Big Bazaar Attrition

“Employees Satisfaction and Attrition”

At “Big Bazaar (Future Retail Group)”

Submitted in partial fulfillment of the requirements for the award of The degree of  Master of Business Administration

Submitted to: Punjab Technical University

Jalandhar  By: “Aysha Parveen”

Registration no-9212400077 no-9212400077 Under the guidance of  “Prof. Aswathi Nair”

#70, 2nd Main Road, 3rd Cross, Kanaka Nagar, Nagawara, BANGALORE – 560 032 2009 - 11 GUIDE CERTIFICATE

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This is to certify that the Project titled “Employees Satisfaction and Attrition” is a bonafide work  carried out by Ms. Aysha Parveen in partial fulfillment fulfillment for the award of Degree of Master of  Business Administration under Punjab Technical University, during the year _20010-2011. This Project Report has been approved app roved as it satisfies the academic requirements in respect of   project work prescribed for the award of MBA Degree.  Name of the Guide: Prof. AswatTi Nair  Signature of the Guide:  Name of the Student: Aysha Parveen Signature of the Student: External Examiner

Internal Examiner  (Declaration by the student on Plain Paper) Pape r)

DECLARATION

I hereby declared that this this project titled titled “ Employees Satisfaction and Attrition “ , is submitted to the Punjab Technical University University as a partial requirement for the award of Degree of Master of Business Administration, during the year 2010-2011.

It is the record of an original & independent study carried out by me, under und er the total guidance and supervision of Mr. Raghavendra poojari are a re HR of Big Bazaar BMTC. This project report has not been submitted earlier by me or by anybody else for the award of any other degree in

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any University in India or abroad.

Date: Place:

Signature of the Student Bangalore

(Aysha Parveen)

ACKNOWLEDGEMENT I would like like to express my sincere thanks thanks to the Director Director & Management of International International Institute of Business Business Studies, Bangalore, for their valuable guidance & support. I am extremely thankful & grateful to Prof. Aswathi Nair for her constant g uidance & encouragement throughout the study. I would like to express my sincere thanks & gratitude to Mr. Radhvendra Poojaray of (Big Baza Ba zaar ar BMTC BM TC)), for her support suppo rt & guidance guidanc e during my stay in their the ir organization. organiz ation. I would also like to express my devoted thanks to my beloved parents & my friends for their  relentless support & assistance to make this project a reality. Last but no t the least; I would like to thank all my respondents for their co-operation & participation in data collection, which has enabled me to complete the project successfully.

Date: Place:

Signature of the Student Bangalore

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(Aysha Parveen)

EXECUTIVE SUMMARY In spite of the theoretical knowledge gained through classroom and organization study in my  project I got that the basic problem faced my organization means Big Bazaar is employees moral and attrition. I have work and search there more than 2 months as a HR trainee. To find the basic problem of employees satisfaction and attrition. To find the attrition rate for  the current year at Big Bazaar in BMTC and competitions from how much percentage of  attrition is increasing per annum. To ascertain the various reasons responsible for the attrition of  staffs. Increase the productivity of the organization can achieve their organization goal. To bring out the strategies to retain manpower in the store. To attract more number of new employees and find ways to sustain them in the company. For my project I have done so many activities like direct interaction with employee, existing interview, HR help and some internet guide. The attrition rate was high in the Big Bazaar BMTC in the year of 2010. Because of lots of  competition is here after inflation lots of opportunities are available here and each and every  person want more and more salary than their ability. Every organization tries to negotiate with their employee so they give less salary/wages to their employees. Attrition have both good as well as bad effect according to employees when a prospective employees leave the organization than it has negative effective and when a non prospective employees leave the organization than it has positive effect so it is good under limitation but when it become more than it has only bad effect. I recommended that HR and CO of Big Bazaar shall increase the cost of company, and give some extra convenience to their employees like they can use their mobile in break time or  company can provide telephone for emergency time so they can talk with their family. Organization decision is so sticky it should be little bit soft or polite.

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TABLE OF CONTENTS

CHAPTERS

CONTENTS

PAGE NOS.

INTRODUCTION

9-20

RESEARCH METHODOLOGY

20-25

REVIEW OF LITERATURE

25-38

PROFILE OF THE WORLD CLASS RETAIL

39-57

1.

2.

3.

4.

BRAND “SPAR (MAX) HYPERMARKETS”

5. ANALYSIS & INTERPRETATION OF DATA

6.

58-95

SUMMARY OF FINDINGS, CONCLUSIONS & RECOMMENDATIONS

95-100

7. BIBLIOGRAPHY

100-106

ANNEXURE

106-110

8.

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LIST OF TABLES

SL NO.

1.

DESCRIPTION

FACTORS AFFECTING ATTRITION

PAGE NOS.

11

STRUCTURE

2.

ORGANIZATIONAL STRUCTURE

52

3.

EMPLOYE SATISFACTION SURVEY

50

STRUCTURE

4.

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CAPITAL STRUCTURE OF BIG BAZAR 

66

5.

ANALYSIS AND INTERPRETATION

CHAPTER: - 1

INTRODUCTION

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68 - 86

INTRODUCTION

1.1

INTRODUCTION TO THE STUDY

1.1.1. ATTRITION AND EMPLOYEES SATISFACTION In Human Resources context, Attrition means a reduction in the number of employees through retirement, resignation or death is called Attrition. Attrition is also called total turnover or  wastage rate. In another hand I can say that” how long employees tend to stay on the job in a company that is called employees stability but when he leave that job or company for any reason that is called Attrition”. Employee’s turnover is measured on for individual companies and for  their industry as a whole. If an employer is said to have a high turnover relative to its competitors, it means that employees of that company have a shorter average tenure than those of other companies in the same industry. Low attrition is profitable for any company but high turnover can be harmful to a company’s productivity if skills workers are often leaving and the worker population contains a high percentage of novice workers.

Employee’s satisfaction: the term satisfaction describes a positive feeling about a job, resulting from an evaluation of its characteristics. A person with a high level of job satisfaction holds positive feelings about his or  her job, while a dis-satisfied person holds negative feelings. When people speak of employee attitudes, they usually mean job satisfaction. Employees satisfaction and employees turnover are inter related to each other. Employee satisfaction is a measure of how happy workers are with their job and working environment. Keeping morale high among workers can be of tremendous benefit to any company, as happy workers will be more likely to produce more, take fewer days off, and stay loyal to the company. There are many factors in improving or maintaining high employee satisfaction, which wise employers would do well to implement. To measure employee satisfaction, many companies will have mandatory surveys or face-to-face meetings with employees to gain information. Both of these tactics have pros and cons, and should be chosen carefully. Surveys are often anonymous, allowing workers more freedom to be honest without fear of repercussion. Interviews with company management can feel intimidating, but if done correctly can let the worker know that their voice has been heard and 10 | P a g e

their concerns addressed by those in charge. Surveys and meetings can truly get to the center of  the data surrounding employee satisfaction, and can be great tools to identify specific problems leading to lowered morale. Many experts believe that one of the best ways to maintain employee satisfaction is to make workers feel like part of a family or team. Holding office events, such as parties or group outings, can help build close bonds among workers. Many companies also participate in team building retreats that are designed to strengthen the working relationship of the employees in a non-work related setting. Camping trips, paintball wars and guided backpacking trips are versions of this type of team-building strategy, with which many employers have found success. Of course, few workers will not experience a boost in morale after receiving more money. Raises and bonuses can seriously affect employee satisfaction, and should be given when  possible. Yet money cannot solve all morale issues, and if a company with widespread problems for workers cannot improve their overall environment, a bonus may be quickly forgotten as the daily stress of an unpleasant job continues to mount. If possible, provide amenities to your workers to improve morale. Make certain they have a comfortable, clean break room with basic necessities such as running water. Keep facilities such as bathrooms clean and stocked with supplies. While an air of professionalism is necessary for  most businesses, allowing workers to keep family photos or small trinkets on their desk can make them feel more comfortable and nested at their workstation. Basic considerations like these can improve employee satisfaction, as workers will feel well cared for by their employers.

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Environme Peer Rolechallenge ORGANISATIONAL INDIVIDUAL OTHERS Ambitions/Career No Culture FACTORS AFFECTING pressure nt Related aspirations Growth No learning

Parental/Family and Style of boss mobility career Role clarity Personality paths Role stress factors Pay Lack of  packets independence

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ATTRITION

1.1.2 JUSTIFICATION FOR CHOOSING THIS TOPIC? Attrition in Big Bazaar :Attrition is very important for every organization. But high Attrition is big problem for  industries basically in Retail and Information Technology industries. The attrition rate has been on the rise for the past 5 years in Retail industries basically in Big Bazaar. According to my information in year 2011.I have studies in Big Bazaar on Attrition and Satisfaction and I got the ration on employees attrition in BMTC Big Bazaar is 1 3% per months this is basic problem for  company. And I recognize that is this basic problem and challenge for management. Attrition rate is very high in comparison with previous years. In most cases the employees who left were absconders- who did not attend the exit interview and follow proper exit policy. Following which the management had taken action by implementing employee’s engagement activities.  Now, our research would help in comparing it with the current year’s attrition rate and thereby reduce it by analyzing the reasons contributing to it. After review of literature expert’s opinion (Store managers of Big Bazaar Bangalore BMTC and their HR managers), we have formulated the questionnaire base on these broad areas. The basic reason for Attrition is Employees dissatisfaction and there have various causes for  dissatisfaction. Employees leave / quit the job basically for salary, employee satisfaction; low morale, work time is not so good or long works hours, high completion or it can be very low completion which is de-motivate the employees, nature o f work it can be quiet dangerous or not good for health, best opportunity availed outside of organization, management of organization it also a part of Employees Satisfaction because some time employees are not avail to cope or  manage their self with management they are dissatisfy with that or leave the organization, employees self steam and respect is very important for management if the salary of employees are low and they get more respect than also they want to continue their job. These are the basic reason for employee’s attrition. These are the basic reason for choosing this topic so easily I can understand the Human Resource Management because while this projects individually I meet most of employees and understand the Customer relation and employees value how to maintain this entire thing.

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1.1 SPECIFIC AREA OF THE TOPIC CHOSEN:The growth of retail industries are increases very rapidly, and Indian retail industries is the largest industry in world, with an employment of around 9% an d contribution of Retail sector in Indian economy has been written bellow with bullets:-

Indian Economy:➢ ➢ ➢ ➢ ➢

The 2nd fastest growing Economy in the world. The 3rd largest growing Economy in terms of GDP in nest 5 years. The 4th largest Economy in PPP terms after USA, China & Japan among the top 10 FDI destinations. Fastest-growing Asia Pacific Market for international tourist spending 8% Economy growth- expected to exceed that of China by 2015 and Expected to become the 3rd biggest economy in the world after China and US by 2030.

Retail growth in Indian Economy :➢ ➢ ➢ ➢ ➢ ➢

Retail Sector Total Consumer Spend : Rs. 20,00,000 cr ($ 445 bn) Retail : Rs. 12,00,000 cr ($ 270 billion) double digit growth expected Organized Retail : Rs. 55,000 cr ($ 12.4 bn) at current prices 40%+ annual growth expected Scope for Organized Retail: Rs. 2, 00,000 cr ($ 45 bn) by 2010. Average. Salaries hike of 15+ per cent: there will be lot more consumption. Leading retailer’s sales' growth: 50-100% in 2005-06

The Indian retail market, which is the fifth largest retail destination globally, has been ranked as the most attractive emerging market for investment in the retail sector by AT kearney’s eighth annual Global Retail Development Index (GRDI), in 2009. The e Share of  retail trade in the country’s gross domestic product (GDP) was between 8 -10 % in 2007. It is currently around 12 %, and is likely to reach 22 % by 2010. A Mc Kinsey report “the rise of India Consumer Market”, estimates that the Indian consumer market is likely to grow four times by 2025. Co mmercial real estate service company, CB Richard Ellis’ findings state that India’s retail market is currently valued at US$ 5511  billion. Further, CB Richard Ellis stated that India has moved up to the 39th most preferred retail destination in the world in 2009, up from 44 last year. India continues to be among the most attractive countries for global retailers. At US$ 511 billion in 2008, its retail market is larger than ever and drawing both global and local retailers. Foreign direct investment (FDI) inflows as on July 2009, in single-b Rand retail trading stood at approx. US$ 46.60 million, according to the Department of  Industrial Policy and Promotion (DIPP). The organized retail sector, which currently accounts for around 5% of the Indian retail market, is all set to witness maximum number of large format malls and branded retail market, is all set to witness maximum number of large format malls and  branded retail stores in South India, followed by North, West and the East in the next two years. 14 | P a g e

Current Target turnover in Rs. turnover in Rs. Crore Crore

outlets

Projected outlets

Pantaloon

8 00

1 .200

31

74 (by 2009)

R PG * *

75 0

1.600-1,700

1

12 (by march 2010)

Shoppers’ Shop

5 00

N.A.

13

40 (by 2010)

Life-style

3 00

6 50

7

15 (by 2010)

Westside

1 80

N.A.

13

21.23 (by 2010)

Ebony

91

1 50

8

14 (by 2010)

Pyramid

79

1 90

3

19 (next 4 years)

Globes

N.A.

N.A.

7

15-17 (by 2010)

Fig 1.2 1.2 Market share of Retailer 

1.3 COMPANY PROFILE:Future Group believes in developing strong insights on Indian consumers and building  businesses based on Indian ideas, as well as “Wall mart” concept. Kishore Biyani is chairman of  future group. He always stays in consult with Wall Mart Chairman and accepts his business strategy. Main vision and Mission of Future Group has been written bellow,

Company Vision: The Vision Statement is a sentence or a short paragraph providing a broad, b road, inspirational image of the future. Big Bazaar wants to be no. 1 retail store in world. Now Big Bazaar is only in India  but its target is serves most of the countries in world that’s by It’s delivering every things, everywhere, every time for every Indian consumer in the most  profitable manner at chief cost.

Company mission:

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Mission Statements are sentences or short paragraphs written by companies, corporations or   businesses which reflect their core purpose, identity, values and p rinciple business aims. Big Bazaar mission like, •

Role clarity and lack of ambiguity

•

Realistic aspirations, achievable

•

Alignment with organizational values and culture, Rational

•

Time bound about achieving any goal or objective.

We share the vision and belief that our customers and stakeholders shall be served only on ly by creating and executing future scenarios in the consumption space leading to economic development. We will be trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments for classes and for masses.

History of Big Bazaar:The worldwide country chain, Big Bazaar, is formed by CEO of Future Group, Mr. Kishore Biyani. The group do not promises p romises more than what it delivers. Their basic attraction associated with reasonable prices is their Unique Selling Price. Though, the products Big Bazaar stores stocks might not be advanced, but the customers are assured to avail the worth of the money spent by them. In 2001, the group opened its first store on the VIP Road, Calcutta, which was the primary departmental store offering regulated services of parking, steel vessels, apparel, electronics etc under the one roof at the competitive co mpetitive prices. Big Bazaar has become a massive hit with lower middle-class and middle class people as a major client base. At present, the Future Group comprises various formats and brands like Pantaloons, F123, Copper Chimney, Etam, Staples, One Mobile, Urbana, Brand Factory, LootMart, HomeTown and Central. The Big Bazaar has several stores located all over the India, among that Chennai, Hyderabad, Ahmedabad, Bangalore, Kolkata, Pune, Mumbai and Delhi is those metro cities where the stores of Big Bazaars are located. Big Bazaar is a chain of hypermarket in India, which caters to every ev ery family’s needs and requirements. This retail store is a subsidiary of Future group, Pantaloons Retail India Ltd. and is an answer to the United States’ Wal-Mart. Big Bazaar has released the doors for the fashion world, general merchandise like sports goods, cutlery, crockery, utensils, and home furnishings etc. at best economical prices. Big Bazaar group offers more than 100 stores all over the country with an amalgamation of  Indian bazaars’ feel and touch with a convenience and choice of the modern retail facilities. The retail format of the Big Bazaar group includes Andhra, Rural & Home-Town retail chain, Ezone home-improvement chain, sportswear retailer, depot and music chain is few among others. 16 | P a g e

Facilities offered by Big Bazaar:Online shopping: Big Bazaar has an official website, FutureBazaar.com, which is one of the most favorite sites among people of India for online shopping. FutureBazaar is an online  business venture of Future Group, which sells an assortment of products such as fashion, which includes merchandise for men and women, mobile accessories, mobile handsets and electronics like home theatres, video cameras, digital camera, LCD TVs, kitchen appliances and many more. •

Discounts: “Hfte ka sabse sasta din was introduced by the Big Bazaar, wherein extra and special discounts were offered on Wednesday every week, to attract the potential buyers into their store.

•

Security check: At each exit of Big Bazaar, they use alarm systems or Electronic Article

•

Surveillance system, which detects the products that has attached tags or not

Big Bazaar Baz aar :Type

Public (BSE: BSE: 523574) 523574)

Industry

Retailing

Founded

India

Headquarters

Mumbai

Area served

India

Key people

Kishore Biyani, (MD & CEO)

Products

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Discount Stores Supercenters

Parent

Future Group

Website

Pantaloon.com

1.3.1 ABOUT BIG BAZAAR : Big Bazaar, the flagship retail chain of the Future Group, is on the verge of achieving a unique milestone in the History of World Retail – by being the first hypermarket format in the globe to rollout fastest 101 stores in a short span of seven years. • •

•

•

•

•

•

Big Bazaar’s journey began in October 2001. Mr. Kishore Biyani said, “We initially decided to name the format as “Bazaar” because we had designed the store keeping the Indian mandi style in mind. Since the size of the hypermarket was big than an average mandis, the thought came to name it as “Big Bazaar”. However, we had freezed on the punch line “Isse Se Sasta Aur Achha Kahi  Nahi” much before we met the creative agency to design the final logo of Big Bazaar.” Though, Big Bazaar was started purely as a fashion format including apparel, cosmetics, accessory and general merchandise, the first Food Bazaar format was added as Shop-InShop within Big Bazaar in the year 2002. Today, Big Bazaar, with its wide range of   products and service offering, reflects the aspirations of millions of Indians. Says Rajan Malhotra, President, Strategy & Convergence, Big Bazaar, “What is important in our journey is not the number of stores, but the customers’ faith in us. It’s the India and the Indians, which have helped us, reach this feat in such a short time span and today our country is creating a history in the World organized Retail. Every Big Bazaar is a small family by its own and the head of the family – Karta – is the store manager. Kishore Biyani, the CEO of the Future Group, has a vast understanding of  the consumer’s insight, has inculcated the habit of ‘observing, understanding customers’  behavior’, in every employee of the group. Big Bazaar is a chain of hypermarket in India, which caters to every family’s needs and requirements. This retail store is a subsidiary of Future group, Pantaloons Retail India Ltd. and is an answer to the United States’ Wal-Mart. Big Bazaar has released the doors for the fashion world, general merchandise like sports goo ds, cutlery, crockery, utensils, and home furnishings etc. at best economical prices. Big Bazaar group offers more than 101 stores all over the country with an amalgamation of Indian bazaars’ feel and touch with a convenience and choice of the modern retail facilities. The retail format of the Big Bazaar group includes Andhra, Rural & HomeTown retail chain, E-zone home-improvement chain, sportswear retailer, depot and music chain is few among others.

In Big Bazaar there have 4th floor and six departments are which are dealing with the following  products in the respective departments.

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1. Food Bazaar:

As this department is the soul of the store, Big Baza ar has several categories within this department itself. This department has a surface area is approximate 800 square feet. This department is further divided into, • • • • •

 Non-food International Food Staples Food Fruits and Vegetables

1. General Merchandize: • •

Home Fashion Home Section

The home section has two major sections Plastics and Crockery (PC) amount to one section and Utensils (U) and New Business Development (NBD) from the other major part. The new Business Development section have items that are more a ffluent in nature and are part of  Kishore Biyani’s “Indian one” customers segment. This section sells luxury products like watches, sunglasses, auto accessories, and in Home F ashion Furniture, luggage, stationeries goods. Etcetera will come. 1. Apparels: • • • •

The apparels department is divided into three segments Men’s wear- Casual and Formal wear  Kids wear-Infants, boys and girls Ladies wear-Ethnic wear (Saris, Kurthas, and Dress Materials) and Western wear.

1. Wellness department:

This department comprises of cosmetics and a pharmacy-Fit and healthy. Fashion and Fashion shy 2. Additional Business : 19 | P a g e

• • • • •

•

Star & Sitara Food court South Indian Food  Nawarash Kala-mandir  Music world

CHAPTER -2

RESEARCH METHOLOGY

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2.1.Objective of studies There have basically two types of Objective for which purpose I have chosen this topics.

2.2 . Primary Objectives • • •

•

To find the basic problem of employees satisfaction and attrition Recruit right people at right time, and at right place To find the attrition rate for the current year at Big Bazaar in BMTC and competitions from how much percentage of attrition is increasing per annum. To ascertain the various reasons responsible for the attrition of staffs.

2.3. Secondary objectives: •

•

• •

2.1.

To solve the managerial problem of organization so they can achieve their  organizational goal. Increase the productivity of the organization can achieve their organization goal. To bring out the strategies to retain manpower in the store. To attract more number of new employees and find ways to sustain them in the company.

Scope of Studies • •

•

•

•

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To find out Employees satisfaction and attrition rate in Big Bazaar. What are problems Big Bazaar facing, how much is it good/bad for any organization. To check the level of satisfaction, high moral/ low morale, communication, internal relationship and cooperation of employees in organization. How can improve moral and reduce Attrition rate in organization so they can achieve their performance. To keep update with new and enthusiastic employees in organization according to time and situation.

2.3: RESEARCH METHODOLOGY: 2.3.1. Observation:• • •

Survey through Questionnaires To the help of HR manager and managing Directors To direct interaction with employees and leaders

2.3.2 Limitation of the studies:-

The research had several limitations in the data collection phase since left employees were taken as the population for the study. Since the questionnaire involved the collection of responses from the assistant department managers and leaders on the reasons of their subordinates exit, the reliability of this reach was less as it proved to be a perspective of secondary data. Some or the team leaders feared giving responses pertaining to career growth, as they felt that their information might reach their superiors. However on  promising their confidentiality of their views and responses, open and candid opinions poured up Some of the respondents felt difficult in comprehending the questionnaire especially those rotated to ordinal scale, which involve raking factors as per the importance, thereby, it had to be reworked upon which time was a consuming. As the figures and data of attrition, given by the company involved Staff  transfers within the internal departments, the list had to be re-checked and worked with the store HR. Since the HR manager of one of the branches had just five months experience, he had difficulty in collecting the past records viz. as the headcount of various departments in different months. •

•

•

•

•

Research design:In this project I am basically used descriptive research design an d black and white graphs / tables.

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2.3.3. Method of data collection :I have used both kind of data Primary data and Secondary data. Which is more than enough for  this project? The method and mode used for collecting these data are explained below.

Primary Data: For primary data I have direct survey/contract with Employees and taken support from management so employees of organization help me for this project and I have questionnaire.

Secondary Data: The secondary data I have collected from Internet, books and Journal, office web sites, and HR   portals for the project work.

RESEARCH INSTRUMENT: The research instrument used for collecting the data is questionnaire

Questionnaire: The Questionnaire is prepared in an organized and thorough manner and reframed accordingly after considering all the required aspects of the attrition analysis, using last year’s data. The scale ranges from a score of 1 for “Strongly Agree” to a score of 5 for “Strongly Disagree”.

Parameters used for the Survey: The factors which were taken into consideration for the attrition analysis survey are as follows; • • • • • • • • •

Employee moral Overall Satisfaction of the company Communication Training and developmental activities Grooming stander  Company policy and code and conduct Career Growth and Opportunist Work Environment and Working Condition Saturday Meeting etc.

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2.5. SAMPLING DESIGN :2.5.1. Population: Population taken for the study is the Assistant Department Managers (ADM)s and team leader  of Big Bazaar. 2.5.2. Sample Size: Since the company required responses from all the ADMs and team leaders, the sample size for  individual branches were as follows, Big Bazaar BMTC : - 50 Big Bazaar Banashankari: - 10 Big Bazaar Hebal: - 10 Big Bazaar Puttenahalli: -20

2.5.3 STATISTICAL TOOLS USED FO ANALYSIS:-

After data collection, statistical tools are used for analyzing the data and results are obtained. From the obtains results, findings and suggestions can be done. The statistical tools used in this  project for analysis are • •

Friedman Test Simple percentage analysis

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CHAPTER-3

REVIEW OF LITERATURE

REVIEW OF LITERATURE 3.1 Problems faced by Big Bazaar : BOTTLENECKS in infrastructure can play a spoilsport in an otherwise booming retail sector  cautioned industry experts at a retail conference organized recently by the Indian Retail Forum. Experts emphasized on companies first concentrating on supply chains and logistics before going ahead with expansion plans. 25 | P a g e

“Retail is not about making money, it’s about creating consumer choices benefiting them and finally ensuring consumer satisfaction. India has tremendous potential and it is up to the retailers to leverage upon it which can only be achieved by understanding the consumer and the market,” said Vikram Bakshi, MD, Mc Donald’s. Bakshi further said that high attrition rate is a cause of concern among the retailers as they are not making enough investments for providing proper training to the employees. "McDonalds faces as high as 83 per cent attrition rate but the company manages the problem through proper training modules," he added. Human capital management is a challenge for any IT manager or line of business manager in today's troubled economy. Acquiring, maintaining and promoting key talented employees is especially difficult in today's marketplace, where financial and corporate resources are stretched thin. Yet managers who think they can take key employees for granted usually learn this isn't the case--and they learn this lesson the hard way. Ziff Davis Enterprise Senior Vice President of Community & Content Stephen Wellman speaks with Bill Larkin, Principal at Executive Alliance, about the challenges of human capital management in today's market.

On the fast food chain's expansion plans in India, Bakshi said McDonald's will open close to 45 new restaurants by the end of 2007. It presently has 113 restaurants. It may be mentioned that a study released by realty consulting firm Jones Lang Lasalle Meghraj early last week had warned of a shakeout in the retail industry due to problems faced by players in areas such as infrastructure, logistics and manpower. The conference witnessed participation from as many as 25 0 CEOs of major retail chains that discussed issues faced by industry players in the domestic market. The event also saw participation from retailers like the Fu ture Group, Shoppers' Stop, Spencer's, Lifestyle, Trent, Globus and Pyramid among others. The conference focused on various issues regarding the existing retail and distributional channels, which can be synergized with the expansion in organized retail. India's retail sector is likely to create 2 million jobs by 2010, according to an Associated Chamber of Commerce and Industry study. 3.2 Literature Search:

3.2.1Business Definition for: attrition

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 Normal and uncontrollable reduction of a work force because of retirement, death, sickness, and relocation. It is one method of reducing the size of a work force without management taking any overt actions. The drawback to reduction by attrition is that reductions are often unpredictable and can leave gaps in an organization. 3.2.2. American Heritage Dictionary

Noun:1. A rubbing away or wearing down by friction. 2. A gradual diminution in number or strength because of constant stress. 3. A gradual, natural reduction in membership or personnel, as through retirement, resignation, or death. 4. Repentance for sin motivated by fear of punishment rather than by love of God. 5. We believed the decline in attrition is a result of the current economic conditions, as well

as timing of our annual bonus pay-offs. 3.2.3. Attrition (-tr sh n) 1. A rubbing away or wearing down by friction. 2. A gradual diminution in number or strength because of constant stress. 3. A gradual, natural reduction in membership or personnel, as through retirement, resignation, or death. 4. Repentance for sin motivated by fear of punishment rather than by love of God. 3.2.4. Attrition [ə trɪʃən] ˈ

1. The act of wearing away or the state of being worn away, as by friction 2. Constant wearing down to weaken or destroy (often in the phrase war of attrition). 3. (Business / Industrial Relations & HR Terms) also called natural wastage a decrease in the size of the workforce of an organization achieved by not replacing employees who retire or  resign 4. (Earth Sciences / Physical Geography) Geography the grinding down of rock particles by friction during transportation by water, wind, or ice Compare.

3.2.5. World English Dictionary

Attrition (ə trɪʃən) -N ˈ

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1. the act of wearing away or the state of being worn away, as by friction 2. constant wearing down to weaken or destroy (often in the phrase war of attrition ) 3. Also called: natural wastage a decrease in the size of the workforce of an organization achieved by not replacing employees who retire or resign 4. geography abrasion Compare corrosion the grinding down of rock particles by friction during transportation by water, wind, or ice 5. theol sorrow for sin arising from fear of damnation, esp. as contrasted with contrition, which arises purely from love of God [C14: from Late Latin attrītiō a rubbing against something, from Latin atterere to weaken, from there’re to rub] 3.2.6. Attrition From Wikipedia, the free encyclopedia

Attrition may refer to: •

Physical wear 

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Loss of personnel by Withdrawal (military)

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Attrition (medicine, epidemiology), the loss of participants during an experiment

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Attrition (dental), the loss of tooth structure by mechanical forces from opposing teeth

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Attrition (weathering), the wearing a way of rocks in the sea

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Imperfect contrition, also known as attrition, in Catholic theology

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Attrition warfare, the military strategy of wearing down the enemy by continual losses in  personnel and material Customer attrition, a business term used to describe loss of clients or customers Language attrition, the loss of a first or second language or a portion of that language by either a community or an individual War of Attrition, a limited war fought between Egypt and Israel from 1968 to 1970

3.2.7. Attention to Attrition is Key to Success:Attrition is one of the most serious concerns of the organizations today, irrespective of the industry in which they are operating. Attrition is all about people leaving organizations with the slightest provocation and having no respect and commitment to the company in which they are working. This article is aimed at analyzing the employee attrition and on how to combat the same in the organizations. 28 | P a g e

Ten reasons on why attrition arises? 1. Internal networking of employees must be encouraged to create team spirit across the organization. Lack of this kind of approach leads to attrition. 2. Performance goals must be defined clearly with updated job description. Resourceful employees must be encouraged to create an atmosphere of collaboration and cooperation. 3. Professional development is always aimed at future. As Indians are natural learners, the organizations should take advantage of this trait and help them for overall development of their   professional as well as personal development. 4. Managers must try to manage relations with their subordinates at personal level to get the things done and to enhance productivity of each employee. At the same time, they have to maintain 'detached attachment' with the employees an d not to indulge in any kind of emotional relationship. 5. How rewards are awarded? The Rewards Policy must be transparent and this should be announced across the organization to avoid misunderstanding and miscommunication. 6. Employees are bound to discuss their salaries with their colleagues. If there is any inequality among them, then there is an issue for HR. 7. Goals are not realistic to explore the latent talent of the individuals and to leverage their  competencies for the benefit of the organization. This is another potential problem HR has to face from the employees. 8. If the succession planning is not in place, then one has to inevitably go for external talent hunt when there is a need of senior positions to be filled. If they are valued high, then you will have another issue to resolve. 9. You have to communicate monetary benefits to the employees, offered from time to time. The importance of non-monetary rewards should not be ignored and managers have to be trained in offering these to employees to enhance their performance levels. 10. People have to be made aware of their career path and how they can grow within the organization? People have understood the competencies which they have to acquire to move ahead in the organization at various levels.

Attrition - Why people leave? People leave for two reasons 1) Compensation: If the compensation is not maintained and managed in relation to the employees KSAs (Knowledge, Skills and Attitude), people may leave without notice. 2) Management: Employee relations management is most important function, which has to help the people to concentrate more on their task on hand and to become result oriented.

How to calculate attrition rate? Closing employee Balance of last month = x Closing employee balance of current month = y x + y = average head count 29 | P a g e

Average head count divided by resigned employees of current month X 100 = attrition rate Conclusion

How to manage Attrition? 1. Compensation and Management: Compensation and Management must be managed based on the KSAs (Knowledge, Skills, Attitude and Experience) o f the employees. 2. Create opportunities for employees: The Company has to create growth opportunities for  employees to enhance their learning experience and earning abilities. 3. Engaging employees: Employees must be engaged on continuous basis and they should not get bored with their work, which can be managed through internal transfers and training from time to time. 4. Review recruiting practices: Selection and Recruitment policies must be reviewed to suit the growing needs of the organization. 5. Technology opportunities: Leveraging technology to manage the organization and enhancing the technical expertise of the employees will help organization grow without much problem of  attrition. 6. Career Path for employees: Employee career path must be declared during the recruitment  process and should be explained to the recruited people. 7. Feel Valued in Organization: Non-financial rewards, a pat on the back in time and celebrating small achievements with great fan-fare will help employees feel valued in the organization. 8. Contact with Senior Management: Senior Management should address employees periodically and should make them feel like a family. 9. Feel Part of the Company's Mission: The Company's mission must be reiterated from time to time to reinforce the learning and experience of the people. 10. Attendance: Policies with regard to attendance must be creative and flexible. 11. Educate employees on their impact: Educate employees regularly on what kind of impact they are creating on organization through their contribution. 12. Flexibility: Immediate bosses, middle level managers must be flexible and act as Chief  Happiness Officers to avoid triggers of attrition. The author is a HR Professional and trainer and at present he is associated with imam consul trainers, Hyderabad as Chief Consul trainer.

3.3 Employees’ satisfaction: According to P Subba Rao Job satisfaction refers to a person’s feeling of satisfaction on the jobs, which acts as a motivation to work. It is not self-satisfaction, happiness or self-contentment but satisfaction on the job. The term relates to the total relationship between an individual and the employer for which he is  paid. Satisfaction does mean the simple feeling state accompanying the attainment of any goal; 30 | P a g e