1

A

Project Report

On

ATTRITION MANAGEMENT

At

KIRLOSKAR PNEUMATIC COMPANY LTD.

HADAPSAR, PUNE

Submitted By

SHRUTI KUMARI

(Roll No. – 60)

Batch 2013-2015

Submitted To

GLOBAL BUSINESS SCHOOL & RESEARCH

CENTRE

DR. D. Y. PATIL VIDYAPEETH, PUNE

In Partial fulfilment of degree of Master of Business Administration

2

ATTRITION

MANAGEMENT

UNDERSTAND. MANAGE. COMPETE.

3

Global Business School & Research

Dr D.Y. Patil University

Pune 411 033

CERTIFICATE

This is to certify that Ms. Shruti Kumari a bonafied student of the MBA

programme of this Institute for the academic year 2013 – 2015 having Roll No.60,

has completed her Summer Internship Project titled “Attrition Management” as

partial fulfilment of the Master of Business Administration Course.

Course Coordinator Director

4

GLOBAL BUSINESS SCHOOL & RESEARCH CENTRE

DECLARATION

I, SHRUTI KUMARI, declare that the project work entitled “ATTRITION MANAGEMENT”

submitted to D.Y. PATIL VIDYAPEETH, is a record of an original work done by me. I hereby

declare that all the facts and figures included in the dissertation is a result of my own research

and investigations including formal analysis of the entire project work. The result embodied in

this thesis has not been previously submitted for any examination of this University or any

other University.

This declaration will hold good and in my wise belief with full Consciousness.

Date: Signature of the Student

Place: Pune-411 033 [SHRUTI KUMARI]

5

ACKNOWLEDGEMENT

With utmost sincerity, I would also like to convey my thankfulness to Mr. Sadashib Padhee

(VP-HR) for giving me the opportunity to work with Kirloskar Pneumatic Co. Ltd.

I would like to cease this opportunity to express my heartfelt gratitude towards Mr. Jagdish

Purandare (DGM-HRD), my company guide, for his insightful guidance and for all his

endeavours in supervising my entire project. My sincere thanks to him for showing faith in me.

I would also take the privilege to express deep sense of gratitude to Mrs. Meghana Abdagire

for giving me a brief knowledge about the entire training process and encouraging me

throughout my summer training, Mrs. Nayana Kasbe, for efficiently coordinating the program

and all other personnel of the HR department at KPCL, who had lent a helping hand on various

occasions throughout the duration of the internship.

I am very grateful to Dr. A. Keskar (Advisor) & Dr. K.K. Velluri (Director), D.Y. Patil

Vidyapeeth, G.B.S.R.C., who has been a source of inspiration for summer project of two

months’ time duration.

I would express my gratitude towards Prof. Tapati Sarmah, my faculty guide for sharing her

exceptional knowledge in the domain of Human Resource Management, along with the

members of the placement cell at Dr. D.Y. Patil GBSRC, who facilitated this learning

opportunity for me.

My sincere thanks to Prof. Rachna Gandhi and Prof. Ansumalini Panda for their valuable

guidance and direction in successful completion my project.

Finally, I would like to take this opportunity to express my deepest gratitude to all those who

have directly or indirectly contributed in the completion of this project.

SHRUTI KUMARI

6

INDEX

Sr. no Title Page no.

1 Title page

i

2 Cover page ii

3 Institute certificate

iii

4 Company certificate

iv

5 Declaration by student

v

6 Acknowledgement

vi

7 Table of contents

vii-viii

7

TABLE OF CONTENTS

Chapter

no. Title Page no.

1 EXECUTIVE SUMMARY 1

2 INTRODUCTION

Abstract

Theoretical aspects of ‘Attrition Management’

Application of work in the Company

Need for the study

Statement of problem

Survey Methodology

6

3 OBJECTIVE OF THE STUDY

31

4 INDUSTRY PROFILE 33

5 COMPANY PROFILE 44

6 LITERATURE REVIEW 62

7 RESEARCH METHODOLOGY

Scope of the study

Research Process

Types Of Research

Methods And Sources Of Data Collection

66

8 DATA ANALYSIS & INTERPRETATION 71

9 FINDINGS 96

10 LIMITATIONS 99

11 SUGGESTION & RECOMMENDATION

Retention Strategies by KPCL

101

12 CONCLUSIONS 106

13 ANNEXURE

109

14 REFERENCES

113

8

EXECUTIVE

SUMMARY

9

This project is done on Human Resource Management topic in the area of ““Attrition

Management”. The most challenging job for any manager is to retain their employees. This

report seeks to utilise primary research in order to offer a greater understanding of the complex

issues raised by staff attrition. Specific aims were to:

› Identify trends in leavers' behaviour and the reasons employees change jobs/organisations

› Identify the employers' perspective on employees' reasons for leaving

› Identify retention strategies that have a positive influence on retention.

Why do employees leave?

A significant difference was established between what employers assumed were key causes of

turnover, and the actual reasons employees gave for leaving. Employers largely failed to take

into account the importance of providing opportunities for development for their employees

and the training required for it.

The top 3 causes apart from Lack of opportunities for personal and career development and pay

benefits were:

Issues with work tasks

Technical training

Technology

What can employers do to minimise the incidence of, and impact of employee turnover?

Developing an employee retention strategy involves three stages:

Identify the level and cost of turnover and benchmarking it against competitors

Understand why employees leave

Implement retention strategies

10

Attrition is a reduction in the number of employees through retirement, resignation or death

refers to attrition. In the best of words, employees would love their jobs, like their co-workers,

work hard for their employers, get paid well for their work, have ample chances for the

advancement, and the flexible schedules so they could attend to personal or family needs as

and when necessary. But then there’s the real world in which employees do leave. Attrition

measures the amount of recurring revenue lost during a particular time frame, expressed on a

monthly/annualized basis.

Employee retention involves taking measures to encourage employees to remain in the

organization for the maximum period of time. Corporate is facing a lot of problem in employee

retention these days.

Decreased

Productivity

Greater

Attrition

Increased

Costs/

Reduced

Revenue

Cost

Reduction/

Austerity

Drivers of

Attrition Cycle

Of

Attrition

11

The review of the literature indicates a wide and diverse range of potential retention strategies.

On the basis of the secondary sources consulted, retention practices can be grouped under the

following categories:

1. Compensation & Benefits levels

2. Compensation & Benefits systems (e.g. pay for performance; skill-based pay, etc.)

3. Recognition and Rewards

4. Training, Professional Development, Career Planning

5. Orientation & Integration

6. Healthy Workplace or Well-being Programs

7. Job Design & Work Teams

8. Employee Participation & Communication

COMPENSATION

ENVIRONMENT

GROWTHRELATIONSHIP

SUPPORT

Key Areas

in Retention

12

9. Manager Training & Accountability

10. Flexible Work Time

11. Diversity Management

12. Work-life Balance

13. Performance Management & Feedback

Based on the conclusions derived after the in-depth and comprehensive study, few implications

can be made about employee retention. Employee retention is vital to the long term health and

success of any business organization. Companies can look into various options like bonding

programmes, stronger career path, benefits and communication. Making work a fun place,

sponsoring education and ongoing learning for the workforce.

Employee attrition is significant business concerns for the organisations, one even bigger than

attracting talent, especially in today’s knowledge driven marketplace where employees are the

most important human capital assets. Attrition impacts an organization’s competitive

advantage. A company is not hurt because certain persons have left. The company is hurt

because it takes away certain knowledge, and there is no ready replacement in the market.

However when jobs were scarce, the technology changes were less rapid, voluntary attrition

was small and companies managed it. However, with technology changing rapidly and

manpower costs increasing, attrition is high and hurts badly.

According to my study most of the employees are likely to seek a new employment as the

economy booms. It is likely that the voluntary turnover would rise due to the improving

economy.

13

INTRODUCTION

14

ABSTRACT

Employees are the most valuable assets of an organization. It is they who add value to the

organization in terms of quantity and quality as well. To find, attract, develop and retain the

right talent is a major part of management. Therefore, it is indispensable to maintain a

permanent and promising workforce; which over the years has become a tough task for

employers and thereby increased attrition in the organizations. Attrition is a major problem

which highlights in all the organizations. “Attrition is said to be the gradual reduction in the

number of employees through retirement, resignation or death. It can also be said as Employee

Turnover or Employee Defection”. Whenever a well-trained and well-adapted employee

leaves the organization, it creates a vacuum. So, the organization loses key skills, knowledge

and business relationships. Modern managers and personnel administrators are greatly

interested in reducing Attrition in the organization, in such a way that it will contribute to the

maximum effectiveness, growth, and progress of the organization. Attrition costs a lot. It's one

of the largest costs in all types of organizations, yet it's also one of the least understood.

Organizations need to find new approaches to retain the most effective manpower.

Retaining the employees involves understanding the intrinsic motivators as individuals differ

a lot. Retaining employees is a critical and ongoing effort. Staff requires reinforcement,

direction and recognition to grow and remain satisfied in their positions. Managers must

recognize this and understand that establishing such fundamentals demonstrates their

objectives to support nature and motivate their employees.

This study is an outcome of the topic called “A Study on Attrition Management”. This research

is an attempt to find out the causes of attrition from different dimensions and have proposed

some ways in which this issue can be addressed. It undertakes the effect of the same on

employer and employee both. In this research, I have made an attempt to bring out employee

retention approaches, strategies for retention and the costs related to attrition. Following this

some strange reasons for attrition have been discussed in this regard. The positive side of

attrition has also been discussed upon. Further, the remedial measures have been discussed

herein. Managing attrition is not just a 'nice thing to do', it is the route to survival.

15

TheoreTical aspecTs of “aTTriTion”

INTRODUCTION

What is “ATTRITION”?

Attrition is defined as a gradual reduction of the size of workforce through normal means,

such as retirement, resignation or death. This is normal in any business and industry.

Attrition rate is defined as the rate of shrinkage in size or number.

This type of reduction in staff is one way a company can decrease labour costs: the company

simply waits for its employees to leave and freezes hiring. Attrition of employees in a

limited measure is desirable for influx of new ideas in any type of organization. It helps

organizations to maintain their agility in fast changing environment. It brings in new blood,

opens up new vistas for change, development and improvement, shows avenues to expand

operations and add to the creative lines of the organizations. Attrition in a limited measure

can thus bring gains to the organization. However if attrition increases beyond a certain

level, the gains are transformed into pains. Recruiters explain that high attrition rates

significantly increase the investment made on. Significant investments in time and money

need to be made for acquiring employees in any organization. These can never be translated

into profit when attrition is high.

VICIOUS CIRCLE OF ATTRITION

16

Hence urge for employee retention arises. Effective employee retention is a systematic effort

by employers to create and foster an environment that encourages current employees to remain

employed by having policies and practices in place that address their diverse needs. The

organisation is fully at loss when employees leave their job once they are fully trained.

Employee retention takes into account the various measures taken so that an individual stays

in the organisation for the maximum period of time. It is beneficial both for the organisation as

well as the employee.

In short Retention is all about:

R- REMUNERATE COMPETITIVELY

E- ENCOURAGEMENT AND EXPECTATION

T- TRAINING AND DEVELOPMENT

A- ANNUAL REVIEW CYCLES

I- INFORM AND INVOLVE

N- NUTURE

A strong retention strategy becomes a powerful recruitment tool. Retention of key employees

is critical to the long-term health and success of any organization. It is a known fact that

retaining your best employees ensures customer satisfaction, increased product sales, satisfied

colleagues and reporting staff, effective succession planning and deeply imbedded

organizational knowledge and learning. Employee retention matters as organizational issues

such as training time and investment; lost knowledge; insecure employees and a costly

candidate search are involved. Hence failing to retain a key employee is a costly proposition

for an organization. Intelligent employers always realise the importance of retaining the best

talent.

17

Attrition in Manufacturing Industries

Companies in India as well as in other countries face a formidable challenge of recruiting and

retaining talents while at the same time having to manage talent loss through attrition due to

industry downturns or through voluntary individual turnover. Losing talents and employees

result in performance losses which can have long term negative effect on companies especially

if the departing talent leaves gaps in its execution capability and human resource functioning

which not only includes lost productivity but also possibly loss of team-work, harmony and

social goodwill. With attrition rates being a bane of every industry, companies are devising

innovative business models for effective retention of talent. There are a lot of factors

responsible for attrition and employers are getting increasingly conscious of the factors that

can keep an employee committed. Attrition may be defined as gradual reduction in membership

or personnel as through retirement, resignation or death. In other words, attrition can be defined

as the number of employees leaving the organization which includes both voluntary and

involuntary separation. The employee gradually reduces his/her ties with the company than

crib about the underlying factors causing attrition. It is symptomatic of a much deeper malaise

that cuts deeper into the innards of organizations. Attrition rates vary from sector to sector and

industry to industry. Apart from the unavoidable ones like resignation, retirement, death or

disability, the causes are found to be many and varied. They vary according to the nature of

business, the level of the employees and the nature of the responsibility shouldered by them.

The obvious, common and main reasons are the ‘ergonomic discomfort’ experienced by the

employee and the ‘functional incompatibility’ between the corporate management and the

employees. Very often an employee finds himself among colleagues and superiors he is unable

to cope up with. Or he finds himself totally out of tune in his functions with the employee’s

functional requirements, failing to rise to the employer’s expectations. Another important

reason is that the employee’s remuneration is not voluminous enough to bear the brunt and

cushion the concussions of his family and social life.

Employee retention refers to policies and practices companies use to prevent valuable

employees from leaving their jobs. How to retain valuable employees is one of the biggest

problem that plague companies in the competitive marketplace. Not too long ago, companies

accepted the “revolving door policy” as part of doing business and were quick to fill a vacant

job with another eager candidate. Nowadays, businesses often find that they spend considerable

18

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

commodity and leave the company for greener pastures. In order to create a successful

company, employers should consider as many options as possible when it comes to retaining

employees, while at the same time securing their trust and loyalty so they have less of a desire

to leave in the future. Employees need to be retained because good, faithful, trained and

hardworking employees are required to run business. They have acquired good product

knowledge over the long run and a trained employee can handle customers better and also solve

problems of peers who are new to the organization. When an employee leaves he takes away

with him all company information such as ongoing projects, etc. Goodwill of the company gets

hampered due to more employee turnover rate and the competitors start poking their nose to

recruit best talents from them. Efficiency of work is hampered to a large extent. For example

– If an employee leaves in the middle of an ongoing project it’s very difficult to fill that Vacuum

and a new employee can never replace an old and talented employee so this leads to delayed

completion of projects and less work satisfaction among other team members.

In the present context the present paper is ascertained to study attrition management in

Kirloskar Pneumatic Co. Ltd. (manufacturing industry) in Pune, Hadapsar.

Kinds of Attrition

Voluntary attrition- Voluntary attrition takes place when the employee leave the

organization by their own will. Pull factors like higher emoluments elsewhere, better

opportunities of growth and promotion etc. are responsible for this kind of attrition.

Involuntary attrition- Involuntary attrition takes place when the employees leave the

organizations due to some negative forces or push factors like faulty promotion policy,

biased performance appraisal etc.

Compulsory attrition- It takes place due to the rules and regulations of the government

and that of the organization as well. It includes attrition taking place due to attaining

the age of retirement, completion of tenure etc.

19

Natural attrition- It takes place due to the causes and factors that are beyond the

control of the individual and organization as well. These factors may include end of

life, insanity etc.

Causes of Attrition

Internal causes- These causes are pertaining to the internal environment of an

organization. Therefore, they are controllable.

Salary

a. Insufficient salary

b. Delay in payment

c. No / delayed increment

d. Wage compression

Promotion

a. Biased promotion

b. No / delayed promotion

Transfer

a. Forceful transfer

b. Transfer to a place employee is not willing to go

Workplace Infrastructure & amenities

a. Lack of hygiene

b. Lack of basic facilities like water, canteen, etc.

Task

a. Monotony of task

b. Task – labour mismatch

c. Team issues

d. Lesser job autonomy

Instability in leadership

Leading to confusion related to directions and commands which generate

frustration among the workforce.

20

Lack of Flexibility

a. Lack of flexibility in timing, choice of task etc.

b. Introduction of new technology

c. Employees incompetency / unwillingness to learn and understand

Lack of job security

a. Fear of being expelled/ retrenched/terminated

b. Faulty performance appraisal

c. Underestimation of performance

d. Power distance & politics

e. Communication gap between management and workforce

External causes- These are the causes which are beyond the control of an organization

as they belong to the external environment. These causes may be related to:

a. Better pay

b. Chances of promotion

c. Better perks

d. More fringe benefits in other organizations

Individual/Personal causes

a. End of life

b. Marriage

c. Pregnancy

d. Shift of family

e. Mental imbalance

f. Over - sensitivity

g. Wish to go abroad

h. Attrition of the group members

i. Self-employment

j. Education

21

Some peculiar reasons

A. Attrition and Employee Stock Option Plan (ESOP)

A peculiar paradox has been observed in case of ESOP as a motivational tool and the

attrition rate. Generally it is perceived that ESOP on one hand generate funds for the

organization and on the other hand it may curb attrition rate as it increases participation

of employees in management, increase in their financial resources and satiation of their

esteem needs as well which will ultimately lead to their long- term commitment with

the organization. However, while considering an altogether different perspective, ESOP

may increase the rate of attrition as the earning from ESOP may be sufficient for the

livelihood of the employee or it may sometimes exceed his income leading to his

disinterest to continue the job.

B. Attrition and perception about growth opportunities

Employer’s perception and presumptions- Employers may have a perception that

employees are already well aware of their growth and career opportunities in the

organization or they may perceive that the old staff will convey the things to the new

one. But actually the new workers may not be aware of these things, further they can

be misguided and misled by their colleagues.

Employee’s perception- Employees may have a perception that:

a. Employers may get annoyed if they are asked about the career opportunities in the

organization

b. Employers may take it negatively which may be detrimental to job security,

increment and promotion etc.

c. If there are growth opportunities, employers will themselves convey the same and

their silence means there is no scope of growth in the organization.

Effects of attrition

Effect on Employer/ Organization

a. Loss of productivity

b. Loss of quality

c. Increase in cost

d. Loss of consumers and decrease in brand loyalty

e. Loss of goodwill

22

f. Loss of secrecy in case the key employees leave the organization

g. Loss of key – personnel

h. Lack of competitiveness

Effect on employee

a. Stress from new job

b. Monetary loss

c. Effect on career

d. Effect on family life

e. Loss of skill- if the gap between quitting from one organization to other is long

f. Emotional loss, if the bonding with the staff of previous organization was good

However, it is also possible that the employee gets better environment and remuneration in the

new organization and the things can get positive for him.

Costs associated with Employee Attrition

Attrition results in increase in costs. These costs may be related to

Cost of Exit Interview

Recruitment costs- Cost of advertisements, agency costs, employee referral costs,

Internet posting costs, cost of the internal recruiter's time to understand the position

requirements, develop and implement a sourcing strategy, review candidates'

backgrounds, prepare for interviews, conduct interviews, prepare candidate

assessments, conduct reference checks, make the employment offer, and notify

unsuccessful candidates.

Cost of Training- Cost of trainers, cost of training equipment and materials, cost of

refreshment, cost of technology

Cost of Administrative Proceedings- Cost of issuing I – cards, access cards

Cost of Signing Bonus- It is given to the works for joining the organization; it is also

a significant part of cost.

Lost Productivity Costs- As the new employee is learning the new job, the company

policies and practices, etc., they are not fully productive. It includes the costs

associated with the low productivity of the new employee.

23

Lost Sales Costs- These costs are the lost revenue which occurred as a result of project

loss due to key employee attrition.

Steps to Reduce Attrition

Focus on Exit-interviews.

Compliment and thanking employees for their valuable contribution. Recognize and

celebrate their success.

Setting up a feedback mechanism to maintain consistency in performance and high

motivation levels.

Give them job security.

Providing opportunities of learning by constantly upgrading the skills of employees.

Paying attention to employee’s personal needs and participation.

Communicate goals, roles and responsibilities so that people know what is expected from

them.

Education

Feeling valued by their managers or superior in the workplace is a key to high employee

motivation and morale.

Treat the employees well & provide a dignity of job.

24

Attrition of

Employees

Personal

characteristics

Negative

characteristics

of job

Monotonous Nature of Job

Lack of Motivation

Poor Mentoring

Power & Politics

Dissatisfaction with

colleagues

Low Career Growth

Irregular Working Hours

Achievement not recognized

Gender

Education

Marital Status

Age

Tenure

Personal

Characteristics

Self-Esteem

Participation

Accountability

Growth Prospects

Feeling of

Accomplishment

Interpersonal

Relationships

Working Conditions

Involvement

Job Security

Amenities

Authority

Satisfaction

Motivation

Involvement

Work

Compatibility

Retention of

Employees

(Organisational

Outcome)

Job

Characteristics

Gender

Education

Marital Status

Age

ATTRITION & RETENTION MODEL

25

Strategies for Retention

Fostering a Culture of Management Concern- Companies today must show an interest

in helping people develop to their fullest potential. In addition to reducing bureaucracy,

high- performing, high-tech companies provide freedom in scheduled hours, and lifestyle

choices.

Providing Relevant Training- Companies should think of training as career

development.

Job Enlargement- Employees should not be locked into positions because they’re “so

good at it”. Managers must continually ask: “What’s the next step for this employee?” In

other words more tasks and responsibilities should be assigned to make the position more

challenging.

Realistic goals

Defining career path and demystifying career growth- proper succession planning

Rewarding Managers- Many companies say they value people and train their

management team to cope with people issues. Yet these same managers are too often

rewarded solely on their technical skills and financial results.

Strengthening the Team- Marginal performers in management must be weeded out.

Workers’ Participation in Management

Profit sharing

Gain sharing

Fair Performance Appraisal

Clearly identify the people you want to keep- Many executives have focused on whom

they should get rid of rather than on whom they should keep. Unfortunately, those who

decide to leave are often high-impact performers who can find other work quickly.

Effective Communication System

To retain top talent in the future, executives will need to clearly identify, develop, involve, and

recognize key people. Traditional compensation plans must be challenged, needless

bureaucracy should be eliminated, and growth opportunities should be provided. Executives

who create a dynamic, new human resource model will retain the high-knowledge talent needed

to succeed in tomorrow's globally competitive environment.

26

Other Retention Strategies

Corporate Social Responsibility (CSR) towards employees

It comprises a wide range of intrinsic and extrinsic rewards and motivation. It is concerned

with a humanitarian aspect towards the employees of the organization. It is the first and

foremost responsibility of an organization to take care of its employees’ physical and mental

well-being. CSR towards employees encompasses all monetary and non- monetary aspects.

Monetary aspect includes reasonable remuneration, bonus, increment, HRA, post retirement

pension, etc. while the non- monetary aspect may include congenial environment, fair

performance appraisal, recreational activities, learning and development. Both these aspects

are equally important while considering control on attrition.

Herzberg’s Two Factor Theory, CSR towards Employees & Attrition

Hertzberg Two-factor theory describes two factors -

Motivators –These factors are related to the intrinsic aspect of the job itself, such as

recognition, achievement, personal growth etc..

Hygiene factors – These factors are related to the extrinsic aspect of the job such as salary,

fringe benefits, work conditions, status, job security etc.

Hygiene factors are essentials, they do not show direct contribution in productivity but their

absence certainly leads to decrease in production. Motivators have a positive correlation

with productivity; their presence results in increase in productivity and their absence leads

to fall in the same. Thus both these factors should be paid attention to boost the morale of

the workers leading to lesser attrition as morale and attrition have inverse relationship i.e.

Higher the morale, lesser will be the attrition and vice-versa.

Applying Emotional Intelligence

Emotional intelligence refers to the ability and capacity to know and control own emotions

and that of others in such a manner that the energies and potentials may be channelized in a

positive direction and utilized to enhance productivity. To develop emotional intelligence

one has to develop empathy and farsightedness. Following are some ways to apply

emotional intelligence to control attrition-

a. Being proactive

b. Lessening communication gap between management and workers

27

c. Devising and communicating career and growth opportunities

d. Using intrinsic motivation

e. Understanding group dynamics

f. Conducting motivational sessions for the employees

g. Praising the employee publically but criticizing privately

h. Developing a rapport with the workers

Change in leadership style

Leadership can play a significant role in controlling attrition. With the change in

organizational dynamics the style of leadership should also change. One of the much

applauded style is the transformational leadership. Transformational leadership comprises

of the four dimensions: idealized influence, inspirational motivation, intellectual

stimulation, and individual consideration. Such a leadership helps the employees in finding

out their hidden talent and latent skills. They come to know about their strengths and the

scope to enhance them. This acts as an undercurrent in unleashing their energies with full

faith in their capabilities resulting in a passion for work, greater connectivity with

organization and its goals and control on the tendency of the workers to leave the

organization.

Leaders should recognize, promote and praise hard work; employees should be given due

credit and compliments. Leaders should be open to discussions and have a welcoming

attitude towards the suggestions of the workers. First they should understand and accept the

value of employees and then make the employees feel that they are valuable to the

organisation; this will bring more openness, harmony, trust in relations. All these factors

will be helpful to control attrition.

Flexibility

Flexibility is necessary for greater degree of co-ordination, ease and smoothness in the

organizational working. It is the demand of time as in the present context it has become very

difficult to manage talent. Undue strictness and rigidity is no more considered the obvious

right of the employer. Flexibility can be related to the following factors-

a. Time

b. Choice of task

c. Transfer

28

d. Targets

e. Leaves

f. Methods

g. Place of work in the organization

h. Number of breaks

Conducting stress interview

Exit interviews become instrumental in assessing the level of satisfaction or dissatisfaction

of the employee. It should be well planned and questions should be well-framed. It should

focus on the issues like –

a. Work Environment

b. Organizational culture

c. Peer group

d. Senior- subordinate relationship

e. Performance appraisal

f. Individual growth

The Importance of Retaining Employees

A company spends lots of money in developing an individual person and makes him

ready to work great and understand the corporate working culture.

When an employee resigns his job from present company, it is more likely that he/she

may join the competitors firm.

If an employee working in an organization for many years, they can understand the

particular firm’s guidelines, so thus they can adjust better.

Replacing employees’ costs money. The cost of replacing an employee is estimated at up

to twice the individual’s annual salary (or higher for some positions, such as middle

management), and this doesn’t even include the cost of lost knowledge.

Bringing employees up to speed takes even more time. And when you’re short-staffed,

you often need to put in extra time to get the work done.

The goodwill of a company is maintained when the attrition rates are low. Higher

retention rates motivate potential employees to join the organization.

29

Customers and clients do business with a company in part because of the people.

Relationships are developed that encourage continued sponsorship of the business. When

an employee leaves, the relationships that employee built for the company are served,

which could lead to potential customer loss.

Positive effects of attrition on the organisation

Attrition is not always negative, it may have some positive results also. Some of the positive

results may include the following-

Advantages of new knowledge- New employees bring new knowledge; their knowledge

and skill may open new avenues for the organization.

Advantage of new technology- It will decrease the cost, thus the price of the final goods

or service will be cheaper; further leading to increase in demand and profits.

Introduction of new ideas- New ideas may help in increasing product line and product

mix or they may become helpful in starting new joint-ventures and working in

collaboration.

Lesser negative impact of groupies- Sometimes the existing groups may be rigid or the

group members may be reluctant towards others, in such a case attrition of a group

member may be positive for the organization.

Reduction in surplus staff- It will lead to reduction in cost of maintaining the surplus

employees ultimately leading to total cost.

Creation of a healthy and competitive environment in the organization- New

workforce may be more competitive, old employees may learn from them. They may get

inspired and compete with them.

30

Drivers of

Attrition

Career

Aspirations

Others Organizational Individual

Family

Mobility

Culture Job Related

Personality

Factors

Growth &

Career Paths

Pay Package Poaching

Work

Environment

Peer Pressure

No Learning

No Challenge

Style of Boss

Job Clarity

Job Stress

Lack of

Independence

31

Application in the company

Need for the Study

The success of any manufacturing organization depends largely on the workers, the

employees are considered as the backbone of any company. The study was mainly

undertaken to identify the level of employee’s attitude, the dissatisfaction factors they face

in the organization, why they choose to stay and for what reason they prefer to change their

job. Once the levels of employee’s attitude are identified, it would be possible for the

management to take necessary action to reduce attrition level.

Since they are considered as backbone of the company, their progression will lead to the

success of the company for the long run. This study can be helpful in knowing, why the

employees prefer to change their job and which factors make employee dissatisfy. Since the

study is critical issue, it is needed by the originations in order to assess the overall interest

and the feelings of the employees towards their nature of job and organization.

To address the reasons why attrition occurs, “Stay Survey” was conducted of Grade 61

employees. This study can be helpful to the management to improve its core weaknesses by

the suggestions and recommendations prescribed in the project. This study can serve as a

basis for measuring the organization’s overall performance in terms of employee

satisfaction. The need of this study can be recognized when the result of the related study

need suggestions and recommendations to the similar situation.

Statement of problem

Managing attrition does not mean reducing attrition only. It could also mean bringing down

the negative effects of attrition. To do this the organizations should put up appropriate

retention and capacity utilization or talent utilization tactics. There are various retention

strategies used by the organizations today.

32

The aim of the present report is to study factors like salary, superior – subordinate

relationship, growth opportunities, facilities, policies and procedures, recognition,

appreciation, suggestions, co- workers by which it helps to know the Attrition level in the

organizations and factors relating to retain them. This study also helps to find out where the

organizations are lagging in retaining.

33

SURVEY

METHODOLOGY

Design the Survey Instrument

Finalize the Target

Invite and Seek Consent for Participation

Collect and Validate Data

1

2

3

4

Generate the Survey Trends

Analyse Data

5

6

The parameters of the study were finalized and a structured

questionnaire was designed as a primary data collection tool

The target employees were selected for interview

A formal invitation e-mail was sent to the employees requesting for

participation & the interaction with the engineers was scheduled

The responses received from all participants were validated

& intended interpretation

The data received was collated & analysed to

get detailed insight

Suggested recommendations

34

Overview/Background of my work in the Company

As explained in the above diagram, the project undertaken by me was done in the above

mentioned sequence. As we know attrition is a critical issue in every organization, hence it

requires a detailed study of the problem. I made a detailed study of various articles to gain more

insight about the problem.

Basically what every companies do is conduct a “Stay Interview & Exit Interview”. The basic

reason behind conducting these two types of interview is to know what employees feel about

the workplace, to know their grievances and thereby take steps to overcome their problems.

Employees are assets for every company if treated with care and intelligence. But, at the same

time if they are not handled properly they turn out to be liabilities. Managing employees

requires proper engagement activities to be framed so that both the ends derive adequate

amount of satisfaction. The company should properly plan its work so that the company is

benefited and the objectives are met. On the other hand, the company should also make sure

that the employees also feel benefited in return. The company should know what actually

makes their employees happy and motivated to work.

Companies while conducting “Exit Interviews” try to identify trends in leaver’s behaviour and

the reasons employees change jobs/organisations. On that basis the company frames certain

retention strategies so as to make a positive influence on retention, or least leave with a positive

view of the organisation. The most common questions asked in ‘Exit Interview’ is how the

employees felt working with the company, were they happy with the workplace environment,

how was their relation with their superiors as well as their colleagues, what is the reason for

leaving job etc.

Proactive feedback from the employees as Exit Interview is too late. If you know why an

individual employee stays, you can obviously reinforce those factors. And if you know far

enough in advance what factors might cause them to leave, you can get a head start in ensuring

those turnover causes never occur. Retention is an individualized process that needs to be

handled proactively. This is why “Stay Interviews” are conducted, as a tool used for retaining

the key and talented employees. It may also be known as “Pre-Exit Interview”. What actually

happens is a target employees are chosen to be interviewed, analysis is made and steps are

taken to retain them. Commonly questions relating to workplace and job satisfaction are asked.

35

As explained in the above diagram questions were framed concerning ‘Stay Interview’ as a

tool-kit. These questions are the primary tool of my study. These questions formed the basis

towards managing employee engagement and their retention attributes thereby curbing

attrition. In other words, it is a list of possible “stay questions” to ask the employee, and most

importantly, a list of acceptable retention actions that are available to any manager for

improving an employee’s job and for minimizing possible retention triggers.

After finalising the questions, the target group to be interviewed was selected. Only such

employees are prioritized whom the managers feels and estimates that they might actually

leave. For my project the target employees were the employees of Gr. 61 i.e. G.E.Ts. These

were the employees holding key positions, talented employees as well as the employees to be

groomed as potential future leaders.

Once the target employees were selected, the third step involved sending them a formal

invitation regarding the interaction and seeking their consent for participation. A formal

invitation was sent to the respective employees from the HR department informing them about

the interaction schedule and place.

On the scheduled date the interview was conducted. It was a ‘One-on-One’ interview. The

greatest advantage of conducting this type of interview setting is that employees feel free to

answer the questions. As it is highly personalized, the interviewee feels the confidentiality. The

information thus collected by this means is more accurate and insightful. In this process, I got

to know how the employees feel working at KPCL and also what they expect from the

companies. Employees were even asked to their suggestions as to encourage retention.

The data collected thereof, were thus taken into account for analysis and interpretation. The

trends of attrition and retention factors were analysed.

The final and the last step involved generating the results derived from analysis of the data

collected. On that basis I put forth my recommendations as to few things that the company

should do to manage attrition and retain its talent.

Stay Interviews should be scheduled periodically, usually once a year during a slack business

period. It’s usually a good idea to interview all key employees around the same time, so that

the company can implement common actions at the same time. Conducting them less

frequently can be problematic in periods of high turnover, especially for new hires who

naturally have a higher risk of leaving, conduct stay interviews at four and eight months.

36

If companies are not diligent in fully understanding the factors influencing the intent of their

workforce to stay, they could face a wave of turnover in the near future that could cripple some

companies. And, with studies telling us that 50% of our workforce is looking for another job

or totally disengaged from their jobs, retention has never been more critical.

So, organizations should give some hard thought to its talent management process, whether it

just wants an engagement rate or a benchmark comparison to its competitors, or does it wants

to know the real issues that are affecting its employees and what it can do to impact them?

There is a way to keep your eye on the organization and find out – it’s called the stay interview.

EXTERNAL FACTORS

Employee Brand

Candidate Behaviours

Candidate Skills

Job Fit

Others

INTERNAL FACTORS

Recognition

Training & Development

Performance Management

Communication

Manger Quality

Compensation

Others

EMPLOYEE TURNOVER

37

RETENTION

OF

EMPLOYEES

Personal Characteristics Job Characteristics

Gender

Education

Marital Status

Age

Satisfaction

Motivation

Involvement

Work life

compatibility

Self Esteem

Participation

Accountability & Authority

Growth Prospects

Sense of Accomplishment

Prestige

Interpersonal relationships

Working Conditions

Involvement

Job Security

Amenities

38

OBJECTIVES

39

Objectives

To retain the existing key and talented employees.

To gain insight about why employees choose to stay at KPCL.

To engage employees in identifying their personal career aspirations effectiveness and

value added contribution to KPCL, with the ultimate aim of fitting the Right Person -to-

the-Right Job to enhance personal goals.

To give employees a chance to offer suggestions for areas of improvement.

To help reveal vital information for employees about what they like and don’t like about

their jobs.

To let employees know and aware that their skills, contributions and dedication are

valued and appreciated by KPCL.

40

INDUSTRY PROFILE

41

KIRLOSKAR GROUP

HISTORY

The Kirloskar saga began in 1888 when Laxmanrao Kirloskar set up a small bicycle repair shop

(now near the Shreekrishna theatre on Kirloskar road) at Belgaum and later Laxmanrao and his

brothers set up a model industrial colony called ‘Kirloskarvadi’ India’s first industrial

township. In January 1910 when the Kirloskar were being ousted from Belgaum to make room

for a new suburb, they found themselves in dire need of a place to live and work and hence the

birth of Kirloskarvadi.

Laxmanrao Kirloskar, founder of the Kirloskar Industries was born on 20th June, 1869, in a

small village, Gurlahosur in Belgaum District. He started his life as a school teacher and later

on, opened a cycle repair shop in Belgaum. But his ambition and mission could not be satisfied

by a small workshop at Belgaum.

When the Municipality of Belgaum ordered Kirloskar to vacate their place, Laxmanrao

Kirloskar could not find a suitable place for his workshop. But thanks to the timely help of the

Ruler of Aundh who offered him a place arranging loan of ten thousand rupees, he started his

factory in an arid waste land by the side of a renowned railway station, named Kundal Road.

The factory later blossomed into famous Kirloskar Industries and the station came to be called

Kirloskarvadi.

Laxmanrao Kirloskar set foot on 32 acres of barren land strewn with cacti and infested with

cobras. Driven by his faith in human ability, Laxmanrao banded together 25 workers and their

families and succeeded in transforming the barren expanse into his dream village. Ramuanna,

42

Laxmanrao’s brother, planned and administered the township, Shamburao Jambhekar doubled

as engineer and all-round healing man, K.K.Kulkarni, an unsuccessful student, became a

manager, treasurer and odd jobs man, Mangeshrao Rege was the clerk and chief accountant,

Anantrao Phalnikar, a school drop-out flowered into an imaginative engineer. Such was

Laxmanrao’s faith in the human being that, Tukaram Ramoshi and Pirya Mang, both convicted

dacoits, became the trusted guards of Kirloskarvadi! Superstitious farmers were extremely hard

to convince and Laxmanrao Kirloskar took two years to sell his first iron ploughs.

Today Kirloskar brothers are a 1.20 billion US Dollars engineering conglomerate driving

critical industries. They are century old pioneers in areas of specialization like power,

construction and mining, agriculture, industry and transport, oil and gas and environment

protection with a range of world-class industrial products and turnkey services.

They are made up of 8 major group companies, each led by the best engineering and managerial

talent in India. In addition to engineering, they have interests in civic utility systems and in

Information Technology and communication.

The Kirloskar Group is an Indian conglomerate with sales exceeding $2.5 billion. The company

exports to over 70 countries over most of Africa, Southeast Asia and Europe. The flagship &

holding company, Kirloskar Brothers Ltd established in 1888, is India's largest maker of pumps

and valves and also undertakes construction projects through its subsidiary Kirloskar

Construction And Engineers Ltd. The group is headed by Sanjay Kirloskar.

India's first iron plough from the Kirloskar Group, not only became an instrument of wealth

for the entire society but also kick started an industrial revolution in India. Today, building on

its core engineering strength, the group's scope of operations spans across a gamut of industrial

equipment ranging from pumps & valves, eco-friendly diesel engines & silent generating sets,

air & gas compressors, air-conditioning and refrigeration equipment, a wide range of anti-

corrosion coatings and castings for automotive sector.

43

HISTORY

44

Type Private

Industry Conglomerate

Founded 1888 (As Kirloskar Brothers Limited)

Headquarters Pune, Maharashtra, India

Area served Worldwide

Key people Sanjay Kirloskar, (Chairman & MD)

Products

Pumps

engines

compressors

chillers

valves

pig iron

construction

transmissions

automobiles through a joint venture with Toyota

infrastructure pumping projects

bridges & flyovers

submarine pipelines

construction

Website http://www.kirloskar.com

45

Kirloskar companies

Kirloskar Brothers Ltd.

Kirloskar Brothers Limited (which includes Kirloskar Brothers Ltd, Aban Construction

Company, SPP Pumps (UK), Kirloskar Ebara Pumps Ltd, Braybar pumps Ltd, (South Africa)

and The Kolhapur Steels Ltd is India’s largest pump manufacturer. Kirloskar Brother produces

Centrifugal pumps from 0.1 KW to 26MW with single pumps pumping liquids in excess of

35,000Liters/sec thus producing some of the largest pumps by size and horsepower. Kirloskar

Brothers Limited was established in 1888 and incorporated in 1920. It is the flagship company

of the $ 2.1 billion Kirloskar Group. The market leader in fluid management, KBL provides

complete fluid management solutions for large infrastructure projects in the areas of water

supply, power plants, irrigation, oil & gas and marine & defence. It engineers and manufactures

industrial, agriculture & domestic pumps, valves and hydro turbines.

Kirloskar Oil Engines Limited

Incorporated in 1946, Kirloskar Oil Engines Limited (KOEL) is a part of the Kirloskar Group.

KOEL manufactures air-cooled and liquid-cooled diesel engines and generating sets ranging

from a power output of 5 kVA to 625 kVA and 1800 kVA to 6300 kVA. They also offer engines

operating on alternative fuels such as biodiesel, natural gas, biogas and straight vegetable oil

(SVO). Their generating sets are branded as Kirloskar Green Gensets. KOEL also offers

customized power solutions including both standby and prime power requirements. KOEL is

one of the world's leading players in the generating set market.

Kirloskar Ferrous Industries Limited

KFIL is the flagship company of the Kirloskar Group. KFIL was promoted by Kirloskar Oil

Engines Limited & Shivaji Works Limited (SWL). KFIL was incorporated with the objective

of catering to the requirement of high quality Pig Iron and intricate, thin walled grey iron

castings to the emerging in Tractor, Auto, Engine and other related segments.

46

Kirloskar Proprietary Limited.

Kirloskar Proprietary Limited was established in the year 1965. Kirloskar Proprietary Ltd. is

the registered owner of intellectual property consisting of various trademarks and copyrights

in India and many foreign countries. It has granted licenses thereof to several companies in

Kirloskar group. Besides protecting and defending these marks from infringers it also looks

after enhancing the image of Kirloskar brand

Kirloskar Middle East FZE.

For more than 3 decades, customers in the Middle East, Africa and South East Asia have been

using various products manufactured by the Kirloskar Group in India.

There was continuous need to establish an identity in the Middle East region, which will be

close to the end customers as well as the distributors in the region with the basic objective to

give quick response to the customers’ requirements and make the products & services available

at their door step.

With this vision, Kirloskar Middle East FZE (KMEF) was born in November 1996. It was

decided that Marketing set up and Warehousing facility would be established simultaneously,

so that a range of products would always be available for customers without delay. KMEF is

now expanding operations to include packaging of compressor engineered sets and pump sets

in UAE.

Kirloskar Pneumatic Co Ltd (KPCL)

Kirloskar Pneumatic Co Ltd (Kirloskar Pneumatic) was established in 1958 to manufacture air

compressors and pneumatic tools in collaboration with Broom and Wade, UK. In 2002, it was

merged with K G Khosla Compressors Ltd and the new entity was renamed Kirloskar

Pneumatic.

47

Kirloskar Integrated Technologies Limited. (KITL)

KITL was founded in 2008 and is based in Pune, India. They have extensive research

background in “renewable energy” and have filed several patents in this area. The customers

range from farmers in rural areas, to governments and defence, as well as independent power

producers, among others.

KITL is committed to developing and distributing green technology solutions to reduce

greenhouse gas emissions. Currently, the focus is on bio-energy, solar, and tidal and marine

energy solutions. They offer both stand-alone and hybrid solutions, customizable for the needs

of their customers.

Kirloskar Chillers Private Limited

Produces centrifugal chillers from 250 TR to 2400 TR and air-cooled and water-cooled screw

chillers from 40 TR to 550 TR for air conditioning and process cooling applications. It also

offers products for hot water generation including chillers with super heaters & heat pumps.

Established in 1995, Kirloskar Chillers is the largest chiller manufacturer in India, and the first

to have its products certified under the AHRI 550/590 certification program. The factory at

Saswad, near Pune, also has the first AHRI-certified chiller test facility in India. It is also the

only Indian company to manufacture centrifugal & screw chillers under one roof.

Toyota Kirloskar Motor Private Limited (TKML) produces Toyota Vehicles in India

Mysore Kirloskar (MK) produced lathes including CNC types

Kirloskar Electric Company (KEC) made electrical equipment like transformers,

generators and motors, etc. It is not part of the Kirloskar Group anymore.

Kirloskar Institute of Advanced Management Studies (KIAMS) was conceived in 1991

as a training institute and a knowledge hub where Kirloskar Group managers taught and

learned management. In 1995, the training institute was opened to managers all over

the country.

48

Products & Services

The Kirloskar group of companies was one of the earliest industrial groups in the engineering

industry in India. The group produces pumps, engines, compressors, screw & centrifugal

chillers, lathes and electrical equipments like electric motors, transformers and generators (it is

the world's largest genset manufacturer). While he established the group, his son also played a

role in the leadership of the company.

The company under Shantanurao Laxmanrao Kirloskar achieved one of the highest growth

rates in Indian history, with 32,401% growth of assets from 1950–1991.

In 1988, Rajiv Gandhi, the then Prime Minister of India released a commemorative stamp

marking the Kirloskar Group's 100th anniversary.

In 1974, in cooperation with Deutz-Fahr of Germany, Kirloskar began manufacturing tractors.

They have since ceased tractor production.

The Kirloskar Group also set up India's second oldest township Kirloskarvadi in Maharashtra,

which is now a 100-year-old township in 2010.

Engines, Gensets and Power Solutions Pumps and Fluid Handling Solutions

Compressors, Refrigeration and Process Gas Systems Solutions for Pump Packages

49

API Process Pumps and Steam Turbines Centrifugal & Screw Chillers

Anti-corrosion and Anti-erosion Coatings Green Solutions

Pig Iron and Castings Foundry - Steel Castings

Trading and After Sales Services of Kirloskar Products Educational Institute (Management)

Trading and Servicing of Pumps & Valves in Europe

50

Achievements

The groups two largest companies, Kirloskar Brothers Limited and Kirloskar Oil Engines

Limited, own many patents.

Kirloskar Brothers Ltd created the world’s largest irrigation project which was commissioned

in March 2007 (the Sardar Sarovar Dam project for the Gujarat Government. This was done

for Sardar Sarovar Narmada Nigam) and on 14 March 2008 commissioned the world’s second

largest water supply system with the world’s highest head in Andhra Pradesh. Kirloskar

Brothers is associated with India's nuclear program and has made canned motor pumps for

pumping heavy water which are deployed at Indian Nuclear Power Plants. Kirloskar Brothers

Limited is also a supplier of FM UL certified pumps along with its subsidiary SPP Pumps

(UK). It was the first Indian company to get FM certification for its valves. Kirloskar Brothers

has a presence is numerous countries including Egypt.

Kirloskar Brothers is also one of the first pump companies to have an all women operated and

managed manufacturing plant at Coimbatore, which is the second largest metropolitan city of

state Tamil Nadu in India. The company was one of the country's top ten wealth creators in

2007.

Kirloskar Brothers won the first "best of all" Rajiv Gandhi National Quality Award in 1992.

51

COMPANY

PROFILE

52

KIRLOSKAR PNEUMATIC COMPANY LIMITED HADAPSAR, PUNE

History

Kirloskar Pneumatic Co Ltd (Kirloskar Pneumatic) was established in 1958 to manufacture air

compressors and pneumatic tools in collaboration with Broom and Wade, UK. In 2002, it was

merged with K G Khosla Compressors Ltd and the new entity was renamed Kirloskar

Pneumatic.

The doyen of Indian industry Late Shri Shantanurao L. Kirloskar incorporated Kirloskar

Pneumatic Co. Ltd. (KPCL) on 27th March 1958. Today it is a well-diversified engineering

company. The company started its operations with the manufacture of Air Compressors and

Pneumatic Tools and soon branched off in manufacture of Air Conditioning and Refrigeration

equipment, Process Gas equipment and Hydraulic Power Transmission machinery. The

company also earned an enviable reputation for its Systems Engineering and Turnkey Project

expertise. KPCL has the distinction of acquiring advance technologies from world over,

adapting them to suit Indian conditions and continuously updating them to maintain the highest

standards of quality and reliability.

KPCL has its Head Office & Factory at Hadapsar, Pune, one plant at Saswad (20 Kms from

Hadapsar-HO) and one plant in Nasik. Sales & Service offices are situated in major cities in

India. It was certified for ISO 9001 Quality Systems by the Indian Register Quality Systems

(IRQS) in February 1993 and re-certified in 1996, 1999,2002,2005,2008. In the year 2008,

KPCL achieved coveted achievement of getting certified for Environment and Occupation and

Health Management System. (EMS (ISO 14001) and OHSAS 18001). KPCL became an IMS

certified company in 2012.

53

Operations

Kirloskar Pneumatic operates in compression systems and transmission products. Compression

systems segment consists of air compressor (ACD), Air conditioning & refrigeration (ACR),

Transmission (TRM), Road Railer and Process gas (PGS) divisions.

At Kirloskar Pneumatic, up-to-date manufacturing facilities, including CNC machines,

stringent quality control procedures and systems, research and development, foundry, heat

treatment facilities, screw rotor machines, gear grinding machines, metallurgical &

Metrological laboratories, tool room and an integrated computer system, have all been set up

with the sole idea of achieving the highest standards of quality and performance.

Kirloskar Pneumatics is among the first few company’s in India, to secure the ISO 9001

certification, in all its operations. Also, Kirloskar Pneumatic is certified for Environment

Management System, ISO 14001: 2004 and Occupational Health and Safety management

System Standard OHSAS 18001: 2007.

Company’s Products are manufactures under the survey of renowned inspection agencies such

as Lioyd’s, MMD, IRS, NTPC, EIL, PDIL, DGS&D, RITES and many more, and are well

accepted not only in India but also in the countries of South East Asia, Africa, the Middle East,

West Asia and The United States of America.

54

MD

SBU Head ACR

ORGANIZATIONAL STRUCTURE OF KPCL

SBU Head TRM

SBU Head ACD

SBU Head PGS

SBU Head HR

Head Strategy

Head Finance

Head Corporate

QA

Business Head

AEPSS

Business Head PGS

Business Head

Refrigeration

System

Health & CSR

Business Head

Vapour

Absorption

Chillers

HRD

T & D

Head IT

HRM & Factory

Manager

Head

Communication

CHAIRMAN

55

CORPORATE PROFILE

KEY EXECUTIVES

Mr. Rahul C. Kirloskar (Executive Chairman)

Mr. Atul C. Kirloskar (Director)

Mr. Sanjay C. Kirloskar (Director)

Mr. Vikram S. Kirloskar (Director)

Mr. A. C. Mukherji (Director)

Mr. J. Y. Tekawade (Director)

Mr. G. Krishna Rao (Director)

Mr. P. S. Jawadekar (Director)

Mr. D. R. Swar (Director)

Mr. Sunil Shah Singh (Director)

Mr. Aditya Kowshik (Managing Director)

Mr. Rahul C. Kirloskar, Executive Chairman is a top notch technocrat associated with

Kirloskar Group of Companies for more than twenty three years at senior levels in different

capacities. Participated in an intensive course of top management professionals of major

international companies on Total Quality Management (TQM) in Japan, conducted by Japanese

Union of Scientists and Engineers (JUSE), has given a lot of thrust for reducing overheads and

is taking all possible steps to reduce the overhead cost and thereby further improve the

profitability of the Company and make the products more competitive.

56

The Directorship of Mr. Rahul C Kirloskar in other companies is as follows:

Name of the Company Board position

Green-Tek Systems (India) Ltd. Director

Kirloskar Brothers Ltd. Director

Kirloskar Oil Engines Ltd. Director

Kirloskar Proprietary Ltd. Director

Asara Sales & Investments Pvt. Ltd. Director

Pratibha Communications Pvt. Ltd. Chairman

COMPANY SECRETARY:

Mr. Jitendra R. Shah

LOCATION OF PLANTS:

Pune, Saswad and Nashik

BRANCHES & OFFICES:

HADAPSAR PLANT

KIRLOSKAR PNEUMATIC CO. LTD.

Hadapsar industrial estate,

Hadapsar, Pune-411 013.

Tel: (020) 26727000

Fax: 020-26870297/26870634

E-mail: KPCL-HO@kpcl.net

SASWAD PLANT

KIRLOSKAR PNEUMATIC CO. LTD.

Saswad Industrial Estate, Near Waghire

College

Taluka: Purandar, District: Pune

Tel.: 02115–222403 / 222409.

Fax: 02115-222406

E-mail: KPCL-Saswad@kpcl.net

57

CORPORATE PHILOSOPHY

VISION

It’s time to grow

“KPCL will achieve a sale of Rs.1425 crores by the year 2016-17”.

ACR & PGS will achieve a sale of Rs.8,000 million with a focus on KC compressor exports,

CNG & API compliant Refrigeration & Gas compression packages for the Domestic & Export

markets and entering into Domestic market of Vapour Absorption Chillers.

ACD will achieve a sale of Rs.4500 million by increasing market-share in Rotary Compressor

market and strengthening the leadership position in Reciprocating Compressor market.

TRM will achieve a sale of Rs.1750 million by maintaining the leadership position in Railway

Traction Gears market; strengthening the position in Wind Mill Gear Box market and entering

into Industrial Gear Box business.

MISSION

We will demonstrate an EDGE to all our Stakeholders in our offerings for converting /

transmitting energy.

We will strive to make our Company an employer of Choice

VALUES

In an ever changing world one thing that will remain constant is our Commitment towards all

our stakeholders.

Each one of us will be guided by the following values.

Customer Focus

Our activities / actions will be focused on enhancing internal / external customer's satisfaction.

58

Commitment

We commit to achieve our targets / goals. We will be responsible / accountable for our

commitment.

Continual Improvement

We will consciously work to improve our procedures, processes and systems with an objective

to improve our business processes.

Ethical Business Practices

We will be fair in our dealings with all our stakeholders. It will be based on integrity, honesty

and transparency

59

60

Competitors

Company Sales

(Rs.Million) Current

Price Change (%) P/E Ratio

Market Cap.(Rs.Million)

52-Week High/Low

Alfa Laval (India) 11541.74 3946.50 0.00 54.90 71670.35 3948/3940

Atlas Copco (India) 25204.31 2724.00 0.00 27.21 61384.38 2724/1487

BEML 28089.10 725.00 5.53 611.32 28609.77 697/126

Ingersoll Rand 5813.69 683.00 2.71 31.35 20991.14 710/301

ISGEC Heavy Engg. 25126.34 2384.45 8.34 17.14 16219.99 2229/783

Nitin Fire Protectn 3520.62 65.00 0.31 129.41 14204.56 70/49

Praj Industries 7662.12 72.95 2.96 20.15 12573.40 79/30

Kirloskar Pneumatic 5488.09 630.00 -3.08 21.50 8348.82 655/320

Forbes & Company 3103.39 603.90 -1.63 0.00 7918.46 650/471

Elecon Engg. 5952.07 65.25 -2.61 26.61 7298.70 69/19

Ricoh India 6331.20 166.50 -4.88 40.41 6961.42 179/42

Walchandnagar Inds 7265.14 112.00 -4.96 0.00 4486.57 121/41

Action Const. Equip 6678.50 27.45 -4.85 70.95 2854.42 32/8

CMI FPE 5328.95 499.00 -4.96 0.00 2592.60 598/207

Kabra Extrus.technik 1799.42 63.00 1.69 13.91 1976.35 65/23

Premier 2408.32 66.90 3.08 7.84 1971.18 78/46

Swiss Glascoat Eqtp 756.14 50.75 -2.40 6.84 260.00 57/28

Polymechplast Mach 208.50 4.20 0.00 17.27 24.70 18/4

Incon Engineers 4.96 3.57 0.00 44.14 15.45 4/3

Koa Tools India 19.20 0.30 0.00 260.69 10.43 0/0

Mirch Tech. 0.36 0.00 0.00 0.00 0.04 0/0

61

PRODUCTS AND SOLUTIONS

Pioneering industrial revolution in India, Kirloskar group has contributed immensely in every

field of its operation during its 120 year-long journey, and holds a place of repute in the industry

for its good business values and customer focus. Established in 1958, Kirloskar Pneumatic

Company Limited started with the manufacture of Air-compressors and Pneumatic tools.

Immediately thereafter, the company expanded its activities in the field of air conditioning and

refrigeration machinery. Further diversification in the manufacture of Hydraulic Power

Transmission equipment followed.

Kirloskar Pneumatic is held in high esteem for Process System Engineering and Turnkey

project expertise. The result of success in this area is reflected in Company’s association with

virtually with every project and industry in the country.

AIR COMPRESSOR DIVISION (ACR)

Kirloskar Pneumatic Company Ltd is in compressor business since 1955. From a product

manufacturer in the domestic market to a company offering total solutions – from designing

systems to manufacturing customized products and systems, KPCL has come a long way. The

customer-centric work culture along with technical excellence has been the hallmark of this

success. The graduation was steady and strategically aimed at specific market segments.

Reciprocating Air Compressors

Reciprocating Air Compressor Division offers products for a wide range of market segments

such as general engineering to critical operation & processing applications in key sectors like

Railways and process industries like Refineries & Petrochemical Industries.

Screw Air Compressors

Screw Air Compressors division caters its niche market segment right from General

engineering workshop till the operation & processing unit in different sectors.

62

Centrifugal Air Compressors

KPCL has a technical tie-up with Cameron Compression of USA for packaging and marketing

Centrifugal Air Compressors in India.

AIR CONDITIONING, REFRIGERATION & PROCESS GAS DIVISION

(ACR & PG)

Compressor for Refrigeration Systems

The reciprocating range of refrigerant compressors has wide applications in the area of

industrial refrigeration which includes food & beverage processing and preservation, ice plants,

process refrigeration which includes pharmaceuticals, chemicals etc. The range also caters to

HVAC applications including water chillers etc.

Refrigeration System

Kirloskar Pneumatic Co Ltd is a leading name in Industrial Refrigeration, Process Refrigeration

and Preservation. They provide turnkey products and solutions with designing, manufacturing

and packaging, installation, commissioning, after sales and training. KPCL Provides

refrigeration and gas compression systems used in conjunction with hydrocarbon which is

highly specialized market segment in the field of industrial refrigeration.

63

Gas Compression Solutions

KPCL’s customized solutions feature activities like designing, manufacturing, packaging,

installation, commissioning, after sales service and training. KPCL has been serving the

Process Gas Sector in following segments:

Vapour Absorption Chillers

Kirloskar Vapour Absorption Chillers (VAC) is a highly efficient machine. KPCL has

established manufacturing facility at existing Saswad factory, Near Pune. The manufacturing

facilities include Fabrication, Assembly and Performance Testing at full load etc. VAC’s are

used in Power plants, Pharmaceuticals, Chemicals/Fertilizer industries, Tyre industries, Textile

industries, Food Processing sector, Hospitals & Hotel Industries, Paper industries, Paint

industries, Steel industries etc.

TRANSMISSION DIVISION (TRM)

TRM is the fast track business unit of KPCL. With 6 products on board, this SBU specially

cater the need of the Rail, Defence and Non-conventional energy sectors. TRM especially hold

its mastery in different types of gears & gear boxes with capacity ranges from sub megawatt to

higher megawatt range.

64

AWARDS & ACCOLADES

Recognition of KPCL's – ‘Performance in CII Assessment’

KPCL has been commended for Significant Achievement

on the Journey towards Business Excellence in the CII

21st ‘National Quality Summit’ held at Bangalore on

8th Nov 2013.

Recognition of KPCL's – ‘Perfomrnace in RKQP Assessment’

KPCL received “Award & Certificate of

Recognition’’ for achieving highest score in Criteria of

People, People Results & Society Results in RKQP 2013

Assessment.

Recognition of KPCL for receiving the award for “Best Innovative Project”

KPCL received the award for “Best Innovative

Project” for KRM 1200 Railway Brake Compressor for

the year 2012-13 through hands of Senior Assessor Dr.

Satishchandra Joshi and Mr. Aseem Srivastav Mentor – K

Group EnCon Committee on 21st Feb’14.

65

Recognition for KPCL's – Quality Circle in 26th CII - QC Competition

KPCL received “Consolation Prize – Quality Circle

Competition’’ Trophy at “CII – 26th QC Competition -

Maharashtra state Level” held at Kolhapur on 17th Oct

2013.

Recognition of KPCL's – ‘QC Story’ at Quality Improvement Success

Story Presentation

KPCL received “2nd Winner Trophy’’ at “Quality

Improvement Success Story Presentation’’ a Special

Program held at Quality Circle Excellence Centre, Bhosari

Pune on 23rd Nov 2013.

Recognition of KPCL's – ‘Kaizen’ at Mini Convention

KPCL Kaizen teams received “Gold & Silver

trophy” at “46th Mini Convention of QCFI Pune

Chapter” held at Pune on 8th June 2013.

66

Recognition of KPCL's – ‘Kaizen’ in NCQC 2013

KPCL received “Excellence Award Trophy” at 27th

National convention on Quality concepts” (NCQC

2013) held at Kolkata.

Recognition of KPCL's – ‘Best HR’ 2013-14

KPCL received MCCIA “Best HR Award”

for 2013-14 on 10th June’14.

67

SWOT ANALYSIS

Strength

Established brand image around the world over the centuries.

Technical expertise and Leadership

Continuous improvement of product and quality

Company’s CSR have helped to develop its brand and reputation among the people.

Employee development is given at most care

Wide portfolio of customers

Good infrastructure facility

Weakness

Lack of innovation

Old Machines

Opportunities

Continuous innovation of products

Use of non- conventional energy

Threats

Electricity tariff hike

Fuel Price inflation

68

LITERATURE

REVIEW

69

Review on literature

Despite several studies carried out on attrition management, the strategic human resource

researchers are still investigating the causal mechanisms between HR practices and firm’s

performance mostly related to voluntary turnover as a critical component (Shaw, Gupta and

Delery, 2005) as employee retention plays a vital role in bridging the gap between the macro

strategies and micro behaviour in organizations. This is because it ensures stability and

connects the experiences of individuals in organizations on a continuous basis to the critical

measures of success factors in the organization. The decision of leaving the organization is not

easy for an individual employee as well as significant energy is spent on finding new jobs,

adjusting to new situations, giving up known routines and interpersonal connection and is so

stressful (Boswell, Boudreau and Tichy, 2005). Therefore if timely and proper measures are

taken by the organizations, some of the voluntary turnover in the organization can be prevented.

The reasons for employee turnover may vary from external environmental factors such as

economy that influence the business that in turn affects the employment levels (Pettman 1975;

Mobley, 1982; Schervish, 1983; Terborg and Lee, 1984) to organizational variables such as

type of industry, occupational category, organization size, payment, supervisory level, location,

selection process, work environment, work assignments, benefits, promotions and (Mobley,

1982; Arthur, 2001). The other factors that influence employee turnover in organizations

include the individual work variables like demographic variables, integrative variables like job

satisfaction, pay, promotion and working condition (Pettman, 1975; Mobley 1982; Arthur

2001) and the individual non-working variables such as family related varibles (Pettman,

1975; Mobley, 1982).

Any of the above factors could be the reasons, but the decision process to leave or stay in the

organization is to be periodically examined to understand the specific reasons that prompted

them to take such a step and the organizations should be mainly concerned about voluntary

turnover and not involuntary turnover as it is within their control.

Also it is found that employees who perform better and are intelligent enough have more

external employment opportunities available compared to average or poor performance

employees and thus they are more likely to leave (Trevor, 2001). High rates of voluntary

turnover of such employees are often found to be harmful or disruptive to firm’s performance

(Glebbeck & Bax, 2004). When poor performers, choose to leave the organization, it is good

70

for the organization (Abelson & Baysinger, 1984), thus it is important to differentiate between

functional and dysfunctional turnover and accordingly encourage or discourage employee

turnover. Further voluntary turnover of critical work force is to be differentiated into avoidable

and unavoidable turnover (Barrick & Zimmerman, 2005). Estimates of the loses for each

employee vary from a few thousand dollars to more than two times the person’s salary

depending on the industry, the content of the job, the availability of replacements and other

factors (Hinkin & Tracey, 2000).

In some industries chronic shortage of qualified employees has driven up the costs of turnover.

Therefore the acquisition, development and retention of talent form the basis for developing

competitive advantage in many industries and countries (Pfeffer, 1994, 2005). Organizations

failing to retain high performers will be left with an understaffed, less qualified workforce that

ultimately hinders their ability to remain competitive (Rappaport, Bancroft, & Okum, 2003).

Three studies incorporated attitudinal and/or behavioural changes over time to better predict

turnover. Sturman and Trevor (2001) found that quitters’ performance over time did not

significantly change while stays’ performance slope was positive. Demographic factors cannot

be ignored as age, tenure, level of education, level of income, job category, gender have

influenced employee retention and have been found to have stable relationship with turnover

intention. Of the above demographic factors, age, tenure and income level was found to be

negatively related to turnover intention (Arnold & Feldman, 1982; Cotton & Tuttle, 1986;

Gerhart, 1990: Mobley et. Al, 1979; Price & Mueller, 1986; Wai & Robinson, 1998; Weil

& Kimball, 1995); level of education is positively associated with turnover, the more educated

the employees there is a tendency to quit (Berg, 1991; Cotton & Tuttle, 1986); with respect

to job category, (Wai & Robinson, 1998 and Price and Mueller, 1986) found that non-

managerial employees are more likely to quit than managerial employees.

Relationship between gender and turnover showed mixed result. Cotton and Tuttle (1986)

and Weisberg and Kirshenbaum (1993) found females more likely to leave than males.

Miller and Wheeler (1992) and Wai and Robinson (1998) reported no relationship between

gender and turnover. However the reasons for employee turnover vary from one organization

to the other and from one person to another as they are not getting what they expect from the

organization (Ongori, 2007; Mobley 1982 and Dickter, Roznowski and Harrison 1996) also

called for more research and theory pertaining to how the turnover process occurs over time.

71

The following chart indicates the attrition trends for the financial year 2012-13 & 2013-14 for

different industry sectors and across different levels of department. This survery was conducted

by Deloitte in which 209 organisations from 18 sctors participated. The graph shows that the

highest attrition rate is experienced by ITes and Media industry for both the financial year.

Whereas the average attrition trend is 13.4% for the financial year 2013-14 which is 0.8% less

than the previous financial year.

The next part of the graph indicates the voluntary attrition trends across different levels

comprising of Clerical Level, Junior Management, Middle Management, Senior Management

and Top Management. According to the survey the highest attrition is at Clerical level.

The second graph shows the reasons for attrition according to the survey. It is revealed that the

major contributors to attrition are career prospects, personal reasons and better utilization of

skills.

Also the measures taken to curb attrition are highlighted. Apart from this, the major HR

challenges are shown namely Career Mangement, Attraction and Developing Potential

Leaders. It is suggested that industries need to initiate faster growth opprtunities, performance

linked incentives and skill enhancement training programs.

72

OVERALL INDUSTRY ANALYSIS

73

RESEARCH

METHODOLOGY

74

Scope of the Study

This study provides to understand factors affecting attrition and retention of employees of

KPCL. The study mainly focuses on the employees of Gr.61 i.e. Sr. Engineers. Moreover, only

selected facets of job characteristics have been considered for the study. Therefore the scope

of the study is limited to the geographical location of the sample size and also to the selected

dimensions of personal characteristics. The study throws light through valuable suggestion to

decrease attrition level in the organization. This study can help the management to find the

weaker parts of the employee feels towards the organization and also helps in converting those

weaker part in to stronger by providing the optimum suggestions or solutions.

This study has a wider for scope in any kind of organization since “attrition” is general one and

makes the employees to put forth their practical difficulties and need factors in the organization.

This study can help the management to know for which the reason employees tend to change

their job, through dissatisfaction factors faced in the organization and also helps to recover by

providing the optimum suggestions or solutions.

Define

Research

Problem

Review of Literature

Research Concept &

Theories

Review previous

Research Findings

Design Research

(including Sample

size)

Collect

Data Analyse

Data

Feedback

Interpret & Report

Research Process

75

Research Methodology

Research methodology is a way to systematically solve the research problem. It is understood

as a science of studying how systematically a research is done scientifically. In it we study

steps that are generally adopted by the researcher in studying the research problem along with

the logic behind them.

Research Instrument and Statistical Techniques

Normally two types of data are used for the purpose of carrying out research. For this survey

also I have collected these data i.e.

a. Primary data

b. Secondary data

Primary Data:

Primary data is one, which is collected from fresh sources and for the first time while

conducting the research.

For the project, primary survey has been undertaken through a survey instrument consisting of

structured questionnaire filled by employees by the way of personal interviewing

Secondary data:

Secondary data is that data which has been collected for some other purpose.

There are two types of sources for collecting secondary data:

a. Internal sources

b. External sources

Internal sources of secondary data includes the data generated within the organisation

E.g. Employee Engagement Survey Result

External sources of secondary data are the sources outside the organisation

E.g. Annual Publications, Books, Magazines and Internet etc.

76

Research methodology

The methodology used for my project is as follows:

Research approach method-

Survey Method

Area of study-

The survey was carried out in Kirloskar Pneumatics Company Limited, Pune. A survey was

effective to study the attrition management in the company.

Research-

Exploratory and Descriptive

Data Source-

Primary Data and Secondary Data

Research Technique-

One-on-One interview

Time period of study-

2 months (2nd June-2nd August)

Target respondents-

Sr. Engineers at Kirloskar Pneumatics Co. Ltd.

Sample size-

The sample is 25 employees which includes the employees of Gr. 61 (Sr. Engineers)

Sampling method-

Sampling procedure used for this study is Simple Random Sampling

Sample of study-

The sample is a basic unit consisting of the elements of the population to be sampled. Sample

population includes employees from KPCL in Pune. The population includes the employees of

the various department in the organisation.

77

Sample design-

To select the samples, the sampling technique used was Simple Random Sampling. The main

benefit of Simple Random Sampling is that it guarantees that the sample chosen is a

representative of the population. This ensures that the statically conclusions will be valid.

In this technique each member of the population has an equal chance of being selected as

subject. The entire process of sampling is done in a single step with each subject selected

independently of the other member of the population.

Tool for data collection-

The research instrument used in this study is structured questionnaire which consists of 14

questions. It was predetermined before conducting the survey. The questions are open ended.

Statistical tools used in the study-

For the analysis of data percentage analysis is used.

78

DATA ANALYSIS

&

INTERPRETATION

79

This survey was conducted with a sample size of 25 employees.

Q.1. What are the top 3 factors you might consider important that will continue to keep you here

at KPCL?

INTERPRETATION:

The above graph represents that most of the employees feel the work culture and the

organization’s reputation as the prime reason to continue working with the company. Whereas

if we further see. We find that 32% employee feel that they get better training and development

programs at KPCL, which is why they choose to work with the company. 28% employees feel

that they are paid well in this company and like their work tasks.

The following are the other stated reasons by the employees:

64%

32%

28%

28%

20%

20%

8%

8%

8%

44%

0 10 20 30 40 50 60 70

Organization Reputation/Culture

Learning & Development

Pay

Work Tasks

People/HR Practices

Autonomy/Choice

Brand Alignment

Sense of accomplishment

Career Opportunities

Others

Reasons for Working

80

Q.2. What do you love best about your work / working in?

INTERPRETATION:

The above graph depicts that 32% employees like the trainings imparted to them and they feel

that they get more development opportunities at KPCL. The next thing that employees love

about their job is the task allotted to them. Around 24% employees love work in their present

areas of job. The third reason that the employees stated was interaction with the

clients/customers. 16% of the interviewee feel that in the process of interacting with the

customers they actually get to know their demands, which helps them to design and deliver

customer specific products and satisfy customer requirements. This gives them a sense of

accomplishment. Meanwhile they also develop better communication skills in the processes of

interaction.

32%

24%

16%12% 12%

8% 8% 8%4% 4%

LOVE FOR WORK

81

Q.3. What will motivate you to excel further in your current position & make your job more

satisfying?

INTERPRETATION:

The top 3 motivators as indicated in the graph is Work tasks, Recognition, Leadership and

Learning & Development. 28% of the interviewed employees feel motivated by their work

tasks. They love to do their work and the challenges in their work. 24% employees said the

support of their seniors motivates them and the leadership they are given to handle projects

motivates them. While, the next 24% employees feel motivated by the appreciation received

from seniors and colleagues and also they get motivated when their ideas are accepted. The

third major motivator is the learning and development imparted to the employees.

0

5

10

15

20

25

3028%

24% 24%

16%

12%

8% 8%

4% 4%

Motivators

82

Q.4. Does KPCL adequately support your career goals?

INTERPRETATION:

60% of the employees feel that KPCL adequately supports their career goals and is providing

them enough opportunities to groom their skills. Whereas 24% of the employees feel that they

the company is not supporting their career objectives and 16% employees feel somewhat

supported in their career goals

60%24%

16%

Support for Career Goals

Yes No To some extent

83

Q.5. Does KPCL fully utilize your talent?

INTERPRETATION:

The above graph represents a mixed view regarding skill utilization. About 40% of the

employees feel that KPCL gives them sufficient opportunities to utilize their skills. At the same

time 40% employees feel that their skills are not utilized to its maximum potential. 20% of the

employees are of the opinion that they are utilizing their skills to some extent.

40%

40%

20%

Skills Utilization

Yes

No

To some

extent

84

Q.6. How can KPCL support your career goals?

INTERPRETATION:

As a part of suggestion for supporting the career goals, 28% employees suggest that more

technical training should be imparted so that the employees gain skills for their work and they

should be given site knowledge. Also they suggest that the company should sponsor education

to more employees. The second category of suggestion that 24% employees gave was the need

for resources. Employees feel that they are not equipped with the modern tools and techniques

which lowers the productivity. Hence they require more and better resources so as to utilise

their skills efficiently and effectively. The third suggestion is given in the area of leadership.

16% employees suggest that there is an urge for formulating better plans and prompt decisions

so that the work culture is not delayed.

0

5

10

15

20

25

30

Learning &

Development

Resources Leadership Career

opportunities

Work Life

Balance

Communication Recognition

28%

24%

16%

8%

4% 4% 4%

SUGGESTIONS FOR SUPPORTING

CAREER GOALS

85

Q.7. If given a choice to choose your own career path in the future, which function or career

path that you think you will like to embark on so that you can contribute your very best

to KPCL?

INTERPRETATION:

According to the survey 36% employees fantasise doing the research and designing work. They

want to do the technical work. Whereas 28% employees feel satisfied with their current profile.

They feel that they are working are working in the area of their interests. Furthermore as shown

in the graph, 24% employees want to completely move to other areas of work i.e. job rotation.

Few wanted to move to PGS and manufacturing department, while few hold opinion of getting

linked with the corporate department. Moving down we can see that 16% employees want job

enlargement i.e. they want more authority and responsibility to execute their work and also

they want leadership in handling projects. 8% employees want a job rotation in branch.

Technical No Change Job Rotation Job

Enlargement

Job Rotation

in Branch

36%

28%

24%

16%

8%

CAREER PATH

86

Q.8. Are the training & development provided by the company adequate & met your needs?

INTERPRETATION:

The graph shows that 48% employees are satisfied with the training and development

programs. While 40% employees are not happy with the trainings imparted. 8% employees feel

that the training and development is average and not up to mark. Only 4% employees haven’t

received any trainings till now.

48%

40%

8% 4%

Training & Development

Yes No Average Not received

87

Q.9. What are your suggestions for improvement in the area of Training & Development?

INTERPRETATION:

60% employees suggest that more technical training should be imparted to the employees so

that they gain more knowledge about their work and execute it properly. Employees suggest

that more advanced and skill development trainings should be given. 8% employees suggest

that IMS Training and awareness programmes should be conducted. 4% employees suggest

that certain motivational trainings should be conducted by the company. The other reasons

stated by the employees were regarding the time constraint and few felt that the content of

training was missing.

Skill

60%

Knowledge

8%

Behavior

4%

Others

28%

Suggestions

88

Q.10. Do you have enough recognition for your contributions?

INTERPRETATION:

The graph shows that most of the employees are recognised for their contribution. The

company takes a deal of effort and ensures that contribution of the employees are recognized.

The chart clearly states that 68% employees have been recognized for their contributions.

While 12% employees feel that their contributions are not recognized by the company. 8%

employees feel that there were moments when they have been rewarded, yet they feel that there

were moments when they feel that they had made an impact which was not recognized. 4%

employees do not feel the need for recognition, whereas 8% employees said that they haven’t

made any impact that needs recognition.

68%

12%

8%

4%8%

Recognition

Yes No To some extent No expectation Not made impact

89

Q.11. What kind of recognition do you prefer?

INTERPRETATION:

Of the various kinds of rewards given by the company, 40% employees feel that only an

appreciation for their work by their managers motivates them and makes them feel proud. 32%

employees prefer certificates as a part of recognition. They feel that these letters of credit adds

to their achievements. 24% employees prefer trophy, while only 20% employees prefer to have

monetary rewards for their contributions. 8% employees prefer “Employee of the Month” as a

part of recognition. And 4% employees prefer to be rewarded with movie tickets, Kaizen award

& Spontaneous award. Apart from these, 4% employees want more responsibility as a part of

recognition, while the rest employees prefer to be rewarded with any type of reward and few

do not have any expectations.

40%

32%

24%

20%

8%

4%

4%

4%

4%

4%

4%

0 5 10 15 20 25 30 35 40 45

Appreciation

Certificates

Trophy

Monetary

Employee of the month

Movie ticket

Kaizen

Spontaneous award

Add. Responsibility

No expectation

Any type

Recognition Preferred

90

Q.12. What do you like or respect most about your supervisor?

INTERPRETATION:

32% employees feel that their supervisors have very good technical knowledge. Moving

downwards, the graph shows that 24% employees feel that their supervisor provides solution

to their queries and helps them better understand the situation. 20% employees like the

supportive nature of their superiors. They feel that they get enough support from their

supervisors. The rest qualities that employees like about their supervisors includes supervisor’s

management skills, communication skills, his way of thinking, the freedom given at work (to

pursue work in a manner which the feels convenient), decision making ability, co-operative

nature etc. to name a few.

32%

24%

20%

12%

8% 8% 8% 8%

4% 4% 4% 4% 4% 4% 4%

Supervisor's Strength

91

Q.13. In which aspects you think your supervisor can do better?

INTERPRETATION:

The above graph shows that 20% employees feel that their supervisors should interact and

guide them regarding their career prospects rather than only discussing about case to case

progress. 16% employees feel that their supervisors should control their temper and respect

employees. Majority of the employees i.e. 28% employees feel that their supervisors should

improve their communication skills. Down the line, the graph shows that 16% employees feel

that their supervisors should be more competent and a develop decision making ability.

Whereas 4% employees feel that their supervisors are not motivating and also they fail to

deliver their commitments on time.

20%

16%

28%

16%

4% 4%

AREAS OF IMPROVEMENT

92

Q.14. Have there been any moments where you were very unhappy working at KPCL?

INTERPRETATION:

80% employees felt unhappy moments working in the company whereas 20% employees had

no unhappy moments working at KPCL. The reasons for being unhappy are as follows:

80%

20%

Unhappy Moments

Yes No

93

Q.15. A. What are the top 3 factors that you might consider leaving KPCL?

INTERPRETATION:

The top 3 reasons stated by the employees for leaving the company is salary. Career

opportunities and the work tasks. 68% employees say that if they are paid higher in other

company they would leave. 60% state career prospects as a major reason for leaving the

company. They feel if they get better career opportunities and more exposure elsewhere they

would leave the company. The major reason that 24% employees said was the job profile.

Employees felt that they were not having a clear job profile and the tasks allotted to them did

not match their profile. 20% employees feel the work culture is not motivating which might be

considered as factor for leaving.

68%

60%

24%20%

12% 12%8% 8% 8%

4% 4%

Factors for leaving

94

B. Internal and external factors constituting employees to leave

INTERPRETATION:

Of the reasons stated for the previous question, 45% employees have shown internal reasons

for leaving the company. Whereas 13% employees stated external reasons for leaving the

company.

0

5

10

15

20

25

30

35

40

4545%

13%

FACTORS

Internal External

95

Q.16. Do you get enough information about the company?

INTERPRETATION:

The company provides enough information regarding the strategies, performances, procedures

etc., this is clearly shown in the graph. 92% employees feel that they get enough information

regarding the company’s policies and procedures. Only 4% feel that the information they get

is not sufficient. While the remaining 4% feel that there is partial flow of information.

92%

4%

4%

Information Received

Yes

No

Partial

96

Q.17. Which communication channel would you prefer to get the information?

INTERPRETATION:

52% employees stated ‘Shashwat’ as the most preferred communication channel. Whereas 40%

employees prefer ‘Speak-out’ as the preferred channel to get on spot answers to their questions.

The third most preferred communication channel is ‘E-mail’. ‘Susamwad’ and ‘Oracle’ are the

least preferred communication channel.

52%

40%36%

8%4%

Shashwat Speak-out E-Mail Susamwad Oracle

Communication Channel

97

Q.18. Do you think workplace comm. is adequate within your department & interdepartment?

INTERPRETATION:

As the graph shows there is good communication within the department. 76% employees said

that there is good communication within the department. Only 16% employees said that the

workplace communication was not good within department and 8% employees said the

communication was average in their department.

Good

76%

Not good

16%

Average

8%

Workplace Communication (Dept.wise)

98

INTERPRETATION:

The graph shows that inter departmental communication is not good. 52% employees face

inter departmental communication problem. While 44% employees feel the communication is

good inter department. The rest 4% employees consider interdepartmental communication as

average.

Good

44%

Not good

52%

Average

4%

Inter Dept. Communication

99

Q.19. If you were given a free hand to make changes what changes would you make in the

organisation?

INTERPRETATION:

36% workforce consider the processes in the company is complex and lengthy. Hence it needs

to be modified. Whereas 20% employees think that there is an urge of recruiting more youths

in the organisation. They feel that the old employees are not contributing much to the

production. 16% employees said they would improve the canteen food and also the technology.

Whereas 8% employees would implement the MNC culture and some recreational activity as

a part of engagement activity. 84% employees feel that work is not allocated as per the profile,

hence they require a clear job profile. Also deadlines should be set for every work so that

employees don’t waste time in unproductive work.

36%

20%16% 16%

8% 8%

84%

Simplify

Processes

Young Work

Force

Canteen Technology 5 Days Week Engagement

activity

Work Tasks

Org. Changes

100

Q.20. Suggestions for enhancing work environment

28%

24%

16%

12%

8% 8% 8% 8% 8%

4% 4% 4% 4%

Enhancing Work Environment

101

INTERPRETATION:

The graph shows that there is need for effective communication so as to ensure smooth working

and the company should also recruit fresh talents. This would lead to inflow of new ideas. 24%

employees feel that modern technology should be adopted so as to simplify the work processes.

16% employees feel that the work tasks should be better qualified. Deadlines should be set and

there should be proper time management. Another major factor to enhance the workplace

environment is cooperation among co-workers and need for motivation which12% employees

stated.

102

Q.21. Suggestions to encourage Retention

INTERPRETATION:

52% employees said that salary would be the most preferred retention factor, which is common

for every company. Another major concern for retention is provision for transport facility. 24%

feel the need for conveyance for their retention. Whereas recognition and increments hold equal

status i.e. 16%. Employees said they should be recognized for their contributions and should

be given proper increments. Apart from these training, resource requirements, department

change etc. were each demanded by 8% employees as retention factors. 72% employees gave

other reasons for their retention which is described in the following chart:

52

24

16

16888

8

72

Retention

Salary

Conveyance

Recognition

Increment

Explore knowledge

Training

Resources

Dept. change

Others

103

FINDINGS

104

Summary of Key Findings

From the analysis I can say that organization culture has a positive impact and at the same

time a high value in the process of employee retention practice compared to other elements.

From the analysis done we can say non-monetary factors also play a positive impact on

employee retention.

From the overall analysis of literature review, we can state that the demographic variable also

plays an important role in employee. Like it is tougher to retain an employee with a higher

qualification and experience than an employee at a graduation and entry level. Another

important element which effect the employee retention is marital status.

Perceived lack of recognition was also cited as a contributor to low job satisfaction. Some

respondents described a climate where bad performance was recognized but good

performance was not. Other workplace climate issues that were often cited as contributing to

poor performance were lack of teamwork and motivation.

Respondents also frequently cited communication as a significant factor. Many employees

expressed a desire for more two-way flow of information and a voice in decision-making.

They wanted a forum for sharing their ideas for system improvement.

When asked what incentives kept them at KPCL, pay and benefits were most frequently cited.

However, a number of respondents also said they liked their work, and found it interesting.

Overall, participants indicated that they had good working relationships and communication

within department is conducive, whereas inter departmental communication is a critical issue.

The most serious problem that arises is technology and need for technical training.

Retention policies followed provides the employees both monetary and non-monetary

benefits.

Various other workshops conducted which helps the employee to be motivated and keep

working.

The exit interviews are conducted as and when required by the company.

105

There is a positive significant relationship between superior support, work environment, work

life balance and recognition on employee retention.

68% employees agree that recognition is received for their contributions.

48% employees agree that training is imparted periodically.

92% employees agree that they get sufficient information about company’s policies,

procedure and performance.

64% employees feel that there is support from superiors and colleagues.

Employees feel that turnover is a serious concern for their organisations’ management.

106

LIMITATIONS

107

Limitations of the Study

The research study is limited to a few aspects:

Time was the most critical limiting factor.

The study was limited to the extent of information provided by the employees of a

particular grade only.

The outcome of the study cannot be generalized. The study needs to be tested on a larger

dataset.

The responses from the employees could be casual in nature, chance of bias is present.

The study has considered only limited variables while assessing attrition, retention, and

other perceived attitudes of the employees.

108

SUGGESTIONS

&

RECOMMENDATIONS

109

Implications of the Study

Based on the conclusions derived after the in-depth and comprehensive study, few implications can be

made to manage attrition. Employee retention is vital to the long term health and success of any business

organization. Organizational issues such as time and investment involved in training; knowledge lost

due to attrition; mourning and insecure co-workers and a costly replacement of candidate costs a lot to

the organization. Employee retention does matter. The concept of employee retention should be very

distinctly understood and realized by organizations. The retention strategies designed should be such

that the retentive forces are maximized and the debilitating forces minimized. Attempt should be made

not to orchestrate the retention strategies in isolation but ensuring that it forms a part of the overall

strategies for fortifying the pull on the human talent, which include sourcing, staffing and development

strategies in addition. It should also be noted here that retention policies should be highlighted at par

with other policies so as to ascertain that the employees feel they are highly valued. Once the employees

working in the organization are made to feel that the organization holds high degree of attachment

towards them, it shall be easy to incorporate retention strategies, thereby curbing attrition. The

organization should inculcate the value of people asset.

Organizations should have a proactive retention strategy which helps in reducing employee turnover.

Retention plan strategies should be different for different level of employees, because their roles are

different; their needs are different; what motivates them are different and what makes them leave are

also different. The intrinsic motivation and involvement factors, as well as age and education level

contribute to the sustenance of employees in the organization. Thus based on the findings, it can be said

if the employees are motivated and involved in the work they can be retained. The ease of retention

would depend on their degree of motivation and involvement.

Many organisations are adopting some fundamental actions to retain employees, including salary

surveys to stay shoulder to shoulder of the market, culture-building exercises for employees, exit

interviews, counselling, employee development programs, rewards and recognition, as well as increased

pay and benefits. As we know pay is a common reason why employees generally prefer to move to other

organisation. But apart from salary there are certain factors which contributes to attrition. Based on the

primary and secondary data collected upon managing attrition, the following suggestions can be raised.

Like out of 25 respondents, 84% employees’ feel that the work allotted to them does

not match with their job profile. So the organisation should ensure that when assigning

the tasks to the respective employee it should match his competency and interests. If

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the organization put this into practice it will have a positive effect on employee

retention, at the same time it will be very beneficial for the organization as well.

Taking into consideration career opportunities, 60% said that they need more exposure

and their potential remains under-utilized. The organization should provide exposure

and explore the talents of the employees. Even though the employees are satisfied with

their nature of job, it is identified in the study that many employees prefer to change

their job due to lack of growth opportunities in their job. So the companies can look for

some innovative technologies to decrease their attrition level by providing growth

opportunities.

One way for a company to prevent employees from giving valuable information to

competitors is to make it a policy to enforce strict non-competing and confidentiality

agreements amongst its employees. The existence of such agreements could in fact deter

a competitor from hiring a valuable employ because they might not want to risk possible

legal entanglements with the other company.

Deadlines should be set which will benefit both, the organization as well as the

employees. By the way of setting targets, the employees will be engaged in their

respective works which will help in utilizing the skills of workers as well as the

organization can deliver its commitments on time. Also the best performing or the target

achiever should be awarded which will motivate him to further excel and remain

committed towards his work.

Many employees have suggested improvement in working environment and employee

motivation in the survey. So the companies should give attention to the factors which it

can improve itself internally.

Taking into consideration the elements like modernisation of technology, it would help

the organization in a good manner. If the organization could support the employee in

the above mention element, like if the employees are better equipped with resources

and technology, the end products will be standardized and will give competition to other

similar products. On the other hand wastage can be reduced both in terms of manpower

and time.

Day care assistance should be given. Attrition rate among the female employees can be

reduced to a good level. From the study it was showing that employees does not have

this opportunity.

111

Considering the primary data tool i.e. benefits, we can see conveyance is not offered. If

the organization take a step forward in this practice it will help the employees.

From the secondary data i.e. reviews and articles we could see that an employee –

employer relationship is very important. It plays very crucial role in employee retention.

So the organization should develop and put into practice programmes which help to

improve this area. Some interactive sessions should be organised at regular and frequent

intervals. At the same time the organization should have clear communication process

which will help to solve 90% of the problems faced.

Secondary data also reveals the importance recruitment process. As it is said if the right

person is hired for the position it will be easy for their retention. So the organization

should have strong and apt recruitment process and at the same time it should be well

executed.

Reciprocity is the key. Employees are investors in the company and expect a return on

investment. The return can be in the form of recognition, empowerment and authority.

Each generation of employees has different reasons for staying. For the first time in

modern history, there are varied generations working side-by-side in most companies

of this industry. Generational differences continue to pose new challenges to today’s

employers. Thus, retaining them needs a generation-centric approach.

Train intelligently. Provide on-going retention training in manageable bites – make it a

continuous effort and find ways to size the retention plan to the specific demographics

of the organization. The company may give training like Personality Development and

Self - improvement training to the employees, every three or six months once this status

has to be reviewed and necessary action can be taken. It is better to have such training

in the future. Organizations should focus more on technical training needs.

The companies should conduct regular meetings to know about what exactly employees

expect. Organizations should focus on exit interviews.

Better performance linked incentives and Skill Enhancement Training Programs.

112

Retention strategies used at Kirloskar Pneumatic

Company Ltd.

Recognizes and appreciates the achievements by giving rewards (certificates, monetary

and non-monetary rewards). Various reward schemes have been developed by the

company. E.g. Spontaneous Award, Fast Tracker Award, Kaizen Award, Employee of

the Month Award, etc. to name a few.

Gives an environment where employees want to work and can have fun. Various CSR

activities are initiated wherein employees volunteer.

Provides training and development and personal growth opportunities to the employees.

Intranet (Shashwat) and Susamwad is used as they provide full access to the

information.

Employees Training & Development Assistance Scheme is undertaken as a part of

education initiative. This scheme aims to provide financial support to the employees

who are self-motivated to undertake part-time degree / diploma courses to improve their

knowledge and skills in their profession, which can contribute in improving their

effectiveness and performance.

Celebrate birthday of employees, sends them a birth card for warm wishes and gifts.

Medi claim policy, accidental policy are used for higher job satisfaction as well as to

retain the employee.

Co-operative society, wherein the members get loan faster and at a lower interest rate.

Society gifts are also given to members.

Employee referral policy is also used in which they give incentive from 10000 to 25000

according to the post.

113

CONCLUSION

114

A Final Word

The main aim of any organization is to earn profit. But to attain the maximum profit, the

organization should concentrate more on employees and the ways to retain them for their long

run. From the study it is identified that Work Tasks, Technology and Technical Training are

the top three factors which might lead to attrition, apart from lack of growth opportunities and

salary which are the common factors for employees to change their jobs in almost every

organization. This study concludes that to reduce attrition, the company should adopt New

Innovative Technologies and Effective Training Programs for the growth of their employees

within the organization.

The company should also think of recruiting people who are in the vicinity of the industry, so

that the family related problems will not lead to attrition. But on the other hand, company

should recruit people from different regions so that it can adopt the culture and work style of

other regions, rather than being specific to a particular state while recruiting.

From the study done we can say that, the best way to improve employee retention is to

understand what the employees want and need from the work place and provide it. Organization

must meet employees demand within limits of course. Management cannot approve all the

demand is a fact, but at the same time they can take efforts to convince the employees.

Organization should also take efforts to bring most of the retention policies into practice which

will give a positive effect on the issue. Even the employees should understand the limits of the

organization and act accordingly. If there is a better understanding between the two parties the

problem of employee retention is solved to a great extent. Both the parties should be aware of

the surroundings and current matters. Every company should understand that people are their

best commodity. Without qualified people who are good at what they do, any company would

be in serious trouble. In the long run, the retention of existing employees saves company’s

money.

One way for a company to prevent employees from giving valuable information to competitors

is to make it a policy to enforce strict non-competing and confidentiality agreements amongst

its employees. The existence of such agreements could in fact deter a competitor from hiring a

valuable employ because they might not want to risk possible legal entanglements with the

other company. Of course, all this could possibly lead to animosity with the employee who

115

could feel that his or her options are being limited. Many employees don't always remember

signing such a document, so a copy of it should always be kept on file for the employee to refer

to. This area could prove to be a highly sensitive one between employer and employee, so

extreme caution is suggested in all instances.

It is clear that there are massive costs associated with attrition or turnover, and while some of

these are not visible to the management reporting or budget system, they are none the less real.

There is no universal attrition management solution for every company. Each organization has

to build its own motivation system based on compatibility between organizational and

individual goals. The following factors can be concluded:

Attrition is inevitable; it will always prevails; it can only be minimised.

Turnover is a costly drain on company resources.

Intrinsic factors are equally and sometimes more important than extrinsic factors while

controlling attrition.

Effective leadership; to a great extent, may be helpful to control attrition.

Attrition does not always have a negative impact on the organization.

The company should adopt New Innovative Technologies and Effective Training

Programs.

116

ANNEXURES

117

QUESTIONS

ANSWERS

1 What are the top 3 factors you might consider

important that will continue to keep you here at KPCL?

2 What do you love best about your work / working in

KPCL?

3 What will motivate you to excel further in your current

position & make your job more satisfying?

4 At the moment does KPCL adequately support your

career goals & fully utilize your talent? If not, how can

KPCL support your career goals?

5 If given a choice to choose your own career path in the

future, which function or career path that you think you

will like to embark on so that you can contribute your

very best to KPCL?

6 Are the training & development provided by the

company adequate & meet your needs? If not, what are

your suggestions for improvement in this area?

7 Do you have enough recognition for your

contributions?

What kind of recognition would you prefer?

8 What do you like or respect most about your

Supervisor?

In which aspects he/she can do better?

9 Have there been any moments where you’ve very

unhappy at KPCL? Please briefly describe what &

why.

10 What are the top 3 factors that might make you consider

leaving KPCL?

118

NOTE:

The annexure contains open ended questions

11 Do you get enough information about the Company?

E.g. on company’s direction, strategies, performance

results, organization changes etc.?

Which communication channel would you prefer to get

this information through?

12 Do you think workplace communication is adequate

within your department & inter-department?

13 If you are given a free hand to make changes, what are

the 1-2 things you will like to change about our

organization as a place to work?

14 What suggestions do you have to:

- Enhance work environment /work culture

- Encourage retention

119

REFERENCES

120

BIBLIOGRAPHY

KPCL Induction Handbook

Dr. K. Lavanya Latha, “A Study on Employee Attrition and Retention in Manufacturing

Industries”, Vol.- 5

WEBLIOGRAPHY

www.kirloskarkpcl.com

http://www.google.co.in/search

http://abhinavjuornal.com/management&technology/Jul13/8.pdf Vol. II

www.shri.org.sg/_surveyreports_SETSITR.asp

www.ddiworld.com/.../retaining-talent-a-benchmarking-study_es_ddi.pdf

http://www.citehr.com/human-resource-articles.html

www.reed.co.uk/consulting

www.gjimt.com/GianJyotiE-Journal.htm, GIAN JYOTI E-JOURNAL, Vol. 1, Issue 1

(Oct-Nov 2011)

http://humanresources.about.com/od/retention/Retention_of_Em

ployees_Tips_and_Tools_for_Employee_Retention.htm

http://www.deloitte.com/view/en_IN/in/services/consulting/human-capital-advisory-

services/bc30cd09c073e310VCMgnVCM1000003256f70aRCRD.htm

For Questionnaire:

www.examiner.com

jobsearchtech.about.com

www.businessballs.com

humanresources.about.com

hiring.monster.com

www.tlnt.com

www.blogging4jobs.com

www.recruiter.com