been retained by M/s Dangote Industries, a leading diversified industrial group of Nigeria, to provide comprehensive engineering consultancy for setting up their proposed new green field cement plants of capacity 3 x 7000 TPD (tonnes per day) and for optimization and up gradation of their existing plants from 2x2000 TPD to 2x3500 TPD.

Page 13

Page 14

Awards & Accolades

National Award for outstanding performance in promoting rural and agricultural development – by ASSOCHAM

Sword of Honour - by British Safety Council, United Kingdom for excellence in safety performance. Indira Priyadarshini Vrikshamitra Award --- by The Ministry of Environment and Forests for

"extraordinary work" carried out in the area of afforestation. FICCI Award --- for innovative measures for control of pollution, waste management & conservation

of mineral resources in mines and plant. Subh Karan Sarawagi Environment Award - by The Federation of Indian Mineral Industries for

environment protection measures. Drona Trophy - By Indian Bureau Of Mines for extra ordinary efforts in protection of Environment

and mineral conservation in the large mechanized mines sector. Indo German Greentech Environment Excellence Award Golden Peacock Environment Management Special Award - for outstanding efforts in

Environment Management in the large manufacturing sector. Indira Gandhi Memorial National Award - for excellent performance in prevention of pollution

and ecological development Excellence in Management of Health, Safety and Environment : Certificate of Merit by Indian

Chemical Manufacturers Association Vishwakarma Rashtriya Puraskar trophy for outstanding performance in safety and mine

working Good Corporate Citizen Award - by PHD Chamber of Commerce and Industry Jamnalal Bajaj Uchit Vyavahar Puraskar - Certificate of Merit by Council for Fair Business

Practices Greentech Safety Gold and Silver Awards - for outstanding performance in Safety management

systems by Greentech Foundation FIMI National Award - for valuable contribution in Mining activities from the Federation of Indian

Mineral Industry under the Ministry of Coal. Rajya Sthariya Paryavaran Puraskar - for outstanding work in Environmental Protection and

Environment Performance by the Madhya Pradesh Pollution. Control Board. National Award for Fly Ash Utilisation - by Ministry of Power, Ministry of Environment & Forests

and Dept of Science & Technology, Govt of India - for manufacture of Portland Pozzolana Cement. Good Corporate Citizen Award - by Bombay Chamber of Commerce and Industry for working

towards an environmentally sustainable industry while pursuing the objective of creation of a better society.

National Award for Excellence in Water Management - by the Confederation of Indian Industry (CII)

GAGAL CEMENT WORKS (GCW)

Page 15

Gagal cement works is the most modern plant having IS/SO 9002 and IS/ISO 14001 environment management system certification and also the 18001- OHSAS (occupational health and safety assessment series) and also bagged various prestigious awards in the field of environment conservation and Indira Priyadarshini Vrikshamitra (IPVM) award, 1996 for extraordinary work in a forestation.

The plant is located at Barmana on the National Highway no. 21, midway between the town of Bilaspur and Sundernagar on the bank of river Satluj. The plant is at a height of 600 meters above sea level.

GCW is the largest plant of ACC according to production & profit data. GCW project was initiated in October 1978. On 12th march 1984 Gagal-1 was successfully commissioned and commercial production commenced with initial capacity of 5.6 lakh tons per annum. Gagal-2 was commissioned in 1994 and present capacity of the plant is 2.4 MTPA of cement. Gagal-1 and Gagal-2 units has installed eco friendly modes of material transporting system by adopting 2 km long over land belt conveying system for transporting crushed limestone from its mines.

The strength of management staff and non Management Staff for Gagal Cement Works (GCW) is 140 and 613 respectively. Non Management Staff includes 406 daily paid and 207 monthly paid staff.

Preface to the problem

Globalization has really stiffed the competition in business to a neck throat cut

competition. Companies should understand the need to benchmark with the best

in the industry to prevent others from providing a better environment & growth

Page 16

opportunity for effective retention as the cost & effort of hiring replacements is

too high. Four Ps (people, processes & profits) are the mantra for corporate

success in the modern competitive environment. The focus on first three Ps-

people, products & processes in that order, will lead to profits i.e. fourth P.

Retention of talented people is now a day’s buzz word in the business

organizations.

Attrition of talented employees can result in:-Loss of Domain experts

Cost of hiring and training new employee

Perception of senior management

Hesitant to give critical projects

Hesitant to grow team size

Concerns about the site productivity

Project at risk

Affects morale of employees

That’s why, retention of talented employees is given so much importance these

days & organizations should not hesitate in adopting new & unique ideas of talent

retention. These may include several methods ranging from improving the work

climate up to giving extra benefits.

Page 17

RESEARCH METHODOLOGY

NEEDS OF STUDY

Page 18

Attrition rate of GCW, ACC LTD. has increased two times in last two years. This year the attrition rate is near about 16% as compared to previous year’s 7.2%. This study would try to investigate the possible reasons behind this.

In spite of giving so many facilities to its employees, ACC is not able to retain 100% of its employees with itself. This study would try to answer the reasons behind this.

ACC conducts an EXIT INTERVIEW of employees who are leaving the organization, but it doesn’t get any big complaint or constructive suggestion from such interviews also. This study would try to analyze & suggest required changes in the exit interview process & the instruments involved in that.

RESEARCH PROBLEM

Why the number of employees leaving ACC has increased in GCW, Barmana in past few years?

Page 19

OBJECTIVES

To know employees perception about the facilities being provided to them at ACC.

Track employees workplace climate in ACC.

Measure why people leave by analyzing & improving exit interview practices. Suggest new ways of conducting effective exit interview.

Suggest proactive steps to build a climate that encourages retention.

RESEARCH DESIGN TO MEET THE OBJECTIVES

Area of Study

The area of study is GCW, Barmana.

Sampling UNIT

Sampling unit consist of GAGAL CEMENT WORKS, BARMANA. (ACC LTD.)

Page 20

Sampling ELEMENT

Sampling element consist of Management staff of ACC at GCW.

Source List

Database of existing & left out employees of GCW

Exit interview forms filled by left out employees

Sample of Respondents

A sample of 70 employees in management staff of GCW was taken.

Method of Sample & its design

Quota sampling & Convenience sampling methods were used.

Instrument for Information

For Primary Data

Structured Questionnaire & Personal Interview were be used.

For Secondary Data

Newsletters of the ACC, Journals, Reports, HR MANUALS, filled exit interview

forms (by left out employees), Connect India reports (history & future plans) and use of

various websites were made.

LIMITATIONS OF STUDY

Page 21

Time was among the most critical limitation of this study. This whole study is

done with in a small time period of 6 weeks.

This study is done at only one plant of ACC i.e. Gagal Cement Works, Barmana.

So the results can not be associated fully with whole organization.

Due to different shifts of working of employees, whole management staff could

not be covered in this study.

The current Exit Interview of ACC is not effective. However if it would have been

some what effective it could have told some more reasons for why people leaving

ACC.

Page 22

DATA ANALYSIS&

INTERPRETATION

Demographic Profile

Page 23

Page 24

Safety Electrical HRD KILN Finance Instrumentation Civil Mining Lab Mechanical CCR Engineering

3 5 4 10 8 9 3 7 8 5 6 6

Facilities

Page 25

Most of the employees are in the favor that the housing facilities being provided

to them are good & they are satisfied by those. However a small percentage of

people do think that the housing facilities are not up to the mark. This may be

because of perceived difference of standard of housing facilities for senior

managers & other employees.

Page 26

About 71% of employees presume the satisfactory level of medical facilities being

provided to them. However 29 % of employees do feel that the medical facilities at

GCW are not not good. This is subjected to the reason of unavailability of all

types of medicines, sufficient space ( beds ) & manpower in the hospital.

Page 27

ACC organizes a lot of sports & Cultural activities in its yearly

curriculum. Due to this only, 61% of employees feel that sports &

cultural activities at ACC are good.

Page 28

About 77% of employees feel that the long service awards given to them are

good. However 23% of them say that these are average. This may be due to the

fact that they feel that there should be some thing extra( increment or promotion)

associated with the long service awards.

Page 29

About 63 % of employees think that the co-operative store opened for ACC

employees is good. However the rest don’t feel like that. This may be due to less

manpower at the co-operative store which results in rush every time there. Also,

only confectionary items can bought in the store. For buying other things like

clothes, home appliances etc. employees have to depend on other market.

Page 30

About 74 % of respondent employees feel that the newly opened Marriage &

Community centre in ACC colony is good. However the rest 26% rate it as

average. The reason for the 74% employee’s opinion may be the non availability

of such facility earlier. At that time they had to make the arrangements

somewhere else (in outside hotels etc.) for different occasions. The reason

behind the opinion of the rest may be that they want more good facilities inside

the Marriage & Community centre e.g. – facility of Cooks, Servants, Helpers or

marriage bureau etc.

Page 31

Coming to the most critical factors i.e. Salary, none of the respondents presume

that their salary is excellent. About 55% of the respondent employees think that

their salary is good, while others feel that it is just average.

Page 32

A similar response is seen in terms of incentives also. Here also, no one thinks

that incentives being provided to them are excellent. About 50 % of the

respondents feel that their incentives are good while others feel the opposite one.

Page 33

In the similar way, none of the respondents feel that rewards given to them are

excellent. About 47 % of respondents feel that the rewards given to them are

good enough, while the rest feel the other way.

Page 34

Talking about training, 52 % of respondents feel that the training provided to

them in ACC is good. Near about 34% rate it as average while about 14% said that

it is poor.

Page 35

About 74 % percent of responding employees feel that the loan facility being

provided to them is good, while 26 % feel that it is just average. No one feels that

the loan facility is poor in ACC

Page 36

WORK PLACE CLIMATE

An organization’s major strength is its people & as such, people expect the

organization to be a little concerned employee’s welfare. Also, no business

organization will survive long if it is not run profitably. It has to balance its

orientation towards welfare & results. Research shows that about 79% of

respondents feel that ACC is basically welfare oriented while 21% disagree with

the statement.

Page 37

A large number of respondents, viz. 77%, disagree with the statement. Only 20%

of them feel that the PMS is quite effective.

Page 38

About 57% of respondents agree with the statement while 33 % disagree with the

statement. The credit of this goes to Connect India Group of ACC which provides

different training facilities to ACC employees.

Page 39

About 51 % of the respondents feel that the company is result oriented while 33%

do not feel so. It indicates that there is some kind of balance between the

organization’s orientation to welfare & results.

Page 40

About 67% of respondents agree on the statement that their superiors’ advice

those on the areas of there concern while about 23% disagree with the statement.

Page 41

Great majority of respondents agree with the statement. As large as 79% of

respondents have stated that their family members are proud of their association

with ACC.

Page 42

About 64% of respondents disagree that the organization goes out & makes sure

that employees enjoy their work & life. There is scope for making work ore

challenging & interesting.

Page 43

It is the responsibility of the superior to communicate the areas where sub

ordinates need improvement, in a non- threatening manner. The research doesn’t

show any clear indication as to the respondent’s reaction to this aspect. While

48% of respondents perceive such a communication system, as many as 38% do

not perceive so.

Page 44

Again research in this query didn’t show any relevant or clear indications. While

44% of respondents agree with the statement, as many as 45% of respondents

disagree with it.

Page 45

Page 46

About 77% of the respondents are in agreement with this statement. This

indicates a wide gap as perceived by the respondents for proper emphasis on

technical training.

Page 47

It is to be noted with concern, that as many as 62 % of respondents have

mentioned that their superiors encourage their self development. This means that

superiors are concerned about improving the skills of their sub ordinates.

Page 48

It is to be noted with great concern that only 61% of respondents feel that they

will be able to continue & grow with the organization. Where as about 35% don’t

see their future with ACC. These people must be found immediately & the

reasons for their dissatisfaction should be tried to remove.

Page 49

Though 57% of respondents would not like to change their job only for the sake

of higher remuneration, as many as 36% of the respondents indicate an urge to

change job for higher remuneration. This clearly shows that lower salary can be

one of the reasons of employees turnover in ACC.

Page 50

It is good to see that about 69% of the respondents agree with the statement that

they have full freedom to experiment with new ideas. This may be one of the

motivating factor for those who are satisfied by their job in ACC.

Page 51

About 53 % of respondents feel that superiors know the problems being faced by

their subordinates in ACC. This supports the fact that most of the superiors

encourage self development of employees.

About 36 % of respondents don’t agree with the statement. This further shows

that there is some communication gap between superiors & their sub ordinates.

Page 52

About 54% of respondents feel that employees are not encouraged to take

initiative & do things on their own without having to wait for instructions from

superiors. This is in contradiction with all above results which showed good

relations between superiors & subordinates. It shows that superiors allow the

limited growth of subordinates. They keep the power with them or we can say that

they don’t trust their subordinates. This might be one another reasons of

dissatisfaction of those 35% respondents who don’t see their future in ACC.

Page 53

Once again research shows that performance appraisal system in ACC is a weak

area. About 61 % of respondent feel that existing PMS doesn’t takes into account

specific & measurable contribution on the job.

Page 54

Result in this query doesn’t show any clear cut facts. About 44 % of respondents

are in the favor of the statement, while 46% are against it.

Page 55

It is to be noted with concern that as many as 56% of respondents feel that there

is no point in developing themselves as their efforts are not recognized. This may

be the third reason for those 35% who don’t see their future in ACC.

Page 56

Again resulting in the fourth possible reasons for those 35% respondents who

don’t see their future in ACC, as many as 67% of respondent employees feel that

the growth prospects in ACC are slow.

Page 57

The feeling that there is somebody in the organization with whom people can

discuss & share their personal problems gives good relief. This kind of informal

atmosphere is definitely an area of strength. As many as 72% of respondents feel

that such a warm & friendly atmosphere does exist in the organization. However,

it is to be noted that about 21% of respondents feels the other way.

Page 58

Possibly resulting in fifth reason for 35% respondents not to see their future in

ACC, 64% of respondents don’t find the existing system of granting increment

effective. Only 29% of respondents find existing increment granting system

effective.

Page 59

A great majority of respondents, viz. 85% feel that there should be more

emphasis on Managerial skill development. This clearly shows that training is

another one field to be improved in ACC.

Page 60

68% of the respondents are of the opinion that opportunities do not exist to try

out what they have learnt from Training Programmes. However, 26% of

respondents do feel that they get such opportunities. This shows that

organization is giving employees training but not measuring its effectiveness &

the change that occurred in employees after getting the training.

Page 61

This is one another area of strength for ACC. About 83% of the respondents feel

that their relations with the members of their work group are friendly as well as

professional. This feeling of satisfaction of working together in a group is indeed

a major dimension contributing to the job satisfaction.

Page 62

About 42% of respondents feel agree with the statement that job rotation is used

as tool of employee development, while as many as 55% of respondents don’t

feel the same way. This shows that overall development of employee is not

targeted with much importance in ACC.

Page 63

Again indicating Performance appraisal system a weaker section; about 60 % of

the respondents feel that PMS in the organization is based on personal relations

Page 64

& not on contributions to the job. However, 26% of respondents feel that their

contributions to job are taken into account.

The responses are more or less equally divided into two groups. While 44% of

respondents agree, 56% do not agree with this statement. This indicates that

there is conflict between departments & divisions.

Page 65

About 46% of respondents agree with the statement. Ideally, any promotion

should cover some additional responsibilities which call for added skills &

knowledge so that the promotion gives them due satisfaction & the feeling that

they have really achieved something.

However about 37% respondents do not agree with the statements.

Page 66

Surprisingly, as many as 77% respondents feel that their job is secure in ACC.

On one side it is matter of happiness for the organization while on the other hand

it is great matter of concern that a sizeable no. of employee viz. 35% respondents

who don’t see their future in ACC; don’t give any importance to this job security

also.

Page 67

As many as 32% respondents agree with the statement while about 64%

respondents feel the other way. This means that induction program needs a little

more improvement.

Page 68

It is matter of concern that about 67% of respondents agree that they are asked

for their suggestions. This is because of “Innovate to Excel” & “Drop-In

suggestion” program. Such a program makes the employee feel valued in the

organization. It is also one of the major motivating factors for employees.

Page 69

Proper recognition is very important to the people giving their extra ordinary

performances. If we provide this, not only the performers, but the non performers

also feel motivated towards their job. As many as 60% of respondents feel that

proper recognition is provided to people giving extra ordinary performances. It is

again an area of strength for ACC.

Page 70

About 57% of respondents feel agree that the working environment is not good at

ACC, while about 34% don’t feels so.

Page 71

Page 72

As many as 60% of respondents feel that their job at ACC is challenging while

about 28% don’t feel so. This might be the possible sixth reason for 35%of

respondents who don’t see their future in ACC.

Page 73

This is another major area of strength for the organization. As many as 67% of

respondents feel that employees in the organization are helpful to each other.

Page 74

In spite of having caring superiors, team work attitude etc. about 66% of

respondents feel that there is no proper career planning in ACC. This might be

the possible seventh reason for those 35% respondents who don’t see their

future in ACC.

RECOMMENDATIONS

&

SUGGESTIONS

Page 75

Areas Of Improvement

The possible areas of improvement for ACC are:

1. PERFORMANCE APPRAISAL SYSTEM WIth T & D:-

Research clearly shows that PMS & training are the two fields which requires a lot of change. Firstly performance appraisal system should be free from any kind of favoritism or biasness. In fact the latest job appraisal system i.e. 720 DEGREE Job Appraisal system should be followed. In this system appraisal of employee is done by all his seniors, subordinates, peers, clients & customers etc ( 360 Degree job appraisal) two times; i.e. before imparting training & after imparting training. While the pre training tells about the strength, weakness area of improvement in the employee, post training job appraisal tells that what all he has learnt in his training period or we can say that it measure the training effectiveness.So, opting 720 Degree Job Appraisal could be the best possible strategy for improving both PMS & Training & Development.

2. JOB ROTATION:-

Page 76

Proper job rotation of employees should be done so that they get new job assignments & learns something new each & every day. By doing this, employees will feel that their job is challenging & they don’t feel bored. Also as it includes learning new things every day, employees improve themselves day by day. Thus it can be one type of in house training & that too without any extra investment.

3. ROLE PLAYING OPPORTUNITIES:-

As we have concluded in research that few un satisfied employees don’t care about the job security they get in ACC. So they should be offered something new & unique which may motivate them at work otherwise they will leave the organization. One such unique thing way can be to offer them role playing opportunities in the organizations. This may include giving them such assignments which involve them as a role player in the organization. It is even more powerful technique if assignment offers a role playing in social context.

4. IMPROVE EXIT INTERVIEW PRACTICE:-

The current Exit Interview of ACC is not at all effective in conveying any special thing from leaving out employee to the HR department. It seems that the organization is doing just a formality to of taking the exit interview for the sake of keeping the record. More over Company’s strength & weakness are asked in the current exit interview which shows that they trying to make the SWOT Analysis of ACC. This exit interview form needs to be changed. A new exit interview has been suggested with this report. (Fixed in the last of report)

Few other strategies that can be used for motivating employees to work can be:-

Wedding Day Gift:-

It is a very simple but very effective strategy to make employees feel that they are a very important part of the organization. This gift can be any thing ranging from company’s own product up to free tour facility for the new couple. By this, employee’s family members also feel proud of their association with the organization.

Birthday Reminders:-

This includes feeding of employee’s date of birth as a reminder which can snooze on the computer of all the employees & tell that today is someone’s birthday so that they can wish him. This seems to be very simple thing but has

Page 77

very good impact on the mind of the employee. He feels that he is also having some value in the organization. Due to this he feels more motivated & devoted towards his work.

Long term Care:

LTC benefits group insurance should be provided to the employees. Apart from a god strategy for attracting & retaining talent LTC benefits are taxes free.

Although ACC gives this benefit to its employees but it need some changes in it. These changes are subject to the changes made in it a year back. Cover of insurance of sum 1.50 lakh is perceived less by the employees. Firstly this limit should be increased. Secondly, two or three options should be there for the employee while taking the scheme i.e. if employee desires extra cover at insurance in terms of rupees or in terms of extra members; that should be allowed. The additional cost of premium may be deducted from employees salary.

Regarding Awards:

Regardless of the criteria used to determine who gets promoted, the most important

factor is to communicate effectively the reasons of your decision to the employees who

were not promoted. What happens normally, we lack in this activity allowing them to

spread negative feelings among staff, thereby neutralizing management’s efforts to

motivate the performers. If you don’t communicate effectively, people who are not

promoted will not also be able to understand their shortcomings. Remember it gives

less motivation to a promoter in comparison to the pains, one gets if not promoted. You

have to handle negative aspect of human being very carefully & sincerely.

Communicate the policy, reasons & wait for the reactions highlight the positives so that

non promoters may prepare themselves in good spirit for next chance.

Few more regions where employees have pointed out & need improvement are:-

Page 78

Role clarity should be there. Each & every employee should know that what work he has to do. As presumed by an employee there is no role clarity in the organization.

Transparency in promotion system. There should be clear transfer of information for criteria of promotion in the organization.

Revision of salary. As the attrition rate of ACC is increasing, new recruitments are being made. But these new comers don’t find their salary in ACC as competitive to what other companies offer at same post. So to retain these new comers, salary structure should be revised after particular time periods.

QUESTIONNAIRE

SIR

I am a MBA student & undergoing industrial training at Gagal Cement Works and conducting a research. Kindly go through the following STATEMENTS & indicate your level of agreement by a tick mark (  ) against the level of corresponding box.

There is no need to reveal your identity while filling this questionnaire. So, please be frank while replying & respond to all the statements.

1. Age                  a) <25                   b) 25-35                   c) 35-45                       d) >45

2. Highest Qualification  a) Diploma            b) B.Tech                c) MBA                  d) Others 3. Your work experience with ACC

a) 0-5 years           b) 5-10 years         c) 10-15 years          d) >20 years

4. Department _________________________________

5. How do you rate the following facilities provided by ACC?

S.No. Facilities Excellent Very Good Good Average Poor

1 Housing Facilities

2 Medical facilities  3 Sports & Cultural Activities  4 Long Service Awards  5 Co-operative Store  6 Marriage & Community Centre  7 Salary  8 Incentives  9 Rewards  

Page 79

10 Training  11 Loans  

12. Please tick the following statements according to your perception & experience at ACC:-S.No. Statements Strongly

agreeAgree Undecided Disagree Strongly

disagree

1 I feel that our organization is basically welfare oriented.

2 The performance appraisal system prevalent in the organization is quite effective.

3 In my opinion, the current level of training in our organization is adequate.

4 I feel that the organization is result oriented.

5 My superiors advice me on the areas of concern for my development.

6 My family members are proud of my association with ACC.

7 Our organization goes out of its way to make sure that employees enjoy their work as well as their life.

8 Weakness of employees is communicated to them in a non-threatening way.

9 My superiors give me feed back on a regular basis on my performance.

10 I feel that there should be more emphasis on technical training.

11 My superior does not encourage my self development.

12 I feel that I shall be able to continue & grow with this organization.

13 I would not like to change from this organization only for the sake of higher remuneration.

14 I have full freedom to experiment with new ideas in my company.

15 Our superiors know the problems being faced by their subordinates.

16 Employees in our organization are encouraged to take initiative & do things on their own without having to wait for instructions from superiors.

17 The existing Performance appraisal system takes into account specific & measurable contribution on the job.

18 Employees lacking competence in doing their

Page 80

jobs are helped to acquire competence rather than being left unattended.

19 The majority of employees in the organization feel that there is no point in developing themselves as their efforts are not recognized.

20 I feel that the growth prospects in this organization are slow.

21 Employees in our organization are very informal & do not hesitate to discuss their personal problems with their superiors.

22 I feel that our existing system of granting increment is quite effective.

23 I feel that there should be more emphasis on managerial skills development.

24 Employees returning from Training Programs are given opportunities to try out what they have learnt.

25 My relationship with members of my work group is friendly as well as professional.

26 In our organization, job rotation is used as an important tool of employee development.

27 The performance appraisal system in our organization is based on personal relations & not on contributions to the job.

28 There is a lot of conflict between departments/divisions

29 In our organization, promotion often does not provide any additional set of responsibilities.

30 No Job security is there.

31 Proper induction program is not there.

32 Employees are not asked for their suggestions

33 Proper recognition is given to people giving extra ordinary performances.

34 Working environment is not good.

35 My Job is not challenging.

36 Employees in our organization are helpful to each other.

37 There is no proper career planning.

Page 81

If there is any other suggestion that you would like to give to ACC, please specify ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

THANK YOU

“CURRENT EXIT INTERVIEW OF ACC”

UNIT: GAGAL CEMENT WORKS

Date of Interview:

1. Name of the Officer: Mr

2. Designation:

3. Grade: -

4. Present Stipend: Rs

5. Date of Joining ACC:

Ascertain reasons for leaving the Company on the following lines:-

i. Better prospects – Ascertain how much increase and under what heads [better pay or perks] -

ii. Promotion progression [ Name of the post he is going to on promotion – Any increase in salary and perks as a result - better promotional prospects.

Page 82

iii. Differences of opinion with Supervisors – detail out the differences ] Inter – personal relations] –

iv. Placement in a different position consisting with his abilities and interests [spell out the other position he is taking up] -

v.

vi. Any other reasons [ Please spell out]: None

vii. Obtain his reaction on:- A] the Company’s strengths: B] the Company’s weaknesses:

C] any constructive suggestions:

“Suggested Exit Interview Feed Back Form”

Employee Name : Mr.…………………………… Employee Number : …………………….

Designation : …………………………………. Department : …………………….

Grade : …………………………………. Salary / Stipend : Rs…………………

Date of Joining : …………………………………. Date of leaving : …………………….

Please tell us about following things at ACC according to your perception:-

Excellent V.Good Good Average Poor

Management Role

(Management has lived up to the expectations of Customers & employees)

Organizational Culture

(Employees express their opinion freely)

Organizational Structure

(Organization is structured in way to improve organizational efficiency)

Career Development

(Opportunities are available to develop one’s career)

Salary

(Salary given is very competitive/satisfying)

Page 83

Managers Role

(Managers are aware of their roles and live up to it)

Communication Process

(Organization has a effective communication process)

Empowerment

(There is proper delegation of authority)

Team Spirit

(A lot of efforts is made in working in a team )

Performance Management System

(Performance review process is properly laid down and is fair & open)

Role/ Job Clarity

(Individuals role are clear and are aware of what is expected of them)

1. What are your reasons for leaving ACC? (Check all that apply) a) Personal reasons b) Retired c) Spouse relocates d) Dismissed e) Family reasons f) Non-reappointed g) No promotional opportunities h) New position i) Pay/Benefits j) Career Change k) If others, specify___________________________

2. Did you receive adequate training to perform your job duties? Yes / No

3. What does your new job offer to you that your job with ACC did not? a) Better use of job skills b) Increase in salary c) Promotion d) Closer to home e) Flexible work schedule f) Not applicable

4. How would you describe the employment conditions at ACC ?a) Excellent b) Above average c) Average d) Below average e) Poor

5. How would you describe employee morale in your department?a) Excellent b) Above average c) Average d) Below average e) Poor

6. Would you refer a friend to work here? a) Yes b) No c) Yes, but not in my department

7. What did you dislike in the organization (overall)?

…………………………………………………………………………………………………………………..

…………………………………………………………………………………………………………………..

8. What did you like in the organization (overall)?

…………………………………………………………………………………………………………………..

…………………………………………………………………………………………………………………..

9. Any other concerns or issues you would like to comment on.

Page 84

…………………………………………………………………………………………………………………..

…………………………………………………………………………………………………………………..

10. Suggestions for further improvement.

…………………………………………………………………………………………………………………..

…………………………………………………………………………………………………………………..

…………………………………………………………………………………………………………………..

If there is an opportunity in future would you like to rejoin this organization? …………………………………………………………………………………………………………………..

SIGNATURE :-

HR HEAD EMPLOYEE

Thank you for your time and cooperation.

Bibliography

BOOKS:-

Kothari, C. R. (1996). Reseach Methodology- Methods & Techiques. New Delhi: Wishwa Prakashan.

HR manual, ACC

Leave Privilege manual, ACC

Journals:-

Shaligram Jayant. (2007, april). Retention & Attrition. Current Labour Reports , 100-101.

Kaushik, A. (2006, NOVEMBER). 9 Secrets Of HR Managers Guaranteed Failure. Current Labour Reports , 96-99.

“Tips To Talent Crunch”, HR scenario, Labour Law (April 2006) PP- 44

Page 85

Websites:-

(n.d.). Retrieved July 20, 2007, from acccement.com: http://www.acccement.com

(n.d.). Retrieved July 16, 2007, from http;//www.cmi.com/ACC

Page 86