Essential Factors for Employee Retention in Sugar Mills

University of Wales Institute, CardiffUniversity of Wales Institute, Cardiff
Master’s Dissertation
What are most essential factors for employee retention in Agro Base
industry?
“A case study of Matiari Sugar Mill”
Muhammad Achar Bozdar
Student ID: 0822KKKK1009
Masters in Business Administration (MBA)
International Business
University of Wales Institute Cardiff

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Contents
ACKNOWLEDGEMENT........................................................................ 4
Abstract..................................................................................................... 5
IINNTTRROODDUUCCTTIIOONN ..................................................................................... 7
1.1 Sugar Industry in Pakistan.................................................................. 7
1.2 History of Sugar.................................................................................. 8
Figure 2.1: Growth of Sugar Mills in Pakistan - years 1947-2006........ 10
1.3 Background....................................................................................... 12
1.4 Research Brief .................................................................................. 12
1.5 Problem Statement............................................................................ 13
1.6 Policy Questions to be examined ..................................................... 14
1.7 Research Objectives ......................................................................... 14
Literature Review ................................................................................... 16
2.1 Retention management ..................................................................... 16
2.2 Voluntary Turnover.......................................................................... 17
2.3 Job satisfaction.................................................................................. 19
2.4 Job alternatives ................................................................................. 20
2.5 Retention plan................................................................................... 21
2.6 Employees leaving.......................................................................... 22
2.6.1 Unavoidable:.............................................................................. 23
2.6.2 Advancement:............................................................................ 24
2.7 Key employees.................................................................................. 24
2.8 Recruitment....................................................................................... 25
2.9 Motivation......................................................................................... 26
Figure 2.9.1 Conception Motivation in Sugar Industry .................... 27
2.10 Motivational Theories and sugar Industry ..................................... 27
2.10.1 Motivation Factors Model:...................................................... 28
2.11 Good Leadership: ........................................................................... 29
2.11.1 Leader’s role:................................................................................ 30

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Methodology........................................................................................... 33
3.1 Research Objectives ......................................................................... 33
3.2 Research Process: ............................................................................. 33
3.3 Research Philosophy: ....................................................................... 34
3.3.1 Positivism .................................................................................. 34
3.3.2 Justification of Research Philosophy ........................................ 35
3.4 Research Approach:.......................................................................... 36
3.4.1 Deductive Approach.................................................................. 36
3.4.2 Justification of Research Approach: ......................................... 36
3.5 Research Design: .............................................................................. 37
3.5.1 Exploratory Research ................................................................ 37
3.5.2 Justification of Research Design ............................................... 37
3.6 Data Collection Methods.................................................................. 38
3.6.1 Secondary Research................................................................... 38
3.6.2 Justification of Secondary Research ..................................... 39
3.6.3 Primary Research....................................................................... 39
3.6.4 Justification of Primary Research ......................................... 39
3.7 Open Ended Question & Closed Ended Questions.......................... 39
3.7.1 Open Ended ............................................................................... 39
3.7.2 Closed Ended Question ............................................................. 40
3.8 Research Methodology:.................................................................... 40
3.8.1 Qualitative Research:................................................................. 40
3.8.2 Research Method Justification: ................................................. 41
3.9 Sampling........................................................................................... 41
3.9.1 Probability Sampling:................................................................ 42
3.9.2 Non-Probability Sampling:........................................................ 42
3.9.3 Justification:............................................................................... 42
3.10 Data Validity, Reliability and Generalisibility............................... 43
3.10.1 Validity: ................................................................................... 43
3.11 Ethics: ............................................................................................. 44
4.1 Findings from Manager’s & Workers............................................... 46

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Discussion............................................................................................... 65
Conclusion .............................................................................................. 68
5.1.1 Limitations................................................................................. 69
5. 2 Recommendations for Management................................................ 69
5.2.1 Motivation of Employees: ......................................................... 69
5.2.2 Value of Employee:................................................................... 69
5.2.3 Management needs to improve: ................................................ 70
5.2.4 Communication between employees and leaders: .................... 70
Bibliography & References .................................................................... 72
6.1 Books:........................................................................................... 72
6.2 Journals:........................................................................................ 73
6.3 Websites:....................................................................................... 74
Appendix................................................................................................. 75

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ACKNOWLEDGEMENT
This dissertation is really would not have been possible without the help of respected
supervisor, & also other several friends who have also helped me during preparation &
Completion of this research work.
First of all, I would like to Thankful to respected Dr. John Aston, my course supervisor who
supervise the whole research process and he encouraged me always which I will never forget.
Secondly my Friend Mr. Partab helps me a lot during the doing this dissertation, I am really
thankful to him as well.
In the last but not the least, I am thankful to my Father and my mother & the above all, from
almighty Allah for answering my prayers for giving me the power to complete this big task.
Muhammad Achar Bozdar

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Abstract
Employee retention is the big problem for the companies in whole world, high turnover rates
affect the company’s productions and also encourage the company competitors to compete
easily with the company , because the key employees of the company know about every
weakness and strength, so mostly employees leaving the organizations from different
prospective, some leaving because of Environment and some leavening because of the rewards
etc. we have focused in this dissertation a Agro Base company which belongs to Pakistan’s
province Sindh, to know about the employee retention in this company.
Through this Dissertation researcher have investigate the employee retention in the company
called Matiari Sugar Mill Pvt. Ltd. Sindh – Pakistan and researcher have used some theories of
different writers to check how it works, and then researcher have designed some questioners
to get ground realities against the theories which has already been used in the secondary
research.
Researcher tried to discuss some ways how to reduce the turnover ratio of employee & retain
them, they’re different theories used likewise motivations theories, rewards systems,
Leadership involvement to control the turnover rate.

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IINNTTRROODDUUCCTTIIOONN
1.1 Sugar Industry in Pakistan
Pakistan lies between latitude of 25030 and 36045 North and longitude of 610 and 75030 East.
Pakistan’s geographical area is 79.6 M hectors. Pakistan’s economy 75% depends on the
agriculture and also Pakistan called agricultural country. There are 4 seasons in a year in
Pakistan and Two crops in year, mostly landlords use their lands for two crops in Pakistan, One
is Wheat and Second for Rice etc. If we talk about the climate of Pakistan is temperature is
between 2°C & 50°C.
As mentioned above about the agriculture is the biggest support to Pakistan economy like we
more than 45% employees by the agriculture mostly labor force. Agriculture contributes about
65% to total sell overseas earnings resulting from raw and processed agricultural merchandise.
The agriculture sector plays an important role in Pakistan economy as figure 1.1 shows the role
of agriculture in economy.
Figure 1.1: Features Agriculture in Economy

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Pakistan is a relatively poor country and the per capita gross national income was $ 420 in
2006, and the share of the agriculture in the economy has been slowly declining and that of
industry is increasing but still it remains the backbone of the economy, employing more than
half of the labour force. It is also critical to poverty reduction in rural areas, where 80 percent
of the poor lives under poverty line. Agriculture is the foundation of Pakistan’s economy.
(Figures 1.2 in percentage)
Source: Survey, 2011
Table 1.5 provides a crystal clear figure of the share of goods and services in the GDP. The table
further reveals that agriculture sector is little bit declining and share of manufacturing and
services sectors are building up. In other words the table demonstrates that the contribution of
industry is increasing.
1.2 History of Sugar
Sugar is also as old as old is the ancient history of this sub continent. Which is told by the great
history writer that sweets were sent from this area to Abbasi ghalip Even during 750 AD Sindh
used to supply local sugar to entire Arabaustan? An Arab visitor has written in his book that in
four cities of Sindh sugar was manufactured. It was discovered in eighteenth century that

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heating starch with dilute Sulphuric acid transfers it into a sugar. The importance of discovery
was quickly realized and manufacturing operations began at once and within a year, four
factories on the continent were producing starch sugar. It was thought at first, that the product
obtained was identical with sucrose and could be substituted for it in any product, but later, it
was found to be less soluble and less sweet and it could not be used in every case as a
substitute for sucrose. It fell into disrepute for a long time, but 47 factories were in production.
In USA, large-scale production from maize starch was in operation. Instead of substitute for
sucrose, its uses had gained a foothold in brewing industry and in manufacture of spirituous
liquors. Dextrose has lost its position to sucrose as a purely sweating agent but still its
importance in sweeteners is significant. Crystalline dextrose could be among the first to be
considered as substitute for table sugar but it is rejected in daily high glucose diets, because of
nausea, dizziness and unpleasant quality of sweetness but D-glucose syrup made from starch
and containing maltose and dextrin have been found quite acceptable. It is seen possible that
human body is structured to favour D-glucose metabolism and that although, normally it will
tolerate others sugars. Fructose was first isolated and was prepared by alkaline isomerization of
dextrose. Syrup was produced commercially for use as moisturizing agent in tobacco. This is not
suitable as food product due to its color, off-flavor, degradation products and low fructose
yield. Commercial production of HFCS began in Japan, limited amount, followed by a 42 percent
fructose product the next year. Initially, HFCS product was produced in batch wise system using
soluble enzyme. However, concentrated effort within corn refining industries resulted in
continuous system using bound enzyme technology. Other industrial processes were developed
shortly; therefore, HFCS is a viable alternative sweetener to sucrose in many applications.
Figure 1 shows growth of sugar mills in Pakistan 1947-2006. Figure 2.1 shows that Pakistan
had only two sugar mills at the time of independence, which has reached to 82 by 2002-03. The
sugarcane crop is a major source of income for growers in the country who earns Rs. 43-50
billion from its sale to the sugarcane factories annually. It is rich source of fodder for the
animals especially during the fodder shortage months in winter. Moreover, sugar industry is
using a business of over Rs. 100 billion through sugar and its by-products like molasses, alcohol,
and bagasse and press mud. Sugarcane farming, trading and industry provides livelihood to
millions of people. A handsome amount is also earned by government through taxes and utility
bills from growing to crushing of cane in the mills.

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Figure 2.1: Growth of Sugar Mills in Pakistan - years 1947-2006
Source: PSST, 2005
As Retention has become more important to organizations, it has also become more challenging,
owing to several developments. “These include demographic changes, new economic realities,
cultural prospect, & confusion in work world.
When we talking about the maximization of employee retention, that means we are actually
talking about the satisfaction of most employee, As every one want some incentives and
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motivated with different kind of incentives and good working environment, if companies really
look after their employees and give them different kind of incentives and as well as give good
environment, no one want to leave the organization, because people mostly leaving the
organizations because of the less money and less facilities, and competitors attract the old
employee with the different kind of facilities to just compete the company.

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1.3 Background
The meaning of employee retention management has both broader and narrow significance,
researcher worked on both parts of the retention management in this dissertation. How to
understand the meaning of retention management, researcher explain and investigate the
retention management, with different theories and concepts. Concept of retention
management includes: from recruitment, motivations employees with different rewards,
Working environment, and the finally role of management in the retention of employees.
According (Mitchell et al., 2001) that the Voluntary turnover is the big problem for the
companies, and retention of employees is key topic for the leaders / managers & those who
facing the problems. Voluntary turnover is likely to be influenced by fluctuations in the
business cycle. In periods of economic prosperity or low un-employment, the existence of
greater outside job opportunities increases the possibility of unsolicited job offers or
unexpected job opportunities (Gerhart, 1990). It also increases the likelihood that employees
will quit before they acquired a new position (Lee, Mitchell, Wise and fireman 1996). In
addition to the rate unemployment’s direct effect on turnover through its negative effects on
job satisfaction (Trevor, 2001). That is, employees who are dissatisfied with jobs are even more
likely to look for new positions when unemployment is low. In cities where jobs are plentiful,
economic prosperity also affects turnover by increasing employees’ perceived utility from a job
search (Home & Kinicki, 2001). That when senior workers of the company leaving the company
they take every thing including there knowledge about the company and the contact with the
different clients etc, so competitors attract them with the different kind of incentives to catch
them for take the knowledge about the previous company. According to (Prahalad & Hamel,
1990). “The retrieval of knowledge is one of the most important aspects of organizational
memory, Managers should develop support mechanism, motivation, and rewards for
knowledge sharing and retrieval to be successful, Individuals must be motivated to retrieve and
communicate information.
1.4 Research Brief
The sugar industry is the second largest and one of the most important industries of Pakistan
with 82 sugar mills in Pakistan and one at Azad Jammu Kashmir (AJK). Research intends to

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employees examine relationship between retention strategies employees motivation and sugar
productivity. It also focuses upon why and how the objectives of the organizations, over a time
vary and how best they could be examined through motivation to boost the production levels
and employees retention. There are different management levels: 1) the top level includes the
Directors and Managers, 2) middle level includes specialists, engineers, officers, foremen,
supervisors, and skill and semi-skill employees and the 3) bottom level include all unskilled
labor, coolies, helpers, peons and mess bearers etc. The study focuses upon all those levels;
these are termed here as first tier, second tier and third tier respectively. The dissertation is
divided into four parts: Part one provides details of research problem and policy questions that
have been examined in this research. Part two provides details of research objectives and
hypotheses. Part three highlights literature review form which conceptual, analytical
framework is derived and part four presents result, conclusions and recommendations.
1.5 Problem Statement
This research study intends to device a guideline especially, in the context of developing our
understanding about the presumption that although agriculture sector must be integrated with
the development of agro-based industries but the pace of development has remained very slow
in Pakistan. The conceptual framework of motivation among workers as key factor for
employee retention in an organization is used to test the extent of success in agro-based
industries. It is envisaged that motivators for top management are challenging job, self-
actualization, achievement, prestige and advancement. Motivators for middle management are
responsibility, authority, training, value and recognition. The motivators for lower management
are job security, job of interest, pay, sympathetic approach, self respect, willingness to perform,
loyalty to continue job and contribute towards achieving organizational goals. The Supervisor
effectiveness strongly correlates to employee job satisfaction. It the important contributing
factor. Whereas, Team effectiveness strongly correlate to employee job satisfaction and has a
significant practical effect. These relationships are seldom examined with situations such as
agro-based industries in Sindh, Pakistan. The research would provide a particle approach in
terms of creating an understanding to assess the dynamics under which retention and
motivation could lead greater benefits to organization.

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1.6 Policy Questions to be examined
The research is to obtain the answers of questions related with the productivity of the industry.
Main questions are produced below:
1. How does production of sugar could be related to motivation among sugar industry
worker?
2. Why motivation is important as employee retention and how best the managers could
ensure that organizational goals are achieved thorough motivation?
3. What are the causes the causes that could lead to unwillingness to work for achieving
goals? How best motivation through promotions and training would influence unwilling
workers in Sugar industry?
1.7 Research Objectives
Overall, this research intends to examine the theoretical relationship between the levels of
motivation between employees, organizational security and productivity. The specific
objectives are narrated as below:
1. Review analytically the role of agro-based industries such as the sugar mills in the
economic development of Sindh in particular and Pakistan in general;
2. Examine relationship between retention policies and productivity in the sugar
industry;
3. To examine the motivation factor by levels of responsibilities of employees in the
industry; and suggest policy recommendations.

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2.1 Retention management
In this dissertation the main theory used about the Retention management and the concepts
and discussed in broader meaning. Used different theories about retention management and
will be presented below this headline. Also will be discussing about the voluntary turnover. The
voluntary turnover is the threat for any company and might cause of loss main employees.
There is some extend turnover is also natural in every company. But through this dissertation
we will research more about the problems about that can arise in turnover voluntary start to
increase. It is important to provide the good environment to the employees because ratification
will great importance. Also we will define the different reasons employees leaving the job and
that are not only because of job disappointment
It’s human nature that wants always appreciation from the seniors & like involvement in the
organization matters, that’s why we consider that retention plan may be fallowed. Through the
knowledge retention we know how to keep the key workforce from departure the organization
& retain their key workers in organization and strong competition and shape out that how
workers will be happy and keep them happy to not leave the organization, most organizations
spending a lot of money and time on the retention, because if key employees leaving the
organization, that will be big loss for the organization. The main reason most people leaving
their jobs because they are on wrong jobs, whatever they have knowledge they work for
another department so they feel uncomfortable, shocks and many more. There is another way
employees stay in their jobs because there are the different attachments in the organizations
or the sense of relationship (Mitcheel et al,. 2001). The reasons by Mitcheel et al (2011:96) is
most people leave the unrelated to their work:
 Trade
 Every One to learn New skills
 Personal risk
 An unwelcome job Offer
 Unfair treatment from supervisor
Literature Review

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On the both organizational and individual level, it imposes wide-ranging costs by the (Mitchell
et al., 2001). There is no any problem if individual leave willingly or is strained to leave, or the
transaction to a different job. Mostly employee takes one year to adjust in the organization and
career get back, and in some cases may be more than that. Organizations face the problems
when the knowledgeable worker leave the organization with the knowledge, and hire the new
employee and give the training and time and invest the money again its big loss for the
organization always. As the old employee have close relationships with clients and those are
not easy for the new employee to rebuild the contacts again. The turnover is costing a lot of
things as we mentions some of them below.
 Administrative requirements and interview exit
 Unused vacation payout
 High charges of Temporary works
 Co-workers demand the overtime to fill in
 Cost of Training for New employee
 Advertising for hiring new employee.
 Interview
 Selection
Some companies always need to struggle to retention of talent. Mostly they all size of
organizations doing the same.
2.2 Voluntary Turnover
When discussing the voluntary employee turnover theory, most researchers begin with the
work of March and Simon (1958) for the theoretical basis for their discussion. In their work,
March and Simon concluded that an individual’s decision to participate in an organization is
motivated by a perceived notion of easy mobility. They also indicated that participation is
influenced by the availability of alternative employment.
According Taylor (2002) that unwanted employees turnover is the biggest issue for the
organizations and also most costly for the business problems for the companies face and
persistent and pervasive. Tayoler argues continuously that unwanted, undesirable & voluntary
attrition organizations experience key employees quit the organizations and get job another
organization, and that is the major problem for companies and corporate reported. According

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Boyens (2007: 62) that there are few secrets to minimizing the turnover rate & proactively
manage rewards.
 Create good environment and cultural manners for the all
 Clear communication and practice proactive
 Know about employee motivation, what motivate the Recruit right employees
This is important for the organizations to retain the talent intended for the growth of company.
Solutions for retention management assumed to proper assessment and the appointment
processes & comprehensive Human Resource management. Comprehensive benefits, high level
salaries, similar initiatives important for the employee to attract them and keep them, Pay may
be risk becoming commodities. According (Taylor, 2002) that it’s not difficult for competitors to
struggle with entity essentials of service like salaries and other remunerations.
According Boyens (2007) that the attention on grounds of turnover of involuntary & also
voluntary turnover, encouragement for workers to leave organization. He says in addition to
that two kinds of turnover, most shocking for company. Voluntary turnover effects including
knowledge, relationship, loss of performance, expertise and time, resources take to educate
the new worker. Workers will stabile the companies respect, themes reward, and necessity of
the leaving in their choice to stay in the company. There are other so many ways to retain the
employees but the three R is the most power full to retain the employees by Boyen:
1. Rewards: is the main role to retain the employee’s i.e. commission, salary, education
opportunities, benefits (Medical, insurance, car, etc) & the retirement.
2. Respected: Working environment, supervisor behaviour and personal respect,
recognition and respect of ideas.
3. Requirement: clear ideas about job responsibilities, realistic goals and feel affiliation to
the company.
Turnover can be successfully reduced by the business support goals and hope invests in
employee professional development of their people. Always asked to the employees for the
inputs and respect them their ideas. And also asses the any source of dissatisfaction.

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According to Taylor’s (2002) editorial, one exacting feature motivates the employees to stay or
leave the organization. Organizations always want to keep the talent and they always fight for
wining & they have to look there managers. Employees leave the Companies because of the
leaders / managers, they not leave the organizations, but another hand people join the
organizations at different attractions i.e. Salaries, benefits and leave other reasons. Taylor
(2002) said furthermore it is big challenge for the organizations today to retain the talent.
When the core value in the organization is retention then goods effects occur for customers,
Employees and Organizations, incorporated strategy any company can reach the best results.
2.3 Job satisfaction
The satisfied employees have positive experience like pay, chances for promotion, supervision,
working environment & tasks. Mitcheel et al, 2001, that the work pleasure is linked with good
direction, met expectations & clear roles etc. It is also influenced by the different factors i.e.
economic factor, pay benefits and the rewards etc, procedural and structural factors also
reflecting fairness. According the Wallgren et al (2006) with Robbins that management need to
put alot efforts to employee job satisfaction, there is correlation between productivity and
stratification. Mean the correlation of this impact job happiness has on production.
The old Adage,” A happy worker is a productive worker”, pervades American thinking about
how to establish and maintain high productivity in organizations. It is widely believed in career
development circles that those who experience satisfaction in their work lives also achieve
more, have better psychological and physical health, and even experience greater satisfaction
in their other life roles, thus, it is no surprise that job satisfaction is the most widely studied
topic in organizational behaviour research (Sepector, 1997). It is no wonder that Brief and
Weiss (2002) called recent work on the study of affect in the workplace “The Hot 1990s”.
According to Locke (1976) defined job satisfaction as “a pleasurable or positive emotional state
resulting from appraisal of one’s job or job experiences”. Cranny, Smith and Stone (1992)
viewed it as “an affective (that is, emotional) reaction to a job, that results from the incumbents
comparison of actual outcomes with those that are desired, expected, deserved and so on”.
Brief (1998) argued that commonly accepted definitions of job satisfaction emphasize affect but
fail to take into consideration that attitudes also have a cognitive component. In other words,

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job attitudes are composed of feelings and thoughts about work. Even though most definitions
emphasize the affective nature of job satisfaction, most measures of job satisfaction tend to
have strong cognitive, rather than affective, component (Fisher, 2000, Organ & Near, 1985).
A 2003 Gallup Poll found that the vast majority of Americans were generally satisfied with their
jobs and with most aspects of their jobs. This finding is consistent with prior Gallup Poll findings
such as the 1999 Poll report that 90% of employed Americans were generally satisfied with
their jobs and the 2001 data indicating that a third of Americans reported that they “Loved”
their jobs.
According Hislop (2005 report made of Watson & Buck about research how Human Resource
Management practices in USA higher education institutes, turnover among employees is
affecting levels of the organization loyalty. Correlation in positive way was found the job
commitment and enrichment, and the unconstructive correlation found between trainings &
Organizational devotion. Association was developed with job improvement practices, providing
employees with top level judgment autonomy. Provision of the training of workers may be
having a pessimistic effect on obligation level. Some training which develops the knowledge of
employee about marketable skills, and raises their awareness and also pursuing a career to
higher benefits. According (Boyens, 2007) it is important to the company to satisfy the
employees, because satisfaction and culture can be made during creating optimistic work
situation. For example give the facilities like Good furniture, latest technology, clean facilities
and kitchens, break rooms & parking.
According (Mitchell et al., 2001) Management techniques possibly contribute to satisfaction in
workplace, because they recommend and also order solve turnover rate, common
communication with the employees, clear performance expectations, fair and equitable
compensations etc. Also pay the rewards to the workers to increase motivation and
commitment level.
2.4 Job alternatives
People looking for jobs when they feel uncertainty at work place starts looking for alternatives,
As soon as they get opportunity alternative job and the leave organization fasters. There are
different causes of dissatisfaction that can be stress, role ambiguity, work overload,

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Uncertainty, and repetitive work etc. Turnover at work place as we talked already, the main
reason is turnover is to dissatisfaction at work please and please start searching the alternatives
and compare with the current job (Mitchell et al, 2001)
There are different causes of voluntary turnover that can be attitude about the person’s
present job and existing options. If worker is satisfied from job and employer then defiantly he
will not be attracted by the alternative jobs, and also other can be affect on worker i.e. job
involvement, organizational commitment and perceived organizational support and other
things taken into consideration. Every person have own expectations so during the employment
every employee have on expectation during their careers. (Mitchell et al., 2001) the exiting and
perception on leaving the job and staying are too narrow. Worker can start thinking about the
leaving in the same reasons that called: A shock to the system: regularly changes in the system
for example Shocks and mergers, unsolicited job Offers, spouse relocation, Administrative
changes & poor performance appraisal etc. Other different shocks for employee can be:
positive, negative, unexpected and expected. Any kind of shock positive or negative affects the
workers.
2.5 Retention plan
According (Mitchell et al., 2001) that during the development of retention plan, on the job & off
the job factors should be considered. Leaders always investigate all these factors which near to
firm. Below few finding during the development of broad retention plan.
The Strategic orientation of an organization represents the collected values and beliefs of the
group of individuals who work in the organizations. Although the attitudes and behaviours of
both the owner and employees collectively contribute to the entrepreneurial orientation of the
firm, the current business environment has complicated employee retention. Lower job
security and employee loyalty has created a situation of increased employee turnover.
Employee retention is potentially more important to the success of smaller ventures where
there are fewer employees and greeters expectations of autonomy and versatility. The loss of
knowledge resulting from high turnover impedes the steep organizational learning curve typical
of fledgling firms.

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Evaluating
Human
Intellectual
Assets
Career
Development
& Succession
planning
processes
Knowledge
Sharing
Processes
Using It to
Capture and
Share
Phased
Retirements
Effectively
Utilizing
Retirees
Employees of new ventures are often compensated with some form of share ownership
because their salaries are lower than comparable jobs in established organizations. Share
ownership is a method of compensation that increases employee commitment to the
organization. In this atmosphere, employee identification with the firm is important to
successful employee retention strategies. However, money is not the only strong motivator in a
small business. Employees also remain with entrepreneurial ventures for intrinsic, self
motivated reasons related to the challenge of working in an entrepreneurially oriented
company (Pfeffer, 1998).
Employee Retention will become increasingly challenging in the future (McCauley & Wakefield,
2006; McDonald, 2008). Retention will be a critical component of talent management strategies
if organizations are to survive in the 21st
century business environment (McCauley &
Wakefield). Leaving employee retention or company earnings to chance is an unwise strategy
for leaders (McCauley & Wakefield).
By: Researcher (2011) Figure 2.5.1
2.6 Employees leaving
People typically leave an organization because condition change. For example:

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 One or more colleagues whom an employee particularly likes and aspects leaves the
firm, thus taking away the affiliation that means so much to that employee.
 A persons job responsibilities change so that the work no longer appeals to his or her
deepest interests or provides a sense of profound meaning or stimulation. But perhaps
the more central point to keep in mind when thinking about why people leave is this:
People most often leave for wrong reasons. That is, they leave without really
understanding why they are unhappy or what opportunities to improve things may exist
within the company. Thus they jump from company to company, making the same
mistake each time.
To review, almost 90 percent of managers believe their employees are pulled out of the
organization by better opportunities or more money, while almost 90 percent of employees say
they were pushed down the slippery slope toward leaving by non monetary factors. Many of
today’s managers still believe that turnover is an acceptable cost of doing business. Perhaps
even you have said one or all of the following “People come and people go” or “you can’t
expect to hold on to everyone forever” or “good people get better offers and move on” there is
a healthy realism in all these statements.
Managers and senior executives need to accept that maybe it was something they did or didn’t
do that pushed the employee out the door. Of course there will always be managers who are
too preoccupied, self-focused, or incentive to notice the signs that employees are becoming
disengaged while there is still time to do something about it. And when employees eventually
do leave, managers may be too uncaring or in denial to confront the real reasons. Many cannot
handle the unpleasant truth that the real reason employees are leaving may be linked to their
own behaviour. These managers are actually choosing not to see or hear the evil that plagues
them. We cannot hope to keep all our valued talent. But good managers care enough to try to
understand why good people leave, especially when it could have been prevented. Over the
next several years, organizations must do everything they can to coach and train their
managers in how to engage and keep re-engaging talented people. According to Leigh Branham
2005, that there are so many reasons to leave the organizations:
2.6.1 Unavoidable:
Unavoidable turnover includes such reasons as school starting or quitting a summer job, or
ending e.g. students quits her job as a part-time receptionist because she has graduated and

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will be moving, the job transferor a spouse, employee illness or death, or family issues e.g.
employees staying home to raise their children or take care of their parents. Though employee
are taking steps to reduce turnover due to family issues.
2.6.2 Advancement:
Employees often leave organizations to pursue promotions or better pay, when an organization
has few promotions opportunities, there is little it can do to reduce turnover for those
employees seeking advancement.
According to Leigh Branham 2005 there are thirteen steps in the engagement to departure
process.
Figure 2.6.3
By: Created by Researcher (2011), according to Leigh Branham 2005
2.7 Key employees
According the Theories of Douglas McGregor, one of Maslow’s students, “influenced the study
of motivation with his formulation of two contrasting sets of assumptions about human nature-
Theory X and Theory Y”. “The Theory X management style is based on a pessimistic view of
human nature and assumes the following”:

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 It’s human nature that they don’t want to work and avoid the work if it’s possible.
 With Control or direction people don’t want to work and they must have leader who
give them threat of job and control them and get them to make effort.
 Almost people don’t want to be directed by someone and then avoid the responsibility,
and always need the security above factors.
“This view of people suggests that managers must constantly prod workers to perform and
must closely control their on-the-job behaviour, Theory X managers tell people what to do,
are very directive, like to in control, and show little confidence in employees, They often
foster dependent passive and resentful subordinates.”
It is very difficult to the organization now days to know which the workers those become a key
employees are, Recruiting right person and put some extra effort for the good match in the
starting, recruiting the key employees, the process should be well structured and employee and
organization know about the each other. When employee hired now must be motivated and
achieve the good results, for the organization it’s very difficult to lose the key employee & they
announce the weakness, its big challenge for organization to keep happy the key employees,
because organization depending on those key employees. Because key employee knows every
strength and weakness of the organization, and organization investing a lot of money to
develop its key components of the employee for the organization development, if that
employee left means he / she took every knowledge with him or her and also he or she can
transfer that knowledge to other organization.
2.8 Recruitment
According to Kempner “Recruitment forms the first stage in the process which continues with
selection and ceases with the placement of candidate”. Usually, the selection process starts
with the indent for recruitment by the departmental heads. These indents specify the reasons
why recruitment is to be made. These indents are sent to the personnel department. The
personnel department has to check the financial implications of the recruitment to find out
whether the additional expenses would be within the budgetary provisions. If everything is as
per norms, the recruitment is allowed and the initial pay and other allowances are determined.

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Recruitment makes it possible to acquire the number and type of people necessary to ensure
the continued operation of the organization.
According to Flippo, Recruitment “is a process of searching for prospective employees and
stimulating and encouraging them to apply for jobs in organization”.
Mamoria said “Recruiting is the discovering of potential applicants for actual or anticipated
organizational vacancies”.
Yoder is of the opinion that, “ Recruitment is a process to discover the sources of manpower to
meet the recruitments of the staffing schedule and to employ effective measures for attracting
that manpower in adequate numbers to facilitate effective selection of an efficient working
force”.
Thus, recruitment is the generating of application or applicants for specific positions. It is a
linking activity bringing together those with jobs and those seeking jobs. Recruitment is
therefore the process of searching prospective workers and stimulating them to apply for jobs
in the organizations.
2.9 Motivation
Motivation is a psychological process and it can be explained as the willingness of individuals to
do something for satisfying a need. A need is psychological or physiological deficiency, which
makes the attainment of specific outcomes attractive, unsatisfied need lead to drives which
generates a search for particular goals. If these goals are attained the need will be satisfied
(Robbins and Coulter, 2002) in everyday life, people ask themselves the question why they do
some things or why not. In response, individuals try to find a motive which justifies the
behavior. Motives from the basis of needs. Therefore, it can be said that people seek for
solutions in order to solve deficiency which means that motives are activated. These incentives
may derive from us or they can come from other person. Motivation is divided in to two
different types. The first one is called intrinsic motivation which means that people engage in
an activity for its own sake, for example pursuit of responsible activities or personal
development potentialities. Extrinsic motivation is used by a third party, for example
supervisors or managers it motivate employee with either tangible rewards (payments,
promotions, punishments) or intangible rewards (Praise, public commendation). (Streers,

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Porter and Bigley, 1996). Goals or desires help people or employees to act in a way that
provides pleasure and avoids pain (Green, 1992).
In addition, humans are motivated by many things, for example psychological needs, emotions,
hurts, impulses, fears, rewards such as money, friendship or status, wishes, intentions, values,
self-satisfactions, interests, pleasure, dislikes, goals, ambitions and so on. An employee who is
motivated works better than one without motivation. It is also known that people are ready to
work harder if they see that their work is rewarded. Therefore, managers must know how to
motivate their workers in order to complete tasks and achieve the goals of the company by
applying motivation theories. There are many different approaches of motivation. The work of
three well known psychologists called Abraham Maslow, Frederick Herberg and Calyton P.
Altderfer is closely associated with human needs and motivation and help to create better
environment and working conditions.
Figure 2.9.1 Conception Motivation in Sugar Industry
Source: PIM Karachi, 2005
2.10 Motivational Theories and sugar
Industry
Motivation is willingness to exert high level of efforts to reach organizational goals, conditioned
by efforts ability to satisfy some individual need. Linking motivation among the workers
performing to achieve organizational goals scholars such as Murray, 1930 suggested that
motivation directly link with human personality i.e. personality of workers engaged towards
achieving organizational goals. Murray argued that motivation is affected by internal and
external factor that account for behavior among workers.

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Organization:
Organizational Factors
Leadership
Structure
Culture
Benefits
Processes
Job Design
Employee
Individual Factors
Needs
Experiences
Aspirations
Personality
Occupation
Mood
Age
Environment
External Factors
Economic
Legal / political
Technological
Social
Further Maslow, 1954 puts great emphasis upon human who even be motivated to achieve
certain organizational goals but since they are under the influence of multiple needs that are
not directly link with organizational goals must be taken into account. For example, sugar
industry worker’s role is not to get higher productivity but his role is safety and needs or
psychological satisfaction. Needs are summarized as Box No: 1 as Hierarchy of needs.
Box 1: Hierarchy of Needs Theory
Physiological needs Food, Water, Heat Air, Shelter Sex Rest. etc.
Safety needs Freedom from Physical, Emotional Economical threat
Social Belongingness, Friendship, Love etc.
Self Esteem Recognition, Attention, Respect, Appreciation
Self Actualization Self-Growth, Development, Self -fulfillment
Source: Maslow, 1954
2.10.1 Motivation Factors Model:
Figure 2.10.1
Created By: Researcher 2011, According Different Theories of Motivation

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The inference which can be drawn from the model is that motivation depends on various
external, individual and organizational factors; moreover, the model makes clear that both
incentives and threats are only part of the whole process.
French and Raven, as cited by Wilson (2010), identified incentives and threats as key bases of
power in order to “change beliefs, attitudes or behavior of the target”.
Gilmore et al (2009, p. 182) point out “Managing employee reward is a crucial element in
encouraging flexibility, leveraging performance and competing for talent in tight labour
market.”
However many authors disagree over which incentives are most appropriate. Wallace and
Szilagyi (1982), for instance, believe that money is a key incentive as it enables people to satisfy
their needs. On the contrary, Herzberg (2003) contends that monetary rewards only boost
motivation in the short term. Kohn (1993) shares this view, as he states that there is no
evidence for the contribution of money to sustainable employee motivation, likewise, Pfeffer
(1998) and Trott (2002) stress that people are not only driven by financial incentives.
George, 1960 “explained that subordinates as employee inherently dislikes work and whenever
possible, will attempt to avoid it, while on the other hand a person will exercise self-direction
and self-control if he is motivated, Theories of George are very relevant to sugar industry as
these provides guidelines for managers as on one hand employees shirk responsibility, show
little ambition to work, has negative views and likes rest while on the other hand employee has
control to achieve objectives and exercise commitment for achievement.”
2.11 Good Leadership:
Good leadership is also the concern with this topic employee retention, Researcher more talk
about the leadership in this dissertation, because there is main role of leadership in employee
retention. The term leader often connotes imagery of powerful individuals commanding
organizations, powerful corporate chief executive officers, noteworthy national leaders, and
inspiring individuals such as Mahatma Gandhi, Martin Luther King Jr., and Mother Teresa.

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Leadership has be a subject of interest across history, even though research on the
phenomenon did not begin until the 20th
century (yukl, 2001).
Different leadership theorists define leadership according to their individual’s perspectives and
the aspects of the phenomenon of interest to them (Yukl, 2001). Bass (1990) conceptualized
leadership as (Kanogo, 2005) the focus of group processes, as a matter of personality, as a
matter of inducing compliance, as the exercise of influence, as particular behaviours, as a form
of persuasion, as a power relation, as an instrument to achieve goals, as initiation of structure,
and as many combination of these definitions. According Robert Barner’s (2006) that “Chief
Executive Officers and senior executives are quickly coming to the conclusion that a
distinguishing characteristic of successful organizations is the ability to identify, develop and
deploy exceptional talent”. Barner Reports in executives see the leadership challenges
growing, and according to a center for creative Leadership study, only 24 precent of
respondents had a clear plan for developing leadership talent and only 29% indicated their
organization”.
According Nilsson and Gustavsson (2006) that leader is leading him / her and also leads
others. Employee knows what’s going in the organization but leader’s task is that make
sure employees understanding properly.
2.11.1 Leader’s role:
Talent management is an area where neither the for profit nor the non profit sectors are
excelling. Both sectors are acknowledging the increasing importance of leader effectiveness and
workforce development.
 Further describe talent management as practiced in the for profit sectors
 Suggest possible application to non profits of all sizes with examples
 Offer choices of actions or steps to get started or advance a talent management focus in
a non profit organization
Talent management goes beyond traditional human resource management process. An
organization can excel at how it goes about filling vacancies, offering development

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opportunities for staff and managing its compensation and benefits in ways that encourage
employee retention and totally miss the power of talent management. Without a developed
point of view about the link between leaders and results and a strategy for ensuring that the
leaders needed now and five years from now available, human resources is an underperforming
asset of the organization. Strengthening the connection between organizational strategy,
human resources strategy, and the talent management strategy is critical to increasing
effectiveness.
The talent management approach argues that effective organizations cannot sacrifice mission
results to loyalty to individuals. Nor can the organization make a never ending commitment to
developing leaders, managers, or staff that proves unable to meet the performance
requirement for a position.

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Author had already given some detailed literature review and some back ground which mainly
follow the aims, objectives and research question. In this chapter justification of research
question will be done. So research methodology will be elaborated so that expression of
objective can be maintained. “Research methodology is a way to systematically solve the
research problems. It may be understood as a science of studying how research is done
specifically” (Kumar, 2008) and “Good research is based on previous theory that has been
developed over time through the testing of hypotheses” (Cottrell and McKenzie, 2011).
Describing the methodology, research philosophy and what will be the research approach will
be taken is also been discussed below. At last some explanation about sampling and its
techniques that are been used.
3.1 Research Objectives
Overall, this research intends to examine the theoretical relationship between the levels of
motivation between employees, organizational security and productivity. The specific
objectives are narrated as below:
1. Review analytically the role of agro-based industries such as the sugar mills in the
economic development of Sindh in particular and Pakistan in general;
2. Examine relationship between retention policies and productivity in the sugar
industry;
3. To examine the motivation factor by levels of responsibilities of employees in the
industry; and suggest policy recommendations.
3.2 Research Process:
According to Saunders et al. (2009) the research process can be symbolized as an onion. Several
layers of the onion need to be peeled away before reaching the central point and core of the
onion, the data collection and data analysis. The figure below of research onion and the
Methodology

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structure of this chapter. The outer layer, philosophies and approaches and the middle layers of
strategies, choices and time horizon are guarding the way towards the core of the onion and
the research methodology; the techniques and procedures. Highlighted are the strategies and
approaches that are used within this study, which are explained in more detail below.
3.2.1 Research Onion
Source: By Researcher (2011)
3.3 Research Philosophy:
A Philosophical framework guides the way scientific research is conducted and influenced by
people’s idea of the reality which changes over time (Collis and Hussey, 2009). Research
Philosophy “relates to the development of knowledge and the nature of that knowledge”
(Saunders et al., 2009, P.128). Epistemology, Ontology and Axiology are three ways of thinking
about the research philosophy and the main research philosophies and positivism,
interpretivism, Realism and Pragmatism.
3.3.1 Positivism
Positivism is originated in the natural sciences and stresses the belief that social reality is
singular and objective and not affected by the investigation of it. Underpinned by precision,

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objectivity and rigor, casual relationships are analyzed with the help of explanatory theories to
understand social phenomena (Collis and Hussy, 2009). According Edwards and Skinner, 2009)
“From theoretical perspective, positivism based on concept of neutrality and objectivity which
the researcher can remain separate from and not affect the research field” According Gill and
Johnson (2010) state that the process of investigating affects the social reality and is subjective
as well as multiple.
Figure 3.3.2 Research Philosophy
3.3.2 Justification of Research Philosophy
After explaining this author decided to make survey in order to understand whether the
collected information is linked to the facts or not. After collection both experimental and
theoretical information, collected data described in conclusion part of this research. After all
the author aims to approve a Positivism Approach, other two philosophies were measured but
none of them are suitable for this research.

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3.4 Research Approach:
The Research approach is subdivided into two research types of reasoning; the deductive and
inductive approach (Gill and Johnson, 2009). “There are two alternative approaches of a
research named ‘Deductive’ and ‘Inductive’.” (Crowther and Lancaster, 2008; Saunders, et al.,
2009).
Figure 3.4.1 Research Approach
3.4.1 Deductive Approach
With the deductive approach a theory and hypotheses are developed and a strategy is designed
to test the Hypotheses (Saunders et al., 2009). According to Crowther & Lancaster, 2008,
Theories and Hypotheses extended through the deductive approach & Deductive approach is
mostly used for natural sciences. According Fisher, 2010 that Deductive approach is not linked
to explanation or experiences, its only material of intellect.
3.4.2 Justification of Research Approach:
The Philosophical inspection methodology and observation it’s diverse than sense throughout
the research subject. (Saunders, et al. 2009). Researcher decided to deductive approach for the
research and its appropriate approach to accomplish the aims and objectives.

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3.5 Research Design:
There are three parts of research design ‘Descriptive’, ‘Explanatory’ and ‘Exploratory’. “Some of
these strategies may belong to deductive approach and others to the inductive approach.”
(Saunders, et al., 2009).
Figure 3.5.1 Research Design
3.5.1 Exploratory Research
According (Blaikie, 2009) that if there is not much knowledge about the topic then Exploratory
research is necessary and because of not enough knowledge research could not be unstated
fully. It is for better judgment for the researching study.
3.5.2 Justification of Research Design
Researcher chosen the exploratory research because doesn’t have much knowledge about the
topic, to understanding about the topic and gather enough knowledge about the topic and
explain the Employee Retention.

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3.6 Data Collection Methods
There are several sources of information that can be used for research. The two main types of
data collection are primary and secondary data, which are both used within this dissertation.
Onkvisit and Shaw (2004) state, that the advantages of primary research are the disadvantages
of secondary and vice versa. Therefore a study should start by considering secondary research
and apply primary research where needed in order to prove or reject findings from the
secondary data or add further value to already existing data.
Figure 3.6.1 Data Collection Methods
3.6.1 Secondary Research
The collection and evaluation of secondary data was necessary to analyse the current state of
the knowledge in the subject area of culture, cross cultural management, globalization and
specifically Hofstede’s (1980) cultural dimensions. Furthermore, the wider context of the
subject needed to be known, as well as the limitations and opportunities. Secondary data ‘are
data collected from an existing source (for example, Publications, Internet, Databases,
Television etc)’ (Collis and Hussey, 2009, p.23). Saunders et al (2009) explain several different
types of secondary data, such as documentary, multiple source and survey secondary data. The
multiple source and survey secondary data is used within this dissertation.

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3.6.2 Justification of Secondary Research
According the Jones III and Gomez, 2010, Secondary information providers government
agencies, published scientific sources, private organizations, books, journals & newspapers.
Secondary data collected by author from different sources, from Books, Newspaper, Journals,
Television etc.
3.6.3 Primary Research
Primary data is ‘collected from an original source’ (Collis and Hussey, 2009, p.23) and for a
specific purpose (Kruger et al., 2005). Conducting primary is very time consuming and highly
dependent on the sample and response rate, but it is tailored to the research need, hence very
contemporary.
3.6.4 Justification of Primary Research
Primary data collected by author from the different employees about the employee retention
and justify the primary research. Though qualitative method, because the company chosen by
author from outside the country and Questioners sent to the employees and Managers through
the email & collected data through email. According Kotler and Amstrong, 2010 primary data is
the main part to collect the data and best techniques to gain communicative data.
3.7 Open Ended Question & Closed Ended
Questions
Researcher decided to use both open ended and closed ended questions for the interviews of
participates.
3.7.1 Open Ended
An open ended question is structured to encourage managers to respond the questions in the
details. It is particularly useful when looking for behavioral information, since we want the
candidate to be expansive about a situation he or she was involved in. The main aim to ask for
the open ended questions to the managers because they know about the company and policy
of the company.

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3.7.2 Closed Ended Question
These kinds of questions depends on short survey type, researcher use these kinds of survey
questions to the workers of the company, the answers of the questions yes, no, etc. Specific
detailed information about past behavior is obviously much more useful than a string of “Yes”
and “No” answers.
3.8 Research Methodology:
There are two types of Research Methods, ‘Quantitative’ and ‘Qualitative’. According to
Easterby-Smith, et al.2008 said that there is distinction between Qualitative and Quantitative
research.
Figure 3.8.1 Research Methodology
3.8.1 Qualitative Research:
According the (Cottrell and MC Kenzie, 2011) that Qualitative Research using to find the right
answers about the topic questions been researched. According Stake, 2010 that Qualitative
research created approximately investigational understanding. Most of researcher don’t use
this method because it hard to get much time from the relevant managers, and this kind of
research is for to get complete information about the problem, so that’s why most researcher
using the quantitative method.

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3.8.2 Research Method Justification:
Researcher have decided to adopt the Qualitative research due to some factors which already
have been shared that the selected topic is not on this country, so it’s from outside the United
Kingdom, and researcher need to send the questioners though the email and also share on the
some groups to get much data for analysis and achieve Aims and Objectives.
3.9 Sampling
‘A sample is a subset of a population’ (Collis and Hussey, 2009 p.76). And is widely used within
positivist studies as a representative sample size allows researchers to generalize their findings.
As it is mostly impossible to collect data from a whole population due to time, money and
access limitations, several sample techniques enable to a generalization from sub groups to the
broader public (Saunders et al., 2009). Sampling can be divided into two main techniques:
probability and non-probability sample, which can be further sub divided into several concrete
techniques (Kruger et al., 2005).
Figure 3.9.1 Sampling
Source: By Researcher (2011), According Saunders et al., (2009, p.213)

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3.9.1 Probability Sampling:
A Probability sample contains the equal probability that any element or member of the
population could be included in the sample. “Probability sampling is a sampling technique that
usually used for survey-based research.” (Jackson, 2009a).
3.9.2 Non-Probability Sampling:
Non probability sample element and members of a population have not an equal chance of
being included in the sample (Collis and Hussey, 2009). “Non-probability sampling is usually
preferable due to its less cost and easiness to generalize when applying techniques” (Jackson,
2009).
3.9.3 Justification:
Researcher told earlier that the organization which chosen that belongs outside United
Kingdom so after the consideration researcher decided to prefer the Probability Sampling
because conducting some surveys from employees about the employee retention. And
researcher has sent 10 questions to the Management of Sugar Mill Matiari through the email
and 10 questions to the different employees about the retention management. And got the
results analyze them on the bases of data collection in chapter four.

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3.10 Data Validity, Reliability and
Generalisibility
‘A valid Questionnaire will enable accurate data to be collected, and one that is reliable will
mean that these data are collected consistently’ (Saunders et al., 2009, p.371). Furthermore
validity and reliability ensure that the questions and answers are making sense. Foddy (1994)
introduces four stages which must take place in the reliability and validity of a question should
be secured.
Figure 3.10.1 Data Validity
Source: By Researcher (2011) according Saunders et al, 2009, p. 372
3.10.1 Validity:
Validity is ‘an indication of accuracy in terms of the extent to which a research conclusion
corresponds with reality’ (McBurney and White, 2010, p.173) and Collis and Hussey (2009) add,
that validity indicates the representation of a true picture of what has been studied. Further,
Mc Neil and Chapman (2005) outline the danger, that a survey can only collect people’s
answers to questions, which might not present a true picture of their activities. Validity can be

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distinguished between internal and external validity, where the internal validity is describes as
the ‘ability to measure what you intend to measure’ (Saunders et al., 2009, p.372).
3.11 Ethics:
According to (Marcic, 2008) “ethics is the code of moral principles and values that governs the
behaviours of a person or group with respect to what is right or wrong”. Researcher followed
the ethics during the process of data collection, such as respondent’s names will not be
disclosed at any time and also it’s informed to participants that the collected data will be use
only in the dissertation not any other purposes. Results which analyzed during the study will
not be publish anywhere. The data will be kept confidential according the law.

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Findings & Analyses
Matiari Sugar mill they have encouraging history in retention management & voluntary
turnover. They have 300 workers in their production department and out of 300 only 26
workers left the industry in five years time. Even they have good outcome there and they don’t
take any effort in try to maintain workers, as retention plan. Even though they plan to develop
the retention plan their leaders must examine the some job factors i.e. on job and off job
factors etc. and decide which are the most appropriate to the company (Mitchell et al, 2001).
The Most of the Supervisor have no any problems with the retention management, but few of
the supervisor are thinking that old workers are leaving and newcomers young workers are
coming that is most appreciated at some extend. We are hopeful for the change segment in
Matiari Sugar mill in view of retention management. If they don’t focus on the retention
management at this time, may be they will see the big problems in future as it’s essential to
change their way and retention the talented employees for the long term prospective.
4.1 Findings from Manager’s & Workers
Through this dissertation researcher findings on the main five themes and respondents also
divided in five parts: voluntary turnover, Role of leader, Challenges in Employee retention,
recruitment & how to improve retention management. How to improve retention management
is present in finding as a short discussion. Two managers respond our interview questions,
including the HR Manager and Operation Manager of Matiari Sugar Mill.

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Question Sent to Employee below and we have got the results of close ended question:
 General Reputation of Mills to Growers
Source: Survey Data 2011
The above Figure demonstrates that 40, 56 and 20 percent of small, medium and large growers,
respectively disclosed as excellent reputation of Mills. 60, 44 and 80 percent of small, medium
and large growers respectively disclosed reputation of mills as good. While no one from all
three levels told for any bed reputation of mill, proving a good reputation of mills among
growers. This point is to be noted that mills has successfully laid its reputation in the minds of
the grower. Though, the growers are kept away from the record and data but all necessary
services are provided to them in time which led to good reputation that would enhance the
easy and trouble free supplies from the growers resulting enhancement in the productivity.
0
10
20
30
40
50
60
70
80
90
Excellent Good Poor
PERCENTAGES
VALUES
LargeGrow MedGrow SmallGrow

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 Agro Bass industries are well contributing in Economic Development of Pakistan?
The aim of this asking to the employee to know about the Agro Base industry in contribution in
economic development of Pakistan. There are five options given to employees for the respond,
we have go 200 employee of Matari Sugar Mill response for this question:
Strongly Agree Agree Strongly Disagree Disagree Don’t Know
105 35 15 10 35
Created by Research according data collection
Analysis:
According to data collection 52% strongly agree that there is major role of the Agro base
industry in the Economic Development of Pakistan and 18% also agree that the Agro base
industry is well contributor in the economic development of Pakistan, 17% of Employee are
strongly disagree that with the Agro Base only not well contributor in economic development
and 5% also disagree 18% percent employee answer was don’t know that how much agro base
is contributing for the economic development. Analysing above data it’s confirmed that yes
Agro base industries are contributing a lot in the economic development of Pakistan, As
Pakistan’s economy is depend on the Agriculture.
52%
17%
8%
5%
18%
Agro Bass industries, Contributing economic development

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 Employee productivity is depending on the employee retention?
Aim to ask this question to the employee to know that how many employees have knowledge
about the retention? And what they know about the productivity is depending on the employee
retention?
152 20 8 5 15
Analysis:
Opinion of 76% employee strongly agree that Employee productivity is necessary for the
employee retention, 10% of the Employee also agree with the that just 4% employees are
strongly disagree and 2% only disagree, 8% of Employee even don’t know about the
productivity depending on the Employee Retention. After the analysing the above data it’s
confirmed if employee is more efficient defiantly employer don’t want to lose that employee
and that is the part of Employee Retention.
76%
10%
4%
2%
8%
Employee productivity is depending on the employee retention?
Strongly Agree
Agree
Strongly Disagree
Disagree
Don’t Know

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 Are you satisfied with the support the HR Department?
Ask this question to know how many employees are happy with the Human Resource
department in the Matiari Sugar Mill.
Analysis:
Opinion of 87% employees Highly satisfied from Human resource department of Matiari Sugar
Mills and 7% also satisfied from the HR Department 4% of Employee are neutral they not
satisfied and not dissatisfied from the Human Resource department, 2% of the Employee not
satisfied from Human Resource department, 0% of employee are dissatisfied. We analyse from
above data that the most employees are satisfied from their Human resource department, and
some of them not satisfied, may be the don’t want work or may leave the organization.
0 20 40 60 80 100 120 140 160 180 200
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
Are you satisfied with the support the HR Department?
Series1
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
175 15 7 3 0

51 | P a g e
 Management is really interested in motivating the employees?
Through this question we will know about the Management really interested to motivate the
employees in Matiari Sugar Mill or not?
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
123 33 17 15 12
Analysis:
Opinion of 61% employees Highly satisfied from Management motivating the employees in
Matiari Sugar Mills and 16% also satisfied from the management 9% of Employee are neutral
they not satisfied and not dissatisfied from the management, 8% of the Employee not satisfied
from Management, 6% of employee are highly dissatisfied. We analyse from above matrix that
the most employees are satisfied from their management motivating the employee but some
of them still have problem with the management motivation, i. E 6% of employee totally
dissatisfied from the management motivation, that is bad message for the management and it
show may be employees may leave the organization near future.
61%
16%
9%
8%
6%
Management is really interested in motivating the employees?
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied

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 Which type of Incentives motivates you more?
Through this question we know that what kind of incentives are really motivate the Matiari Sugar
Mill employees, and we have asked above question to 200 employees of Matiari Sugar Mill and tick
the different options, the details given below:
Financial incentives Non Financial Incentives Both
70 50 80
Analysis:
We observed through the survey that, 40% employees motivate with the both incentives, 35%
said that Financial Incentives motivates employees and 25% employees said that No Financial
incentives motivates employees. As we observed through above matrix the most of employee
want both kind incentives, means they want increase money in the salaries, annual bones &
other Financial incentives another hand its human nature that they want no Financial incentives
i.e. Promotion, Trainings, Medical, Insurance, Car, house etc. Without the incentives employees
will not be productive for the organizations and also increase the turnover ratio. Because
people leave the jobs and look new organizations which provide more incentives and facilities.
35%
25%
40%
Which type of Incentives motivates employees?
Financial incentives
Non Financial Incentives
Both

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 Do you feel that the company values you?
We have asked this question to know about the employer give the proper response to
employees or not, because it’s also part of the Employee Retention, if Employee starts thinking
that no one cares about him /her, defiantly he will try to switchover from the organization. We
got the below results through the survey:
Yes No
180 20
Analysis:
Researcher observed through the survey from 200 employees 180 Employees said that yes,
means company giving the value to their employees, just 20 employees replied no. As
researcher start analysing from above data and analyzed that more than 90% of employees
thinking company giving them value and giving the attention on their worker but only 10%
employee still thinking that company not giving them proper attention, as its also bad for the
company future. Company should not only give attention few employees because of some
employees attention other may think for turnover and start looking for opportunities and other
organizations, as soon as they got opportunity they leave this organization.
Yes No
Series1 180 20
0
20
40
60
80
100
120
140
160
180
200
AxisTitle
Do you feel that the company values you?

54 | P a g e
1. Do you think the company’s present management style needs improvement?
Asking this question in survey to know about the management style in Matiari Sugar Mill, As
Management style is also major role on Employee retention. We got the below results when we
have got the questioner from the employees:
Yes No
35 165
Analysis:
Researcher observed through the survey 83% of Employees respond that the manager not need
to improvement, 17% of Employees respond yes management needs to improve. Through the
above data analysis researcher know that most of employees saying that management is fine
and it is right track but some of them respond that management need to improve some parts of
managing the organization or managing the people, so obviously management needs to
improve always and also try to fill the employees need. If employees not satisfied with the
management policies and behaviours defiantly the turnover ratio will be increase in the
organization, Well reputed organizations don’t want to lose their employees, because
employees know everything about the organizations, if organization missed the employee may
be organizations competitor take that employee and use the data of the organizations or also
may be know through that employee of the organizations week points. So management should
always open the eyes and look after their employees, keep them happy.
17%
83%
Do you think the company’s present management style needs improvement?
Yes No

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Have any of your bosses talked to you about your work progress in the last one month?
Through this question researcher know the gap between employee and the Management, how
management is working, meeting with employees or not etc, we got the below results about
this question:
Yes No
165 35
Analysis:
Researcher observed through the survey out of 200 employees, 165 employees respond yes
and 35 employees respond no. Through the above data researcher analyzed that there is bit
gap between employees and the management as 35 employees respond that no any bosses
had conversation since last month, means in this situation employees start thinking no one look
after about them and then they start thinking to change the organization and apply for another
opportunity.
Question sent to the Managers for the Response, We have sent the 12 Question for manager
to the 5 Managers and from the five managers, researcher got response from two managers
though email, the responses of the managers are below:
165
35
0 20 40 60 80 100 120 140 160 180
Yes
No
Have any of your bosses talked to you about your work progress in
the last one month?
Series1

56 | P a g e
1. Contribution of Agro Base industry in the Economic Development of Pakistan
responded by First Managers:
According to HR Manager Matiari Sugar Mill, Pakistan is an agricultural based economy and
24% of their population living in rural areas is dependant directly on agriculture as their major
source of livelihood. The agriculture is the backbone of Pakistani economy in one hand
providing means of livelihood to its 24% population in rural Pakistan on the other supporting
agro based industries to flourish. Like the cooking oil, garments, sugar and its related
productions, milk productions, vegetables and fruits are major economic activities in the
country. A major share of its population is directly link with agriculture or earning their income
in agro based industries. The economic development without a focus on agriculture and Agro
based industries will remain and will never become a reality.
According to Coordination Manager Matiari Sugar Mills, Agro base is a very powerful industry
in Pakistan. In these hard times of recession Agro base is supplementing our drastic economy
since we have an agrarian economy. As Pakistan known as Agriculture country, Pakistan have so
many other resources but the Agriculture is so called the main resource of economic
development of Pakistan, because of the Agriculture the agro base industry is so powerful and
contribute more the 24% in the Pakistan economy.
Analysis:
According both managers that Pakistan depends on Agriculture and its 24% of the economy
supported by the agriculture, According government of Pakistan Statistics department 2005-
2006 “Manufacturing is a key part of the economy. In FY 2005-06 it contributed about 19 % to
the GDP of Pakistan. It is traditionally decomposed into large-scale manufacturing and small-
scale manufacturing industries.1 The Census of Manufacturing Industries (CMI) focuses on the
production and investment behaviour of Large Scale Manufacturing Industries (LSMI) covering
establishments employing 10 or more employees. Results for small-scale manufacturing would
be provided by the Survey of Small and Household Manufacturing Industries (SHMI) presently
being conducted by Federal Bureau of Statistics”.

57 | P a g e
2. As per your opinion how much Matiari Sugar Mill contributes for Sindh Development?
According to HR Manager Matiari Sugar Mill, as I told before in my question that the Pakistan’s
24% of the populations depend on the agriculture, as Sindh is the province of Pakistan and right
now there 12 sugar mills in Sindh, Matiari Sugar Mill is the one of them and the contribution of
the Matiari Sugar Mill is more than 20% in the economical development of Sindh Pakistan.
According to Coordination Manager Matiari Sugar Mills, Matiari Sugar mill is the contributing
more the 20% in economical development of Sindh, there are four provinces in Pakistan and
Sindh is also one of them provinces of Pakistan, as Pakistan’s mostly depends on the
agriculture, the agriculture industry of Pakistan is strongest industry and well contributor in the
economical development.
Analysis:
As we have seen through the Pakistan government Statistics department that 24% role of the
agriculture in the Pakistan economic development, Sindh is the province of Pakistan and the
second largest agriculture producer in Pakistan, Matiari Sugar Mill is the second largest Suger
industry in the Pakistan level and biggest in Sindh level, Matiari Sugar industry contributing
sindh more than 20% in the economical development. According Survey by
http://www.pkembassy.or.kr/eng/cyber/071119_BOI_Sector%20Information_Sugar.pdf that
showing the just sugar production in three provinces of Pakistan and Sindh is second largest in
the Sugar production of Pakistan. As we can see the below graph showing us that sindh is
Second Sugar production of Pakistan province.
Created By: Researcher according the data shown in web http://www.pkembassy.or.kr

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3. As per your opinion Agro Base Industry, how much impact on Human Resource?
According to Human Resource Manager, Agro based industry is one of the most human
resource incentive field of economic development as it has the quality to involve non technical
laymen labourer in agriculture field. It utilizes a large number of country’s work force in
agricultural fields and even a larger number in agro based industries. It has the biggest impact
of human resource development in a country especially Pakistan which has an agro based
economy.
According to Coordination Manager Matiari Sugar Mills, As I told in my first question about the
role of Agro base industry is the main industry of Pakistan during the recession time, There are
thousands of the jobs in the Agro Base industry, As Pakistan’s economical position is not at
good scale so the most of labor working in these industries, As I said the agro base industry
creating the thousands times in the every season for the laborer, technicians, managers etc.
Analysis
As Human Resource manager and Coordination manager respond this question about the Agro
Based Industries are serving well in Human Resource, every year during the seasons they recruit
thousands of workers and also managers in different sectors, Specially Sugar industries open
once in a year, when sugar cane ready, when they open they start recruiting the employees in
different sectors.
4. What are your retention policies in your company?
According to Human Resource Manager, Matiari Sugar Mill, sindh, We retain employees thru
different tactics. Since we are working in the industrial sector our most important retention
tool is the monetary package and contract duration that we offer to our employees. We have
the leading packages compared to industry. We also use many other employee retention
techniques such as Team Player and Employee of the Month.
According to Coordination Manager Matiari Sugar Mill, Our Company believes on investment in
human resources and its long term benefits to the company. We invest on our human
resources to get them trained to fit for right position. The retention policy in our country is

59 | P a g e
based on respect and rights of our employees and we follow an internal promotion and up
gradation to satisfy career growth and accomplishment motivational desires of human
resources.
Analysis:
As per both manager response that there is system available of employee retention, because
employees are most important for the organizations, HR manager said they give the different
incentives to their employees for the retention, because they know there is the big competition
in the market & if they don’t give incentive to the employee then might be turnover rate of the
organization will increase and if the turnover rate increased then company will lose the more
production. As per researcher analysis if company follows the same strategy of employee
retention then it will more grow in the market.
5. Did any internal policies, laws and/or regulations have impact on your retention
policies?
According to Human Resource Manager, Yes our organizational policies, laws, rule and
regulations have been designed to suit our retention policies. The following points are
examples:
1- We have a policy to promote and select employee within our company for any new or
vacant position where possible.
2- We have follow the human resource policy for promotion and salary increments based
on seniority as well as annual performance evaluation
3- Our company performance evaluation system even provides double salary increments
to extra ordinary performer and promotion accordingly; we follow strict rule and
regulations as well as punishment policies to remove any kind of nepotism in selection
and promotion of employees.
According to Coordination Manager Matiari Sugar Mill, Internal policies do affect the retention
rate at certain times. The employees phase the issues in adjustment which increases our
turnover rate at times.

60 | P a g e
Analysis:
As per both managers they have policy available in the company for the Human resource, The
Human Resource manager also respond about their retention policy that if they have any
vacant position in there company the first give priority to their old worker and then they
advertize the post out the company, that is the better sign for the workers they think company
given them value first and then it advertize outside the company. Secondly they have policy for
salary increase and promotion on the based performance appraisal, means employees know
that if they work better there is chances to get promoted or salary increase, that is also better
policy of the company , another words fare policy “no pain no gain”.
6. Are you aware of any retention efforts in your agency? If yes, give specific examples.
According to Human Resource Manager Matiari Sugar Mill, I am directly engaged in designing
retention schemes such as:
- Capacity Building Initiatives.
- On Job trainings
- Focus Group Discussion
- Employee Mentoring and Counseling
- Employee of the Month and Top Dogs
According to Coordination Manager Matiari Sugar Mill:
1- Our Company follows a well developed and shared human resource policy which is
known to every employee. They are very well oriented on their rights and
responsibilities as well as award and punishment link with performance of each
employee.
2- We have a system based on that we do training need assessment of every department
and individuals and train them accordingly. The training program is link with
performance evaluation system.
Analysis:
According to the both managers that they have retention policy in the place and Hr Manager
responds they he is involved in the retention policy of the company, As he respond that the
retention employee through Capacity Building give them On Job trainings, Focus Group

61 | P a g e
Discussion, Employee Mentoring and Counseling, Employee of the Month etc is the better way
to retain them in the company.
7. What type of skills, training and education benefits are important as a retention
incentive?
According Human Resource Manager Matiari Sugar Mill, Human resource development is not a
onetime investment; any company needs to keep its staff up to date on latest information,
knowledge and technical expertise. This is important to increase productivity of the company in
one hand on the other increases staff job satisfaction and retain them working with high level
of productivity. The following are important in this regards:
1- Having a policy of staff training need assessment to provide need based trainings
2- Continuous sharing and development of shared vision, mission, objectives and action
plan
3- A policy of promotion and increment links with performance
4- Job security and job satisfaction with a possible promotion and up gradation
According to Coordination Manager Matiari Sugar Mill, Training is necessary for employee
retention. They ascertain the employees that the organization is investing on them because
they would be retained for a longer time; this also helps increase the loyalty of employees on
the organization along with other numerous incentives which can be different monetary
allowances such as accommodation, communication allowances and on special occasions.
Analysis:
According both managers Training is the necessary for the employees for the up to date
knowledge and it is also necessary for employee retention, This is important to increase
productivity of the company in one hand on the other increases staff job satisfaction and retain
them working with high level of productivity. Through the analysis above researcher come to
know that they have capacity building of employee on the place and that is also effect on the
employee retention. As some employee looking in the company for the non financial incentives,
they want to learn new things in the companies, if company does not give the opportunity to
the employees defiantly those who looking for non financial incentives leave the company and
search another company there they can learn new things. So the trainings role in the retention
is very much important.

62 | P a g e
8. What types of benefits are most important to the workforce?
According to Human Resource Manager, Matiari Sugar Mill, That its human nature every one
want to work with various facilities, our company is giving two kind incentives to employee,
One is Financial Incentives and second is Non Financial incentives, our employee are really
satisfied because so many incentives which we provide them, find below few incentives which
we give the employees in our company:
1- A reasonable pay scale
2- Job security
3- Possibility of promotion
4- Caring for employees’ self steams
5- Rewards on extra ordinary performance
6- Respect and recognition
According to coordination Manager, Incentives really works when company offer any incentives
employee work sincerely & honestly, most employees like the financial incentives i.e. salary
increase, yearly bones etc but some of the employee like non financial rewards like Promotions,
Trainings, House, Insurance etc.
Analysis:
As seen above responses by both managers that they are already giving two types of
incentives, Financial incentives and Non Financial incentives as well, Researcher analyzed that
retention system is almost depends on Motivation and Matari Sugar Mill giving good services to
workers, as per Human Resource Manager said in his response that they give Financial and non
Financial rewards to the Workers, that is plus point for company and Employee don’t want
leave such environment, if they got rewards .
9. What really motivates your staff?
According Human Resource manager Matiari Sugar Mill, that there are different factors
motivates employee, we motivate our staff with different rewards i.e. Appreciations, achieving
target bones, involve them in decision making process & Recognition etc. They can be summed

63 | P a g e
into a group of activities such as sports, extra circular and as I explained earlier monetary
benefits.
According to coordination Manager, There are many things which are motivational tools for
and different individuals’ motivating factors are different. The few commonly effective factors
are:
1- Rewards of different kinds
2- Sharing and respecting
3- Creating of ownership
4- A supportive management on staff emotional matters
5- Organized and non discriminatory policies
Analysis:
According both Managers Motivation is the main factors in the employee retention & there
organization is working on the motivations, they have different rewards in the company and
also sharing about the company decisions, respect of right and also ownership etc. Researcher
analyze the motivations part of the Matiari Sugar mill and found that the company is working
on the track of motivation of employees & also working as Part of retention.
10. What are the patterns of motivation in your company?
According to Human Resource Manager, As I shared our company follows a set of law, rules and
regulations to take care of staff motivation for high level of performance. We follow strict
policies on new hiring and promotion and mostly select and promote our won employees for
higher positions. We have a system of performance evaluation which is link with reward and
punishment measures. Our all promotions and salary increased are based on annual
performance evaluation. We conduct staff training need assessment every year and provide
staff develop trainings accordingly.
According to coordination Manager, the Adaptive motivational patterns are promoted the
establishment, maintenance, and attainment of personally challenging and personally valued
achievement goals of the Matiari Sugar Mill.

64 | P a g e
Analysis:
As per both managers company have prepared policy on human resource and regulations to
take care of staff motivation for high level of performance. As human resource manager said
that they have strict policy for new hiring, they promote the old employee and give them
opportunity to come forward and help with company and also they feel better because
company give them preference to them, As per researcher analysis they these kind of little
things encourage employee to work hard and show his / herself better for the any future
position. So mostly employee don’t want to leave the company because of these policies.
11. Leadership Role in Employee motivation?
According the Manager Human Resource, Leadership is the most important motivating the
employees of a company. Because for ultimate support and depending their rights employees
will approach the leadership if there is anything to complain. If the leadership of a company is
biased on its decisions and doesn’t follow proper policies they will be the most dissatisfactory
and demotivating thing in the company. This is the leadership to develop and implement all
policies and give the company a vision and direction. A company without vision, direction,
policies, and procedures can never motivate its staff.
According to coordination Manager, Leadership is very important, if the employees are not
satisfied with the decisions of top management they won’t be motivated to perform their
activities.
Analysis:
As both managers are agreeing that there is the main role of leaders in motivation and
employee retention, because for ultimate support and depending their rights employees will
approach the leadership if there is anything to complain. If the leadership of a company is
biased on its decisions and doesn’t follow proper policies they will be the most dissatisfactory
and de motivating thing in the company. The role of leader to Support the employee and give
them proper time and value for the productivity of the company, leaders know what to do, and
how to do, they know about the competitors.

65 | P a g e
Discussion
Employee Retention:
According to the Employees and Managers of Matiari Sugar mill, said that they not any
problems in employee retention. They have retention plan in place in the company; they give
so many rewards to the employee. Because of policy in the company they have high
productivity and second position in Sindh. Human Resource Manager Respond in the answers
of the question about the motivation they said that we have policy available about the
employee motivations and we giving the two kind of rewards to the employee one Financial
and second is non financial rewards to the employee for the motivation and the retention
management. Even though some of employees left the company but because of other
problems, but not because of any problems with the company or manager.
Voluntary Turnover:
Through our Interview questions the respondents has been respond that the successful history
of retention management in the Company. Even though some employees left the company, and
the company is satisfied because the most of employees stay long with the industry. The point
of view most of the managers that the situation is good. From the five managers two of them
the opinion is same that the people now a day’s moving to the new jobs, which is effect on
employee retention. Higher educational slandered also effect on retention management & at
the same time it’s very difficult the keep society educated.
Out of the Five Manager Three noticed that there have been changes in retention management
and those also good for the retention. “Of course there is natural turnover, but if we think about
the company’s size I think that the small number of people leaving voluntarily is normal.” The
one manager said that employees in universal have stayed, but the situation now has been
changed. From above five managers have responded described Matiari Sugar mill and history
of the retention management is good.
Role of Leader:
Both managers said that “Leaders role is important to employee retention and a leader can
influence if employees remain with the company”. They said that the role to implement the
policy and create better condition for work and respect the rights etc. If the working

Essential Factors for Employee Retention in Sugar Mills

Essential Factors for Employee Retention in Sugar Mills

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