A Study on Employee Retention At

A STUDY ON EMPLOYEE RETENTION AT HMT MACHINE TOOLS LTD KALAMASSERY A SUMMER PROJECT REPORT SUBMITTED BY Miss Vijaya R (REG 08PIT35)

IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION IT ORGANISATION AND ADMINISTRATION

UNDER THE GUIDANCE OF Miss Sasikala Devi, M B A AVINASHILINGAM SCHOOL OF MANAGEMENT TECHNOLOGY AVINASHILINGAM UNIVERSITY FOR WOMEN COIMBATORE-641043 JUNE 2009

1

ACKWNOWLEDGEMENT I acknowledge the chancellor Mr. T. K. Shanmugananthan, B.A, B.L and the Vice Chancellor Dr. Saroja Prabhakaran, M.A, Dip. Ed, Ph.D and the Registrar Dr. Gowri Ramakrishnan, M.Sc, M.Phil, Ph.D of Avinashilingam University for Women, Coimbatore for having given an opportunity to undertake this project work which forms a part of my curriculum. I express my hearty gratitude to the Dean, Department of Management Studies Dr. Shantha B Kurup, M.Com, M.Phil, Dip.Ed, M.B.A, Ph.D for her support and encouragement. This work would not have materialized but for the timely guidance given by Miss Sasikala Devi, M.B.A, Lecturer, Department of Management Studies who assisted and extended support through out the project. I express my heartfelt thanks to all the faculty members of the Department of Management Studies, whose immense support helped a lot to complete the project. I express my sincere gratitude to

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CONTENTS

CHAPTER NO

CONTENTS

PAGE NO

1

INTRODUCTION

4

SYNOPSIS

4

INDUSTRY PROFILE

5

COMPANY PROFILE

8

2

OBJECTIVES

25

3

REVIEW OF LITERATURE

25

4

RESEARCH METHODOLOGY

29

5

31

6

LIMITATIONS ANALYSIS INTERPERETATIONS

7

SUMMARY

46

FINDINGS

46

SUGGESTIONS

47

ANNEXURE

48

8

& 32

3

INTRODUCTION SYNOPSIS

Employee Retention Employee retention is the initiatives taken by the management to keep employees from leaving such as rewarding employees for performing their jobs effectively, ensuring good relations between employees and managers and maintaining a safe healthy environment. When you have hired good people trained them, built them into high performing teams you don’t want to loose them. There are many different ingredients that go into reducing employee turnover. There will be seven strategies focused on: money, building relationships between employers and co-workers, a fearless culture, job satisfaction, opportunities for personal growth, organizational direction, And recognition of work/life balance needs. Retention is successful when emotional bonds are built. Therefore, building relationships between employers and co-workers is important when it comes to employee retention.

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INDUSTRY PROFILE INDIAN MACHINE TOOLS INDUSTRY BACKGROUND AND HISTORICAL TRENDS The machine tools industry in Indian dates back to the world back to the Second World War. Due to non availability of imported machine tools, a few British owned general engineering firms took up their manufacturing in India. This was followed up by start of industrialization in the series of Five year plans. The process of planning in the economy resulted in a second phase of machine tools with public sector investment in Machine Tools (HMT Ltd .1953. These two initial phase of development of Indian Machine Tool industry saw the production of general purpose machine tools most of which were produced under technical assistance from Foreign Collaborators (Loudon, Ward, Herbert, Jones and Shipman, etc) The 1960 marked the third phase of Machine Tool Industry. During this phase, the range of product witnessed rapid, growth and various types of machine tools including SPMs were manufactured(Multi Spindle Automats, Gear cutting machine, SPMs, presses ,Broaching Machines, etc.).The Fourth phase begins in the mid 1980s which saw the entry of Japanese Machine Tools makers in the Indian Market though licensing agreements. (Mori Seiki, Hitachi Seiki, Nachi fuji-koshi, Mit subshi, etc. The Fifth and current phase began in the early nineties after the liberalization of the Indian Economy. With the market share of bigger companies expanding and the public sector giants shrinking and those of the smaller company rising, in house design capability, entrepreneurial spirit, 5

greater technology freedliness, operational flexibility and lean management, combined to give a greater competitive edge to the smaller companies setup by technocrats resulting in a significant shift in machine tools production to these medium sized companies. International Trends While Japan increased its lead over Germany Taiwan edged part of United States to be among the top five machine tools manufacturing countries. Italy and China remain in the Second and Third slot. Current Status in India The Indian Machine Tools industry manufactures almost the complete range of metal cutting and metal forming machine tools. Customized in nature, the products from the Indian market comprise conventional machine tool as well as Computer Numerically Controlled (CNC) machines. Others include special purpose machines, robotics, handling systems, and TPM-friendly machines. Efforts with the Industry are now undergoing the features of CNC machines, and provide further value additions at lower costs, to meet specific requirement of users. In India there are about 450 manufacturing complete machines or their components. There are 150 in the organized sector. Almost 73% of the total machine tool production in India contributed by 10 major companies in this industry. The industry has an installed capacity of over Rs 10 million and employees a workforce directly and indirectly totaling 65000 skilled and unskilled persons. The hub of manufacturing activities concentrated in Mumbai and Pune in Maharashtra, Chennai, Gujarat, Coimbatore, etc. All global leaders 6

namely, Makino, DGM, Yamazaki, Haus, Trumpf Daewoo, Schules are present in India either through marketing agents, technical centers, service centers or assembly centers. These are critical issues to this industry. 

The competitiveness and quality of machine tools manufacturing

depends on the competitiveness and quality of its sub contractors.  Attracting and retaining talented manpower is an issue since the industry can grow only with knowledge accumulation.  High fragmentation is leading to low economies of scale.  Indian educational curriculum in the ITI’s or engineering colleges is not geared to impart the all round technical knowledge required by the engineers and operator in this sector. It is well known and often repeated fact that the machine tools industry forms the pillar for the competitiveness of the entire manufacturing sector since machine tools which in turn produce the manufacturing goods. Hence being an integral sector, growth of the machine tools industry has an immense bearing on the entire manufacturing industry which is crucial for country’s strategic requirement like Railway, Defense, Space and atomic space.

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COMPANY PROFILE HISTORY OF THE COMPANY HMT MACHINE TOOLS LIMITED By the end of the Second World War, the Government of India was confronted by a big problem of disposing the colossal war waste. Ultimately a committee was constituted to enquire into the possibilities. The committee report of 1948 proposed the establishment of a Government owned machine tool industry. This was expected to fulfill two aspects. The first was being utilization of the Rs 4000 Million worth of metallic waste. The second was the incorporation of state owned infrastructure manufacturing facility. The result was the birth of the HINDUSTAN MACHINE TOOLS LIMITED, which diversified in due course of time to the present stature of the multi core, multi location, multi unit, multi product, industrial gaint HMT Ltd. The HMT Ltd was started as a single factory to produce Tool room Lathes at Bangalore in collaboration with M/s Oerlikon of Switzerland in 1953, with a capacity to manufacture around 400 machines per year. Since then different Collaborations, continued in house R & D and tremendous marketing efforts brought HMT, to present in status. The growth of HMT was characterized by backward and forward integration of technology and product diversification. Thus, the company that started with manufacturing and selling lathes expanded its machine tools product range to evolve as the ultimate solution in metal cutting. The product diversification efforts took the company to the business of watches 8

in 1962, Tractors in 1972, presses in 1972 Lamps and Lamp making machinery in 1980, CNC system in 1986, Ball screw in 1986 and Reconditioning in 1990. The multi product activities made HMT Ltd changes its identity as Hindustan machine tools Ltd. Today, HMT Ltd. has 22 product divisions, spread through the length and breadth of India. A subsidiary namely HMT (international) Ltd, undertakes the exports to several other Indian companies. HMT Ltd was restructured in 1992 to facilitate better administration of the multi product business activities. Accordingly, the following business groups were established. Machine tools business group, to concentrate on metal cutting machines. •

Industrial machinery Business Group, to deal with printing machines,

Die casting and Plastic injection molding Machines, Food processing Machines and metal forming machines. •

Agricultural Business group to concentrate on Tractors. • Engineering components Business Group, to deal with Casting and Ball Screws. • Customer product Business Group, to deal with watches and Lamps. In addition to these Business Group, the company owns three subsidiaries as follows. • HMT (International) Ltd .which undertakes the overseas projects and exports. 9

• Praga tools Ltd. which manufactures machine tools. • HMT Bearing Ltd. which manufactures precision Bearing in collaboration with m/s Koyo Japan.

As per the revival of this public sector Industry a turnaround plan has introduced in the early days of this millennium and recognized as HMT Ltd –holding company including Tractors division and presently comprises of the following subsidiaries. 1.

HMT MACHINE TOOLS LIMITED

2.

HMT WATCHES LIMITED.

3. HMT CHINAR WATCHES LIMITED. 4. HMT INTERNATIONAL LIMITED. 5. PRAGA TOOLS LIMITED.

1. HMT MACHINE TOOLS LIMITED. The HMT Machine tools limited is engaged in the manufacture and marketing of General Purpose Machine tools, Precision machinery systems, printing machines, Metal forming processes, die casting and Plastic Injection molding machines, Ferrous and non ferrous casting. THE PRODUCT RANGE OF HMT MACHINE TOOLS UNITS BANGALORE

10



Heavy Duty Lathe.

 Single and Multi Spindle Automobile.  Radial Drilling Machines.  Multi Spindle Drills.  Cylindrical and Surface Grinders.  Laser Cutting Haber’s.  Gear Cutting Machines.  CNC Turn Mill Centers.CNC Wire cut EDM.  Fine Boring Machines/SPMs.

PINJORE

 FMS AND FMC.  Horizontal Machinery Centers.  Vertical Machinery Centers.  Milling Machines.  Broaching Machines.

KALAMASSERY

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 CNC Turning centre.  Turn Mill Centre.  Flexible Turning Cell.  Copying Lathes.  Centre Lathes.  Offset Printing Machines.  Paper Cutting Machines.

HYDERABAD

 Special Purpose Machines.  Horizontal Machining Centre.  FMS.  CNC Horizontal Boring Centre.  Bed Type and Floor Type Boring Machines.  Grinding Machines.  SPM Grinders.  CNC grinders.

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MAJOR MACHINES AND INSPECTION FACILITY AVAILABLE IN DIFFERENT MACHINE TOOLS UNITS 1.

CNC Ram Type Plano Millers. 2. Horizontal Machining Centers. 3. Vertical Machining Centers. 4. Horizontal Jig Boring Machines. 5. CNC Turning Centers. 6. Turn Mill Centers. 7. Slide Way Centers. 8. Cylindrical Grinders. 9. Internal Grinders. 10.Precision Gear Shapers. 11.Precision Gear Hobbes. 12.Gear Grinders. 13.Induction Hardening Machines. 14.3d-co-ordinate Measuring Machines

. 2. HMT WATCHES LIMITED: HMT Watches Ltd manufactures and markets watches including Hand Wound/ Automatic and Quarts.

3.HMT CHINAR WATCHES:

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HMT CHINAR WATCHES LTD is also one of the subsidiaries engaged in the manufacture of Chinar model watches located in Srinagar, Kashmir State.

4. HMT BEARING LTD: HMT Bearing Ltd is one the subsidiaries engaged in the manufacture of different types of industrial bearing, situated in Hyderabad.

5. HMT INTERNATIONAL LTD: HMT International is engaged in the export of HMTs ranges of product Worldwide HMT (I) also marketed other Engineering Products in the World Market and backed by a good sales and service network also undertake Turnkey Projects and technical services for developing countries. 6.PRAGA TOOLS LTD: Praga tools limited is also a subsidiary of HMT Ltd engaged in the manufacturing of Machine Tools located in Hyderabad.

PRODUCT PROFILE THE KALAMASSERY COMPLEX OF HMT, KALAMASSERY.

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The Kalamassery Unit, the Forth Machine Tools Ltd was established in 1963 and started production in 1964. The Unit originally manufactured only two types of Lathes namely, H&LB, but later added special purpose Lathes like Copying and Turret. Lathes. Model LT-20 was the first product to be indigenously developed by the unit (1968) and the development of this product was a landmark in the history of the unit. The production of this machine was later licensed to M/s QETCOS Kerala, MATOOLS, Philippines, Ceylon steel corporation Srilanka. The original Centre Lathes H & Lb were then replaced by a new family of unified series of lathes which was designed and developed by the unit, incorporating the concept of typification, standardization and unification. PRODUCT

DEVELOPMENT

AT

MACHINE

TOOL

LIMITED

KALAMASSERY. The following products are developed by the machine tools unit of Kalamassery indigenously. YEAR

PRODUCT

1969-70

LT-20

1976-77

NH/NL

1976-77

FC-25

1980-81

TL-20

1981-82

NHCNC

1981-82

SBCNC 35

1982-83

SBCNC 35

1986-87

STC 25

1990-91

STC 15

1991-92

ECONO CNC 15

1992-93

STC 20

1993-94

STC 20

1994-95

NL 180

1996-97

TS 20 (Tcom Spindle)

1997-98

AUTOCOMP

1997-98

STALLION-200

1999-2000

AUTOMAN

2000-01

STALLION-100

2003

M CELL

2004

SMC WITH GANTORY LODER

2004

STALLION 100s

2007

MEGATURN.

DIVERSIFICATION OF KALAMASSERY UNIT AND BIRTH OF PRINTING MACHINE DIVISION During the period of 1972-73, kalamassery unit diversified its product range to include Printing Machinery division (PMK) was with the two types of latter presses namely. RTE and RTAFunder collaboration with m/s Nebiolo of Italy. Auto platen an indigenous development comes up subsequently. During the ensuring years Printing Machinery Division come up with offset presses namely OMIR in collaboration with m/s Nebiolo. Later indigenous offset presses namely .SOM 136 was introduced in the market. The first two color machine from HMT was OMIR in collaboration with M/s Koenig and Bauer of Germany. The latest development of PMK was paper cutting, Guillotine PG 92 D3 in collaboration with m/s Divano Binder of Italy 16

THE CURRENT PRODUCT RANGE PRODUCT

MODEL

OFFSET PRINTING MACHINES

SOM 436 SOM 425 SOM 236 SOM 231 SOM 225 SOM 136 SOM 131 SOM 125G PG-92 D3

PAPER CUTTING MACHINES The Kalamassery unit of HMT is famous for development activities. Thus product has always fetched awards and prizes at different Trade fairs and Competitions. To name a few are prizes begged in different IMTEX fairs by FC-25, SBC and SBCNC Machines. The CNC Lathe Model STC -25 has won VASVIK Industrial Research Award 1987 instituted by the Vivdhalaxi Audyogile Samsodhan Vikar Kendra (VASVIK) Mumbai for o/s advancement of Science and Technology. The Machine tool product of this unit has been certified by RWTUVReinsih West Falischer Techniser Uber Wachiengs Verein – an international certification agency of high repute as confirmining to Total Quality Management System.

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Both the divisions have been awarded ISO 9001 certification by IRQS The manufacturing shops at MTK are supplied by various infrastructural facilities like, High Technology CNC Centers, Testing facilities, Foundry ,Heat Treatment, Computer system CAD system etc. Around 800 well experienced form the human resources of the unit keeping in line with the current corporate trends. TRAINING CENTRE This Unit views HRD as one of the concern to increase productivity and enhance Social Stranding. The company has a well established training system by personnel of technical and management skills. The HRD undertaken by them includes the following:1.

Management Orientation Programmes 2. Supervisory Development programs 3. Customer Training Programmes to equip the customer for the optimum utilization of HMT Machines. 4. Periodic awareness Training programmes for employees relating to safety, quality Advanced Technology, Information Technology etc. 5. Multi-skill Training to Machine Operators. 6. Induction and in plant Training to Fresh recruits and Transferees. 7. Apprentice Training Programmes under the apprentice Act. 8. Project guidance in Management and Technology to students.

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THE MARKETING NETWORK OF HMT MTL Ltd. The Machine Tools Marketing Divisions with its head quarters at Bangalore and having a wide network of Regional and Divisional

offices

spread through –out caters to the marketing needs of this Unit at the primary level, to co-ordinate the marketing activities at the unit level and to offer technical support to Machine tools. Marketing, a strong sales and services team is constituted at unit level .HMT’smajor Customers includes defense, Railways, Automobile and other Engineering Industries in Various sectors. MAIN INLAND COMPETITORS FOR THE UNIT’S PRODUCTS 1. Mysore Kirlosker Ltd. 2. ACE Designers. 3. NC Machines Private Ltd. 4. Lakshmi Machine Work.

MAIN FOREIGN COMPETITORS FOR THE UNIT’S PRODUCTS 1. Okuma, Japan. 2. Nori saiki. Co. Ltd Japan. 3. Tukisama, Japan. 4. Muzak, Japan. 5. Ikegai, Japan. 6. GDM, Germany. 7. Churchill, England. 8. Ernault Toyota, Japan.

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9. Victor, Taiwan. 10.Tuma, Korea. 11.EMAS, Germany. WELFARE MEASURES IN HMT, KALAMASSERY 1. Company Quarters are provided to employees. 2. Subsidized Transport facility is provided for employees residing outside HMT Township. 3. Company sponsors a central welfare association has subsidiary clubs, that is Arts and Dramatic Club, Sports club, Social club, Educational society. ISO

9000:INTERNATIONAL

STANDARDS

FOR

QUALITY

MANAGEMENT Good quality system consists of sound technical and administration procedures for assuring quality. QA offers more scope for reducing costs prerequisites and characteristics of good quality assurance and quality management. The challenge to a developing nation is to motivate processors and manufactures to adopt and implement these standards and to establish a credible nation quality registration scheme, which will be recognized by trading partners. In a increasing no of markets and industries third party quality assessments and registration is becoming a pre requisite for doing business.ISO 9000 registration is considered the minimum acceptable level for supplier and those who cannot demonstrate this minimum level may not only have difficulty in selling a certain markets they may be barred from those markets. Not only must a defendant be able to demonstrate that the 20

product is manufactured consistently with in a system that conforms at least two internationally acceptable standards. IN ADDITION, ISO 9000 SERIES STANDARD ALSO:

Motivates Exporters..  Set a base line  Establishes reasonable standards for Government Procurement.  Focus Training and Professional Development.  Sets general market procedure for regulating health and safety.  Reduces time consuming audits by consumers and regulators.  Raises level of motivation, co-operation, workmanship and quality awareness.  Improves efficiency reduces scrap and rework  The following topics are dealt within the ISO 9000 series of standards. 1. ISO 9000 – Quality management and quality assurance standard section and use. 2. ISO 9001 – Model of quality assurance in design /development, production installation and servicing. 3. ISO 9002 – Model for quality assurance in production and installation. 4. ISO 9003 – Model for quality assurance in final inspection. 5. ISO

9004

–Guidelines

on

development

of

quality

management system to minimize costs and maximize benefits.

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Kalamassery unit The kalamassery Unit was commissioned on October 2nd 1964 with an initial investment of Rs 7.5 crores in Ernakulum district near the Cochin Port .The total plot of the unit was 1150 acres. It is the second unit and fourth division of HMT Company. The kalamassery unit started with machine tool division since 1965. Then Printing machinery division with additional investment of Rs 3.3 crores .In 1994 the company earned ISO 9001 certificate. Welfare facilities 1.

HMT School 2. SBT Branch 3. Bharath Gas supply unit (only for employees)

The kalamassery Unit manufactured only2 Types of lathes namely H & LB but added special purpose lathes like copying and current lathes. Model LT: 20 was first product indigenously developed by the unit in 1968. Corporate Objectives and goals 1.

To encourage the modernization of Indian industry through the supply

of engineering goods and services of world class excellence. 2. To technological leadership through continuous efforts to update product technology and manufacturing methods.

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3. To globalize our operation by developing a mix of international markets and business. 4. To ensure a satisfactory return on capital employed to meet the growth needs and aspiration of our share holders. 5. To present an active and pleasant working environment.

Company Mission “Quality, Reliability & commitment “is the main mission of the company .HMT machines are designed to meet the functional requirements so as to give “maximum customer satisfaction”. 1.

To establish as one of the world premier companies in the engineering

field having strong international competitiveness. 2. To achieve market leadership in India through ensuring customer satisfaction. 3. To achieve sustained growth in the earning of the group on behalf of share holders. 4. Wealth maximization. Vision 

To be a leading global engineering conglomerate focused on

customers delight in our fields of endeavors. 23

ORGANIZATION STRUCTURE 24

25

COMPANY STRUCTURE

HMT LTD

HMT WATCHES LTD

HMT MTL

FACTORIES

KALAMASSE RY

HMT INTERNATIONA L LTD.BANGLORE

HMT CHINNAR WATCHES, KASHMIR

HYDERABA D

BANGLORE

HMT BERINGS, HYDERABAD

PRAGA TOOLS LTD, HYDERABAD

AJMIR

PINJORE

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OBJECTIVES

1) To know the ways to retain employees in big bazaar Ltd. 2) To study various factors that helps in employee retention.

REVIEW OF LITERATURE (EMPLOYEE RETENTION). 27

1) Employers have a need to keep employees from leaving and going to work for other companies. This is true because of the great costs associated with hiring and retraining new employees. The best way to retain employees is by providing them with job satisfaction and opportunities for advancement in their careers (Eskildesen 2000, Hammer 2000). 2) Employees that are satisfied and happy in with their jobs are more dedicated in doing a good job and taking care of customers that sustain the operation. Job satisfaction is something that working people seek and a key element of employee retention (Marini 2000; Denton 2000). 3) Research has shown that there may be many environmental features that can be created and maintained to give employees job satisfaction. Pay and benefits, communication, motivation ,justice and leisure time all seem to play a part as to whether employees are satisfied with their jobs, according to studies which helps to retain employees. (Brewer 2000; Employee 2000; Money 2000; Wagner 2000). 4) The employees are extremely crucial to the organisation since their value to the organization is essentially intangible and not easily replicated Meaghan et al. (2002). Therefore, managers must recognize that employees as major contributors to the efficient achievement of the organization’s success (Abbasi et al. (2000)). 5) Employee engagement, the organization’s capacity to engage, retain, and optimize the value of its employees hinges on how well jobs are designed, how employees' time is used, and the commitment and support that is shown to employees by the management would motivate employees to stay in organization’s (Johnson et al (2000)). 6) Knowledge accessibility, the extent of the organisation’s collaborativeness and its capacity for making knowledge and ideas widely available to employees,would make employees to stay in the organisation. Sharing of information should be made at all levels of management.This accessibility of information would lead to strong performance from the employees and creating strong corporate culture Meaghan et al. (2002).

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7) Workforce optimization, the organisation’s success in optimizing the performance of the employees by establishing essential processes for getting work done, providing good working conditions, establishing accountability and making good hiring choices would retain employees in their organisation. (Badawy, 1988; Basta and Johnson, 1989; Garden, 1989; Parden, 1981; Sherman, 1986). 8) With increased competitiveness on globalizations, managers in many organizations are experiencing greater pressure from top management to improve recruitment, selection, training , and retention of good employees and in the long run would encourage employees to stay in organizations ( Kanungo,1982). 9)Involvement in terms of internalizing values about the goodness or the importance of work made employees not to quit their jobs and these involvements are related to task characteristics. Workers who have a greater variety of tasks tend stay in the job (Couger, 1988; Couger and Kawasaki, 1980; Garden, 1989; Goldstein and Rockart,1984). 10) Job satisfaction, job involvement and organisational commitment are considered as some employee retention factors (Brooke and Price, 1989). 11) Organisational commitment is an affective response to the whole organisation and the degree of attachment or loyalty employees feel towards the organisation. Job involvement represents the extent to which employees are absorbed in or preoccupied with their jobs and the extent to which an individual identifies with his/her job (Brooke et al., 1988). 12) Empowerment of employees could help to enhance the continuity of employees in organisations (Malone, 1997). 13) Superiors empowering subordinates by delegating responsibilities to them leads to subordinates who are more satisfied with their leaders and consider them to be fair and in turn to perform up to the superior’s expectations (Keller and Dansereau, 1995). 14) Retaining talent is difficult but not impossible. The employees and supervisors are required enough to sensitize the reasons as why do employees quit the organizations and what makes them motivated to stick to them. There is end number of reasons for driving people out of their jobs. 29

But if the employees and supervisors smartly sensitize to the issues related to employee attrition and devise retention strategies judiciously the talented employees can be retained.(Dr S R Chary, Prof Harish Kumar) 15) Retention experts agree that businesses can keep the talented people they have worked hard to secure, and don't have to spend a lot of money to do so. "It is not about having to pay exorbitant salaries," says Daniel Dixon of Consolidated-Products. "It's about creating a vested interest for employees and that can be done with simple creativity and a little effort."

REFERENCES 1) Personnel Management, 2 (3):333-342.

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2) Badawy MK (1988). "What we’ve learned about managing human resources in R&D in the last fifty years", Res. Technol.Manage. 31(5): pp.19-35. 3) Brooke PP, Russell DW, Price JL (1988). "Discuss validation of measures of job satisfaction, job involvement and organizational commitment", J. Appl. Psychol. 73 (2) : 139-145 4) Couger DJ (1988). "Motivators vs. demotivators in the IS environment", J. Syst. Manage. 39 (6):36-41. 5) Garden AM (1989). "Correlates of turnover propensity of software professionals in small high tech companies", R&D Manage. 19 (4):325-34. 6) Johnson J, Griffeth RW, Griffin M (2000). "Factors discrimination functional and dysfunctional sales force turnover", J. Bus. Ind. Mark.15 (6): 399-415. 7) Keller T, Dansereau F (1995). "Leadership and empowerment: a social exchange perspective". Hum. Rel. 48 (2):127-146. 8) Meaghan Stovel, Nick Bontis (2002), Voluntary turnover: knowledge management-friend or foe? J. intellect. Cap. 3 (3): 303-322 9) "The relationship between factors in the work environment and turnover propensities among engineering and technical support personnel", IEEE Transactions on Engineering Management, 33: 7278. 10) Malone TW (1997). "Is empowerment just a fad? Control, decision making, and IT", Sloan Manage. Rev. 38 (2): 23-9. 11) Image Theory: Decision Making in Personal and Organizational Contexts, pp. 3-10 12) “Development of the job diagnostic survey” J. Appl. Psychol. 60: 15970. 13) Kerala Personnel- pp 24-26

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14) By Boyens, John ,Publication: Franchising World 15) By Rivenbark, Leigh,Publication: HRMagazine

RESEARCH METHODOLOGY Research is an organized, systematic, data based investigation into a specific critical, objectives, scientific inquiry or problem undertaken with the purpose of finding answers of solution of it Research design is the blue print for the collection measurement and analysis of data. RESEARCH DESIGN. A research design is the measurement, collection and analysis of data. The research comes under descriptive research. Research purpose may be grouped into four categories: 1) 2) 3) 4)

Exploratory Descriptive Diagnostic Experimentation

DATA COLLECTION Data collection method is the integral part of research design. There are several data collection methods, each with its own advantages and disadvantages. Data can be collected in a variety of ways in different settings from different sources. The data are classified into two categories, primary and secondary data.

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PRIMARY DATA Primary data refer to information obtained first hand by the researcher. In this study the researcher used interview method by using structured questionnaires, telephone interviews for collecting the primary data. Here Primary data was collected through questionnaires. SECONDARY DATA Secondary data can be obtained from the publications, industry analysis offered by the websites, internet and so on. In this survey the secondary data collected from the journals, books & from HMT Machine Tools Ltd, Kalamassery. TARGET GROUP Employees of HMT Machine Tools Ltd are the target group for this study. SAMPLE SIZE The sample size taken was 100 employees of HMT Machine Tools Ltd, Kalamassery. SAMPLING EXTENT The survey was conducted at HMT Machine Tools Ltd, Kalamassery. SAMPLING TECHNIQUE In this study the researcher adopted convenience sampling technique. Convenience sampling refers to the collection of information from members of the population who are conveniently available to provide. In this the researcher selected 100 as sample size from the population.

QUESTIONNAIRE DESIGN AND TESTING The questionnaire used was mainly quantitative with few qualitative questions. The questionnaire before being used in survey was tested with a pilot study and corrections were made with the help of guide from the

33

organization and from the faculty of Department of Management Studies that made it more effective.

RESEARCH TOOLS 1. Survey- Detailed questionnaire were given to employees to get the primary data for the project. 2. Questionnaire- Primary data were collected by means of questionnaire. 3. Statistical tool- After the data has been collected, an analysis has been done with the data using simple percentage analysis. LIMITATIONS OFF THE STUDY 1. Getting suggestions from the employees were very difficult as they had only very little free time to spare. 2. Due of the shift system some of the employees were not available for the interview. 3. Some of the employees might not have understood the real purpose behind the survey and hence their answers were vague and not up to the point. 4. The conclusion was made upon the information obtained from 100 employees only. As in any sample it may not be an exact representation of the population and there may be variation in the findings to that extend. In spite of all the limitations maximum care and effort were taken to make the study scientific and meaningful.

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ANALYSIS AND INTERPETATION The data analysis and interpretations were done from the following collected from the employees.

data

AGE GROUP OF EMPLOYEES NO RESPONDENTS BELOW 30 0 30-40 0 40-50 43 50-60 57 AGE

OF PERCENTAGE ANALYSIS 0 0 43 57

AGE OF EMPLOYEES

NO OF RESPONDENTS

60 50 40

NO OF RESPONDENTS

30

PERCENTAGE ANALYSIS

20 10 0 BELOW 30

30-40

40-50

50-60

AGE

From the above data 57% of employees are aged between 50 and 60, 43% of employees are aged between 40 and 50 and others are zero.

35

EXPERIENCE IN THE ORGANISATION NO RESPONDENTS

YEARS BELOW 5 5 to 10 10 to 15 15 to 20 ABOVE 20

OF PERCENTAGE ANALYSIS

0 0 6 83

0 0 6 83

11

11

NO OF RESPONDENTS

EXPERIENCE IN THE ORGANISATION 90 80 70 60 50 40 30 20 10 0

NO OF RESPONDENTS PERCENTAGE ANALYSIS

BELOW 5 to 10 10 to 15 15 to 20 ABOVE 5 20 YEARS

From the above data 11% of employees have experience more than20 years, 83% of employees have experience between 15 and 20 years, 6% of employees have experience between 10 and 15 and others are zero.

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RATE OF MONETARY BENEFITS IN THE ORGANISATION NO RESPONDENTS

RATING VERY GOOD GOOD BAD VERY BAD

6 20 51 23

OF PERCENTAGE ANALYSIS 6 20 51 23

RATE OF MONETARY BENEFITS

NO OF RESPONDENTS

60 50 40

NO OF RESPONDENTS

30

PERCENTAGE ANALYSIS

20 10 0 VERY GOOD

GOOD

BAD

VERY BAD

RATING

51% of employees said that the monetary benefits in the organization is bad, 23% of employees rated monetary benefits in the organization as very bad, 20% rated as good and only 6% rated the monetary benefits in the organization as very good.

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RATE OF ADDITIONAL BENEFITS ADDITIONAL BENEFITS TRANSPORTATION ALLOWANCE IMPROVEMENT IN TOWNSHIP TRAINING IN OTHER INSTITUTIONS CANTEENFOOD VARIETY MEDICAL- ACCIDIENT INSURANCE

NO OF PERCENTAGE RESPONDENTS ANALYSIS 29

29

6

6

17

17

8

8

40

40

45 40 35 30 25 20 15 10 5 0

NO OF RESPONDENTS

MEDICALACCIDIENT INSURANCE

TRAINING IN OTHER INSTITUTIONS

PERCENTAGE ANALYSIS TRANSPORTATIO N ALLOWANCE

NO OF RESPONDENTS

RATE OF ADDITIONAL BENEFITS

ADDITIONAL BENEFITS

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40% rated accident insurance as most important additional benefit required, 29% for transportation allowance, 17% for training in other institutions, 8% for canteen food variety and 6% for improvement in township.

RATE OF REASONS FOR LEAVING THE ORGANISATION NO OF RESPONDENTS 51 6

REASONS

FINANCIAL PROBLEMS STRESS BETTER EMPLOYMENT OPPURTUNITY 29 STAGNATION 14

PERCENTAGE ANALYSIS 51 6 29 14

60 50 40 30 20 10 0

NO OF RESPONDENTS

BETTER EMPLOYEMEN T OPPURTUNITY

PERCENTAGE ANALYSIS FINANCIAL PROBLEMS

NO OF RESPONDENTS

RATE OF REASONS FOR LEAVING THE ORGANISATION

REASONS

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51% rated financial problem as the major reason for leaving the organization, 6% rated stress, 29% rated better employment opportunity and 14% rated stagnation as the major reason.

POSITIVE MOTIVATIONAL RETENTION

ACTIVITIES

WILL

INCREASE

NO OF PERCENTAGE RESPONDENTS ANALYSIS

RATING STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

6 38 4 44

6 38 4 44

8

8

NO OF RESPONDENTS

RATE OF POSITIVE MOTIVATIONAL ACTIVITIES 50 45 40 35 30 25 20 15 10 5 0

NO OF RESPONDENTS PERCENTAGE ANALYSIS

STRONGLY AGREE

NEUTRAL

STRONGLY DISAGREE

RATING

40

38% agreed that positive motivational activities will increase retention, 44% disagreed, 8% strongly disagreed, 4% rated as neutral and only 6% strongly agreed to this point.

RATE OF WELFARE SCHEMES IN THE ORGANISATION RATING VERY GOOD GOOD BAD VERY BAD

NO OF RESPONDENTS

PERCENTAGE ANALYSIS

6 45 23 26

6 45 23 26

NO OF RESPONDENTS

RATE OF WELFARE SCHEMES 50 45 40 35 30 25 20 15 10 5 0

NO OF RESPONDENTS PERCENTAGE ANALYSIS

VERY GOOD

GOOD

BAD

VERY BAD

RATING

45% rated welfare schemes as good, 23% as bad, 26% as very bad and 6% rated as very good.

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RATE OR ENVIRONMENTAL FACTORS 1) RATING OF VENTILATION, JOB SHIFTS GIVEN TO EMPLOYEES

RATING STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLYDISAGREE

NO OF RESPONDENTS 17 46 23 8 6

PERCENTAGE ANALYSIS 17 46 23 8 6

50 45 40 35 30 25 20 15 10 5 0

NO OF RESPONDENTS

STRONGLYDIS AGREE

DISAGREE

NEUTRAL

AGREE

PERCENTAGE ANALYSIS

STRONGLY AGREE

NO OF RESPONDENTS

RATING OF VENTILATION, JOB SHIFTS GIVEN TO EMPLOYEES

RATING

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17% strongly agreed that proper ventilation, job shifts are provided to them. 46% agreed, 8% disagreed, 6% strongly disagreed and 23% said it as neutral.

2) RATE OF SAFETY MEASURES IN THE ORGANISATION

RATING STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

NO RESPONDENTS 8 17 20 43

OF PERCENTAGE ANALYSIS 8 17 20 43

12

12

NO OF RESPONDENTS

12%

8% 17%

STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

43%

20%

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8% of employees strongly agreed that safety is provided to them. 17% agreed, 20% said it as neutral, 43% disagreed and 12% strongly disagreed.

RATE OF JOB SATISFACTION 1) RATE OF WORK EQUIPMENTS PROVIDED NO RESPONDENTS

RATING STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

OF PERCENTAGE ANALYSIS

11 51 19 11

11 51 19 11

8

8

NO OF RESPONDENTS

8%

11%

11%

19% 51%

STRONGLY AGREE

AGREE

NEUTRAL

DISAGREE

STRONGLY DISAGREE

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8% of employees strongly disagreed that necessary work equipment are provided to them. 51% agreed, 19% said it as neutral, 11% disagreed and 11% strongly agreed.

2) RATE OF OPPORTUNITY PROVIDED NO OF PERCENTAGE RESPONDENTS ANALYSIS STRONGLY AGREE 14 14 AGREE 43 43 NEUTRAL 23 23 DISAGREE 14 14 STRONGLY DISAGREE 6 6 RATING

NO OF RESPONDENTS STRONGLY AGREE

AGREE

NEUTRAL

6% 14%

23%

DISAGREE

STRONGLY DISAGREE

14%

43%

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6% of employees strongly disagreed that enough opportunities are provided to them. 43% agreed, 23% said it as neutral, 14% disagreed and 14% strongly agreed.

3) RATE OF EMPLOYEES OPINION CONSIDERED BY ORGANISATION

NO OF PERCENTAGE RESPONDENTS ANALYSIS

RATING STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

11 14 57 12

11 14 57 12

6

6

NO OF RESPONDENTS

60 50 40

NO OF RESPONDENTS

30

PERCENTAGE ANALYSIS

20 10

RE E G

RE E G LY

D

DI S

IS A

AG

AL

E AG RE

NE UT R

N RO ST

ST

RO

N

G LY

AG RE

E

0

RATING

46

6% of employees strongly disagreed that employee’s opinion are considered by the organization. 14% agreed, 57% said it as neutral, 12% disagreed and 11% strongly agreed.

RATE OF RIGHT JOBS GIVEN TO RIGHT PERSON

RATING

NO OF RESPONDENTS PERCENTAGE ANALYSIS

YES

52

52

NO

48

48

RIGHT JOB TO RIGHT PERSON

NO OF RESPONDENTS

53 52 51 50

YES

49

NO

48 47 46 NO OF RESPONDENTS

PERCENTAGE ANALYSIS RATING

52% of employees said that right jobs are given to right person whereas 48% said that right jobs are not given to right person.

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FEEL AT ANY TIME TO LEAVE THE ORGANISATION

RATING

NO OF RESPONDENTS

PERCENTAGE ANALYSIS

YES

34

34

NO

66

66

LEAVE THE ORGANISATION

NO OF RESPONDENTS

70 60 50 40

YES

30

NO

20 10 0 NO OF RESPONDENTS

PERCENTAGE ANALYSIS RATING

48

66% of employees think not to leave the organization whereas others think differently.

SUMMARY

FINDINGS 1. The survey reveals that majority of employees working in the organization are aged more than twenty years. 2. Majority of employees rate monetary benefits compared to their experience in the organization was bad. From the survey I can find that this was the serious issue of labour turn over in the organization. 3. Majority of employees demand that they want additional benefits which will provide some relief to employees. 4. Employees agreed that good working environment will reduce attrition rate. 5. Majority of the employees rated that the welfare activities in the organization was good. 6.Most of the employees agreed that positive motivational activities will increase employee retention.

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SUGGESTIONS 1. Change the present salary structure so as to make more earning to employees 2. Employees suggested some additional benefits such as: Transportation allowance Accident insurance Training in other institutions 3. The reasons employees expressed for leaving the organization are: Financial problem Stagnation Better employment opportunity

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ANNEXURE

QUESTIONNAIRE I Vijaya R , is conducting a study on employee retention in HMT Machine Tools Limited, Kalamassery. As a part of my academic purpose I am conducting a survey. I request your co-operation. (Make your choice in appropriate option by making a tick mark) 1) Designation----------------------------2) Department----------------------------3) Mention your gender a) Male b) Female 4) Your age a) Below 30

b) 30-40

c) 40-50

d) 50-60

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5) Years of experience in BIG BAZAAR? a) Below 5 years b) 5-10 years c) 10-15 years d) 15-20years 6) Your opinion about monetary benefits existing in BIG BAZAAR a) Very good b) good c) bad d) very bad 7) Do you agree that additional benefits other than salary will prevent you from leaving the organization? a) Yes b) No 8) If agree, grade the benefits according to your preference *(Grade as 1,2,3,4,5. eg 1- Highly preferred, 2 for the one which you think is less preferable when compared to1.) a) Transportation allowance b) An improvement in township c) Training in other institutions d) Canteen- Food variety e) Medical facilities- accident insurance 9) Grade according to your opinion the reasons that make you to leave the Organization *(Grade as 1,2,3,4,5. eg 1- Highly preffered , 2 for the one which you think is less Preferable when compared to1.) a) Financial problems b) Stress c) Better employment opportunity d) Stagnation 10) Positive motivational activities such as recognitions, appreciations etc from superiors will motivate you to continue in the organization. a) Strongly agree b) agree c)neutral d)disagree e) strongly disagree 11) How do you rate the welfare schemes in the organization? a) Very good b) good c) bad d) very bad 12)

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ENVIRONMENTA STRONGLY AGREE NEUTRAL DISAGREE STRONGLY L FACTORS AGREEE DISAGREE a) Enough space, ventilation, job shifts are given to you b) Good safety measures are there in the organization

13) JOB STRONGLY AGREE NEUTRAL DISAGREE STRONGLY SATISFACTION AGREE DISAGREE a) Do you have the materials and equipment that you need in order to do your work rightly? b) At work do you have the opportunity to do what you do best everyday? c) At work do your opinions seems to be counted? 14) Do you think higher authorities are giving right jobs to right person? a) Yes b) No 15) Have you ever thought of leaving the organization? a) Yes b) No If yes please reveal the reason in the space provided-----------------------------------------------------------------------------------------------------------------------------------------

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