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1
A
Project Report
On
ATTRITION MANAGEMENT
At
KIRLOSKAR PNEUMATIC COMPANY LTD.
HADAPSAR, PUNE
Submitted By
SHRUTI KUMARI
(Roll No. – 60)
Batch 2013-2015
Submitted To
GLOBAL BUSINESS SCHOOL & RESEARCH
CENTRE
DR. D. Y. PATIL VIDYAPEETH, PUNE
In Partial fulfilment of degree of Master of Business Administration
2
ATTRITION
MANAGEMENT
UNDERSTAND. MANAGE. COMPETE.
3
Global Business School & Research
Dr D.Y. Patil University
Pune 411 033
CERTIFICATE
This is to certify that Ms. Shruti Kumari a bonafied student of the MBA
programme of this Institute for the academic year 2013 – 2015 having Roll No.60,
has completed her Summer Internship Project titled “Attrition Management” as
partial fulfilment of the Master of Business Administration Course.
Course Coordinator Director
4
GLOBAL BUSINESS SCHOOL & RESEARCH CENTRE
DECLARATION
I, SHRUTI KUMARI, declare that the project work entitled “ATTRITION MANAGEMENT”
submitted to D.Y. PATIL VIDYAPEETH, is a record of an original work done by me. I hereby
declare that all the facts and figures included in the dissertation is a result of my own research
and investigations including formal analysis of the entire project work. The result embodied in
this thesis has not been previously submitted for any examination of this University or any
other University.
This declaration will hold good and in my wise belief with full Consciousness.
Date: Signature of the Student
Place: Pune-411 033 [SHRUTI KUMARI]
5
ACKNOWLEDGEMENT
With utmost sincerity, I would also like to convey my thankfulness to Mr. Sadashib Padhee
(VP-HR) for giving me the opportunity to work with Kirloskar Pneumatic Co. Ltd.
I would like to cease this opportunity to express my heartfelt gratitude towards Mr. Jagdish
Purandare (DGM-HRD), my company guide, for his insightful guidance and for all his
endeavours in supervising my entire project. My sincere thanks to him for showing faith in me.
I would also take the privilege to express deep sense of gratitude to Mrs. Meghana Abdagire
for giving me a brief knowledge about the entire training process and encouraging me
throughout my summer training, Mrs. Nayana Kasbe, for efficiently coordinating the program
and all other personnel of the HR department at KPCL, who had lent a helping hand on various
occasions throughout the duration of the internship.
I am very grateful to Dr. A. Keskar (Advisor) & Dr. K.K. Velluri (Director), D.Y. Patil
Vidyapeeth, G.B.S.R.C., who has been a source of inspiration for summer project of two
months’ time duration.
I would express my gratitude towards Prof. Tapati Sarmah, my faculty guide for sharing her
exceptional knowledge in the domain of Human Resource Management, along with the
members of the placement cell at Dr. D.Y. Patil GBSRC, who facilitated this learning
opportunity for me.
My sincere thanks to Prof. Rachna Gandhi and Prof. Ansumalini Panda for their valuable
guidance and direction in successful completion my project.
Finally, I would like to take this opportunity to express my deepest gratitude to all those who
have directly or indirectly contributed in the completion of this project.
SHRUTI KUMARI
6
INDEX
Sr. no Title Page no.
1 Title page i
2 Cover page ii
3 Institute certificate iii
4 Company certificate iv
5 Declaration by student v
6 Acknowledgement vi
7 Table of contents vii-viii
7
TABLE OF CONTENTS
Chapter
no.
Title Page no.
1 EXECUTIVE SUMMARY 1
2 INTRODUCTION
 Abstract
 Theoretical aspects of ‘Attrition Management’
 Application of work in the Company
 Need for the study
 Statement of problem
 Survey Methodology
6
3 OBJECTIVE OF THE STUDY 31
4 INDUSTRY PROFILE 33
5 COMPANY PROFILE 44
6 LITERATURE REVIEW 62
7 RESEARCH METHODOLOGY
 Scope of the study
 Research Process
 Types Of Research
 Methods And Sources Of Data Collection
66
8 DATA ANALYSIS & INTERPRETATION 71
9 FINDINGS 96
10 LIMITATIONS 99
11 SUGGESTION & RECOMMENDATION
 Retention Strategies by KPCL
101
12 CONCLUSIONS 106
13 ANNEXURE 109
14 REFERENCES 113
8
EXECUTIVE
SUMMARY
9
This project is done on Human Resource Management topic in the area of ““Attrition
Management”. The most challenging job for any manager is to retain their employees. This
report seeks to utilise primary research in order to offer a greater understanding of the complex
issues raised by staff attrition. Specific aims were to:
› Identify trends in leavers' behaviour and the reasons employees change jobs/organisations
› Identify the employers' perspective on employees' reasons for leaving
› Identify retention strategies that have a positive influence on retention.
Why do employees leave?
A significant difference was established between what employers assumed were key causes of
turnover, and the actual reasons employees gave for leaving. Employers largely failed to take
into account the importance of providing opportunities for development for their employees
and the training required for it.
The top 3 causes apart from Lack of opportunities for personal and career development and pay
benefits were:
 Issues with work tasks
 Technical training
 Technology
What can employers do to minimise the incidence of, and impact of employee turnover?
Developing an employee retention strategy involves three stages:
 Identify the level and cost of turnover and benchmarking it against competitors
 Understand why employees leave
 Implement retention strategies
10
Attrition is a reduction in the number of employees through retirement, resignation or death
refers to attrition. In the best of words, employees would love their jobs, like their co-workers,
work hard for their employers, get paid well for their work, have ample chances for the
advancement, and the flexible schedules so they could attend to personal or family needs as
and when necessary. But then there’s the real world in which employees do leave. Attrition
measures the amount of recurring revenue lost during a particular time frame, expressed on a
monthly/annualized basis.
Employee retention involves taking measures to encourage employees to remain in the
organization for the maximum period of time. Corporate is facing a lot of problem in employee
retention these days.
Decreased
Productivity
Greater
Attrition
Increased
Costs/
Reduced
Revenue
Cost
Reduction/
Austerity
Drivers of
Attrition Cycle
Of
Attrition
11
The review of the literature indicates a wide and diverse range of potential retention strategies.
On the basis of the secondary sources consulted, retention practices can be grouped under the
following categories:
1. Compensation & Benefits levels
2. Compensation & Benefits systems (e.g. pay for performance; skill-based pay, etc.)
3. Recognition and Rewards
4. Training, Professional Development, Career Planning
5. Orientation & Integration
6. Healthy Workplace or Well-being Programs
7. Job Design & Work Teams
8. Employee Participation & Communication
COMPENSATION
ENVIRONMENT
GROWTH
RELATIONSHIP
SUPPORT
Key Areas
in Retention
12
9. Manager Training & Accountability
10. Flexible Work Time
11. Diversity Management
12. Work-life Balance
13. Performance Management & Feedback
Based on the conclusions derived after the in-depth and comprehensive study, few implications
can be made about employee retention. Employee retention is vital to the long term health and
success of any business organization. Companies can look into various options like bonding
programmes, stronger career path, benefits and communication. Making work a fun place,
sponsoring education and ongoing learning for the workforce.
Employee attrition is significant business concerns for the organisations, one even bigger than
attracting talent, especially in today’s knowledge driven marketplace where employees are the
most important human capital assets. Attrition impacts an organization’s competitive
advantage. A company is not hurt because certain persons have left. The company is hurt
because it takes away certain knowledge, and there is no ready replacement in the market.
However when jobs were scarce, the technology changes were less rapid, voluntary attrition
was small and companies managed it. However, with technology changing rapidly and
manpower costs increasing, attrition is high and hurts badly.
According to my study most of the employees are likely to seek a new employment as the
economy booms. It is likely that the voluntary turnover would rise due to the improving
economy.
13
INTRODUCTION
14
ABSTRACT
Employees are the most valuable assets of an organization. It is they who add value to the
organization in terms of quantity and quality as well. To find, attract, develop and retain the
right talent is a major part of management. Therefore, it is indispensable to maintain a
permanent and promising workforce; which over the years has become a tough task for
employers and thereby increased attrition in the organizations. Attrition is a major problem
which highlights in all the organizations. “Attrition is said to be the gradual reduction in the
number of employees through retirement, resignation or death. It can also be said as Employee
Turnover or Employee Defection”. Whenever a well-trained and well-adapted employee
leaves the organization, it creates a vacuum. So, the organization loses key skills, knowledge
and business relationships. Modern managers and personnel administrators are greatly
interested in reducing Attrition in the organization, in such a way that it will contribute to the
maximum effectiveness, growth, and progress of the organization. Attrition costs a lot. It's one
of the largest costs in all types of organizations, yet it's also one of the least understood.
Organizations need to find new approaches to retain the most effective manpower.
Retaining the employees involves understanding the intrinsic motivators as individuals differ
a lot. Retaining employees is a critical and ongoing effort. Staff requires reinforcement,
direction and recognition to grow and remain satisfied in their positions. Managers must
recognize this and understand that establishing such fundamentals demonstrates their
objectives to support nature and motivate their employees.
This study is an outcome of the topic called “A Study on Attrition Management”. This research
is an attempt to find out the causes of attrition from different dimensions and have proposed
some ways in which this issue can be addressed. It undertakes the effect of the same on
employer and employee both. In this research, I have made an attempt to bring out employee
retention approaches, strategies for retention and the costs related to attrition. Following this
some strange reasons for attrition have been discussed in this regard. The positive side of
attrition has also been discussed upon. Further, the remedial measures have been discussed
herein. Managing attrition is not just a 'nice thing to do', it is the route to survival.
15
TheoreTical aspecTs of “aTTriTion”
INTRODUCTION
What is “ATTRITION”?
Attrition is defined as a gradual reduction of the size of workforce through normal means,
such as retirement, resignation or death. This is normal in any business and industry.
Attrition rate is defined as the rate of shrinkage in size or number.
This type of reduction in staff is one way a company can decrease labour costs: the company
simply waits for its employees to leave and freezes hiring. Attrition of employees in a
limited measure is desirable for influx of new ideas in any type of organization. It helps
organizations to maintain their agility in fast changing environment. It brings in new blood,
opens up new vistas for change, development and improvement, shows avenues to expand
operations and add to the creative lines of the organizations. Attrition in a limited measure
can thus bring gains to the organization. However if attrition increases beyond a certain
level, the gains are transformed into pains. Recruiters explain that high attrition rates
significantly increase the investment made on. Significant investments in time and money
need to be made for acquiring employees in any organization. These can never be translated
into profit when attrition is high.
VICIOUS CIRCLE OF ATTRITION
16
Hence urge for employee retention arises. Effective employee retention is a systematic effort
by employers to create and foster an environment that encourages current employees to remain
employed by having policies and practices in place that address their diverse needs. The
organisation is fully at loss when employees leave their job once they are fully trained.
Employee retention takes into account the various measures taken so that an individual stays
in the organisation for the maximum period of time. It is beneficial both for the organisation as
well as the employee.
In short Retention is all about:
R- REMUNERATE COMPETITIVELY
E- ENCOURAGEMENT AND EXPECTATION
T- TRAINING AND DEVELOPMENT
A- ANNUAL REVIEW CYCLES
I- INFORM AND INVOLVE
N- NUTURE
A strong retention strategy becomes a powerful recruitment tool. Retention of key employees
is critical to the long-term health and success of any organization. It is a known fact that
retaining your best employees ensures customer satisfaction, increased product sales, satisfied
colleagues and reporting staff, effective succession planning and deeply imbedded
organizational knowledge and learning. Employee retention matters as organizational issues
such as training time and investment; lost knowledge; insecure employees and a costly
candidate search are involved. Hence failing to retain a key employee is a costly proposition
for an organization. Intelligent employers always realise the importance of retaining the best
talent.
17
Attrition in Manufacturing Industries
Companies in India as well as in other countries face a formidable challenge of recruiting and
retaining talents while at the same time having to manage talent loss through attrition due to
industry downturns or through voluntary individual turnover. Losing talents and employees
result in performance losses which can have long term negative effect on companies especially
if the departing talent leaves gaps in its execution capability and human resource functioning
which not only includes lost productivity but also possibly loss of team-work, harmony and
social goodwill. With attrition rates being a bane of every industry, companies are devising
innovative business models for effective retention of talent. There are a lot of factors
responsible for attrition and employers are getting increasingly conscious of the factors that
can keep an employee committed. Attrition may be defined as gradual reduction in membership
or personnel as through retirement, resignation or death. In other words, attrition can be defined
as the number of employees leaving the organization which includes both voluntary and
involuntary separation. The employee gradually reduces his/her ties with the company than
crib about the underlying factors causing attrition. It is symptomatic of a much deeper malaise
that cuts deeper into the innards of organizations. Attrition rates vary from sector to sector and
industry to industry. Apart from the unavoidable ones like resignation, retirement, death or
disability, the causes are found to be many and varied. They vary according to the nature of
business, the level of the employees and the nature of the responsibility shouldered by them.
The obvious, common and main reasons are the ‘ergonomic discomfort’ experienced by the
employee and the ‘functional incompatibility’ between the corporate management and the
employees. Very often an employee finds himself among colleagues and superiors he is unable
to cope up with. Or he finds himself totally out of tune in his functions with the employee’s
functional requirements, failing to rise to the employer’s expectations. Another important
reason is that the employee’s remuneration is not voluminous enough to bear the brunt and
cushion the concussions of his family and social life.
Employee retention refers to policies and practices companies use to prevent valuable
employees from leaving their jobs. How to retain valuable employees is one of the biggest
problem that plague companies in the competitive marketplace. Not too long ago, companies
accepted the “revolving door policy” as part of doing business and were quick to fill a vacant
job with another eager candidate. Nowadays, businesses often find that they spend considerable
18
time, effort, and money to train an employee only to have them develop into a valuable
commodity and leave the company for greener pastures. In order to create a successful
company, employers should consider as many options as possible when it comes to retaining
employees, while at the same time securing their trust and loyalty so they have less of a desire
to leave in the future. Employees need to be retained because good, faithful, trained and
hardworking employees are required to run business. They have acquired good product
knowledge over the long run and a trained employee can handle customers better and also solve
problems of peers who are new to the organization. When an employee leaves he takes away
with him all company information such as ongoing projects, etc. Goodwill of the company gets
hampered due to more employee turnover rate and the competitors start poking their nose to
recruit best talents from them. Efficiency of work is hampered to a large extent. For example
– If an employee leaves in the middle of an ongoing project it’s very difficult to fill that Vacuum
and a new employee can never replace an old and talented employee so this leads to delayed
completion of projects and less work satisfaction among other team members.
In the present context the present paper is ascertained to study attrition management in
Kirloskar Pneumatic Co. Ltd. (manufacturing industry) in Pune, Hadapsar.
 Kinds of Attrition
 Voluntary attrition- Voluntary attrition takes place when the employee leave the
organization by their own will. Pull factors like higher emoluments elsewhere, better
opportunities of growth and promotion etc. are responsible for this kind of attrition.
 Involuntary attrition- Involuntary attrition takes place when the employees leave the
organizations due to some negative forces or push factors like faulty promotion policy,
biased performance appraisal etc.
 Compulsory attrition- It takes place due to the rules and regulations of the government
and that of the organization as well. It includes attrition taking place due to attaining
the age of retirement, completion of tenure etc.
19
 Natural attrition- It takes place due to the causes and factors that are beyond the
control of the individual and organization as well. These factors may include end of
life, insanity etc.
 Causes of Attrition
 Internal causes- These causes are pertaining to the internal environment of an
organization. Therefore, they are controllable.
Salary
a. Insufficient salary
b. Delay in payment
c. No / delayed increment
d. Wage compression
Promotion
a. Biased promotion
b. No / delayed promotion
Transfer
a. Forceful transfer
b. Transfer to a place employee is not willing to go
Workplace Infrastructure & amenities
a. Lack of hygiene
b. Lack of basic facilities like water, canteen, etc.
Task
a. Monotony of task
b. Task – labour mismatch
c. Team issues
d. Lesser job autonomy
Instability in leadership
Leading to confusion related to directions and commands which generate
frustration among the workforce.
20
Lack of Flexibility
a. Lack of flexibility in timing, choice of task etc.
b. Introduction of new technology
c. Employees incompetency / unwillingness to learn and understand
Lack of job security
a. Fear of being expelled/ retrenched/terminated
b. Faulty performance appraisal
c. Underestimation of performance
d. Power distance & politics
e. Communication gap between management and workforce
 External causes- These are the causes which are beyond the control of an organization
as they belong to the external environment. These causes may be related to:
a. Better pay
b. Chances of promotion
c. Better perks
d. More fringe benefits in other organizations
 Individual/Personal causes
a. End of life
b. Marriage
c. Pregnancy
d. Shift of family
e. Mental imbalance
f. Over - sensitivity
g. Wish to go abroad
h. Attrition of the group members
i. Self-employment
j. Education
21
Some peculiar reasons
A. Attrition and Employee Stock Option Plan (ESOP)
A peculiar paradox has been observed in case of ESOP as a motivational tool and the
attrition rate. Generally it is perceived that ESOP on one hand generate funds for the
organization and on the other hand it may curb attrition rate as it increases participation
of employees in management, increase in their financial resources and satiation of their
esteem needs as well which will ultimately lead to their long- term commitment with
the organization. However, while considering an altogether different perspective, ESOP
may increase the rate of attrition as the earning from ESOP may be sufficient for the
livelihood of the employee or it may sometimes exceed his income leading to his
disinterest to continue the job.
B. Attrition and perception about growth opportunities
 Employer’s perception and presumptions- Employers may have a perception that
employees are already well aware of their growth and career opportunities in the
organization or they may perceive that the old staff will convey the things to the new
one. But actually the new workers may not be aware of these things, further they can
be misguided and misled by their colleagues.
 Employee’s perception- Employees may have a perception that:
a. Employers may get annoyed if they are asked about the career opportunities in the
organization
b. Employers may take it negatively which may be detrimental to job security,
increment and promotion etc.
c. If there are growth opportunities, employers will themselves convey the same and
their silence means there is no scope of growth in the organization.
 Effects of attrition
 Effect on Employer/ Organization
a. Loss of productivity
b. Loss of quality
c. Increase in cost
d. Loss of consumers and decrease in brand loyalty
e. Loss of goodwill
22
f. Loss of secrecy in case the key employees leave the organization
g. Loss of key – personnel
h. Lack of competitiveness
 Effect on employee
a. Stress from new job
b. Monetary loss
c. Effect on career
d. Effect on family life
e. Loss of skill- if the gap between quitting from one organization to other is long
f. Emotional loss, if the bonding with the staff of previous organization was good
However, it is also possible that the employee gets better environment and remuneration in the
new organization and the things can get positive for him.
 Costs associated with Employee Attrition
Attrition results in increase in costs. These costs may be related to
 Cost of Exit Interview
 Recruitment costs- Cost of advertisements, agency costs, employee referral costs,
Internet posting costs, cost of the internal recruiter's time to understand the position
requirements, develop and implement a sourcing strategy, review candidates'
backgrounds, prepare for interviews, conduct interviews, prepare candidate
assessments, conduct reference checks, make the employment offer, and notify
unsuccessful candidates.
 Cost of Training- Cost of trainers, cost of training equipment and materials, cost of
refreshment, cost of technology
 Cost of Administrative Proceedings- Cost of issuing I – cards, access cards
 Cost of Signing Bonus- It is given to the works for joining the organization; it is also
a significant part of cost.
 Lost Productivity Costs- As the new employee is learning the new job, the company
policies and practices, etc., they are not fully productive. It includes the costs
associated with the low productivity of the new employee.
23
 Lost Sales Costs- These costs are the lost revenue which occurred as a result of project
loss due to key employee attrition.
 Steps to Reduce Attrition
 Focus on Exit-interviews.
 Compliment and thanking employees for their valuable contribution. Recognize and
celebrate their success.
 Setting up a feedback mechanism to maintain consistency in performance and high
motivation levels.
 Give them job security.
 Providing opportunities of learning by constantly upgrading the skills of employees.
 Paying attention to employee’s personal needs and participation.
 Communicate goals, roles and responsibilities so that people know what is expected from
them.
 Education
 Feeling valued by their managers or superior in the workplace is a key to high employee
motivation and morale.
 Treat the employees well & provide a dignity of job.
24
Attrition of
Employees
Personal
characteristics
Negative
characteristics
of job
Monotonous Nature of Job
Lack of Motivation
Poor Mentoring
Power & Politics
Dissatisfaction with
colleagues
Low Career Growth
Irregular Working Hours
Achievement not recognized
Gender
Education
Marital Status
Age
Tenure
Personal
Characteristics
Self-Esteem
Participation
Accountability
Growth Prospects
Feeling of
Accomplishment
Interpersonal
Relationships
Working Conditions
Involvement
Job Security
Amenities
Authority
Satisfaction
Motivation
Involvement
Work
Compatibility
Retention of
Employees
(Organisational
Outcome)
Job
Characteristics
Gender
Education
Marital Status
Age
ATTRITION & RETENTION MODEL
25
 Strategies for Retention
 Fostering a Culture of Management Concern- Companies today must show an interest
in helping people develop to their fullest potential. In addition to reducing bureaucracy,
high- performing, high-tech companies provide freedom in scheduled hours, and lifestyle
choices.
 Providing Relevant Training- Companies should think of training as career
development.
 Job Enlargement- Employees should not be locked into positions because they’re “so
good at it”. Managers must continually ask: “What’s the next step for this employee?” In
other words more tasks and responsibilities should be assigned to make the position more
challenging.
 Realistic goals
 Defining career path and demystifying career growth- proper succession planning
 Rewarding Managers- Many companies say they value people and train their
management team to cope with people issues. Yet these same managers are too often
rewarded solely on their technical skills and financial results.
 Strengthening the Team- Marginal performers in management must be weeded out.
 Workers’ Participation in Management
 Profit sharing
 Gain sharing
 Fair Performance Appraisal
 Clearly identify the people you want to keep- Many executives have focused on whom
they should get rid of rather than on whom they should keep. Unfortunately, those who
decide to leave are often high-impact performers who can find other work quickly.
 Effective Communication System
To retain top talent in the future, executives will need to clearly identify, develop, involve, and
recognize key people. Traditional compensation plans must be challenged, needless
bureaucracy should be eliminated, and growth opportunities should be provided. Executives
who create a dynamic, new human resource model will retain the high-knowledge talent needed
to succeed in tomorrow's globally competitive environment.
26
 Other Retention Strategies
 Corporate Social Responsibility (CSR) towards employees
It comprises a wide range of intrinsic and extrinsic rewards and motivation. It is concerned
with a humanitarian aspect towards the employees of the organization. It is the first and
foremost responsibility of an organization to take care of its employees’ physical and mental
well-being. CSR towards employees encompasses all monetary and non- monetary aspects.
Monetary aspect includes reasonable remuneration, bonus, increment, HRA, post retirement
pension, etc. while the non- monetary aspect may include congenial environment, fair
performance appraisal, recreational activities, learning and development. Both these aspects
are equally important while considering control on attrition.
 Herzberg’s Two Factor Theory, CSR towards Employees & Attrition
Hertzberg Two-factor theory describes two factors -
Motivators –These factors are related to the intrinsic aspect of the job itself, such as
recognition, achievement, personal growth etc..
Hygiene factors – These factors are related to the extrinsic aspect of the job such as salary,
fringe benefits, work conditions, status, job security etc.
Hygiene factors are essentials, they do not show direct contribution in productivity but their
absence certainly leads to decrease in production. Motivators have a positive correlation
with productivity; their presence results in increase in productivity and their absence leads
to fall in the same. Thus both these factors should be paid attention to boost the morale of
the workers leading to lesser attrition as morale and attrition have inverse relationship i.e.
Higher the morale, lesser will be the attrition and vice-versa.
 Applying Emotional Intelligence
Emotional intelligence refers to the ability and capacity to know and control own emotions
and that of others in such a manner that the energies and potentials may be channelized in a
positive direction and utilized to enhance productivity. To develop emotional intelligence
one has to develop empathy and farsightedness. Following are some ways to apply
emotional intelligence to control attrition-
a. Being proactive
b. Lessening communication gap between management and workers
27
c. Devising and communicating career and growth opportunities
d. Using intrinsic motivation
e. Understanding group dynamics
f. Conducting motivational sessions for the employees
g. Praising the employee publically but criticizing privately
h. Developing a rapport with the workers
 Change in leadership style
Leadership can play a significant role in controlling attrition. With the change in
organizational dynamics the style of leadership should also change. One of the much
applauded style is the transformational leadership. Transformational leadership comprises
of the four dimensions: idealized influence, inspirational motivation, intellectual
stimulation, and individual consideration. Such a leadership helps the employees in finding
out their hidden talent and latent skills. They come to know about their strengths and the
scope to enhance them. This acts as an undercurrent in unleashing their energies with full
faith in their capabilities resulting in a passion for work, greater connectivity with
organization and its goals and control on the tendency of the workers to leave the
organization.
Leaders should recognize, promote and praise hard work; employees should be given due
credit and compliments. Leaders should be open to discussions and have a welcoming
attitude towards the suggestions of the workers. First they should understand and accept the
value of employees and then make the employees feel that they are valuable to the
organisation; this will bring more openness, harmony, trust in relations. All these factors
will be helpful to control attrition.
 Flexibility
Flexibility is necessary for greater degree of co-ordination, ease and smoothness in the
organizational working. It is the demand of time as in the present context it has become very
difficult to manage talent. Undue strictness and rigidity is no more considered the obvious
right of the employer. Flexibility can be related to the following factors-
a. Time
b. Choice of task
c. Transfer
28
d. Targets
e. Leaves
f. Methods
g. Place of work in the organization
h. Number of breaks
 Conducting stress interview
Exit interviews become instrumental in assessing the level of satisfaction or dissatisfaction
of the employee. It should be well planned and questions should be well-framed. It should
focus on the issues like –
a. Work Environment
b. Organizational culture
c. Peer group
d. Senior- subordinate relationship
e. Performance appraisal
f. Individual growth
 The Importance of Retaining Employees
 A company spends lots of money in developing an individual person and makes him
ready to work great and understand the corporate working culture.
 When an employee resigns his job from present company, it is more likely that he/she
may join the competitors firm.
 If an employee working in an organization for many years, they can understand the
particular firm’s guidelines, so thus they can adjust better.
 Replacing employees’ costs money. The cost of replacing an employee is estimated at up
to twice the individual’s annual salary (or higher for some positions, such as middle
management), and this doesn’t even include the cost of lost knowledge.
 Bringing employees up to speed takes even more time. And when you’re short-staffed,
you often need to put in extra time to get the work done.
 The goodwill of a company is maintained when the attrition rates are low. Higher
retention rates motivate potential employees to join the organization.
29
 Customers and clients do business with a company in part because of the people.
Relationships are developed that encourage continued sponsorship of the business. When
an employee leaves, the relationships that employee built for the company are served,
which could lead to potential customer loss.
 Positive effects of attrition on the organisation
Attrition is not always negative, it may have some positive results also. Some of the positive
results may include the following-
 Advantages of new knowledge- New employees bring new knowledge; their knowledge
and skill may open new avenues for the organization.
 Advantage of new technology- It will decrease the cost, thus the price of the final goods
or service will be cheaper; further leading to increase in demand and profits.
 Introduction of new ideas- New ideas may help in increasing product line and product
mix or they may become helpful in starting new joint-ventures and working in
collaboration.
 Lesser negative impact of groupies- Sometimes the existing groups may be rigid or the
group members may be reluctant towards others, in such a case attrition of a group
member may be positive for the organization.
 Reduction in surplus staff- It will lead to reduction in cost of maintaining the surplus
employees ultimately leading to total cost.
 Creation of a healthy and competitive environment in the organization- New
workforce may be more competitive, old employees may learn from them. They may get
inspired and compete with them.
30
Drivers of
Attrition
Career
Aspirations
Others
Organizational
Individual
Family
Mobility
Culture
Job Related
Personality
Factors
Growth &
Career Paths
Pay Package Poaching
Work
Environment
Peer Pressure
No Learning
No Challenge
Style of Boss
Job Clarity
Job Stress
Lack of
Independence
31
Application in the company
 Need for the Study
The success of any manufacturing organization depends largely on the workers, the
employees are considered as the backbone of any company. The study was mainly
undertaken to identify the level of employee’s attitude, the dissatisfaction factors they face
in the organization, why they choose to stay and for what reason they prefer to change their
job. Once the levels of employee’s attitude are identified, it would be possible for the
management to take necessary action to reduce attrition level.
Since they are considered as backbone of the company, their progression will lead to the
success of the company for the long run. This study can be helpful in knowing, why the
employees prefer to change their job and which factors make employee dissatisfy. Since the
study is critical issue, it is needed by the originations in order to assess the overall interest
and the feelings of the employees towards their nature of job and organization.
To address the reasons why attrition occurs, “Stay Survey” was conducted of Grade 61
employees. This study can be helpful to the management to improve its core weaknesses by
the suggestions and recommendations prescribed in the project. This study can serve as a
basis for measuring the organization’s overall performance in terms of employee
satisfaction. The need of this study can be recognized when the result of the related study
need suggestions and recommendations to the similar situation.
 Statement of problem
Managing attrition does not mean reducing attrition only. It could also mean bringing down
the negative effects of attrition. To do this the organizations should put up appropriate
retention and capacity utilization or talent utilization tactics. There are various retention
strategies used by the organizations today.
32
The aim of the present report is to study factors like salary, superior – subordinate
relationship, growth opportunities, facilities, policies and procedures, recognition,
appreciation, suggestions, co- workers by which it helps to know the Attrition level in the
organizations and factors relating to retain them. This study also helps to find out where the
organizations are lagging in retaining.
33
SURVEY
METHODOLOGY
Design the Survey Instrument
Finalize the Target
Invite and Seek Consent for Participation
Collect and Validate Data
1
2
3
4
Generate the Survey Trends
Analyse Data
5
6
The parameters of the study were finalized and a structured
questionnaire was designed as a primary data collection tool
The target employees were selected for interview
A formal invitation e-mail was sent to the employees requesting for
participation & the interaction with the engineers was scheduled
The responses received from all participants were validated
& intended interpretation
The data received was collated & analysed to
get detailed insight
Suggested recommendations
34
Overview/Background of my work in the Company
As explained in the above diagram, the project undertaken by me was done in the above
mentioned sequence. As we know attrition is a critical issue in every organization, hence it
requires a detailed study of the problem. I made a detailed study of various articles to gain more
insight about the problem.
Basically what every companies do is conduct a “Stay Interview & Exit Interview”. The basic
reason behind conducting these two types of interview is to know what employees feel about
the workplace, to know their grievances and thereby take steps to overcome their problems.
Employees are assets for every company if treated with care and intelligence. But, at the same
time if they are not handled properly they turn out to be liabilities. Managing employees
requires proper engagement activities to be framed so that both the ends derive adequate
amount of satisfaction. The company should properly plan its work so that the company is
benefited and the objectives are met. On the other hand, the company should also make sure
that the employees also feel benefited in return. The company should know what actually
makes their employees happy and motivated to work.
Companies while conducting “Exit Interviews” try to identify trends in leaver’s behaviour and
the reasons employees change jobs/organisations. On that basis the company frames certain
retention strategies so as to make a positive influence on retention, or least leave with a positive
view of the organisation. The most common questions asked in ‘Exit Interview’ is how the
employees felt working with the company, were they happy with the workplace environment,
how was their relation with their superiors as well as their colleagues, what is the reason for
leaving job etc.
Proactive feedback from the employees as Exit Interview is too late. If you know why an
individual employee stays, you can obviously reinforce those factors. And if you know far
enough in advance what factors might cause them to leave, you can get a head start in ensuring
those turnover causes never occur. Retention is an individualized process that needs to be
handled proactively. This is why “Stay Interviews” are conducted, as a tool used for retaining
the key and talented employees. It may also be known as “Pre-Exit Interview”. What actually
happens is a target employees are chosen to be interviewed, analysis is made and steps are
taken to retain them. Commonly questions relating to workplace and job satisfaction are asked.
35
As explained in the above diagram questions were framed concerning ‘Stay Interview’ as a
tool-kit. These questions are the primary tool of my study. These questions formed the basis
towards managing employee engagement and their retention attributes thereby curbing
attrition. In other words, it is a list of possible “stay questions” to ask the employee, and most
importantly, a list of acceptable retention actions that are available to any manager for
improving an employee’s job and for minimizing possible retention triggers.
After finalising the questions, the target group to be interviewed was selected. Only such
employees are prioritized whom the managers feels and estimates that they might actually
leave. For my project the target employees were the employees of Gr. 61 i.e. G.E.Ts. These
were the employees holding key positions, talented employees as well as the employees to be
groomed as potential future leaders.
Once the target employees were selected, the third step involved sending them a formal
invitation regarding the interaction and seeking their consent for participation. A formal
invitation was sent to the respective employees from the HR department informing them about
the interaction schedule and place.
On the scheduled date the interview was conducted. It was a ‘One-on-One’ interview. The
greatest advantage of conducting this type of interview setting is that employees feel free to
answer the questions. As it is highly personalized, the interviewee feels the confidentiality. The
information thus collected by this means is more accurate and insightful. In this process, I got
to know how the employees feel working at KPCL and also what they expect from the
companies. Employees were even asked to their suggestions as to encourage retention.
The data collected thereof, were thus taken into account for analysis and interpretation. The
trends of attrition and retention factors were analysed.
The final and the last step involved generating the results derived from analysis of the data
collected. On that basis I put forth my recommendations as to few things that the company
should do to manage attrition and retain its talent.
Stay Interviews should be scheduled periodically, usually once a year during a slack business
period. It’s usually a good idea to interview all key employees around the same time, so that
the company can implement common actions at the same time. Conducting them less
frequently can be problematic in periods of high turnover, especially for new hires who
naturally have a higher risk of leaving, conduct stay interviews at four and eight months.
36
If companies are not diligent in fully understanding the factors influencing the intent of their
workforce to stay, they could face a wave of turnover in the near future that could cripple some
companies. And, with studies telling us that 50% of our workforce is looking for another job
or totally disengaged from their jobs, retention has never been more critical.
So, organizations should give some hard thought to its talent management process, whether it
just wants an engagement rate or a benchmark comparison to its competitors, or does it wants
to know the real issues that are affecting its employees and what it can do to impact them?
There is a way to keep your eye on the organization and find out – it’s called the stay interview.
EXTERNAL FACTORS
 Employee Brand
 Candidate Behaviours
 Candidate Skills
 Job Fit
 Others
INTERNAL FACTORS
 Recognition
 Training & Development
 Performance Management
 Communication
 Manger Quality
 Compensation
 Others
EMPLOYEE TURNOVER
37
RETENTION
OF
EMPLOYEES
Personal Characteristics Job Characteristics
Gender
Education
Marital Status
Age
Satisfaction
Motivation
Involvement
Work life
compatibility
Self Esteem
Participation
Accountability & Authority
Growth Prospects
Sense of Accomplishment
Prestige
Interpersonal relationships
Working Conditions
Involvement
Job Security
Amenities
38
OBJECTIVES
39
Objectives
 To retain the existing key and talented employees.
 To gain insight about why employees choose to stay at KPCL.
 To engage employees in identifying their personal career aspirations effectiveness and
value added contribution to KPCL, with the ultimate aim of fitting the Right Person -to-
the-Right Job to enhance personal goals.
 To give employees a chance to offer suggestions for areas of improvement.
 To help reveal vital information for employees about what they like and don’t like about
their jobs.
 To let employees know and aware that their skills, contributions and dedication are
valued and appreciated by KPCL.
40
INDUSTRY PROFILE
41
KIRLOSKAR GROUP
HISTORY
The Kirloskar saga began in 1888 when Laxmanrao Kirloskar set up a small bicycle repair shop
(now near the Shreekrishna theatre on Kirloskar road) at Belgaum and later Laxmanrao and his
brothers set up a model industrial colony called ‘Kirloskarvadi’ India’s first industrial
township. In January 1910 when the Kirloskar were being ousted from Belgaum to make room
for a new suburb, they found themselves in dire need of a place to live and work and hence the
birth of Kirloskarvadi.
Laxmanrao Kirloskar, founder of the Kirloskar Industries was born on 20th June, 1869, in a
small village, Gurlahosur in Belgaum District. He started his life as a school teacher and later
on, opened a cycle repair shop in Belgaum. But his ambition and mission could not be satisfied
by a small workshop at Belgaum.
When the Municipality of Belgaum ordered Kirloskar to vacate their place, Laxmanrao
Kirloskar could not find a suitable place for his workshop. But thanks to the timely help of the
Ruler of Aundh who offered him a place arranging loan of ten thousand rupees, he started his
factory in an arid waste land by the side of a renowned railway station, named Kundal Road.
The factory later blossomed into famous Kirloskar Industries and the station came to be called
Kirloskarvadi.
Laxmanrao Kirloskar set foot on 32 acres of barren land strewn with cacti and infested with
cobras. Driven by his faith in human ability, Laxmanrao banded together 25 workers and their
families and succeeded in transforming the barren expanse into his dream village. Ramuanna,
42
Laxmanrao’s brother, planned and administered the township, Shamburao Jambhekar doubled
as engineer and all-round healing man, K.K.Kulkarni, an unsuccessful student, became a
manager, treasurer and odd jobs man, Mangeshrao Rege was the clerk and chief accountant,
Anantrao Phalnikar, a school drop-out flowered into an imaginative engineer. Such was
Laxmanrao’s faith in the human being that, Tukaram Ramoshi and Pirya Mang, both convicted
dacoits, became the trusted guards of Kirloskarvadi! Superstitious farmers were extremely hard
to convince and Laxmanrao Kirloskar took two years to sell his first iron ploughs.
Today Kirloskar brothers are a 1.20 billion US Dollars engineering conglomerate driving
critical industries. They are century old pioneers in areas of specialization like power,
construction and mining, agriculture, industry and transport, oil and gas and environment
protection with a range of world-class industrial products and turnkey services.
They are made up of 8 major group companies, each led by the best engineering and managerial
talent in India. In addition to engineering, they have interests in civic utility systems and in
Information Technology and communication.
The Kirloskar Group is an Indian conglomerate with sales exceeding $2.5 billion. The company
exports to over 70 countries over most of Africa, Southeast Asia and Europe. The flagship &
holding company, Kirloskar Brothers Ltd established in 1888, is India's largest maker of pumps
and valves and also undertakes construction projects through its subsidiary Kirloskar
Construction And Engineers Ltd. The group is headed by Sanjay Kirloskar.
India's first iron plough from the Kirloskar Group, not only became an instrument of wealth
for the entire society but also kick started an industrial revolution in India. Today, building on
its core engineering strength, the group's scope of operations spans across a gamut of industrial
equipment ranging from pumps & valves, eco-friendly diesel engines & silent generating sets,
air & gas compressors, air-conditioning and refrigeration equipment, a wide range of anti-
corrosion coatings and castings for automotive sector.
43
HISTORY
44
Type Private
Industry Conglomerate
Founded 1888 (As Kirloskar Brothers Limited)
Headquarters Pune, Maharashtra, India
Area served Worldwide
Key people Sanjay Kirloskar, (Chairman & MD)
Products
Pumps
engines
compressors
chillers
valves
pig iron
construction
transmissions
automobiles through a joint venture with Toyota
infrastructure pumping projects
bridges & flyovers
submarine pipelines
construction
Website http://www.kirloskar.com
45
Kirloskar companies
Kirloskar Brothers Ltd.
Kirloskar Brothers Limited (which includes Kirloskar Brothers Ltd, Aban Construction
Company, SPP Pumps (UK), Kirloskar Ebara Pumps Ltd, Braybar pumps Ltd, (South Africa)
and The Kolhapur Steels Ltd is India’s largest pump manufacturer. Kirloskar Brother produces
Centrifugal pumps from 0.1 KW to 26MW with single pumps pumping liquids in excess of
35,000Liters/sec thus producing some of the largest pumps by size and horsepower. Kirloskar
Brothers Limited was established in 1888 and incorporated in 1920. It is the flagship company
of the $ 2.1 billion Kirloskar Group. The market leader in fluid management, KBL provides
complete fluid management solutions for large infrastructure projects in the areas of water
supply, power plants, irrigation, oil & gas and marine & defence. It engineers and manufactures
industrial, agriculture & domestic pumps, valves and hydro turbines.
Kirloskar Oil Engines Limited
Incorporated in 1946, Kirloskar Oil Engines Limited (KOEL) is a part of the Kirloskar Group.
KOEL manufactures air-cooled and liquid-cooled diesel engines and generating sets ranging
from a power output of 5 kVA to 625 kVA and 1800 kVA to 6300 kVA. They also offer engines
operating on alternative fuels such as biodiesel, natural gas, biogas and straight vegetable oil
(SVO). Their generating sets are branded as Kirloskar Green Gensets. KOEL also offers
customized power solutions including both standby and prime power requirements. KOEL is
one of the world's leading players in the generating set market.
Kirloskar Ferrous Industries Limited
KFIL is the flagship company of the Kirloskar Group. KFIL was promoted by Kirloskar Oil
Engines Limited & Shivaji Works Limited (SWL). KFIL was incorporated with the objective
of catering to the requirement of high quality Pig Iron and intricate, thin walled grey iron
castings to the emerging in Tractor, Auto, Engine and other related segments.
46
Kirloskar Proprietary Limited.
Kirloskar Proprietary Limited was established in the year 1965. Kirloskar Proprietary Ltd. is
the registered owner of intellectual property consisting of various trademarks and copyrights
in India and many foreign countries. It has granted licenses thereof to several companies in
Kirloskar group. Besides protecting and defending these marks from infringers it also looks
after enhancing the image of Kirloskar brand
Kirloskar Middle East FZE.
For more than 3 decades, customers in the Middle East, Africa and South East Asia have been
using various products manufactured by the Kirloskar Group in India.
There was continuous need to establish an identity in the Middle East region, which will be
close to the end customers as well as the distributors in the region with the basic objective to
give quick response to the customers’ requirements and make the products & services available
at their door step.
With this vision, Kirloskar Middle East FZE (KMEF) was born in November 1996. It was
decided that Marketing set up and Warehousing facility would be established simultaneously,
so that a range of products would always be available for customers without delay. KMEF is
now expanding operations to include packaging of compressor engineered sets and pump sets
in UAE.
Kirloskar Pneumatic Co Ltd (KPCL)
Kirloskar Pneumatic Co Ltd (Kirloskar Pneumatic) was established in 1958 to manufacture air
compressors and pneumatic tools in collaboration with Broom and Wade, UK. In 2002, it was
merged with K G Khosla Compressors Ltd and the new entity was renamed Kirloskar
Pneumatic.
47
Kirloskar Integrated Technologies Limited. (KITL)
KITL was founded in 2008 and is based in Pune, India. They have extensive research
background in “renewable energy” and have filed several patents in this area. The customers
range from farmers in rural areas, to governments and defence, as well as independent power
producers, among others.
KITL is committed to developing and distributing green technology solutions to reduce
greenhouse gas emissions. Currently, the focus is on bio-energy, solar, and tidal and marine
energy solutions. They offer both stand-alone and hybrid solutions, customizable for the needs
of their customers.
Kirloskar Chillers Private Limited
Produces centrifugal chillers from 250 TR to 2400 TR and air-cooled and water-cooled screw
chillers from 40 TR to 550 TR for air conditioning and process cooling applications. It also
offers products for hot water generation including chillers with super heaters & heat pumps.
Established in 1995, Kirloskar Chillers is the largest chiller manufacturer in India, and the first
to have its products certified under the AHRI 550/590 certification program. The factory at
Saswad, near Pune, also has the first AHRI-certified chiller test facility in India. It is also the
only Indian company to manufacture centrifugal & screw chillers under one roof.
 Toyota Kirloskar Motor Private Limited (TKML) produces Toyota Vehicles in India
 Mysore Kirloskar (MK) produced lathes including CNC types
 Kirloskar Electric Company (KEC) made electrical equipment like transformers,
generators and motors, etc. It is not part of the Kirloskar Group anymore.
 Kirloskar Institute of Advanced Management Studies (KIAMS) was conceived in 1991
as a training institute and a knowledge hub where Kirloskar Group managers taught and
learned management. In 1995, the training institute was opened to managers all over
the country.
48
Products & Services
The Kirloskar group of companies was one of the earliest industrial groups in the engineering
industry in India. The group produces pumps, engines, compressors, screw & centrifugal
chillers, lathes and electrical equipments like electric motors, transformers and generators (it is
the world's largest genset manufacturer). While he established the group, his son also played a
role in the leadership of the company.
The company under Shantanurao Laxmanrao Kirloskar achieved one of the highest growth
rates in Indian history, with 32,401% growth of assets from 1950–1991.
In 1988, Rajiv Gandhi, the then Prime Minister of India released a commemorative stamp
marking the Kirloskar Group's 100th anniversary.
In 1974, in cooperation with Deutz-Fahr of Germany, Kirloskar began manufacturing tractors.
They have since ceased tractor production.
The Kirloskar Group also set up India's second oldest township Kirloskarvadi in Maharashtra,
which is now a 100-year-old township in 2010.
Engines, Gensets and Power Solutions Pumps and Fluid Handling Solutions
Compressors, Refrigeration and Process Gas Systems Solutions for Pump Packages
49
API Process Pumps and Steam Turbines Centrifugal & Screw Chillers
Anti-corrosion and Anti-erosion Coatings Green Solutions
Pig Iron and Castings Foundry - Steel Castings
Trading and After Sales Services of Kirloskar Products Educational Institute (Management)
Trading and Servicing of Pumps & Valves in Europe
50
Achievements
The groups two largest companies, Kirloskar Brothers Limited and Kirloskar Oil Engines
Limited, own many patents.
Kirloskar Brothers Ltd created the world’s largest irrigation project which was commissioned
in March 2007 (the Sardar Sarovar Dam project for the Gujarat Government. This was done
for Sardar Sarovar Narmada Nigam) and on 14 March 2008 commissioned the world’s second
largest water supply system with the world’s highest head in Andhra Pradesh. Kirloskar
Brothers is associated with India's nuclear program and has made canned motor pumps for
pumping heavy water which are deployed at Indian Nuclear Power Plants. Kirloskar Brothers
Limited is also a supplier of FM UL certified pumps along with its subsidiary SPP Pumps
(UK). It was the first Indian company to get FM certification for its valves. Kirloskar Brothers
has a presence is numerous countries including Egypt.
Kirloskar Brothers is also one of the first pump companies to have an all women operated and
managed manufacturing plant at Coimbatore, which is the second largest metropolitan city of
state Tamil Nadu in India. The company was one of the country's top ten wealth creators in
2007.
Kirloskar Brothers won the first "best of all" Rajiv Gandhi National Quality Award in 1992.
51
COMPANY
PROFILE
52
KIRLOSKAR PNEUMATIC COMPANY LIMITED
HADAPSAR, PUNE
History
Kirloskar Pneumatic Co Ltd (Kirloskar Pneumatic) was established in 1958 to manufacture air
compressors and pneumatic tools in collaboration with Broom and Wade, UK. In 2002, it was
merged with K G Khosla Compressors Ltd and the new entity was renamed Kirloskar
Pneumatic.
The doyen of Indian industry Late Shri Shantanurao L. Kirloskar incorporated Kirloskar
Pneumatic Co. Ltd. (KPCL) on 27th March 1958. Today it is a well-diversified engineering
company. The company started its operations with the manufacture of Air Compressors and
Pneumatic Tools and soon branched off in manufacture of Air Conditioning and Refrigeration
equipment, Process Gas equipment and Hydraulic Power Transmission machinery. The
company also earned an enviable reputation for its Systems Engineering and Turnkey Project
expertise. KPCL has the distinction of acquiring advance technologies from world over,
adapting them to suit Indian conditions and continuously updating them to maintain the highest
standards of quality and reliability.
KPCL has its Head Office & Factory at Hadapsar, Pune, one plant at Saswad (20 Kms from
Hadapsar-HO) and one plant in Nasik. Sales & Service offices are situated in major cities in
India. It was certified for ISO 9001 Quality Systems by the Indian Register Quality Systems
(IRQS) in February 1993 and re-certified in 1996, 1999,2002,2005,2008. In the year 2008,
KPCL achieved coveted achievement of getting certified for Environment and Occupation and
Health Management System. (EMS (ISO 14001) and OHSAS 18001). KPCL became an IMS
certified company in 2012.
53
Operations
Kirloskar Pneumatic operates in compression systems and transmission products. Compression
systems segment consists of air compressor (ACD), Air conditioning & refrigeration (ACR),
Transmission (TRM), Road Railer and Process gas (PGS) divisions.
At Kirloskar Pneumatic, up-to-date manufacturing facilities, including CNC machines,
stringent quality control procedures and systems, research and development, foundry, heat
treatment facilities, screw rotor machines, gear grinding machines, metallurgical &
Metrological laboratories, tool room and an integrated computer system, have all been set up
with the sole idea of achieving the highest standards of quality and performance.
Kirloskar Pneumatics is among the first few company’s in India, to secure the ISO 9001
certification, in all its operations. Also, Kirloskar Pneumatic is certified for Environment
Management System, ISO 14001: 2004 and Occupational Health and Safety management
System Standard OHSAS 18001: 2007.
Company’s Products are manufactures under the survey of renowned inspection agencies such
as Lioyd’s, MMD, IRS, NTPC, EIL, PDIL, DGS&D, RITES and many more, and are well
accepted not only in India but also in the countries of South East Asia, Africa, the Middle East,
West Asia and The United States of America.
54
MD
SBU Head ACR
ORGANIZATIONAL STRUCTURE OF KPCL
SBU Head TRM
SBU Head ACD
SBU Head PGS
SBU Head HR
Head Strategy
Head Finance
Head Corporate
QA
Business Head
AEPSS
Business Head PGS
Business Head
Refrigeration
System
Health & CSR
Business Head
Vapour
Absorption
Chillers
HRD
T & D
Head IT
HRM & Factory
Manager
Head
Communication
CHAIRMAN
55
CORPORATE PROFILE
KEY EXECUTIVES
Mr. Rahul C. Kirloskar (Executive Chairman)
Mr. Atul C. Kirloskar (Director)
Mr. Sanjay C. Kirloskar (Director)
Mr. Vikram S. Kirloskar (Director)
Mr. A. C. Mukherji (Director)
Mr. J. Y. Tekawade (Director)
Mr. G. Krishna Rao (Director)
Mr. P. S. Jawadekar (Director)
Mr. D. R. Swar (Director)
Mr. Sunil Shah Singh (Director)
Mr. Aditya Kowshik (Managing Director)
Mr. Rahul C. Kirloskar, Executive Chairman is a top notch technocrat associated with
Kirloskar Group of Companies for more than twenty three years at senior levels in different
capacities. Participated in an intensive course of top management professionals of major
international companies on Total Quality Management (TQM) in Japan, conducted by Japanese
Union of Scientists and Engineers (JUSE), has given a lot of thrust for reducing overheads and
is taking all possible steps to reduce the overhead cost and thereby further improve the
profitability of the Company and make the products more competitive.
56
The Directorship of Mr. Rahul C Kirloskar in other companies is as follows:
Name of the Company Board position
Green-Tek Systems (India) Ltd. Director
Kirloskar Brothers Ltd. Director
Kirloskar Oil Engines Ltd. Director
Kirloskar Proprietary Ltd. Director
Asara Sales & Investments Pvt. Ltd. Director
Pratibha Communications Pvt. Ltd. Chairman
COMPANY SECRETARY:
Mr. Jitendra R. Shah
LOCATION OF PLANTS:
Pune, Saswad and Nashik
BRANCHES & OFFICES:
HADAPSAR PLANT
KIRLOSKAR PNEUMATIC CO. LTD.
Hadapsar industrial estate,
Hadapsar, Pune-411 013.
Tel: (020) 26727000
Fax: 020-26870297/26870634
E-mail: KPCL-HO@kpcl.net
SASWAD PLANT
KIRLOSKAR PNEUMATIC CO. LTD.
Saswad Industrial Estate, Near Waghire
College
Taluka: Purandar, District: Pune
Tel.: 02115–222403 / 222409.
Fax: 02115-222406
E-mail: KPCL-Saswad@kpcl.net
57
CORPORATE PHILOSOPHY
VISION
It’s time to grow
“KPCL will achieve a sale of Rs.1425 crores by the year 2016-17”.
ACR & PGS will achieve a sale of Rs.8,000 million with a focus on KC compressor exports,
CNG & API compliant Refrigeration & Gas compression packages for the Domestic & Export
markets and entering into Domestic market of Vapour Absorption Chillers.
ACD will achieve a sale of Rs.4500 million by increasing market-share in Rotary Compressor
market and strengthening the leadership position in Reciprocating Compressor market.
TRM will achieve a sale of Rs.1750 million by maintaining the leadership position in Railway
Traction Gears market; strengthening the position in Wind Mill Gear Box market and entering
into Industrial Gear Box business.
MISSION
 We will demonstrate an EDGE to all our Stakeholders in our offerings for converting /
transmitting energy.
 We will strive to make our Company an employer of Choice
VALUES
In an ever changing world one thing that will remain constant is our Commitment towards all
our stakeholders.
Each one of us will be guided by the following values.
 Customer Focus
Our activities / actions will be focused on enhancing internal / external customer's satisfaction.
58
 Commitment
We commit to achieve our targets / goals. We will be responsible / accountable for our
commitment.
 Continual Improvement
We will consciously work to improve our procedures, processes and systems with an objective
to improve our business processes.
 Ethical Business Practices
We will be fair in our dealings with all our stakeholders. It will be based on integrity, honesty
and transparency
59
60
Competitors
Company
Sales
(Rs.Million)
Current
Price
Change (%) P/E Ratio
Market
Cap.(Rs.Million)
52-Week
High/Low
Alfa Laval (India)
11541.74 3946.50 0.00 54.90 71670.35 3948/3940
Atlas Copco (India)
25204.31 2724.00 0.00 27.21 61384.38 2724/1487
BEML
28089.10 725.00 5.53 611.32 28609.77 697/126
Ingersoll Rand
5813.69 683.00 2.71 31.35 20991.14 710/301
ISGEC Heavy Engg.
25126.34 2384.45 8.34 17.14 16219.99 2229/783
Nitin Fire Protectn
3520.62 65.00 0.31 129.41 14204.56 70/49
Praj Industries
7662.12 72.95 2.96 20.15 12573.40 79/30
Kirloskar Pneumatic
5488.09 630.00 -3.08 21.50 8348.82 655/320
Forbes & Company
3103.39 603.90 -1.63 0.00 7918.46 650/471
Elecon Engg.
5952.07 65.25 -2.61 26.61 7298.70 69/19
Ricoh India
6331.20 166.50 -4.88 40.41 6961.42 179/42
Walchandnagar Inds
7265.14 112.00 -4.96 0.00 4486.57 121/41
Action Const. Equip
6678.50 27.45 -4.85 70.95 2854.42 32/8
CMI FPE
5328.95 499.00 -4.96 0.00 2592.60 598/207
Kabra Extrus.technik
1799.42 63.00 1.69 13.91 1976.35 65/23
Premier
2408.32 66.90 3.08 7.84 1971.18 78/46
Swiss Glascoat Eqtp
756.14 50.75 -2.40 6.84 260.00 57/28
Polymechplast Mach
208.50 4.20 0.00 17.27 24.70 18/4
Incon Engineers
4.96 3.57 0.00 44.14 15.45 4/3
Koa Tools India
19.20 0.30 0.00 260.69 10.43 0/0
Mirch Tech.
0.36 0.00 0.00 0.00 0.04 0/0
61
PRODUCTS AND SOLUTIONS
Pioneering industrial revolution in India, Kirloskar group has contributed immensely in every
field of its operation during its 120 year-long journey, and holds a place of repute in the industry
for its good business values and customer focus. Established in 1958, Kirloskar Pneumatic
Company Limited started with the manufacture of Air-compressors and Pneumatic tools.
Immediately thereafter, the company expanded its activities in the field of air conditioning and
refrigeration machinery. Further diversification in the manufacture of Hydraulic Power
Transmission equipment followed.
Kirloskar Pneumatic is held in high esteem for Process System Engineering and Turnkey
project expertise. The result of success in this area is reflected in Company’s association with
virtually with every project and industry in the country.
AIR COMPRESSOR DIVISION (ACR)
Kirloskar Pneumatic Company Ltd is in compressor business since 1955. From a product
manufacturer in the domestic market to a company offering total solutions – from designing
systems to manufacturing customized products and systems, KPCL has come a long way. The
customer-centric work culture along with technical excellence has been the hallmark of this
success. The graduation was steady and strategically aimed at specific market segments.
Reciprocating Air Compressors
Reciprocating Air Compressor Division offers products for a wide range of market segments
such as general engineering to critical operation & processing applications in key sectors like
Railways and process industries like Refineries & Petrochemical Industries.
Screw Air Compressors
Screw Air Compressors division caters its niche market segment right from General
engineering workshop till the operation & processing unit in different sectors.
62
Centrifugal Air Compressors
KPCL has a technical tie-up with Cameron Compression of USA for packaging and marketing
Centrifugal Air Compressors in India.
AIR CONDITIONING, REFRIGERATION & PROCESS GAS DIVISION
(ACR & PG)
Compressor for Refrigeration Systems
The reciprocating range of refrigerant compressors has wide applications in the area of
industrial refrigeration which includes food & beverage processing and preservation, ice plants,
process refrigeration which includes pharmaceuticals, chemicals etc. The range also caters to
HVAC applications including water chillers etc.
Refrigeration System
Kirloskar Pneumatic Co Ltd is a leading name in Industrial Refrigeration, Process Refrigeration
and Preservation. They provide turnkey products and solutions with designing, manufacturing
and packaging, installation, commissioning, after sales and training. KPCL Provides
refrigeration and gas compression systems used in conjunction with hydrocarbon which is
highly specialized market segment in the field of industrial refrigeration.
63
Gas Compression Solutions
KPCL’s customized solutions feature activities like designing, manufacturing, packaging,
installation, commissioning, after sales service and training. KPCL has been serving the
Process Gas Sector in following segments:
Vapour Absorption Chillers
Kirloskar Vapour Absorption Chillers (VAC) is a highly efficient machine. KPCL has
established manufacturing facility at existing Saswad factory, Near Pune. The manufacturing
facilities include Fabrication, Assembly and Performance Testing at full load etc. VAC’s are
used in Power plants, Pharmaceuticals, Chemicals/Fertilizer industries, Tyre industries, Textile
industries, Food Processing sector, Hospitals & Hotel Industries, Paper industries, Paint
industries, Steel industries etc.
TRANSMISSION DIVISION (TRM)
TRM is the fast track business unit of KPCL. With 6 products on board, this SBU specially
cater the need of the Rail, Defence and Non-conventional energy sectors. TRM especially hold
its mastery in different types of gears & gear boxes with capacity ranges from sub megawatt to
higher megawatt range.
64
AWARDS & ACCOLADES
Recognition of KPCL's – ‘Performance in CII Assessment’
KPCL has been commended for Significant Achievement
on the Journey towards Business Excellence in the CII
21st ‘National Quality Summit’ held at Bangalore on
8th Nov 2013.
Recognition of KPCL's – ‘Perfomrnace in RKQP Assessment’
KPCL received “Award & Certificate of
Recognition’’ for achieving highest score in Criteria of
People, People Results & Society Results in RKQP 2013
Assessment.
Recognition of KPCL for receiving the award for “Best Innovative Project”
KPCL received the award for “Best Innovative
Project” for KRM 1200 Railway Brake Compressor for
the year 2012-13 through hands of Senior Assessor Dr.
Satishchandra Joshi and Mr. Aseem Srivastav Mentor – K
Group EnCon Committee on 21st Feb’14.
65
Recognition for KPCL's – Quality Circle in 26th CII - QC Competition
KPCL received “Consolation Prize – Quality Circle
Competition’’ Trophy at “CII – 26th QC Competition -
Maharashtra state Level” held at Kolhapur on 17th Oct
2013.
Recognition of KPCL's – ‘QC Story’ at Quality Improvement Success
Story Presentation
KPCL received “2nd Winner Trophy’’ at “Quality
Improvement Success Story Presentation’’ a Special
Program held at Quality Circle Excellence Centre, Bhosari
Pune on 23rd Nov 2013.
Recognition of KPCL's – ‘Kaizen’ at Mini Convention
KPCL Kaizen teams received “Gold & Silver
trophy” at “46th Mini Convention of QCFI Pune
Chapter” held at Pune on 8th June 2013.
66
Recognition of KPCL's – ‘Kaizen’ in NCQC 2013
KPCL received “Excellence Award Trophy” at 27th
National convention on Quality concepts” (NCQC
2013) held at Kolkata.
Recognition of KPCL's – ‘Best HR’ 2013-14
KPCL received MCCIA “Best HR Award”
for 2013-14 on 10th June’14.
67
SWOT ANALYSIS
Strength
 Established brand image around the world over the centuries.
 Technical expertise and Leadership
 Continuous improvement of product and quality
 Company’s CSR have helped to develop its brand and reputation among the people.
 Employee development is given at most care
 Wide portfolio of customers
 Good infrastructure facility
Weakness
 Lack of innovation
 Old Machines
Opportunities
 Continuous innovation of products
 Use of non- conventional energy
Threats
 Electricity tariff hike
 Fuel Price inflation
68
LITERATURE
REVIEW
69
Review on literature
Despite several studies carried out on attrition management, the strategic human resource
researchers are still investigating the causal mechanisms between HR practices and firm’s
performance mostly related to voluntary turnover as a critical component (Shaw, Gupta and
Delery, 2005) as employee retention plays a vital role in bridging the gap between the macro
strategies and micro behaviour in organizations. This is because it ensures stability and
connects the experiences of individuals in organizations on a continuous basis to the critical
measures of success factors in the organization. The decision of leaving the organization is not
easy for an individual employee as well as significant energy is spent on finding new jobs,
adjusting to new situations, giving up known routines and interpersonal connection and is so
stressful (Boswell, Boudreau and Tichy, 2005). Therefore if timely and proper measures are
taken by the organizations, some of the voluntary turnover in the organization can be prevented.
The reasons for employee turnover may vary from external environmental factors such as
economy that influence the business that in turn affects the employment levels (Pettman 1975;
Mobley, 1982; Schervish, 1983; Terborg and Lee, 1984) to organizational variables such as
type of industry, occupational category, organization size, payment, supervisory level, location,
selection process, work environment, work assignments, benefits, promotions and (Mobley,
1982; Arthur, 2001). The other factors that influence employee turnover in organizations
include the individual work variables like demographic variables, integrative variables like job
satisfaction, pay, promotion and working condition (Pettman, 1975; Mobley 1982; Arthur
2001) and the individual non-working variables such as family related varibles (Pettman,
1975; Mobley, 1982).
Any of the above factors could be the reasons, but the decision process to leave or stay in the
organization is to be periodically examined to understand the specific reasons that prompted
them to take such a step and the organizations should be mainly concerned about voluntary
turnover and not involuntary turnover as it is within their control.
Also it is found that employees who perform better and are intelligent enough have more
external employment opportunities available compared to average or poor performance
employees and thus they are more likely to leave (Trevor, 2001). High rates of voluntary
turnover of such employees are often found to be harmful or disruptive to firm’s performance
(Glebbeck & Bax, 2004). When poor performers, choose to leave the organization, it is good
70
for the organization (Abelson & Baysinger, 1984), thus it is important to differentiate between
functional and dysfunctional turnover and accordingly encourage or discourage employee
turnover. Further voluntary turnover of critical work force is to be differentiated into avoidable
and unavoidable turnover (Barrick & Zimmerman, 2005). Estimates of the loses for each
employee vary from a few thousand dollars to more than two times the person’s salary
depending on the industry, the content of the job, the availability of replacements and other
factors (Hinkin & Tracey, 2000).
In some industries chronic shortage of qualified employees has driven up the costs of turnover.
Therefore the acquisition, development and retention of talent form the basis for developing
competitive advantage in many industries and countries (Pfeffer, 1994, 2005). Organizations
failing to retain high performers will be left with an understaffed, less qualified workforce that
ultimately hinders their ability to remain competitive (Rappaport, Bancroft, & Okum, 2003).
Three studies incorporated attitudinal and/or behavioural changes over time to better predict
turnover. Sturman and Trevor (2001) found that quitters’ performance over time did not
significantly change while stays’ performance slope was positive. Demographic factors cannot
be ignored as age, tenure, level of education, level of income, job category, gender have
influenced employee retention and have been found to have stable relationship with turnover
intention. Of the above demographic factors, age, tenure and income level was found to be
negatively related to turnover intention (Arnold & Feldman, 1982; Cotton & Tuttle, 1986;
Gerhart, 1990: Mobley et. Al, 1979; Price & Mueller, 1986; Wai & Robinson, 1998; Weil
& Kimball, 1995); level of education is positively associated with turnover, the more educated
the employees there is a tendency to quit (Berg, 1991; Cotton & Tuttle, 1986); with respect
to job category, (Wai & Robinson, 1998 and Price and Mueller, 1986) found that non-
managerial employees are more likely to quit than managerial employees.
Relationship between gender and turnover showed mixed result. Cotton and Tuttle (1986)
and Weisberg and Kirshenbaum (1993) found females more likely to leave than males.
Miller and Wheeler (1992) and Wai and Robinson (1998) reported no relationship between
gender and turnover. However the reasons for employee turnover vary from one organization
to the other and from one person to another as they are not getting what they expect from the
organization (Ongori, 2007; Mobley 1982 and Dickter, Roznowski and Harrison 1996) also
called for more research and theory pertaining to how the turnover process occurs over time.
71
The following chart indicates the attrition trends for the financial year 2012-13 & 2013-14 for
different industry sectors and across different levels of department. This survery was conducted
by Deloitte in which 209 organisations from 18 sctors participated. The graph shows that the
highest attrition rate is experienced by ITes and Media industry for both the financial year.
Whereas the average attrition trend is 13.4% for the financial year 2013-14 which is 0.8% less
than the previous financial year.
The next part of the graph indicates the voluntary attrition trends across different levels
comprising of Clerical Level, Junior Management, Middle Management, Senior Management
and Top Management. According to the survey the highest attrition is at Clerical level.
The second graph shows the reasons for attrition according to the survey. It is revealed that the
major contributors to attrition are career prospects, personal reasons and better utilization of
skills.
Also the measures taken to curb attrition are highlighted. Apart from this, the major HR
challenges are shown namely Career Mangement, Attraction and Developing Potential
Leaders. It is suggested that industries need to initiate faster growth opprtunities, performance
linked incentives and skill enhancement training programs.
72
OVERALL INDUSTRY ANALYSIS
73
RESEARCH
METHODOLOGY
74
Scope of the Study
This study provides to understand factors affecting attrition and retention of employees of
KPCL. The study mainly focuses on the employees of Gr.61 i.e. Sr. Engineers. Moreover, only
selected facets of job characteristics have been considered for the study. Therefore the scope
of the study is limited to the geographical location of the sample size and also to the selected
dimensions of personal characteristics. The study throws light through valuable suggestion to
decrease attrition level in the organization. This study can help the management to find the
weaker parts of the employee feels towards the organization and also helps in converting those
weaker part in to stronger by providing the optimum suggestions or solutions.
This study has a wider for scope in any kind of organization since “attrition” is general one and
makes the employees to put forth their practical difficulties and need factors in the organization.
This study can help the management to know for which the reason employees tend to change
their job, through dissatisfaction factors faced in the organization and also helps to recover by
providing the optimum suggestions or solutions.
Define
Research
Problem
Review of Literature
Research Concept &
Theories
Review previous
Research Findings
Design Research
(including Sample
size)
Collect
Data
Analyse
Data
Feedback
Interpret & Report
Research Process
75
Research Methodology
Research methodology is a way to systematically solve the research problem. It is understood
as a science of studying how systematically a research is done scientifically. In it we study
steps that are generally adopted by the researcher in studying the research problem along with
the logic behind them.
Research Instrument and Statistical Techniques
Normally two types of data are used for the purpose of carrying out research. For this survey
also I have collected these data i.e.
a. Primary data
b. Secondary data
Primary Data:
Primary data is one, which is collected from fresh sources and for the first time while
conducting the research.
For the project, primary survey has been undertaken through a survey instrument consisting of
structured questionnaire filled by employees by the way of personal interviewing
Secondary data:
Secondary data is that data which has been collected for some other purpose.
There are two types of sources for collecting secondary data:
a. Internal sources
b. External sources
Internal sources of secondary data includes the data generated within the organisation
E.g. Employee Engagement Survey Result
External sources of secondary data are the sources outside the organisation
E.g. Annual Publications, Books, Magazines and Internet etc.
76
Research methodology
The methodology used for my project is as follows:
Research approach method-
Survey Method
Area of study-
The survey was carried out in Kirloskar Pneumatics Company Limited, Pune. A survey was
effective to study the attrition management in the company.
Research-
Exploratory and Descriptive
Data Source-
Primary Data and Secondary Data
Research Technique-
One-on-One interview
Time period of study-
2 months (2nd
June-2nd
August)
Target respondents-
Sr. Engineers at Kirloskar Pneumatics Co. Ltd.
Sample size-
The sample is 25 employees which includes the employees of Gr. 61 (Sr. Engineers)
Sampling method-
Sampling procedure used for this study is Simple Random Sampling
Sample of study-
The sample is a basic unit consisting of the elements of the population to be sampled. Sample
population includes employees from KPCL in Pune. The population includes the employees of
the various department in the organisation.
77
Sample design-
To select the samples, the sampling technique used was Simple Random Sampling. The main
benefit of Simple Random Sampling is that it guarantees that the sample chosen is a
representative of the population. This ensures that the statically conclusions will be valid.
In this technique each member of the population has an equal chance of being selected as
subject. The entire process of sampling is done in a single step with each subject selected
independently of the other member of the population.
Tool for data collection-
The research instrument used in this study is structured questionnaire which consists of 14
questions. It was predetermined before conducting the survey. The questions are open ended.
Statistical tools used in the study-
For the analysis of data percentage analysis is used.
78
DATA ANALYSIS
&
INTERPRETATION
79
This survey was conducted with a sample size of 25 employees.
Q.1. What are the top 3 factors you might consider important that will continue to keep you here
at KPCL?
INTERPRETATION:
The above graph represents that most of the employees feel the work culture and the
organization’s reputation as the prime reason to continue working with the company. Whereas
if we further see. We find that 32% employee feel that they get better training and development
programs at KPCL, which is why they choose to work with the company. 28% employees feel
that they are paid well in this company and like their work tasks.
The following are the other stated reasons by the employees:
64%
32%
28%
28%
20%
20%
8%
8%
8%
44%
0 10 20 30 40 50 60 70
Organization Reputation/Culture
Learning & Development
Pay
Work Tasks
People/HR Practices
Autonomy/Choice
Brand Alignment
Sense of accomplishment
Career Opportunities
Others
Reasons for Working
80
Q.2. What do you love best about your work / working in?
INTERPRETATION:
The above graph depicts that 32% employees like the trainings imparted to them and they feel
that they get more development opportunities at KPCL. The next thing that employees love
about their job is the task allotted to them. Around 24% employees love work in their present
areas of job. The third reason that the employees stated was interaction with the
clients/customers. 16% of the interviewee feel that in the process of interacting with the
customers they actually get to know their demands, which helps them to design and deliver
customer specific products and satisfy customer requirements. This gives them a sense of
accomplishment. Meanwhile they also develop better communication skills in the processes of
interaction.
32%
24%
16%
12% 12%
8% 8% 8%
4% 4%
LOVE FOR WORK
81
Q.3. What will motivate you to excel further in your current position & make your job more
satisfying?
INTERPRETATION:
The top 3 motivators as indicated in the graph is Work tasks, Recognition, Leadership and
Learning & Development. 28% of the interviewed employees feel motivated by their work
tasks. They love to do their work and the challenges in their work. 24% employees said the
support of their seniors motivates them and the leadership they are given to handle projects
motivates them. While, the next 24% employees feel motivated by the appreciation received
from seniors and colleagues and also they get motivated when their ideas are accepted. The
third major motivator is the learning and development imparted to the employees.
0
5
10
15
20
25
30
28%
24% 24%
16%
12%
8% 8%
4% 4%
Motivators
82
Q.4. Does KPCL adequately support your career goals?
INTERPRETATION:
60% of the employees feel that KPCL adequately supports their career goals and is providing
them enough opportunities to groom their skills. Whereas 24% of the employees feel that they
the company is not supporting their career objectives and 16% employees feel somewhat
supported in their career goals
60%
24%
16%
Support for Career Goals
Yes No To some extent
83
Q.5. Does KPCL fully utilize your talent?
INTERPRETATION:
The above graph represents a mixed view regarding skill utilization. About 40% of the
employees feel that KPCL gives them sufficient opportunities to utilize their skills. At the same
time 40% employees feel that their skills are not utilized to its maximum potential. 20% of the
employees are of the opinion that they are utilizing their skills to some extent.
40%
40%
20%
Skills Utilization
Yes
No
To some
extent
84
Q.6. How can KPCL support your career goals?
INTERPRETATION:
As a part of suggestion for supporting the career goals, 28% employees suggest that more
technical training should be imparted so that the employees gain skills for their work and they
should be given site knowledge. Also they suggest that the company should sponsor education
to more employees. The second category of suggestion that 24% employees gave was the need
for resources. Employees feel that they are not equipped with the modern tools and techniques
which lowers the productivity. Hence they require more and better resources so as to utilise
their skills efficiently and effectively. The third suggestion is given in the area of leadership.
16% employees suggest that there is an urge for formulating better plans and prompt decisions
so that the work culture is not delayed.
0
5
10
15
20
25
30
Learning &
Development
Resources Leadership Career
opportunities
Work Life
Balance
Communication Recognition
28%
24%
16%
8%
4% 4% 4%
SUGGESTIONS FOR SUPPORTING
CAREER GOALS
85
Q.7. If given a choice to choose your own career path in the future, which function or career
path that you think you will like to embark on so that you can contribute your very best
to KPCL?
INTERPRETATION:
According to the survey 36% employees fantasise doing the research and designing work. They
want to do the technical work. Whereas 28% employees feel satisfied with their current profile.
They feel that they are working are working in the area of their interests. Furthermore as shown
in the graph, 24% employees want to completely move to other areas of work i.e. job rotation.
Few wanted to move to PGS and manufacturing department, while few hold opinion of getting
linked with the corporate department. Moving down we can see that 16% employees want job
enlargement i.e. they want more authority and responsibility to execute their work and also
they want leadership in handling projects. 8% employees want a job rotation in branch.
Technical No Change Job Rotation Job
Enlargement
Job Rotation
in Branch
36%
28%
24%
16%
8%
CAREER PATH
86
Q.8. Are the training & development provided by the company adequate & met your needs?
INTERPRETATION:
The graph shows that 48% employees are satisfied with the training and development
programs. While 40% employees are not happy with the trainings imparted. 8% employees feel
that the training and development is average and not up to mark. Only 4% employees haven’t
received any trainings till now.
48%
40%
8% 4%
Training & Development
Yes No Average Not received
87
Q.9. What are your suggestions for improvement in the area of Training & Development?
INTERPRETATION:
60% employees suggest that more technical training should be imparted to the employees so
that they gain more knowledge about their work and execute it properly. Employees suggest
that more advanced and skill development trainings should be given. 8% employees suggest
that IMS Training and awareness programmes should be conducted. 4% employees suggest
that certain motivational trainings should be conducted by the company. The other reasons
stated by the employees were regarding the time constraint and few felt that the content of
training was missing.
Skill
60%
Knowledge
8%
Behavior
4%
Others
28%
Suggestions
88
Q.10. Do you have enough recognition for your contributions?
INTERPRETATION:
The graph shows that most of the employees are recognised for their contribution. The
company takes a deal of effort and ensures that contribution of the employees are recognized.
The chart clearly states that 68% employees have been recognized for their contributions.
While 12% employees feel that their contributions are not recognized by the company. 8%
employees feel that there were moments when they have been rewarded, yet they feel that there
were moments when they feel that they had made an impact which was not recognized. 4%
employees do not feel the need for recognition, whereas 8% employees said that they haven’t
made any impact that needs recognition.
68%
12%
8%
4%
8%
Recognition
Yes No To some extent No expectation Not made impact
89
Q.11. What kind of recognition do you prefer?
INTERPRETATION:
Of the various kinds of rewards given by the company, 40% employees feel that only an
appreciation for their work by their managers motivates them and makes them feel proud. 32%
employees prefer certificates as a part of recognition. They feel that these letters of credit adds
to their achievements. 24% employees prefer trophy, while only 20% employees prefer to have
monetary rewards for their contributions. 8% employees prefer “Employee of the Month” as a
part of recognition. And 4% employees prefer to be rewarded with movie tickets, Kaizen award
& Spontaneous award. Apart from these, 4% employees want more responsibility as a part of
recognition, while the rest employees prefer to be rewarded with any type of reward and few
do not have any expectations.
40%
32%
24%
20%
8%
4%
4%
4%
4%
4%
4%
0 5 10 15 20 25 30 35 40 45
Appreciation
Certificates
Trophy
Monetary
Employee of the month
Movie ticket
Kaizen
Spontaneous award
Add. Responsibility
No expectation
Any type
Recognition Preferred
90
Q.12. What do you like or respect most about your supervisor?
INTERPRETATION:
32% employees feel that their supervisors have very good technical knowledge. Moving
downwards, the graph shows that 24% employees feel that their supervisor provides solution
to their queries and helps them better understand the situation. 20% employees like the
supportive nature of their superiors. They feel that they get enough support from their
supervisors. The rest qualities that employees like about their supervisors includes supervisor’s
management skills, communication skills, his way of thinking, the freedom given at work (to
pursue work in a manner which the feels convenient), decision making ability, co-operative
nature etc. to name a few.
32%
24%
20%
12%
8% 8% 8% 8%
4% 4% 4% 4% 4% 4% 4%
Supervisor's Strength
91
Q.13. In which aspects you think your supervisor can do better?
INTERPRETATION:
The above graph shows that 20% employees feel that their supervisors should interact and
guide them regarding their career prospects rather than only discussing about case to case
progress. 16% employees feel that their supervisors should control their temper and respect
employees. Majority of the employees i.e. 28% employees feel that their supervisors should
improve their communication skills. Down the line, the graph shows that 16% employees feel
that their supervisors should be more competent and a develop decision making ability.
Whereas 4% employees feel that their supervisors are not motivating and also they fail to
deliver their commitments on time.
20%
16%
28%
16%
4% 4%
AREAS OF IMPROVEMENT
92
Q.14. Have there been any moments where you were very unhappy working at KPCL?
INTERPRETATION:
80% employees felt unhappy moments working in the company whereas 20% employees had
no unhappy moments working at KPCL. The reasons for being unhappy are as follows:
80%
20%
Unhappy Moments
Yes No
93
Q.15. A. What are the top 3 factors that you might consider leaving KPCL?
INTERPRETATION:
The top 3 reasons stated by the employees for leaving the company is salary. Career
opportunities and the work tasks. 68% employees say that if they are paid higher in other
company they would leave. 60% state career prospects as a major reason for leaving the
company. They feel if they get better career opportunities and more exposure elsewhere they
would leave the company. The major reason that 24% employees said was the job profile.
Employees felt that they were not having a clear job profile and the tasks allotted to them did
not match their profile. 20% employees feel the work culture is not motivating which might be
considered as factor for leaving.
68%
60%
24%
20%
12% 12%
8% 8% 8%
4% 4%
Factors for leaving
94
B. Internal and external factors constituting employees to leave
INTERPRETATION:
Of the reasons stated for the previous question, 45% employees have shown internal reasons
for leaving the company. Whereas 13% employees stated external reasons for leaving the
company.
0
5
10
15
20
25
30
35
40
45
45%
13%
FACTORS
Internal External
95
Q.16. Do you get enough information about the company?
INTERPRETATION:
The company provides enough information regarding the strategies, performances, procedures
etc., this is clearly shown in the graph. 92% employees feel that they get enough information
regarding the company’s policies and procedures. Only 4% feel that the information they get
is not sufficient. While the remaining 4% feel that there is partial flow of information.
92%
4%
4%
Information Received
Yes
No
Partial
96
Q.17. Which communication channel would you prefer to get the information?
INTERPRETATION:
52% employees stated ‘Shashwat’ as the most preferred communication channel. Whereas 40%
employees prefer ‘Speak-out’ as the preferred channel to get on spot answers to their questions.
The third most preferred communication channel is ‘E-mail’. ‘Susamwad’ and ‘Oracle’ are the
least preferred communication channel.
52%
40%
36%
8%
4%
Shashwat Speak-out E-Mail Susamwad Oracle
Communication Channel
97
Q.18. Do you think workplace comm. is adequate within your department & interdepartment?
INTERPRETATION:
As the graph shows there is good communication within the department. 76% employees said
that there is good communication within the department. Only 16% employees said that the
workplace communication was not good within department and 8% employees said the
communication was average in their department.
Good
76%
Not good
16%
Average
8%
Workplace Communication (Dept.wise)
98
INTERPRETATION:
The graph shows that inter departmental communication is not good. 52% employees face
inter departmental communication problem. While 44% employees feel the communication is
good inter department. The rest 4% employees consider interdepartmental communication as
average.
Good
44%
Not good
52%
Average
4%
Inter Dept. Communication
99
Q.19. If you were given a free hand to make changes what changes would you make in the
organisation?
INTERPRETATION:
36% workforce consider the processes in the company is complex and lengthy. Hence it needs
to be modified. Whereas 20% employees think that there is an urge of recruiting more youths
in the organisation. They feel that the old employees are not contributing much to the
production. 16% employees said they would improve the canteen food and also the technology.
Whereas 8% employees would implement the MNC culture and some recreational activity as
a part of engagement activity. 84% employees feel that work is not allocated as per the profile,
hence they require a clear job profile. Also deadlines should be set for every work so that
employees don’t waste time in unproductive work.
36%
20%
16% 16%
8% 8%
84%
Simplify
Processes
Young Work
Force
Canteen Technology 5 Days Week Engagement
activity
Work Tasks
Org. Changes
100
Q.20. Suggestions for enhancing work environment
28%
24%
16%
12%
8% 8% 8% 8% 8%
4% 4% 4% 4%
Enhancing Work Environment
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ATTRITION MANAGEMENT.pdf

  • 1. 1 A Project Report On ATTRITION MANAGEMENT At KIRLOSKAR PNEUMATIC COMPANY LTD. HADAPSAR, PUNE Submitted By SHRUTI KUMARI (Roll No. – 60) Batch 2013-2015 Submitted To GLOBAL BUSINESS SCHOOL & RESEARCH CENTRE DR. D. Y. PATIL VIDYAPEETH, PUNE In Partial fulfilment of degree of Master of Business Administration
  • 3. 3 Global Business School & Research Dr D.Y. Patil University Pune 411 033 CERTIFICATE This is to certify that Ms. Shruti Kumari a bonafied student of the MBA programme of this Institute for the academic year 2013 – 2015 having Roll No.60, has completed her Summer Internship Project titled “Attrition Management” as partial fulfilment of the Master of Business Administration Course. Course Coordinator Director
  • 4. 4 GLOBAL BUSINESS SCHOOL & RESEARCH CENTRE DECLARATION I, SHRUTI KUMARI, declare that the project work entitled “ATTRITION MANAGEMENT” submitted to D.Y. PATIL VIDYAPEETH, is a record of an original work done by me. I hereby declare that all the facts and figures included in the dissertation is a result of my own research and investigations including formal analysis of the entire project work. The result embodied in this thesis has not been previously submitted for any examination of this University or any other University. This declaration will hold good and in my wise belief with full Consciousness. Date: Signature of the Student Place: Pune-411 033 [SHRUTI KUMARI]
  • 5. 5 ACKNOWLEDGEMENT With utmost sincerity, I would also like to convey my thankfulness to Mr. Sadashib Padhee (VP-HR) for giving me the opportunity to work with Kirloskar Pneumatic Co. Ltd. I would like to cease this opportunity to express my heartfelt gratitude towards Mr. Jagdish Purandare (DGM-HRD), my company guide, for his insightful guidance and for all his endeavours in supervising my entire project. My sincere thanks to him for showing faith in me. I would also take the privilege to express deep sense of gratitude to Mrs. Meghana Abdagire for giving me a brief knowledge about the entire training process and encouraging me throughout my summer training, Mrs. Nayana Kasbe, for efficiently coordinating the program and all other personnel of the HR department at KPCL, who had lent a helping hand on various occasions throughout the duration of the internship. I am very grateful to Dr. A. Keskar (Advisor) & Dr. K.K. Velluri (Director), D.Y. Patil Vidyapeeth, G.B.S.R.C., who has been a source of inspiration for summer project of two months’ time duration. I would express my gratitude towards Prof. Tapati Sarmah, my faculty guide for sharing her exceptional knowledge in the domain of Human Resource Management, along with the members of the placement cell at Dr. D.Y. Patil GBSRC, who facilitated this learning opportunity for me. My sincere thanks to Prof. Rachna Gandhi and Prof. Ansumalini Panda for their valuable guidance and direction in successful completion my project. Finally, I would like to take this opportunity to express my deepest gratitude to all those who have directly or indirectly contributed in the completion of this project. SHRUTI KUMARI
  • 6. 6 INDEX Sr. no Title Page no. 1 Title page i 2 Cover page ii 3 Institute certificate iii 4 Company certificate iv 5 Declaration by student v 6 Acknowledgement vi 7 Table of contents vii-viii
  • 7. 7 TABLE OF CONTENTS Chapter no. Title Page no. 1 EXECUTIVE SUMMARY 1 2 INTRODUCTION  Abstract  Theoretical aspects of ‘Attrition Management’  Application of work in the Company  Need for the study  Statement of problem  Survey Methodology 6 3 OBJECTIVE OF THE STUDY 31 4 INDUSTRY PROFILE 33 5 COMPANY PROFILE 44 6 LITERATURE REVIEW 62 7 RESEARCH METHODOLOGY  Scope of the study  Research Process  Types Of Research  Methods And Sources Of Data Collection 66 8 DATA ANALYSIS & INTERPRETATION 71 9 FINDINGS 96 10 LIMITATIONS 99 11 SUGGESTION & RECOMMENDATION  Retention Strategies by KPCL 101 12 CONCLUSIONS 106 13 ANNEXURE 109 14 REFERENCES 113
  • 9. 9 This project is done on Human Resource Management topic in the area of ““Attrition Management”. The most challenging job for any manager is to retain their employees. This report seeks to utilise primary research in order to offer a greater understanding of the complex issues raised by staff attrition. Specific aims were to: › Identify trends in leavers' behaviour and the reasons employees change jobs/organisations › Identify the employers' perspective on employees' reasons for leaving › Identify retention strategies that have a positive influence on retention. Why do employees leave? A significant difference was established between what employers assumed were key causes of turnover, and the actual reasons employees gave for leaving. Employers largely failed to take into account the importance of providing opportunities for development for their employees and the training required for it. The top 3 causes apart from Lack of opportunities for personal and career development and pay benefits were:  Issues with work tasks  Technical training  Technology What can employers do to minimise the incidence of, and impact of employee turnover? Developing an employee retention strategy involves three stages:  Identify the level and cost of turnover and benchmarking it against competitors  Understand why employees leave  Implement retention strategies
  • 10. 10 Attrition is a reduction in the number of employees through retirement, resignation or death refers to attrition. In the best of words, employees would love their jobs, like their co-workers, work hard for their employers, get paid well for their work, have ample chances for the advancement, and the flexible schedules so they could attend to personal or family needs as and when necessary. But then there’s the real world in which employees do leave. Attrition measures the amount of recurring revenue lost during a particular time frame, expressed on a monthly/annualized basis. Employee retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. Corporate is facing a lot of problem in employee retention these days. Decreased Productivity Greater Attrition Increased Costs/ Reduced Revenue Cost Reduction/ Austerity Drivers of Attrition Cycle Of Attrition
  • 11. 11 The review of the literature indicates a wide and diverse range of potential retention strategies. On the basis of the secondary sources consulted, retention practices can be grouped under the following categories: 1. Compensation & Benefits levels 2. Compensation & Benefits systems (e.g. pay for performance; skill-based pay, etc.) 3. Recognition and Rewards 4. Training, Professional Development, Career Planning 5. Orientation & Integration 6. Healthy Workplace or Well-being Programs 7. Job Design & Work Teams 8. Employee Participation & Communication COMPENSATION ENVIRONMENT GROWTH RELATIONSHIP SUPPORT Key Areas in Retention
  • 12. 12 9. Manager Training & Accountability 10. Flexible Work Time 11. Diversity Management 12. Work-life Balance 13. Performance Management & Feedback Based on the conclusions derived after the in-depth and comprehensive study, few implications can be made about employee retention. Employee retention is vital to the long term health and success of any business organization. Companies can look into various options like bonding programmes, stronger career path, benefits and communication. Making work a fun place, sponsoring education and ongoing learning for the workforce. Employee attrition is significant business concerns for the organisations, one even bigger than attracting talent, especially in today’s knowledge driven marketplace where employees are the most important human capital assets. Attrition impacts an organization’s competitive advantage. A company is not hurt because certain persons have left. The company is hurt because it takes away certain knowledge, and there is no ready replacement in the market. However when jobs were scarce, the technology changes were less rapid, voluntary attrition was small and companies managed it. However, with technology changing rapidly and manpower costs increasing, attrition is high and hurts badly. According to my study most of the employees are likely to seek a new employment as the economy booms. It is likely that the voluntary turnover would rise due to the improving economy.
  • 14. 14 ABSTRACT Employees are the most valuable assets of an organization. It is they who add value to the organization in terms of quantity and quality as well. To find, attract, develop and retain the right talent is a major part of management. Therefore, it is indispensable to maintain a permanent and promising workforce; which over the years has become a tough task for employers and thereby increased attrition in the organizations. Attrition is a major problem which highlights in all the organizations. “Attrition is said to be the gradual reduction in the number of employees through retirement, resignation or death. It can also be said as Employee Turnover or Employee Defection”. Whenever a well-trained and well-adapted employee leaves the organization, it creates a vacuum. So, the organization loses key skills, knowledge and business relationships. Modern managers and personnel administrators are greatly interested in reducing Attrition in the organization, in such a way that it will contribute to the maximum effectiveness, growth, and progress of the organization. Attrition costs a lot. It's one of the largest costs in all types of organizations, yet it's also one of the least understood. Organizations need to find new approaches to retain the most effective manpower. Retaining the employees involves understanding the intrinsic motivators as individuals differ a lot. Retaining employees is a critical and ongoing effort. Staff requires reinforcement, direction and recognition to grow and remain satisfied in their positions. Managers must recognize this and understand that establishing such fundamentals demonstrates their objectives to support nature and motivate their employees. This study is an outcome of the topic called “A Study on Attrition Management”. This research is an attempt to find out the causes of attrition from different dimensions and have proposed some ways in which this issue can be addressed. It undertakes the effect of the same on employer and employee both. In this research, I have made an attempt to bring out employee retention approaches, strategies for retention and the costs related to attrition. Following this some strange reasons for attrition have been discussed in this regard. The positive side of attrition has also been discussed upon. Further, the remedial measures have been discussed herein. Managing attrition is not just a 'nice thing to do', it is the route to survival.
  • 15. 15 TheoreTical aspecTs of “aTTriTion” INTRODUCTION What is “ATTRITION”? Attrition is defined as a gradual reduction of the size of workforce through normal means, such as retirement, resignation or death. This is normal in any business and industry. Attrition rate is defined as the rate of shrinkage in size or number. This type of reduction in staff is one way a company can decrease labour costs: the company simply waits for its employees to leave and freezes hiring. Attrition of employees in a limited measure is desirable for influx of new ideas in any type of organization. It helps organizations to maintain their agility in fast changing environment. It brings in new blood, opens up new vistas for change, development and improvement, shows avenues to expand operations and add to the creative lines of the organizations. Attrition in a limited measure can thus bring gains to the organization. However if attrition increases beyond a certain level, the gains are transformed into pains. Recruiters explain that high attrition rates significantly increase the investment made on. Significant investments in time and money need to be made for acquiring employees in any organization. These can never be translated into profit when attrition is high. VICIOUS CIRCLE OF ATTRITION
  • 16. 16 Hence urge for employee retention arises. Effective employee retention is a systematic effort by employers to create and foster an environment that encourages current employees to remain employed by having policies and practices in place that address their diverse needs. The organisation is fully at loss when employees leave their job once they are fully trained. Employee retention takes into account the various measures taken so that an individual stays in the organisation for the maximum period of time. It is beneficial both for the organisation as well as the employee. In short Retention is all about: R- REMUNERATE COMPETITIVELY E- ENCOURAGEMENT AND EXPECTATION T- TRAINING AND DEVELOPMENT A- ANNUAL REVIEW CYCLES I- INFORM AND INVOLVE N- NUTURE A strong retention strategy becomes a powerful recruitment tool. Retention of key employees is critical to the long-term health and success of any organization. It is a known fact that retaining your best employees ensures customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective succession planning and deeply imbedded organizational knowledge and learning. Employee retention matters as organizational issues such as training time and investment; lost knowledge; insecure employees and a costly candidate search are involved. Hence failing to retain a key employee is a costly proposition for an organization. Intelligent employers always realise the importance of retaining the best talent.
  • 17. 17 Attrition in Manufacturing Industries Companies in India as well as in other countries face a formidable challenge of recruiting and retaining talents while at the same time having to manage talent loss through attrition due to industry downturns or through voluntary individual turnover. Losing talents and employees result in performance losses which can have long term negative effect on companies especially if the departing talent leaves gaps in its execution capability and human resource functioning which not only includes lost productivity but also possibly loss of team-work, harmony and social goodwill. With attrition rates being a bane of every industry, companies are devising innovative business models for effective retention of talent. There are a lot of factors responsible for attrition and employers are getting increasingly conscious of the factors that can keep an employee committed. Attrition may be defined as gradual reduction in membership or personnel as through retirement, resignation or death. In other words, attrition can be defined as the number of employees leaving the organization which includes both voluntary and involuntary separation. The employee gradually reduces his/her ties with the company than crib about the underlying factors causing attrition. It is symptomatic of a much deeper malaise that cuts deeper into the innards of organizations. Attrition rates vary from sector to sector and industry to industry. Apart from the unavoidable ones like resignation, retirement, death or disability, the causes are found to be many and varied. They vary according to the nature of business, the level of the employees and the nature of the responsibility shouldered by them. The obvious, common and main reasons are the ‘ergonomic discomfort’ experienced by the employee and the ‘functional incompatibility’ between the corporate management and the employees. Very often an employee finds himself among colleagues and superiors he is unable to cope up with. Or he finds himself totally out of tune in his functions with the employee’s functional requirements, failing to rise to the employer’s expectations. Another important reason is that the employee’s remuneration is not voluminous enough to bear the brunt and cushion the concussions of his family and social life. Employee retention refers to policies and practices companies use to prevent valuable employees from leaving their jobs. How to retain valuable employees is one of the biggest problem that plague companies in the competitive marketplace. Not too long ago, companies accepted the “revolving door policy” as part of doing business and were quick to fill a vacant job with another eager candidate. Nowadays, businesses often find that they spend considerable
  • 18. 18 time, effort, and money to train an employee only to have them develop into a valuable commodity and leave the company for greener pastures. In order to create a successful company, employers should consider as many options as possible when it comes to retaining employees, while at the same time securing their trust and loyalty so they have less of a desire to leave in the future. Employees need to be retained because good, faithful, trained and hardworking employees are required to run business. They have acquired good product knowledge over the long run and a trained employee can handle customers better and also solve problems of peers who are new to the organization. When an employee leaves he takes away with him all company information such as ongoing projects, etc. Goodwill of the company gets hampered due to more employee turnover rate and the competitors start poking their nose to recruit best talents from them. Efficiency of work is hampered to a large extent. For example – If an employee leaves in the middle of an ongoing project it’s very difficult to fill that Vacuum and a new employee can never replace an old and talented employee so this leads to delayed completion of projects and less work satisfaction among other team members. In the present context the present paper is ascertained to study attrition management in Kirloskar Pneumatic Co. Ltd. (manufacturing industry) in Pune, Hadapsar.  Kinds of Attrition  Voluntary attrition- Voluntary attrition takes place when the employee leave the organization by their own will. Pull factors like higher emoluments elsewhere, better opportunities of growth and promotion etc. are responsible for this kind of attrition.  Involuntary attrition- Involuntary attrition takes place when the employees leave the organizations due to some negative forces or push factors like faulty promotion policy, biased performance appraisal etc.  Compulsory attrition- It takes place due to the rules and regulations of the government and that of the organization as well. It includes attrition taking place due to attaining the age of retirement, completion of tenure etc.
  • 19. 19  Natural attrition- It takes place due to the causes and factors that are beyond the control of the individual and organization as well. These factors may include end of life, insanity etc.  Causes of Attrition  Internal causes- These causes are pertaining to the internal environment of an organization. Therefore, they are controllable. Salary a. Insufficient salary b. Delay in payment c. No / delayed increment d. Wage compression Promotion a. Biased promotion b. No / delayed promotion Transfer a. Forceful transfer b. Transfer to a place employee is not willing to go Workplace Infrastructure & amenities a. Lack of hygiene b. Lack of basic facilities like water, canteen, etc. Task a. Monotony of task b. Task – labour mismatch c. Team issues d. Lesser job autonomy Instability in leadership Leading to confusion related to directions and commands which generate frustration among the workforce.
  • 20. 20 Lack of Flexibility a. Lack of flexibility in timing, choice of task etc. b. Introduction of new technology c. Employees incompetency / unwillingness to learn and understand Lack of job security a. Fear of being expelled/ retrenched/terminated b. Faulty performance appraisal c. Underestimation of performance d. Power distance & politics e. Communication gap between management and workforce  External causes- These are the causes which are beyond the control of an organization as they belong to the external environment. These causes may be related to: a. Better pay b. Chances of promotion c. Better perks d. More fringe benefits in other organizations  Individual/Personal causes a. End of life b. Marriage c. Pregnancy d. Shift of family e. Mental imbalance f. Over - sensitivity g. Wish to go abroad h. Attrition of the group members i. Self-employment j. Education
  • 21. 21 Some peculiar reasons A. Attrition and Employee Stock Option Plan (ESOP) A peculiar paradox has been observed in case of ESOP as a motivational tool and the attrition rate. Generally it is perceived that ESOP on one hand generate funds for the organization and on the other hand it may curb attrition rate as it increases participation of employees in management, increase in their financial resources and satiation of their esteem needs as well which will ultimately lead to their long- term commitment with the organization. However, while considering an altogether different perspective, ESOP may increase the rate of attrition as the earning from ESOP may be sufficient for the livelihood of the employee or it may sometimes exceed his income leading to his disinterest to continue the job. B. Attrition and perception about growth opportunities  Employer’s perception and presumptions- Employers may have a perception that employees are already well aware of their growth and career opportunities in the organization or they may perceive that the old staff will convey the things to the new one. But actually the new workers may not be aware of these things, further they can be misguided and misled by their colleagues.  Employee’s perception- Employees may have a perception that: a. Employers may get annoyed if they are asked about the career opportunities in the organization b. Employers may take it negatively which may be detrimental to job security, increment and promotion etc. c. If there are growth opportunities, employers will themselves convey the same and their silence means there is no scope of growth in the organization.  Effects of attrition  Effect on Employer/ Organization a. Loss of productivity b. Loss of quality c. Increase in cost d. Loss of consumers and decrease in brand loyalty e. Loss of goodwill
  • 22. 22 f. Loss of secrecy in case the key employees leave the organization g. Loss of key – personnel h. Lack of competitiveness  Effect on employee a. Stress from new job b. Monetary loss c. Effect on career d. Effect on family life e. Loss of skill- if the gap between quitting from one organization to other is long f. Emotional loss, if the bonding with the staff of previous organization was good However, it is also possible that the employee gets better environment and remuneration in the new organization and the things can get positive for him.  Costs associated with Employee Attrition Attrition results in increase in costs. These costs may be related to  Cost of Exit Interview  Recruitment costs- Cost of advertisements, agency costs, employee referral costs, Internet posting costs, cost of the internal recruiter's time to understand the position requirements, develop and implement a sourcing strategy, review candidates' backgrounds, prepare for interviews, conduct interviews, prepare candidate assessments, conduct reference checks, make the employment offer, and notify unsuccessful candidates.  Cost of Training- Cost of trainers, cost of training equipment and materials, cost of refreshment, cost of technology  Cost of Administrative Proceedings- Cost of issuing I – cards, access cards  Cost of Signing Bonus- It is given to the works for joining the organization; it is also a significant part of cost.  Lost Productivity Costs- As the new employee is learning the new job, the company policies and practices, etc., they are not fully productive. It includes the costs associated with the low productivity of the new employee.
  • 23. 23  Lost Sales Costs- These costs are the lost revenue which occurred as a result of project loss due to key employee attrition.  Steps to Reduce Attrition  Focus on Exit-interviews.  Compliment and thanking employees for their valuable contribution. Recognize and celebrate their success.  Setting up a feedback mechanism to maintain consistency in performance and high motivation levels.  Give them job security.  Providing opportunities of learning by constantly upgrading the skills of employees.  Paying attention to employee’s personal needs and participation.  Communicate goals, roles and responsibilities so that people know what is expected from them.  Education  Feeling valued by their managers or superior in the workplace is a key to high employee motivation and morale.  Treat the employees well & provide a dignity of job.
  • 24. 24 Attrition of Employees Personal characteristics Negative characteristics of job Monotonous Nature of Job Lack of Motivation Poor Mentoring Power & Politics Dissatisfaction with colleagues Low Career Growth Irregular Working Hours Achievement not recognized Gender Education Marital Status Age Tenure Personal Characteristics Self-Esteem Participation Accountability Growth Prospects Feeling of Accomplishment Interpersonal Relationships Working Conditions Involvement Job Security Amenities Authority Satisfaction Motivation Involvement Work Compatibility Retention of Employees (Organisational Outcome) Job Characteristics Gender Education Marital Status Age ATTRITION & RETENTION MODEL
  • 25. 25  Strategies for Retention  Fostering a Culture of Management Concern- Companies today must show an interest in helping people develop to their fullest potential. In addition to reducing bureaucracy, high- performing, high-tech companies provide freedom in scheduled hours, and lifestyle choices.  Providing Relevant Training- Companies should think of training as career development.  Job Enlargement- Employees should not be locked into positions because they’re “so good at it”. Managers must continually ask: “What’s the next step for this employee?” In other words more tasks and responsibilities should be assigned to make the position more challenging.  Realistic goals  Defining career path and demystifying career growth- proper succession planning  Rewarding Managers- Many companies say they value people and train their management team to cope with people issues. Yet these same managers are too often rewarded solely on their technical skills and financial results.  Strengthening the Team- Marginal performers in management must be weeded out.  Workers’ Participation in Management  Profit sharing  Gain sharing  Fair Performance Appraisal  Clearly identify the people you want to keep- Many executives have focused on whom they should get rid of rather than on whom they should keep. Unfortunately, those who decide to leave are often high-impact performers who can find other work quickly.  Effective Communication System To retain top talent in the future, executives will need to clearly identify, develop, involve, and recognize key people. Traditional compensation plans must be challenged, needless bureaucracy should be eliminated, and growth opportunities should be provided. Executives who create a dynamic, new human resource model will retain the high-knowledge talent needed to succeed in tomorrow's globally competitive environment.
  • 26. 26  Other Retention Strategies  Corporate Social Responsibility (CSR) towards employees It comprises a wide range of intrinsic and extrinsic rewards and motivation. It is concerned with a humanitarian aspect towards the employees of the organization. It is the first and foremost responsibility of an organization to take care of its employees’ physical and mental well-being. CSR towards employees encompasses all monetary and non- monetary aspects. Monetary aspect includes reasonable remuneration, bonus, increment, HRA, post retirement pension, etc. while the non- monetary aspect may include congenial environment, fair performance appraisal, recreational activities, learning and development. Both these aspects are equally important while considering control on attrition.  Herzberg’s Two Factor Theory, CSR towards Employees & Attrition Hertzberg Two-factor theory describes two factors - Motivators –These factors are related to the intrinsic aspect of the job itself, such as recognition, achievement, personal growth etc.. Hygiene factors – These factors are related to the extrinsic aspect of the job such as salary, fringe benefits, work conditions, status, job security etc. Hygiene factors are essentials, they do not show direct contribution in productivity but their absence certainly leads to decrease in production. Motivators have a positive correlation with productivity; their presence results in increase in productivity and their absence leads to fall in the same. Thus both these factors should be paid attention to boost the morale of the workers leading to lesser attrition as morale and attrition have inverse relationship i.e. Higher the morale, lesser will be the attrition and vice-versa.  Applying Emotional Intelligence Emotional intelligence refers to the ability and capacity to know and control own emotions and that of others in such a manner that the energies and potentials may be channelized in a positive direction and utilized to enhance productivity. To develop emotional intelligence one has to develop empathy and farsightedness. Following are some ways to apply emotional intelligence to control attrition- a. Being proactive b. Lessening communication gap between management and workers
  • 27. 27 c. Devising and communicating career and growth opportunities d. Using intrinsic motivation e. Understanding group dynamics f. Conducting motivational sessions for the employees g. Praising the employee publically but criticizing privately h. Developing a rapport with the workers  Change in leadership style Leadership can play a significant role in controlling attrition. With the change in organizational dynamics the style of leadership should also change. One of the much applauded style is the transformational leadership. Transformational leadership comprises of the four dimensions: idealized influence, inspirational motivation, intellectual stimulation, and individual consideration. Such a leadership helps the employees in finding out their hidden talent and latent skills. They come to know about their strengths and the scope to enhance them. This acts as an undercurrent in unleashing their energies with full faith in their capabilities resulting in a passion for work, greater connectivity with organization and its goals and control on the tendency of the workers to leave the organization. Leaders should recognize, promote and praise hard work; employees should be given due credit and compliments. Leaders should be open to discussions and have a welcoming attitude towards the suggestions of the workers. First they should understand and accept the value of employees and then make the employees feel that they are valuable to the organisation; this will bring more openness, harmony, trust in relations. All these factors will be helpful to control attrition.  Flexibility Flexibility is necessary for greater degree of co-ordination, ease and smoothness in the organizational working. It is the demand of time as in the present context it has become very difficult to manage talent. Undue strictness and rigidity is no more considered the obvious right of the employer. Flexibility can be related to the following factors- a. Time b. Choice of task c. Transfer
  • 28. 28 d. Targets e. Leaves f. Methods g. Place of work in the organization h. Number of breaks  Conducting stress interview Exit interviews become instrumental in assessing the level of satisfaction or dissatisfaction of the employee. It should be well planned and questions should be well-framed. It should focus on the issues like – a. Work Environment b. Organizational culture c. Peer group d. Senior- subordinate relationship e. Performance appraisal f. Individual growth  The Importance of Retaining Employees  A company spends lots of money in developing an individual person and makes him ready to work great and understand the corporate working culture.  When an employee resigns his job from present company, it is more likely that he/she may join the competitors firm.  If an employee working in an organization for many years, they can understand the particular firm’s guidelines, so thus they can adjust better.  Replacing employees’ costs money. The cost of replacing an employee is estimated at up to twice the individual’s annual salary (or higher for some positions, such as middle management), and this doesn’t even include the cost of lost knowledge.  Bringing employees up to speed takes even more time. And when you’re short-staffed, you often need to put in extra time to get the work done.  The goodwill of a company is maintained when the attrition rates are low. Higher retention rates motivate potential employees to join the organization.
  • 29. 29  Customers and clients do business with a company in part because of the people. Relationships are developed that encourage continued sponsorship of the business. When an employee leaves, the relationships that employee built for the company are served, which could lead to potential customer loss.  Positive effects of attrition on the organisation Attrition is not always negative, it may have some positive results also. Some of the positive results may include the following-  Advantages of new knowledge- New employees bring new knowledge; their knowledge and skill may open new avenues for the organization.  Advantage of new technology- It will decrease the cost, thus the price of the final goods or service will be cheaper; further leading to increase in demand and profits.  Introduction of new ideas- New ideas may help in increasing product line and product mix or they may become helpful in starting new joint-ventures and working in collaboration.  Lesser negative impact of groupies- Sometimes the existing groups may be rigid or the group members may be reluctant towards others, in such a case attrition of a group member may be positive for the organization.  Reduction in surplus staff- It will lead to reduction in cost of maintaining the surplus employees ultimately leading to total cost.  Creation of a healthy and competitive environment in the organization- New workforce may be more competitive, old employees may learn from them. They may get inspired and compete with them.
  • 30. 30 Drivers of Attrition Career Aspirations Others Organizational Individual Family Mobility Culture Job Related Personality Factors Growth & Career Paths Pay Package Poaching Work Environment Peer Pressure No Learning No Challenge Style of Boss Job Clarity Job Stress Lack of Independence
  • 31. 31 Application in the company  Need for the Study The success of any manufacturing organization depends largely on the workers, the employees are considered as the backbone of any company. The study was mainly undertaken to identify the level of employee’s attitude, the dissatisfaction factors they face in the organization, why they choose to stay and for what reason they prefer to change their job. Once the levels of employee’s attitude are identified, it would be possible for the management to take necessary action to reduce attrition level. Since they are considered as backbone of the company, their progression will lead to the success of the company for the long run. This study can be helpful in knowing, why the employees prefer to change their job and which factors make employee dissatisfy. Since the study is critical issue, it is needed by the originations in order to assess the overall interest and the feelings of the employees towards their nature of job and organization. To address the reasons why attrition occurs, “Stay Survey” was conducted of Grade 61 employees. This study can be helpful to the management to improve its core weaknesses by the suggestions and recommendations prescribed in the project. This study can serve as a basis for measuring the organization’s overall performance in terms of employee satisfaction. The need of this study can be recognized when the result of the related study need suggestions and recommendations to the similar situation.  Statement of problem Managing attrition does not mean reducing attrition only. It could also mean bringing down the negative effects of attrition. To do this the organizations should put up appropriate retention and capacity utilization or talent utilization tactics. There are various retention strategies used by the organizations today.
  • 32. 32 The aim of the present report is to study factors like salary, superior – subordinate relationship, growth opportunities, facilities, policies and procedures, recognition, appreciation, suggestions, co- workers by which it helps to know the Attrition level in the organizations and factors relating to retain them. This study also helps to find out where the organizations are lagging in retaining.
  • 33. 33 SURVEY METHODOLOGY Design the Survey Instrument Finalize the Target Invite and Seek Consent for Participation Collect and Validate Data 1 2 3 4 Generate the Survey Trends Analyse Data 5 6 The parameters of the study were finalized and a structured questionnaire was designed as a primary data collection tool The target employees were selected for interview A formal invitation e-mail was sent to the employees requesting for participation & the interaction with the engineers was scheduled The responses received from all participants were validated & intended interpretation The data received was collated & analysed to get detailed insight Suggested recommendations
  • 34. 34 Overview/Background of my work in the Company As explained in the above diagram, the project undertaken by me was done in the above mentioned sequence. As we know attrition is a critical issue in every organization, hence it requires a detailed study of the problem. I made a detailed study of various articles to gain more insight about the problem. Basically what every companies do is conduct a “Stay Interview & Exit Interview”. The basic reason behind conducting these two types of interview is to know what employees feel about the workplace, to know their grievances and thereby take steps to overcome their problems. Employees are assets for every company if treated with care and intelligence. But, at the same time if they are not handled properly they turn out to be liabilities. Managing employees requires proper engagement activities to be framed so that both the ends derive adequate amount of satisfaction. The company should properly plan its work so that the company is benefited and the objectives are met. On the other hand, the company should also make sure that the employees also feel benefited in return. The company should know what actually makes their employees happy and motivated to work. Companies while conducting “Exit Interviews” try to identify trends in leaver’s behaviour and the reasons employees change jobs/organisations. On that basis the company frames certain retention strategies so as to make a positive influence on retention, or least leave with a positive view of the organisation. The most common questions asked in ‘Exit Interview’ is how the employees felt working with the company, were they happy with the workplace environment, how was their relation with their superiors as well as their colleagues, what is the reason for leaving job etc. Proactive feedback from the employees as Exit Interview is too late. If you know why an individual employee stays, you can obviously reinforce those factors. And if you know far enough in advance what factors might cause them to leave, you can get a head start in ensuring those turnover causes never occur. Retention is an individualized process that needs to be handled proactively. This is why “Stay Interviews” are conducted, as a tool used for retaining the key and talented employees. It may also be known as “Pre-Exit Interview”. What actually happens is a target employees are chosen to be interviewed, analysis is made and steps are taken to retain them. Commonly questions relating to workplace and job satisfaction are asked.
  • 35. 35 As explained in the above diagram questions were framed concerning ‘Stay Interview’ as a tool-kit. These questions are the primary tool of my study. These questions formed the basis towards managing employee engagement and their retention attributes thereby curbing attrition. In other words, it is a list of possible “stay questions” to ask the employee, and most importantly, a list of acceptable retention actions that are available to any manager for improving an employee’s job and for minimizing possible retention triggers. After finalising the questions, the target group to be interviewed was selected. Only such employees are prioritized whom the managers feels and estimates that they might actually leave. For my project the target employees were the employees of Gr. 61 i.e. G.E.Ts. These were the employees holding key positions, talented employees as well as the employees to be groomed as potential future leaders. Once the target employees were selected, the third step involved sending them a formal invitation regarding the interaction and seeking their consent for participation. A formal invitation was sent to the respective employees from the HR department informing them about the interaction schedule and place. On the scheduled date the interview was conducted. It was a ‘One-on-One’ interview. The greatest advantage of conducting this type of interview setting is that employees feel free to answer the questions. As it is highly personalized, the interviewee feels the confidentiality. The information thus collected by this means is more accurate and insightful. In this process, I got to know how the employees feel working at KPCL and also what they expect from the companies. Employees were even asked to their suggestions as to encourage retention. The data collected thereof, were thus taken into account for analysis and interpretation. The trends of attrition and retention factors were analysed. The final and the last step involved generating the results derived from analysis of the data collected. On that basis I put forth my recommendations as to few things that the company should do to manage attrition and retain its talent. Stay Interviews should be scheduled periodically, usually once a year during a slack business period. It’s usually a good idea to interview all key employees around the same time, so that the company can implement common actions at the same time. Conducting them less frequently can be problematic in periods of high turnover, especially for new hires who naturally have a higher risk of leaving, conduct stay interviews at four and eight months.
  • 36. 36 If companies are not diligent in fully understanding the factors influencing the intent of their workforce to stay, they could face a wave of turnover in the near future that could cripple some companies. And, with studies telling us that 50% of our workforce is looking for another job or totally disengaged from their jobs, retention has never been more critical. So, organizations should give some hard thought to its talent management process, whether it just wants an engagement rate or a benchmark comparison to its competitors, or does it wants to know the real issues that are affecting its employees and what it can do to impact them? There is a way to keep your eye on the organization and find out – it’s called the stay interview. EXTERNAL FACTORS  Employee Brand  Candidate Behaviours  Candidate Skills  Job Fit  Others INTERNAL FACTORS  Recognition  Training & Development  Performance Management  Communication  Manger Quality  Compensation  Others EMPLOYEE TURNOVER
  • 37. 37 RETENTION OF EMPLOYEES Personal Characteristics Job Characteristics Gender Education Marital Status Age Satisfaction Motivation Involvement Work life compatibility Self Esteem Participation Accountability & Authority Growth Prospects Sense of Accomplishment Prestige Interpersonal relationships Working Conditions Involvement Job Security Amenities
  • 39. 39 Objectives  To retain the existing key and talented employees.  To gain insight about why employees choose to stay at KPCL.  To engage employees in identifying their personal career aspirations effectiveness and value added contribution to KPCL, with the ultimate aim of fitting the Right Person -to- the-Right Job to enhance personal goals.  To give employees a chance to offer suggestions for areas of improvement.  To help reveal vital information for employees about what they like and don’t like about their jobs.  To let employees know and aware that their skills, contributions and dedication are valued and appreciated by KPCL.
  • 41. 41 KIRLOSKAR GROUP HISTORY The Kirloskar saga began in 1888 when Laxmanrao Kirloskar set up a small bicycle repair shop (now near the Shreekrishna theatre on Kirloskar road) at Belgaum and later Laxmanrao and his brothers set up a model industrial colony called ‘Kirloskarvadi’ India’s first industrial township. In January 1910 when the Kirloskar were being ousted from Belgaum to make room for a new suburb, they found themselves in dire need of a place to live and work and hence the birth of Kirloskarvadi. Laxmanrao Kirloskar, founder of the Kirloskar Industries was born on 20th June, 1869, in a small village, Gurlahosur in Belgaum District. He started his life as a school teacher and later on, opened a cycle repair shop in Belgaum. But his ambition and mission could not be satisfied by a small workshop at Belgaum. When the Municipality of Belgaum ordered Kirloskar to vacate their place, Laxmanrao Kirloskar could not find a suitable place for his workshop. But thanks to the timely help of the Ruler of Aundh who offered him a place arranging loan of ten thousand rupees, he started his factory in an arid waste land by the side of a renowned railway station, named Kundal Road. The factory later blossomed into famous Kirloskar Industries and the station came to be called Kirloskarvadi. Laxmanrao Kirloskar set foot on 32 acres of barren land strewn with cacti and infested with cobras. Driven by his faith in human ability, Laxmanrao banded together 25 workers and their families and succeeded in transforming the barren expanse into his dream village. Ramuanna,
  • 42. 42 Laxmanrao’s brother, planned and administered the township, Shamburao Jambhekar doubled as engineer and all-round healing man, K.K.Kulkarni, an unsuccessful student, became a manager, treasurer and odd jobs man, Mangeshrao Rege was the clerk and chief accountant, Anantrao Phalnikar, a school drop-out flowered into an imaginative engineer. Such was Laxmanrao’s faith in the human being that, Tukaram Ramoshi and Pirya Mang, both convicted dacoits, became the trusted guards of Kirloskarvadi! Superstitious farmers were extremely hard to convince and Laxmanrao Kirloskar took two years to sell his first iron ploughs. Today Kirloskar brothers are a 1.20 billion US Dollars engineering conglomerate driving critical industries. They are century old pioneers in areas of specialization like power, construction and mining, agriculture, industry and transport, oil and gas and environment protection with a range of world-class industrial products and turnkey services. They are made up of 8 major group companies, each led by the best engineering and managerial talent in India. In addition to engineering, they have interests in civic utility systems and in Information Technology and communication. The Kirloskar Group is an Indian conglomerate with sales exceeding $2.5 billion. The company exports to over 70 countries over most of Africa, Southeast Asia and Europe. The flagship & holding company, Kirloskar Brothers Ltd established in 1888, is India's largest maker of pumps and valves and also undertakes construction projects through its subsidiary Kirloskar Construction And Engineers Ltd. The group is headed by Sanjay Kirloskar. India's first iron plough from the Kirloskar Group, not only became an instrument of wealth for the entire society but also kick started an industrial revolution in India. Today, building on its core engineering strength, the group's scope of operations spans across a gamut of industrial equipment ranging from pumps & valves, eco-friendly diesel engines & silent generating sets, air & gas compressors, air-conditioning and refrigeration equipment, a wide range of anti- corrosion coatings and castings for automotive sector.
  • 44. 44 Type Private Industry Conglomerate Founded 1888 (As Kirloskar Brothers Limited) Headquarters Pune, Maharashtra, India Area served Worldwide Key people Sanjay Kirloskar, (Chairman & MD) Products Pumps engines compressors chillers valves pig iron construction transmissions automobiles through a joint venture with Toyota infrastructure pumping projects bridges & flyovers submarine pipelines construction Website http://www.kirloskar.com
  • 45. 45 Kirloskar companies Kirloskar Brothers Ltd. Kirloskar Brothers Limited (which includes Kirloskar Brothers Ltd, Aban Construction Company, SPP Pumps (UK), Kirloskar Ebara Pumps Ltd, Braybar pumps Ltd, (South Africa) and The Kolhapur Steels Ltd is India’s largest pump manufacturer. Kirloskar Brother produces Centrifugal pumps from 0.1 KW to 26MW with single pumps pumping liquids in excess of 35,000Liters/sec thus producing some of the largest pumps by size and horsepower. Kirloskar Brothers Limited was established in 1888 and incorporated in 1920. It is the flagship company of the $ 2.1 billion Kirloskar Group. The market leader in fluid management, KBL provides complete fluid management solutions for large infrastructure projects in the areas of water supply, power plants, irrigation, oil & gas and marine & defence. It engineers and manufactures industrial, agriculture & domestic pumps, valves and hydro turbines. Kirloskar Oil Engines Limited Incorporated in 1946, Kirloskar Oil Engines Limited (KOEL) is a part of the Kirloskar Group. KOEL manufactures air-cooled and liquid-cooled diesel engines and generating sets ranging from a power output of 5 kVA to 625 kVA and 1800 kVA to 6300 kVA. They also offer engines operating on alternative fuels such as biodiesel, natural gas, biogas and straight vegetable oil (SVO). Their generating sets are branded as Kirloskar Green Gensets. KOEL also offers customized power solutions including both standby and prime power requirements. KOEL is one of the world's leading players in the generating set market. Kirloskar Ferrous Industries Limited KFIL is the flagship company of the Kirloskar Group. KFIL was promoted by Kirloskar Oil Engines Limited & Shivaji Works Limited (SWL). KFIL was incorporated with the objective of catering to the requirement of high quality Pig Iron and intricate, thin walled grey iron castings to the emerging in Tractor, Auto, Engine and other related segments.
  • 46. 46 Kirloskar Proprietary Limited. Kirloskar Proprietary Limited was established in the year 1965. Kirloskar Proprietary Ltd. is the registered owner of intellectual property consisting of various trademarks and copyrights in India and many foreign countries. It has granted licenses thereof to several companies in Kirloskar group. Besides protecting and defending these marks from infringers it also looks after enhancing the image of Kirloskar brand Kirloskar Middle East FZE. For more than 3 decades, customers in the Middle East, Africa and South East Asia have been using various products manufactured by the Kirloskar Group in India. There was continuous need to establish an identity in the Middle East region, which will be close to the end customers as well as the distributors in the region with the basic objective to give quick response to the customers’ requirements and make the products & services available at their door step. With this vision, Kirloskar Middle East FZE (KMEF) was born in November 1996. It was decided that Marketing set up and Warehousing facility would be established simultaneously, so that a range of products would always be available for customers without delay. KMEF is now expanding operations to include packaging of compressor engineered sets and pump sets in UAE. Kirloskar Pneumatic Co Ltd (KPCL) Kirloskar Pneumatic Co Ltd (Kirloskar Pneumatic) was established in 1958 to manufacture air compressors and pneumatic tools in collaboration with Broom and Wade, UK. In 2002, it was merged with K G Khosla Compressors Ltd and the new entity was renamed Kirloskar Pneumatic.
  • 47. 47 Kirloskar Integrated Technologies Limited. (KITL) KITL was founded in 2008 and is based in Pune, India. They have extensive research background in “renewable energy” and have filed several patents in this area. The customers range from farmers in rural areas, to governments and defence, as well as independent power producers, among others. KITL is committed to developing and distributing green technology solutions to reduce greenhouse gas emissions. Currently, the focus is on bio-energy, solar, and tidal and marine energy solutions. They offer both stand-alone and hybrid solutions, customizable for the needs of their customers. Kirloskar Chillers Private Limited Produces centrifugal chillers from 250 TR to 2400 TR and air-cooled and water-cooled screw chillers from 40 TR to 550 TR for air conditioning and process cooling applications. It also offers products for hot water generation including chillers with super heaters & heat pumps. Established in 1995, Kirloskar Chillers is the largest chiller manufacturer in India, and the first to have its products certified under the AHRI 550/590 certification program. The factory at Saswad, near Pune, also has the first AHRI-certified chiller test facility in India. It is also the only Indian company to manufacture centrifugal & screw chillers under one roof.  Toyota Kirloskar Motor Private Limited (TKML) produces Toyota Vehicles in India  Mysore Kirloskar (MK) produced lathes including CNC types  Kirloskar Electric Company (KEC) made electrical equipment like transformers, generators and motors, etc. It is not part of the Kirloskar Group anymore.  Kirloskar Institute of Advanced Management Studies (KIAMS) was conceived in 1991 as a training institute and a knowledge hub where Kirloskar Group managers taught and learned management. In 1995, the training institute was opened to managers all over the country.
  • 48. 48 Products & Services The Kirloskar group of companies was one of the earliest industrial groups in the engineering industry in India. The group produces pumps, engines, compressors, screw & centrifugal chillers, lathes and electrical equipments like electric motors, transformers and generators (it is the world's largest genset manufacturer). While he established the group, his son also played a role in the leadership of the company. The company under Shantanurao Laxmanrao Kirloskar achieved one of the highest growth rates in Indian history, with 32,401% growth of assets from 1950–1991. In 1988, Rajiv Gandhi, the then Prime Minister of India released a commemorative stamp marking the Kirloskar Group's 100th anniversary. In 1974, in cooperation with Deutz-Fahr of Germany, Kirloskar began manufacturing tractors. They have since ceased tractor production. The Kirloskar Group also set up India's second oldest township Kirloskarvadi in Maharashtra, which is now a 100-year-old township in 2010. Engines, Gensets and Power Solutions Pumps and Fluid Handling Solutions Compressors, Refrigeration and Process Gas Systems Solutions for Pump Packages
  • 49. 49 API Process Pumps and Steam Turbines Centrifugal & Screw Chillers Anti-corrosion and Anti-erosion Coatings Green Solutions Pig Iron and Castings Foundry - Steel Castings Trading and After Sales Services of Kirloskar Products Educational Institute (Management) Trading and Servicing of Pumps & Valves in Europe
  • 50. 50 Achievements The groups two largest companies, Kirloskar Brothers Limited and Kirloskar Oil Engines Limited, own many patents. Kirloskar Brothers Ltd created the world’s largest irrigation project which was commissioned in March 2007 (the Sardar Sarovar Dam project for the Gujarat Government. This was done for Sardar Sarovar Narmada Nigam) and on 14 March 2008 commissioned the world’s second largest water supply system with the world’s highest head in Andhra Pradesh. Kirloskar Brothers is associated with India's nuclear program and has made canned motor pumps for pumping heavy water which are deployed at Indian Nuclear Power Plants. Kirloskar Brothers Limited is also a supplier of FM UL certified pumps along with its subsidiary SPP Pumps (UK). It was the first Indian company to get FM certification for its valves. Kirloskar Brothers has a presence is numerous countries including Egypt. Kirloskar Brothers is also one of the first pump companies to have an all women operated and managed manufacturing plant at Coimbatore, which is the second largest metropolitan city of state Tamil Nadu in India. The company was one of the country's top ten wealth creators in 2007. Kirloskar Brothers won the first "best of all" Rajiv Gandhi National Quality Award in 1992.
  • 52. 52 KIRLOSKAR PNEUMATIC COMPANY LIMITED HADAPSAR, PUNE History Kirloskar Pneumatic Co Ltd (Kirloskar Pneumatic) was established in 1958 to manufacture air compressors and pneumatic tools in collaboration with Broom and Wade, UK. In 2002, it was merged with K G Khosla Compressors Ltd and the new entity was renamed Kirloskar Pneumatic. The doyen of Indian industry Late Shri Shantanurao L. Kirloskar incorporated Kirloskar Pneumatic Co. Ltd. (KPCL) on 27th March 1958. Today it is a well-diversified engineering company. The company started its operations with the manufacture of Air Compressors and Pneumatic Tools and soon branched off in manufacture of Air Conditioning and Refrigeration equipment, Process Gas equipment and Hydraulic Power Transmission machinery. The company also earned an enviable reputation for its Systems Engineering and Turnkey Project expertise. KPCL has the distinction of acquiring advance technologies from world over, adapting them to suit Indian conditions and continuously updating them to maintain the highest standards of quality and reliability. KPCL has its Head Office & Factory at Hadapsar, Pune, one plant at Saswad (20 Kms from Hadapsar-HO) and one plant in Nasik. Sales & Service offices are situated in major cities in India. It was certified for ISO 9001 Quality Systems by the Indian Register Quality Systems (IRQS) in February 1993 and re-certified in 1996, 1999,2002,2005,2008. In the year 2008, KPCL achieved coveted achievement of getting certified for Environment and Occupation and Health Management System. (EMS (ISO 14001) and OHSAS 18001). KPCL became an IMS certified company in 2012.
  • 53. 53 Operations Kirloskar Pneumatic operates in compression systems and transmission products. Compression systems segment consists of air compressor (ACD), Air conditioning & refrigeration (ACR), Transmission (TRM), Road Railer and Process gas (PGS) divisions. At Kirloskar Pneumatic, up-to-date manufacturing facilities, including CNC machines, stringent quality control procedures and systems, research and development, foundry, heat treatment facilities, screw rotor machines, gear grinding machines, metallurgical & Metrological laboratories, tool room and an integrated computer system, have all been set up with the sole idea of achieving the highest standards of quality and performance. Kirloskar Pneumatics is among the first few company’s in India, to secure the ISO 9001 certification, in all its operations. Also, Kirloskar Pneumatic is certified for Environment Management System, ISO 14001: 2004 and Occupational Health and Safety management System Standard OHSAS 18001: 2007. Company’s Products are manufactures under the survey of renowned inspection agencies such as Lioyd’s, MMD, IRS, NTPC, EIL, PDIL, DGS&D, RITES and many more, and are well accepted not only in India but also in the countries of South East Asia, Africa, the Middle East, West Asia and The United States of America.
  • 54. 54 MD SBU Head ACR ORGANIZATIONAL STRUCTURE OF KPCL SBU Head TRM SBU Head ACD SBU Head PGS SBU Head HR Head Strategy Head Finance Head Corporate QA Business Head AEPSS Business Head PGS Business Head Refrigeration System Health & CSR Business Head Vapour Absorption Chillers HRD T & D Head IT HRM & Factory Manager Head Communication CHAIRMAN
  • 55. 55 CORPORATE PROFILE KEY EXECUTIVES Mr. Rahul C. Kirloskar (Executive Chairman) Mr. Atul C. Kirloskar (Director) Mr. Sanjay C. Kirloskar (Director) Mr. Vikram S. Kirloskar (Director) Mr. A. C. Mukherji (Director) Mr. J. Y. Tekawade (Director) Mr. G. Krishna Rao (Director) Mr. P. S. Jawadekar (Director) Mr. D. R. Swar (Director) Mr. Sunil Shah Singh (Director) Mr. Aditya Kowshik (Managing Director) Mr. Rahul C. Kirloskar, Executive Chairman is a top notch technocrat associated with Kirloskar Group of Companies for more than twenty three years at senior levels in different capacities. Participated in an intensive course of top management professionals of major international companies on Total Quality Management (TQM) in Japan, conducted by Japanese Union of Scientists and Engineers (JUSE), has given a lot of thrust for reducing overheads and is taking all possible steps to reduce the overhead cost and thereby further improve the profitability of the Company and make the products more competitive.
  • 56. 56 The Directorship of Mr. Rahul C Kirloskar in other companies is as follows: Name of the Company Board position Green-Tek Systems (India) Ltd. Director Kirloskar Brothers Ltd. Director Kirloskar Oil Engines Ltd. Director Kirloskar Proprietary Ltd. Director Asara Sales & Investments Pvt. Ltd. Director Pratibha Communications Pvt. Ltd. Chairman COMPANY SECRETARY: Mr. Jitendra R. Shah LOCATION OF PLANTS: Pune, Saswad and Nashik BRANCHES & OFFICES: HADAPSAR PLANT KIRLOSKAR PNEUMATIC CO. LTD. Hadapsar industrial estate, Hadapsar, Pune-411 013. Tel: (020) 26727000 Fax: 020-26870297/26870634 E-mail: KPCL-HO@kpcl.net SASWAD PLANT KIRLOSKAR PNEUMATIC CO. LTD. Saswad Industrial Estate, Near Waghire College Taluka: Purandar, District: Pune Tel.: 02115–222403 / 222409. Fax: 02115-222406 E-mail: KPCL-Saswad@kpcl.net
  • 57. 57 CORPORATE PHILOSOPHY VISION It’s time to grow “KPCL will achieve a sale of Rs.1425 crores by the year 2016-17”. ACR & PGS will achieve a sale of Rs.8,000 million with a focus on KC compressor exports, CNG & API compliant Refrigeration & Gas compression packages for the Domestic & Export markets and entering into Domestic market of Vapour Absorption Chillers. ACD will achieve a sale of Rs.4500 million by increasing market-share in Rotary Compressor market and strengthening the leadership position in Reciprocating Compressor market. TRM will achieve a sale of Rs.1750 million by maintaining the leadership position in Railway Traction Gears market; strengthening the position in Wind Mill Gear Box market and entering into Industrial Gear Box business. MISSION  We will demonstrate an EDGE to all our Stakeholders in our offerings for converting / transmitting energy.  We will strive to make our Company an employer of Choice VALUES In an ever changing world one thing that will remain constant is our Commitment towards all our stakeholders. Each one of us will be guided by the following values.  Customer Focus Our activities / actions will be focused on enhancing internal / external customer's satisfaction.
  • 58. 58  Commitment We commit to achieve our targets / goals. We will be responsible / accountable for our commitment.  Continual Improvement We will consciously work to improve our procedures, processes and systems with an objective to improve our business processes.  Ethical Business Practices We will be fair in our dealings with all our stakeholders. It will be based on integrity, honesty and transparency
  • 59. 59
  • 60. 60 Competitors Company Sales (Rs.Million) Current Price Change (%) P/E Ratio Market Cap.(Rs.Million) 52-Week High/Low Alfa Laval (India) 11541.74 3946.50 0.00 54.90 71670.35 3948/3940 Atlas Copco (India) 25204.31 2724.00 0.00 27.21 61384.38 2724/1487 BEML 28089.10 725.00 5.53 611.32 28609.77 697/126 Ingersoll Rand 5813.69 683.00 2.71 31.35 20991.14 710/301 ISGEC Heavy Engg. 25126.34 2384.45 8.34 17.14 16219.99 2229/783 Nitin Fire Protectn 3520.62 65.00 0.31 129.41 14204.56 70/49 Praj Industries 7662.12 72.95 2.96 20.15 12573.40 79/30 Kirloskar Pneumatic 5488.09 630.00 -3.08 21.50 8348.82 655/320 Forbes & Company 3103.39 603.90 -1.63 0.00 7918.46 650/471 Elecon Engg. 5952.07 65.25 -2.61 26.61 7298.70 69/19 Ricoh India 6331.20 166.50 -4.88 40.41 6961.42 179/42 Walchandnagar Inds 7265.14 112.00 -4.96 0.00 4486.57 121/41 Action Const. Equip 6678.50 27.45 -4.85 70.95 2854.42 32/8 CMI FPE 5328.95 499.00 -4.96 0.00 2592.60 598/207 Kabra Extrus.technik 1799.42 63.00 1.69 13.91 1976.35 65/23 Premier 2408.32 66.90 3.08 7.84 1971.18 78/46 Swiss Glascoat Eqtp 756.14 50.75 -2.40 6.84 260.00 57/28 Polymechplast Mach 208.50 4.20 0.00 17.27 24.70 18/4 Incon Engineers 4.96 3.57 0.00 44.14 15.45 4/3 Koa Tools India 19.20 0.30 0.00 260.69 10.43 0/0 Mirch Tech. 0.36 0.00 0.00 0.00 0.04 0/0
  • 61. 61 PRODUCTS AND SOLUTIONS Pioneering industrial revolution in India, Kirloskar group has contributed immensely in every field of its operation during its 120 year-long journey, and holds a place of repute in the industry for its good business values and customer focus. Established in 1958, Kirloskar Pneumatic Company Limited started with the manufacture of Air-compressors and Pneumatic tools. Immediately thereafter, the company expanded its activities in the field of air conditioning and refrigeration machinery. Further diversification in the manufacture of Hydraulic Power Transmission equipment followed. Kirloskar Pneumatic is held in high esteem for Process System Engineering and Turnkey project expertise. The result of success in this area is reflected in Company’s association with virtually with every project and industry in the country. AIR COMPRESSOR DIVISION (ACR) Kirloskar Pneumatic Company Ltd is in compressor business since 1955. From a product manufacturer in the domestic market to a company offering total solutions – from designing systems to manufacturing customized products and systems, KPCL has come a long way. The customer-centric work culture along with technical excellence has been the hallmark of this success. The graduation was steady and strategically aimed at specific market segments. Reciprocating Air Compressors Reciprocating Air Compressor Division offers products for a wide range of market segments such as general engineering to critical operation & processing applications in key sectors like Railways and process industries like Refineries & Petrochemical Industries. Screw Air Compressors Screw Air Compressors division caters its niche market segment right from General engineering workshop till the operation & processing unit in different sectors.
  • 62. 62 Centrifugal Air Compressors KPCL has a technical tie-up with Cameron Compression of USA for packaging and marketing Centrifugal Air Compressors in India. AIR CONDITIONING, REFRIGERATION & PROCESS GAS DIVISION (ACR & PG) Compressor for Refrigeration Systems The reciprocating range of refrigerant compressors has wide applications in the area of industrial refrigeration which includes food & beverage processing and preservation, ice plants, process refrigeration which includes pharmaceuticals, chemicals etc. The range also caters to HVAC applications including water chillers etc. Refrigeration System Kirloskar Pneumatic Co Ltd is a leading name in Industrial Refrigeration, Process Refrigeration and Preservation. They provide turnkey products and solutions with designing, manufacturing and packaging, installation, commissioning, after sales and training. KPCL Provides refrigeration and gas compression systems used in conjunction with hydrocarbon which is highly specialized market segment in the field of industrial refrigeration.
  • 63. 63 Gas Compression Solutions KPCL’s customized solutions feature activities like designing, manufacturing, packaging, installation, commissioning, after sales service and training. KPCL has been serving the Process Gas Sector in following segments: Vapour Absorption Chillers Kirloskar Vapour Absorption Chillers (VAC) is a highly efficient machine. KPCL has established manufacturing facility at existing Saswad factory, Near Pune. The manufacturing facilities include Fabrication, Assembly and Performance Testing at full load etc. VAC’s are used in Power plants, Pharmaceuticals, Chemicals/Fertilizer industries, Tyre industries, Textile industries, Food Processing sector, Hospitals & Hotel Industries, Paper industries, Paint industries, Steel industries etc. TRANSMISSION DIVISION (TRM) TRM is the fast track business unit of KPCL. With 6 products on board, this SBU specially cater the need of the Rail, Defence and Non-conventional energy sectors. TRM especially hold its mastery in different types of gears & gear boxes with capacity ranges from sub megawatt to higher megawatt range.
  • 64. 64 AWARDS & ACCOLADES Recognition of KPCL's – ‘Performance in CII Assessment’ KPCL has been commended for Significant Achievement on the Journey towards Business Excellence in the CII 21st ‘National Quality Summit’ held at Bangalore on 8th Nov 2013. Recognition of KPCL's – ‘Perfomrnace in RKQP Assessment’ KPCL received “Award & Certificate of Recognition’’ for achieving highest score in Criteria of People, People Results & Society Results in RKQP 2013 Assessment. Recognition of KPCL for receiving the award for “Best Innovative Project” KPCL received the award for “Best Innovative Project” for KRM 1200 Railway Brake Compressor for the year 2012-13 through hands of Senior Assessor Dr. Satishchandra Joshi and Mr. Aseem Srivastav Mentor – K Group EnCon Committee on 21st Feb’14.
  • 65. 65 Recognition for KPCL's – Quality Circle in 26th CII - QC Competition KPCL received “Consolation Prize – Quality Circle Competition’’ Trophy at “CII – 26th QC Competition - Maharashtra state Level” held at Kolhapur on 17th Oct 2013. Recognition of KPCL's – ‘QC Story’ at Quality Improvement Success Story Presentation KPCL received “2nd Winner Trophy’’ at “Quality Improvement Success Story Presentation’’ a Special Program held at Quality Circle Excellence Centre, Bhosari Pune on 23rd Nov 2013. Recognition of KPCL's – ‘Kaizen’ at Mini Convention KPCL Kaizen teams received “Gold & Silver trophy” at “46th Mini Convention of QCFI Pune Chapter” held at Pune on 8th June 2013.
  • 66. 66 Recognition of KPCL's – ‘Kaizen’ in NCQC 2013 KPCL received “Excellence Award Trophy” at 27th National convention on Quality concepts” (NCQC 2013) held at Kolkata. Recognition of KPCL's – ‘Best HR’ 2013-14 KPCL received MCCIA “Best HR Award” for 2013-14 on 10th June’14.
  • 67. 67 SWOT ANALYSIS Strength  Established brand image around the world over the centuries.  Technical expertise and Leadership  Continuous improvement of product and quality  Company’s CSR have helped to develop its brand and reputation among the people.  Employee development is given at most care  Wide portfolio of customers  Good infrastructure facility Weakness  Lack of innovation  Old Machines Opportunities  Continuous innovation of products  Use of non- conventional energy Threats  Electricity tariff hike  Fuel Price inflation
  • 69. 69 Review on literature Despite several studies carried out on attrition management, the strategic human resource researchers are still investigating the causal mechanisms between HR practices and firm’s performance mostly related to voluntary turnover as a critical component (Shaw, Gupta and Delery, 2005) as employee retention plays a vital role in bridging the gap between the macro strategies and micro behaviour in organizations. This is because it ensures stability and connects the experiences of individuals in organizations on a continuous basis to the critical measures of success factors in the organization. The decision of leaving the organization is not easy for an individual employee as well as significant energy is spent on finding new jobs, adjusting to new situations, giving up known routines and interpersonal connection and is so stressful (Boswell, Boudreau and Tichy, 2005). Therefore if timely and proper measures are taken by the organizations, some of the voluntary turnover in the organization can be prevented. The reasons for employee turnover may vary from external environmental factors such as economy that influence the business that in turn affects the employment levels (Pettman 1975; Mobley, 1982; Schervish, 1983; Terborg and Lee, 1984) to organizational variables such as type of industry, occupational category, organization size, payment, supervisory level, location, selection process, work environment, work assignments, benefits, promotions and (Mobley, 1982; Arthur, 2001). The other factors that influence employee turnover in organizations include the individual work variables like demographic variables, integrative variables like job satisfaction, pay, promotion and working condition (Pettman, 1975; Mobley 1982; Arthur 2001) and the individual non-working variables such as family related varibles (Pettman, 1975; Mobley, 1982). Any of the above factors could be the reasons, but the decision process to leave or stay in the organization is to be periodically examined to understand the specific reasons that prompted them to take such a step and the organizations should be mainly concerned about voluntary turnover and not involuntary turnover as it is within their control. Also it is found that employees who perform better and are intelligent enough have more external employment opportunities available compared to average or poor performance employees and thus they are more likely to leave (Trevor, 2001). High rates of voluntary turnover of such employees are often found to be harmful or disruptive to firm’s performance (Glebbeck & Bax, 2004). When poor performers, choose to leave the organization, it is good
  • 70. 70 for the organization (Abelson & Baysinger, 1984), thus it is important to differentiate between functional and dysfunctional turnover and accordingly encourage or discourage employee turnover. Further voluntary turnover of critical work force is to be differentiated into avoidable and unavoidable turnover (Barrick & Zimmerman, 2005). Estimates of the loses for each employee vary from a few thousand dollars to more than two times the person’s salary depending on the industry, the content of the job, the availability of replacements and other factors (Hinkin & Tracey, 2000). In some industries chronic shortage of qualified employees has driven up the costs of turnover. Therefore the acquisition, development and retention of talent form the basis for developing competitive advantage in many industries and countries (Pfeffer, 1994, 2005). Organizations failing to retain high performers will be left with an understaffed, less qualified workforce that ultimately hinders their ability to remain competitive (Rappaport, Bancroft, & Okum, 2003). Three studies incorporated attitudinal and/or behavioural changes over time to better predict turnover. Sturman and Trevor (2001) found that quitters’ performance over time did not significantly change while stays’ performance slope was positive. Demographic factors cannot be ignored as age, tenure, level of education, level of income, job category, gender have influenced employee retention and have been found to have stable relationship with turnover intention. Of the above demographic factors, age, tenure and income level was found to be negatively related to turnover intention (Arnold & Feldman, 1982; Cotton & Tuttle, 1986; Gerhart, 1990: Mobley et. Al, 1979; Price & Mueller, 1986; Wai & Robinson, 1998; Weil & Kimball, 1995); level of education is positively associated with turnover, the more educated the employees there is a tendency to quit (Berg, 1991; Cotton & Tuttle, 1986); with respect to job category, (Wai & Robinson, 1998 and Price and Mueller, 1986) found that non- managerial employees are more likely to quit than managerial employees. Relationship between gender and turnover showed mixed result. Cotton and Tuttle (1986) and Weisberg and Kirshenbaum (1993) found females more likely to leave than males. Miller and Wheeler (1992) and Wai and Robinson (1998) reported no relationship between gender and turnover. However the reasons for employee turnover vary from one organization to the other and from one person to another as they are not getting what they expect from the organization (Ongori, 2007; Mobley 1982 and Dickter, Roznowski and Harrison 1996) also called for more research and theory pertaining to how the turnover process occurs over time.
  • 71. 71 The following chart indicates the attrition trends for the financial year 2012-13 & 2013-14 for different industry sectors and across different levels of department. This survery was conducted by Deloitte in which 209 organisations from 18 sctors participated. The graph shows that the highest attrition rate is experienced by ITes and Media industry for both the financial year. Whereas the average attrition trend is 13.4% for the financial year 2013-14 which is 0.8% less than the previous financial year. The next part of the graph indicates the voluntary attrition trends across different levels comprising of Clerical Level, Junior Management, Middle Management, Senior Management and Top Management. According to the survey the highest attrition is at Clerical level. The second graph shows the reasons for attrition according to the survey. It is revealed that the major contributors to attrition are career prospects, personal reasons and better utilization of skills. Also the measures taken to curb attrition are highlighted. Apart from this, the major HR challenges are shown namely Career Mangement, Attraction and Developing Potential Leaders. It is suggested that industries need to initiate faster growth opprtunities, performance linked incentives and skill enhancement training programs.
  • 74. 74 Scope of the Study This study provides to understand factors affecting attrition and retention of employees of KPCL. The study mainly focuses on the employees of Gr.61 i.e. Sr. Engineers. Moreover, only selected facets of job characteristics have been considered for the study. Therefore the scope of the study is limited to the geographical location of the sample size and also to the selected dimensions of personal characteristics. The study throws light through valuable suggestion to decrease attrition level in the organization. This study can help the management to find the weaker parts of the employee feels towards the organization and also helps in converting those weaker part in to stronger by providing the optimum suggestions or solutions. This study has a wider for scope in any kind of organization since “attrition” is general one and makes the employees to put forth their practical difficulties and need factors in the organization. This study can help the management to know for which the reason employees tend to change their job, through dissatisfaction factors faced in the organization and also helps to recover by providing the optimum suggestions or solutions. Define Research Problem Review of Literature Research Concept & Theories Review previous Research Findings Design Research (including Sample size) Collect Data Analyse Data Feedback Interpret & Report Research Process
  • 75. 75 Research Methodology Research methodology is a way to systematically solve the research problem. It is understood as a science of studying how systematically a research is done scientifically. In it we study steps that are generally adopted by the researcher in studying the research problem along with the logic behind them. Research Instrument and Statistical Techniques Normally two types of data are used for the purpose of carrying out research. For this survey also I have collected these data i.e. a. Primary data b. Secondary data Primary Data: Primary data is one, which is collected from fresh sources and for the first time while conducting the research. For the project, primary survey has been undertaken through a survey instrument consisting of structured questionnaire filled by employees by the way of personal interviewing Secondary data: Secondary data is that data which has been collected for some other purpose. There are two types of sources for collecting secondary data: a. Internal sources b. External sources Internal sources of secondary data includes the data generated within the organisation E.g. Employee Engagement Survey Result External sources of secondary data are the sources outside the organisation E.g. Annual Publications, Books, Magazines and Internet etc.
  • 76. 76 Research methodology The methodology used for my project is as follows: Research approach method- Survey Method Area of study- The survey was carried out in Kirloskar Pneumatics Company Limited, Pune. A survey was effective to study the attrition management in the company. Research- Exploratory and Descriptive Data Source- Primary Data and Secondary Data Research Technique- One-on-One interview Time period of study- 2 months (2nd June-2nd August) Target respondents- Sr. Engineers at Kirloskar Pneumatics Co. Ltd. Sample size- The sample is 25 employees which includes the employees of Gr. 61 (Sr. Engineers) Sampling method- Sampling procedure used for this study is Simple Random Sampling Sample of study- The sample is a basic unit consisting of the elements of the population to be sampled. Sample population includes employees from KPCL in Pune. The population includes the employees of the various department in the organisation.
  • 77. 77 Sample design- To select the samples, the sampling technique used was Simple Random Sampling. The main benefit of Simple Random Sampling is that it guarantees that the sample chosen is a representative of the population. This ensures that the statically conclusions will be valid. In this technique each member of the population has an equal chance of being selected as subject. The entire process of sampling is done in a single step with each subject selected independently of the other member of the population. Tool for data collection- The research instrument used in this study is structured questionnaire which consists of 14 questions. It was predetermined before conducting the survey. The questions are open ended. Statistical tools used in the study- For the analysis of data percentage analysis is used.
  • 79. 79 This survey was conducted with a sample size of 25 employees. Q.1. What are the top 3 factors you might consider important that will continue to keep you here at KPCL? INTERPRETATION: The above graph represents that most of the employees feel the work culture and the organization’s reputation as the prime reason to continue working with the company. Whereas if we further see. We find that 32% employee feel that they get better training and development programs at KPCL, which is why they choose to work with the company. 28% employees feel that they are paid well in this company and like their work tasks. The following are the other stated reasons by the employees: 64% 32% 28% 28% 20% 20% 8% 8% 8% 44% 0 10 20 30 40 50 60 70 Organization Reputation/Culture Learning & Development Pay Work Tasks People/HR Practices Autonomy/Choice Brand Alignment Sense of accomplishment Career Opportunities Others Reasons for Working
  • 80. 80 Q.2. What do you love best about your work / working in? INTERPRETATION: The above graph depicts that 32% employees like the trainings imparted to them and they feel that they get more development opportunities at KPCL. The next thing that employees love about their job is the task allotted to them. Around 24% employees love work in their present areas of job. The third reason that the employees stated was interaction with the clients/customers. 16% of the interviewee feel that in the process of interacting with the customers they actually get to know their demands, which helps them to design and deliver customer specific products and satisfy customer requirements. This gives them a sense of accomplishment. Meanwhile they also develop better communication skills in the processes of interaction. 32% 24% 16% 12% 12% 8% 8% 8% 4% 4% LOVE FOR WORK
  • 81. 81 Q.3. What will motivate you to excel further in your current position & make your job more satisfying? INTERPRETATION: The top 3 motivators as indicated in the graph is Work tasks, Recognition, Leadership and Learning & Development. 28% of the interviewed employees feel motivated by their work tasks. They love to do their work and the challenges in their work. 24% employees said the support of their seniors motivates them and the leadership they are given to handle projects motivates them. While, the next 24% employees feel motivated by the appreciation received from seniors and colleagues and also they get motivated when their ideas are accepted. The third major motivator is the learning and development imparted to the employees. 0 5 10 15 20 25 30 28% 24% 24% 16% 12% 8% 8% 4% 4% Motivators
  • 82. 82 Q.4. Does KPCL adequately support your career goals? INTERPRETATION: 60% of the employees feel that KPCL adequately supports their career goals and is providing them enough opportunities to groom their skills. Whereas 24% of the employees feel that they the company is not supporting their career objectives and 16% employees feel somewhat supported in their career goals 60% 24% 16% Support for Career Goals Yes No To some extent
  • 83. 83 Q.5. Does KPCL fully utilize your talent? INTERPRETATION: The above graph represents a mixed view regarding skill utilization. About 40% of the employees feel that KPCL gives them sufficient opportunities to utilize their skills. At the same time 40% employees feel that their skills are not utilized to its maximum potential. 20% of the employees are of the opinion that they are utilizing their skills to some extent. 40% 40% 20% Skills Utilization Yes No To some extent
  • 84. 84 Q.6. How can KPCL support your career goals? INTERPRETATION: As a part of suggestion for supporting the career goals, 28% employees suggest that more technical training should be imparted so that the employees gain skills for their work and they should be given site knowledge. Also they suggest that the company should sponsor education to more employees. The second category of suggestion that 24% employees gave was the need for resources. Employees feel that they are not equipped with the modern tools and techniques which lowers the productivity. Hence they require more and better resources so as to utilise their skills efficiently and effectively. The third suggestion is given in the area of leadership. 16% employees suggest that there is an urge for formulating better plans and prompt decisions so that the work culture is not delayed. 0 5 10 15 20 25 30 Learning & Development Resources Leadership Career opportunities Work Life Balance Communication Recognition 28% 24% 16% 8% 4% 4% 4% SUGGESTIONS FOR SUPPORTING CAREER GOALS
  • 85. 85 Q.7. If given a choice to choose your own career path in the future, which function or career path that you think you will like to embark on so that you can contribute your very best to KPCL? INTERPRETATION: According to the survey 36% employees fantasise doing the research and designing work. They want to do the technical work. Whereas 28% employees feel satisfied with their current profile. They feel that they are working are working in the area of their interests. Furthermore as shown in the graph, 24% employees want to completely move to other areas of work i.e. job rotation. Few wanted to move to PGS and manufacturing department, while few hold opinion of getting linked with the corporate department. Moving down we can see that 16% employees want job enlargement i.e. they want more authority and responsibility to execute their work and also they want leadership in handling projects. 8% employees want a job rotation in branch. Technical No Change Job Rotation Job Enlargement Job Rotation in Branch 36% 28% 24% 16% 8% CAREER PATH
  • 86. 86 Q.8. Are the training & development provided by the company adequate & met your needs? INTERPRETATION: The graph shows that 48% employees are satisfied with the training and development programs. While 40% employees are not happy with the trainings imparted. 8% employees feel that the training and development is average and not up to mark. Only 4% employees haven’t received any trainings till now. 48% 40% 8% 4% Training & Development Yes No Average Not received
  • 87. 87 Q.9. What are your suggestions for improvement in the area of Training & Development? INTERPRETATION: 60% employees suggest that more technical training should be imparted to the employees so that they gain more knowledge about their work and execute it properly. Employees suggest that more advanced and skill development trainings should be given. 8% employees suggest that IMS Training and awareness programmes should be conducted. 4% employees suggest that certain motivational trainings should be conducted by the company. The other reasons stated by the employees were regarding the time constraint and few felt that the content of training was missing. Skill 60% Knowledge 8% Behavior 4% Others 28% Suggestions
  • 88. 88 Q.10. Do you have enough recognition for your contributions? INTERPRETATION: The graph shows that most of the employees are recognised for their contribution. The company takes a deal of effort and ensures that contribution of the employees are recognized. The chart clearly states that 68% employees have been recognized for their contributions. While 12% employees feel that their contributions are not recognized by the company. 8% employees feel that there were moments when they have been rewarded, yet they feel that there were moments when they feel that they had made an impact which was not recognized. 4% employees do not feel the need for recognition, whereas 8% employees said that they haven’t made any impact that needs recognition. 68% 12% 8% 4% 8% Recognition Yes No To some extent No expectation Not made impact
  • 89. 89 Q.11. What kind of recognition do you prefer? INTERPRETATION: Of the various kinds of rewards given by the company, 40% employees feel that only an appreciation for their work by their managers motivates them and makes them feel proud. 32% employees prefer certificates as a part of recognition. They feel that these letters of credit adds to their achievements. 24% employees prefer trophy, while only 20% employees prefer to have monetary rewards for their contributions. 8% employees prefer “Employee of the Month” as a part of recognition. And 4% employees prefer to be rewarded with movie tickets, Kaizen award & Spontaneous award. Apart from these, 4% employees want more responsibility as a part of recognition, while the rest employees prefer to be rewarded with any type of reward and few do not have any expectations. 40% 32% 24% 20% 8% 4% 4% 4% 4% 4% 4% 0 5 10 15 20 25 30 35 40 45 Appreciation Certificates Trophy Monetary Employee of the month Movie ticket Kaizen Spontaneous award Add. Responsibility No expectation Any type Recognition Preferred
  • 90. 90 Q.12. What do you like or respect most about your supervisor? INTERPRETATION: 32% employees feel that their supervisors have very good technical knowledge. Moving downwards, the graph shows that 24% employees feel that their supervisor provides solution to their queries and helps them better understand the situation. 20% employees like the supportive nature of their superiors. They feel that they get enough support from their supervisors. The rest qualities that employees like about their supervisors includes supervisor’s management skills, communication skills, his way of thinking, the freedom given at work (to pursue work in a manner which the feels convenient), decision making ability, co-operative nature etc. to name a few. 32% 24% 20% 12% 8% 8% 8% 8% 4% 4% 4% 4% 4% 4% 4% Supervisor's Strength
  • 91. 91 Q.13. In which aspects you think your supervisor can do better? INTERPRETATION: The above graph shows that 20% employees feel that their supervisors should interact and guide them regarding their career prospects rather than only discussing about case to case progress. 16% employees feel that their supervisors should control their temper and respect employees. Majority of the employees i.e. 28% employees feel that their supervisors should improve their communication skills. Down the line, the graph shows that 16% employees feel that their supervisors should be more competent and a develop decision making ability. Whereas 4% employees feel that their supervisors are not motivating and also they fail to deliver their commitments on time. 20% 16% 28% 16% 4% 4% AREAS OF IMPROVEMENT
  • 92. 92 Q.14. Have there been any moments where you were very unhappy working at KPCL? INTERPRETATION: 80% employees felt unhappy moments working in the company whereas 20% employees had no unhappy moments working at KPCL. The reasons for being unhappy are as follows: 80% 20% Unhappy Moments Yes No
  • 93. 93 Q.15. A. What are the top 3 factors that you might consider leaving KPCL? INTERPRETATION: The top 3 reasons stated by the employees for leaving the company is salary. Career opportunities and the work tasks. 68% employees say that if they are paid higher in other company they would leave. 60% state career prospects as a major reason for leaving the company. They feel if they get better career opportunities and more exposure elsewhere they would leave the company. The major reason that 24% employees said was the job profile. Employees felt that they were not having a clear job profile and the tasks allotted to them did not match their profile. 20% employees feel the work culture is not motivating which might be considered as factor for leaving. 68% 60% 24% 20% 12% 12% 8% 8% 8% 4% 4% Factors for leaving
  • 94. 94 B. Internal and external factors constituting employees to leave INTERPRETATION: Of the reasons stated for the previous question, 45% employees have shown internal reasons for leaving the company. Whereas 13% employees stated external reasons for leaving the company. 0 5 10 15 20 25 30 35 40 45 45% 13% FACTORS Internal External
  • 95. 95 Q.16. Do you get enough information about the company? INTERPRETATION: The company provides enough information regarding the strategies, performances, procedures etc., this is clearly shown in the graph. 92% employees feel that they get enough information regarding the company’s policies and procedures. Only 4% feel that the information they get is not sufficient. While the remaining 4% feel that there is partial flow of information. 92% 4% 4% Information Received Yes No Partial
  • 96. 96 Q.17. Which communication channel would you prefer to get the information? INTERPRETATION: 52% employees stated ‘Shashwat’ as the most preferred communication channel. Whereas 40% employees prefer ‘Speak-out’ as the preferred channel to get on spot answers to their questions. The third most preferred communication channel is ‘E-mail’. ‘Susamwad’ and ‘Oracle’ are the least preferred communication channel. 52% 40% 36% 8% 4% Shashwat Speak-out E-Mail Susamwad Oracle Communication Channel
  • 97. 97 Q.18. Do you think workplace comm. is adequate within your department & interdepartment? INTERPRETATION: As the graph shows there is good communication within the department. 76% employees said that there is good communication within the department. Only 16% employees said that the workplace communication was not good within department and 8% employees said the communication was average in their department. Good 76% Not good 16% Average 8% Workplace Communication (Dept.wise)
  • 98. 98 INTERPRETATION: The graph shows that inter departmental communication is not good. 52% employees face inter departmental communication problem. While 44% employees feel the communication is good inter department. The rest 4% employees consider interdepartmental communication as average. Good 44% Not good 52% Average 4% Inter Dept. Communication
  • 99. 99 Q.19. If you were given a free hand to make changes what changes would you make in the organisation? INTERPRETATION: 36% workforce consider the processes in the company is complex and lengthy. Hence it needs to be modified. Whereas 20% employees think that there is an urge of recruiting more youths in the organisation. They feel that the old employees are not contributing much to the production. 16% employees said they would improve the canteen food and also the technology. Whereas 8% employees would implement the MNC culture and some recreational activity as a part of engagement activity. 84% employees feel that work is not allocated as per the profile, hence they require a clear job profile. Also deadlines should be set for every work so that employees don’t waste time in unproductive work. 36% 20% 16% 16% 8% 8% 84% Simplify Processes Young Work Force Canteen Technology 5 Days Week Engagement activity Work Tasks Org. Changes
  • 100. 100 Q.20. Suggestions for enhancing work environment 28% 24% 16% 12% 8% 8% 8% 8% 8% 4% 4% 4% 4% Enhancing Work Environment