Elements of HRM with Special Reference To Attrition

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Deccan Education Society’s
Brihan Maharashtra College of
Commerece.
Pune- 411004.
BUSINESS
EXPOSURE
Subject Code – 616
Project Report
Submitted for the requirement of fuilfilment of
Third Year of
Bachelor of Business Management in International
Business (BBM-IB)
A Degree Course under University of Pune.
A Project by:
 Prakriti Sherchan
 Enosh Jogi

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Certificate of Completion
This is to certify that the Project Report done (Subject
Code- 606) by,
Prakriti Sherchan
Enosh Jogi
Represents their original work, which was carried
out by them at Brihan Maharashtra College of
Commerce, Pune under my guidance and supervision.
they have completed mandatory Project Work as
prescribed by University of Pune.
I further certify that the foregoing statements made
by them in regard to his / her Project Work are correct
and complete.
Guide,
Prof. Mrs. Bharati Upadhye,
Coordinator (BBA & BBMIB)
BMCC, Pune - 411004

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PROJECT REPORT
ON
“ELEMENTS OF HUMAN RESOURCE
MANAGEMENT WITH SPECIAL REFERENCE TO
ATTRITION”
SUBMITTED TO UNIVERSITY OF PUNE
IN PARTIAL FULFILLMENT OF 3 YEARS FULL TIME COURSE
BACHELOR OF BUSINESS MANAGEMENT
INTERNATIONAL BUSINESS(BBM-IB)
SUBMITTED BY:
PRAKRITI SHERCHAN
ENOSH JOGI
UNDER THE GUIDANCE OF
MS.SUCHETA SATHE
&
MRS. BHARATI UPADHYE
(CO-ORDINATOR BBA BBM-IB)
BRIHAN MAHARASHTRA COLLEGE OF COMMERCE
YEAR
2013-2014

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DECLARATION
We hereby declare that this Project report entitled “Elements Of
Human Resources Management” is our original work and has not
been copied from any other sources. All information is for academic
purpose only.
Date: - _______________________________
Place: - Signature of the
Student
( Prakriti Sherchan )
Date: - _______________________________
Place: - Signature of the
Student
( Enosh Jogi )

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ACKNOWLEDGEMENT
At the outset, We sincerely wish to express our gratitude
to Mrs. Bharati Upadhye, for her encouragement and
support towards completion of this project.
We forward our sincere thanks to Mrs. Sonal Apte
without whom this project would not have been possible.
We also express our gratitude towards her for encouraging
us to take initiative while doing our project and giving us
full co-operation in completing our project.
We also express our gratitude towards Mr. Akshay
Rajanikar for his support and help during our project.
Our acknowledgement remains incomplete without thanking
our friend Ms. Aditi Khanal without whom this project would
not have been possible.
We are deeply grateful to management of the respective
organization for giving us an opportunity to visit their Esteem
Organization and enriching about the organization and its
various aspects like work culture and the functioning of the
organization.
INDEX

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SR. No. TOPIC Page No
00 List of Tables 7
1. Executive Summary 8
2. Objectives 20
3. Scope 21
4. Company Profile 22
5. Overview of human resource
department
28
6. Attrition rate at Bharat Forge 30
7. Theoretical background 33
8. Sample of Exit Interview Form 43
9. Research Methodology 49
10. Data Analysis & Interpretation 52
11. Limitations of the project 67
12. Suggestions 68
13. Conclusion 70
14. Findings 72
15. Bibliography 75
LIST OF TABLES

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TABLE
NO.
NAME OF TABLES PAGE NO
1 Reason for attrition in the company 52
2 Reduction of attrition in the company 53
3 Lowering attrition rate in the company 54
4 Satisfaction with the working conditions 55
5 Work environment conduciveness 56
6 Notice period 57
7 Fringe benefits provided by the company 58
8 Years working in the company 59
9 Training and development sessions 60
10 Kind of work environment 61
11 Scaling the performance management
system
62
12 Performance appraisal 63
13 Performance review 64
14 Team working skills 65
15 Employee motivation 66
EXECUTIVE SUMMARY

Our subject for the project is to study “Elements Of Human
Resource Management” & “Attrition Analysis” in Bharat
Forge limited Company. My duration for the project is 1
month.
We studied about the different elements and functions of
human resource management which was taught to us in our
syllabus. We tried to understand about the relevance of these
topics and points in context with the modern day business
world.
We enquired about the human resource department of the
company Bharat Forge for studying the attrition rate and also
the sources through which the attrition rate in the company
could be minimized and good employees and employers could
sustain in the organization.
This report is an attempt to provide a detailed analysis of the
attrition rate in the company and the sources used by the
company.
However, our survey suggests that maximum number of
candidates, in the turbulent, fast changing world need to be
provided with all the information and must be provided with
good working conditions to sustain them in the organization.
Finally, creating awareness of organization structure and its
products to the candidate is very important to have individual
as well as organization growth.
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Currently Human Resource Management Systems have the
following key modules:
• Staffing
• Training and Development
• Motivation
• Maintenance
 Organization
 Payroll
 Time & Attendance
 Benefits Administration
 HR Management Information System
 Recruiting
 Training
 Employee Self-Service
 Reports

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STAFFING
 Aims to locate competent employees and bring them into
the organization.
 A continuous activity in the organization.
Phases of Staffing
 Employment Planning
 Job Analysis
 Recruitment
 Selection
 Hiring
 Induction
Methods of Selection:
 Interviews
 Tests
 Background Investigations
 Medical Tests

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Training & Development
 Employee training
• Designed to assist employees in acquiring better
skills for their current jobs.
 Employee development
• Designed to help organization to ensure that it
has the necessary talent internally for meeting the
future human resource needed.
 Organization development
• Deals with facilitating system –wide change in
the organization.
• Career development
• Designed to assist employees in advancing their
work lives. However, it is a responsibility of the
individual , not of the organization (employee
centered)

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Motivation
It is an employee’s intrinsic enthusiasm about and
drive to accomplish work
• Respect between Management and workers
• Set Performance standard for each employee
Maintenance -Retention of productive
employees
 Welfare Administration
• Medical facilities
• Canteen facilities
• Housing facilities
• Transport facilities
• Recreation facilities
• Loan facilities
• Educational facilities
• Various Incentive schemes / clear view of
retirement benefit

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Health and Safety Administration
• Employee assistance programs (EAPs )
• Medical
• Dental
• Accidental
• Educational
• Retirement
Communication Program
• E- mail
• Voicemail
• Intranet
• Bulletin board
• Function hall
• Video conferencing
• Telephone/cellphone, etc.

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External Elements Affecting HRM
Dynamic Environment of HRM
• Globalization
• New technology
• Workforce diversity that requires changing skill
requirements
• Continuous improvement
• Decentralization
• Employee involvement and ethics
Government legislations
• Laws and regulations that benefit the workers and
protects them in the workplace.eg Labour Union
• Leave benefit ( sick,vacation, maternity and other)
• Civil rights act
• Wages act
• Person with disability act
• Gender act.

Organization
The Organization module is organization structure such as
company, location, department, designations, employee group
and organization change such as resignation, termination,
transfer, promotion.
Payroll
The payroll module automates the pay process by gathering
data on employee time and attendance, calculating various
deductions and taxes, and generating periodic pay cheques
and employee tax reports. Data is generally fed from the
human resources and time keeping modules to calculate
automatic deposit and manual cheque writing capabilities.
This module can encompass all employee-related transactions
as well as integrate with existing
financial management systems.
Time & Attendance
The Time & Attendance Module automates time tracking
related processes and enhances the organization's performance
by eliminating paperwork and manual processes associated
with time and attendance needs. workforce management and
minimize errors in enforcement of company's attendance
policies.
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Benefits Administration
The benefits administration module provides a system for
organizations to administer and track employee participation
in benefits programs. These typically encompass insurance,
compensation, profit sharing and retirement.
HR Management Information System
The HR management module is a component covering many
other HR aspects from application to retirement. The system
records basic demographic and address data, selection,
training and development, capabilities and
skills management ,compensation planning records and other
related activities. Leading edge systems provide the ability to
"read" applications and enter relevant data to applicable
database fields, notify employers and provide
position management and position control not in use. Human
resource management function involves the recruitment,
placement, evaluation, compensation and development of the
employees of an organization.

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Recruiting
Online recruiting has become one of the primary methods
employed by HR departments to garner potential candidates
for available positions within an organization.
Talent Management systems typically encompass:
 Analyzing personnel usage within an organization
 Identifying potential applicants
 Recruiting through company-facing listings
 Recruiting through online recruiting sites or publications
that market to both recruiters and applicants.
 The significant cost incurred in maintaining an organized
recruitment effort, cross-posting within and across
general or industry-specific job boards and maintaining
a competitive exposure of availabilities has given rise to
the development of a dedicated Applicant Tracking
System, or 'ATS', module.

Training
The training module provides a system for organizations to
administer and track employee training and development
efforts. The system, normally called a
Learning Management System if a stand alone product, allows
HR to track education, qualifications and skills of the
employees, as well as outlining what training courses, books,
CDs, web based learning or materials are available to develop
which skills. Courses can then be offered in date specific
sessions, with delegates and training resources being mapped
and managed within the same system. Sophisticated LMS
allow managers to approve training, budgets and calendars
alongside performance management and appraisal metrics.
Employee Self-Service
 The Employee Self-Service module allows employees to
query HR related data and perform some HR transactions
over the system. Employees may query their attendance
record from the system without asking the information
from HR personnel. The module also lets supervisors
approve O.T. (Overtime) requests from their
subordinates through the system without overloading the
task on HR department.
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Reports
 The Reports Module provides customized reporting
according to employees individual needs. Any number of
reports can be defined by selecting from a range of
search criteria and report fields. Report definitions can be
saved to avoid repeating this task. Once the report
definition is saved the report can be generated by
providing the required criteria data.

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Attrition Analysis
OBJECTIVE:
 PRIMARY OBJECTIVE:-
1) To study the attrition analysis at Bharat Forge
limited industry.
 SECONDARY OBJECTIVE:-
1) To determine the attrition rate of the company.
2) To determine whether the company is losing good
performers.
3) To frame the strategy for retaining the performers.
4) To see that the workers are satisfied by the working
conditions provided by the company.

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SCOPE OF THE PROJECT
• To determine the gap between the management and
employee’s and reducing it.
• For offering the necessary support to the work force.
• For implementing the needs of the workforce.
• To find what motivates the performing work force.
• The study provides the feedback for what is currently
provided and implemented for the workers.
• It provides the actual expectation of the employee’s.

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COMPANY PROFILE
Bharat Forge Limited (BFL), the Pune based Indian
multinational is a technology-driven global leader in metal
forming having trans-continental presence across a dozen
manufacturing locations, serving several sectors including
automobile, power, oil and gas, rail & marine, aerospace,
construction & mining, etc.
Part of Kalyani Group – a US $ 2.5 billion conglomerate
with10,000 global work force; BFL today has the largest
repository of metallurgical knowledge in the region and
offers complete service supply capability to its geographically
dispersed marquee customers from concept to product design,
engineering, manufacturing, testing and validation.
With manufacturing facilities spread across India, Europe, US
& China, Bharat Forge manufactures a wide range of safety
and critical components for the automotive & non-automotive
sector. It is the country’s largest manufacturer and exporter of
automotive components and leading chassis component
manufacturer.

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VISION
 The vision of Bharat Forge is to be acknowledged as a
company that consistently sets benchmarks of
manufacturing standards, quality, delivery and service.
 Bharat Forge Aims to be a world class manufacturer of
forgings, with the best in class manufacturing practices
backed by excellent customer service.
 Bharat Forge is consistently building capabilities to support
a wide product range as well as machined forgings,
manufactured under total quality management processes
 Bharat Forge strives to better the everyday living standards
of employees and those associated with our growth, and
aims to actively contribute towards a better society through
community service initiatives

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MISSION
 To become one of the top five world class forging
suppliers
 To produce quality forgings
 To provide excellent service to delight our customers

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PRODUCTS
Bharat Forge is the country’s largest manufacturer and
exporter of automotive components and leading chassis
component manufacturer in the world. With significant
global market share, it is ranked among the leading
forging companies in the world.
With manufacturing facilities spread over 12 locations -
4 in India, 3 in Germany, and 1 each in Sweden,
Scotland, North America and 2 in China, the company
manufactures a wide range of safety and critical
components for passenger cars, commercial vehicles and
diesel engines.
The company also manufactures specialized components
for the aerospace, power, energy, oil & gas, rail &
marine, mining & construction equipment, and other
industries. It is capable of producing complex large
volume parts in both steel and aluminum.
We specialize in Closed Die as well as Open Die
Forgings.
This requires utilization of a variety of metals. The types
of metals forged are:
 Plain carbon steels like En8, AISI 1045, CK45,
ClassIV etc.
 Low alloy steels like En16, AISI 4140, 41Cr4
 High alloy steels like stainless steels, manganese
steels, AISI410, AISI304
 Aluminum steels like AK6, Mahle, DTD 5025

Our highly professional and technically competent engineers
work closely with our customers to extract the best design
and produce cost effective and quality forgings.
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OVERVIEW OF HUMAN RESOURCE DEPARTMENT
Attrition Rate is good for the organization as long as the rate is at
normal level. This will help the organization to get new blood into the
organization and for the organization to develop. But it becomes a
problem when the attrition rate is abnormal. Therefore, HR
Department has the most crucial role to play in any organization. At
the time of conducting interviews, the HR personnel try to bring right
candidate to the right job. Similar is true even when the attrition rate
is abnormal, so they have a very crucial role to play.
Following are some of the ways to reduce attrition rate: -
 Participative Decision Making - It is incredibly important to
include employees in the decision making process, especially
when decisions are related to employees. This can help to
generate new ideas and perspectives that top management might
never have thought of.
 Sharing of Knowledge with Others - Allow the members to
share their knowledge with others. This helps in retention of
information. This also lets a team member know that he is a
valuable member of the organization. Similarly, facilitating
knowledge sharing through an employee mentoring program can
be equally beneficial.
 Shorten the Feedback Loop - This helps the employees to
know the feedback to their work within a short period. This also
helps to keep performance levels high and reinforce positive
behavior among employees.

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 Pay Package - Any employee wants to be appropriately paid
and fairly for the work he or she does. For this, conduct a
research to find out the pay package in other similar type of
organizations at regional as well as at national levels.
 Balance Work & Personal Life - No doubt family is
exceptionally important to employees. When work begins to put
pressure on one
Family, no pay package will keep an employee in the organization.
Therefore, there should be a balance between work and personal
life. Small gestures like allowing an employee to take an extended
lunch once a week to watch his son's cricket game will result in
loyalty and helps to retain the employee.
 Organizational Culture - Try to select the candidates who
believe in the organization culture and adapt with ease to
organization culture.
 Exit Interview with the employees who are leaving the
organization will help the organization to find out the reasons
why the employees are leaving the organization. This will also
help to find out any drawbacks in the organization.
 Another method to reduce attrition rate is that they should find
out why employees are leaving the organization from the
employees who are working for the past so many years.
 Motivational Training - It is sure that motivational training
helps to retain the employees. One of the crucial aspects to

motivate employees is to ensure that they have ample growth
opportunities which can be provided through training.
 Multi-Tasking - One of the ways to retain the employees in the
organization is try to get people with different qualities like
smart, adaptable, and capable of multi-tasking.
 Referrals - Another technique is to try to get the employees
hired through referrals. This makes them stick with the
organization.
 No Favoritism - One of the surest ways to create animosity and
resentment in an organization is to allow favoritism and
preferential treatment towards an employee. Be sure to treat all
employees equally and avoid favoritism at all costs.
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Attrition rate at Bharat Forge
List of employees who have resigned in the year 2009-2010
Sr
No
Grade Duration Reason for leaving
1 MG2 20 yrs Ability not recognized
2 SE 1 month Better prospects
offered outside
3 EE 4 yrs Not satisfied with
location
4 MG1 13 yrs Desire change in
function
5 MG1 2 yrs Work is monotonous
6 EE 6 months Marriage
7 EE 2 yrs Own business
8 EE 4 yrs Desire change in
function
9 MG1 2 yrs Compensation

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10 SE 3 yrs Desire change in
The above table clearly indicates that the maximum number of
employees who have resigned belong to the Executive Grade. Very
few of them belong to the Senior Executive Grade and some of them
belong to the Manager level
9
8
7
6
5
4
3
2
1
0
Attrition at different levels
EE SE MG1 MG2
No of resigned
employees
function
11 SE 4 yrs Desire change in
function and higher
studies
12 EE 3 yrs Higher studies
13 EE 2 yrs Better opportunity
14 MG1 16 yrs Better opportunity
15 CE 4 yrs Higher studies
16 EE 4 yrs Compensation and
higher studies
17 GTE 2 yrs Higher studies

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The above chart also indicates the various reasons for which the
employees leave the organization.
 Higher Studies – 25%
 Desire change in function – 25%
 Better opportunities – 25%
 Marriage and own Business – 12.5%
 Other reasons – 12.5%
Reasons for resignation
Higher Studies Change in Function Better Opportunities
25%
Reasons
Marriage, Business Other Reasons
12%
13%
25% 25%
* Above mentioned statistics are based on individual analysis and
study of the researcher. Due to the company’s policies about
classification of data is not possible to get actual statistical figures
from the company like the various reasons of resigning during
research period.

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Theoretical Background
Attrition
The reduction in staff and employees in a company through
normal means, such as retirement and resignation. This is natural
in any business and industry.
What is meant by Attrition Rate?
The term 'attrition rate' can be defined as "A reduction in the number
of employees through retirement, resignation or death." It denotes the
percentage change in the labor force of an organization. High
percentage of labor turnover is not desirable for the organization
because new workers are engaged in place of the workers who left the
organization.
The attrition rate has always been a sensitive issue for all
organizations. Calculating employee turnover rate is not that simple
as it seems to be. No common formula can be used by all the
organizations. A formula had to be devised keeping in view the nature
of the business and different job functions. Moreover, calculating
attrition rate is not only about devising a mathematical formula. It
also has to take into account the root of the problem by going back to
the hiring stage.
Attrition rate
There is no standard formula to calculate the attrition rate of a
company. This is because of certain factors as:
 The employee base changes each month. So if a company has
1,000 employees in April 2009 and 2,000 in March 2010, then
they may take their base as 2,000 or as 1,500 (average for the

year). If the number of employees who left is 300, then the
attrition figure could be 15 percent or 20 percent depending on
what base you take.
 Many firms may not include attrition of fresher’s who leave
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because of higher studies or within three months of joining.
 In some cases, attrition of poor performers may also not be
treated as attrition.
Calculating attrition rate
Attrition rates can be calculated using a simple formula:
Attrition = (No. of employees who left in the year / average
employees in the year) x 100
Thus, if the company had 1,000 employees in April 2009, 2,000 in
March 2010, and 300 quit in the year, then the average employee
strength is 1,500 and attrition is 100 x (300/1500) = 20 percent.
Why do Employees Leave the Organization?
Employees do not leave an organization without any significant
reason. There are certain circumstances that lead to their leaving the
organization. The most common reasons can be:
Well, the most obvious reason for employees leaving any
organization is higher pay. The main problem here is that employees
are moved from one location to another location along with their
family. But this problem is taken care of by a salary hike which may
be around 20%-35% per annum.
Another factor is work timings. In some organizations, work timings
are such that they are making employees leave the organization.
Another factor is career growth. In many organizations, only 20% of
employees are able to go to senior levels. This means that the

remaining 80% of employees look for other organization where they
can get opportunities for growth.
One more reason for leaving the organization is higher education.
These days, in many organizations, employees are joining at very
young age because of lucrative salaries being offered. But with time,
they apply for higher education
And try to move on to other organizations or sectors to occupy top
management positions.
The percentage of women workers is also responsible for higher
attrition rate. These days, the percentage of women workers is around
30%. Generally, women workers leave the organization after marriage
to take up their house-hold duties, irregular work hour’ set al.
Other factors include accident making the worker permanently
incapable of doing work, dislike for the job or place, unsatisfactory
work conditions leading to strained work relationships with the
employer; lack of security of employment et al also contribute for
higher attrition rate.
80% of employee turnover can also be attributed to the mistakes
during hiring process
Sometimes the job responsibilities don’t come out to be same as
expected by the candidates. Unexpected job responsibilities lead to
job dissatisfaction.
A candidate may be fit to do a certain type of job which matches his
personality. If he is given a job which mismatches his personality,
then he won’t be able to perform it well and will try to find out
reasons to leave the job.
If the work is not appreciated by the supervisor, the employee feels
de-motivated and loses interest in job.
Lack of trust and support in coworkers, seniors and management is
also one of the major reasons. Trust is the most important factor that
is required for an individual to stay in the job. Non-supportive
coworkers, seniors and management can make office environment
unfriendly and difficult to work in.
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From employee point of view
According to the employees, attrition at the
professional/supervisor/technical level was the highest (39%) and
lowest at the senior/top management level (1% approximately).
Attrition Rates in Different Sectors in India During 2007
The attrition rates in different
sectors for the year ended 2007
are shown in the following
table: -

From the above table, we can deduce that for the year ended 2007; the
attrition rate in some sectors is grim. It is 50% in Retail Sector and
Voice-based BPOs. On an average, the attrition rate in Indian
economy is around 20% where as global average is around 24%.
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IMPACT OF TURNOVER
The heavy rate of turnover is a great handicap for workers and
industry alike, for it implies a reduction in skill and efficiency on the
part of the worker and reduced output for the industry. However,
some amount of labor turnover is
inevitable and even natural, particularly when it stems from the
retirement of old employees and the accession of new blood. Such
turnover may not only be avoidable but it welcome to some extent. In
some cases, it arises because of resignations and dismissals. This
turnover is harmful to the efficiency of the worker and impairs the
quality of production. It is a serious obstacle to the full utilization of a
country’s human and material resources.”From the workers side, they
are not only deprived of various advantages of continued

employment, viz, opportunities of grade pay, bonus, provident fund
and leave, but they have been to purchase their reengagement; and
there is bound to be less solidarity among workers who move from
mill to mill”
THE FOLLOWING COSTS ARE INVOLVED WHEN AN
EMPLOYEE LEAVES AN ORGANISATION
a) Training costs, involving the time of the supervisor, the
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personnel department and the trainee.
b) Hiring costs, involving time and facilities for recruitment,
interviewing and examining a replacement.
c) The pay of the learner is in excess of what is produced.
d) Accident rates of new employees are often higher.
e) The loss of production in the interval between the separation of
the old employee and the replacement by the new.
f) The production equipment is not fully utilized during the hiring
interval and the training period.
g) Scrap and waste rise when new employees are involved; and
h) Overtime pay may result from an excessive number of
separations causing trouble in meeting contract delivery dates.
Advantages of Attrition
Attrition is not bad always if it happens in a controlled manner. Some
attrition is always desirable and necessary for organizational growth
and development. The only concern is how organizations differentiate
“good attrition” from “bad attrition”. The term “healthy attrition” or
“good attrition” signifies the
importance of less productive employees voluntarily leaving the
organization. This means if the ones who have left fall in the category
of low performers, the attrition in considered being healthy.

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Attrition rates are considered to be beneficial in some ways:
 If all employees stay in the same organization for a very long
time, most of them will be at the top of their pay scale which
will result in excessive manpower costs.
 When certain employees leave, whose continuation of service
would have negatively impacted productivity and profitability of
the company, the company is benefited.
 New employees bring new ideas, approaches, abilities &
attitudes which can keep the organization from becoming
stagnant.
 There are also some people in the organization who have a
negative and demoralizing influence on the work culture and
team spirit. This, in the long-term, is detrimental to
organizational health.
 Desirable attrition also includes termination of employees with
whom the organization does not want to continue a relationship.
It benefits the organization in the following ways:
o It removes bottleneck in the progress of the company
o It creates space for the entry of new talents
o It assists in evolving high performance teams
 There are people who are not able to balance their performance
as per expectations, lack potential for future or need disciplinary
action. Furthermore, as the rewards are limited, business

pressures do not allow the management to over-reward the
performers, but when undesirable employees leave the
company, the good employees can be given the share that they
deserve.
Positive attrition also sends a necessary message to the other
employees that there is no place for incompetence. Dead-woods in
any organization have a debilitating impact on people. Furthermore,
as the rewards are limited, business pressures do not allow the
management to over-reward the performers, but when undesirable
employees leave the company, the good employees can be given the
share that they deserve. Desirable turn-over motivates not only the top
management but if each and every employee shares the benefits, the
lowest hierarchy motivates everybody and the next year the targets
could be much higher. Any positive impact that can be made on
attrition will have a direct impact on profitability. So, attrition is a
boon in disguise.
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Disadvantages of Attrition
In some industries, a higher level of employee turnover is expected
and this is typically accounted for, however in other industries, a rapid
degree of staff turnover can be costly. Whether or not high employee
turnover is a problem depends on the industry. Some industries expect
and command high turnover, while other kinds of businesses depend
on the longevity of employees in order to thrive, keep costs down and
succeed. It's probable for most industries high employee turnover is
more of a problem than a benefit.
The disadvantages are:
 High costs are one of the biggest drawbacks to high employee
turnover. It takes a lot of efforts and resources in the application
process to advertise positions, recruit, interview and hire. The
costs associated with the hiring process can run steep after a
while if this is a repeated pattern and the need for new employee
recruitment is ongoing.
 Once an employee is brought on board, they need time to learn
their job and this entails training. It doesn't matter whether or
not the training is informal or formal, effort and time of other
employees has to be shared in order to bring the new staff
member up to speed.
 When colleagues are continuously pulled away from their own
work to train new hires, this weighs down on their ability to do
their own jobs and can impact productivity, which is costly.
 The knowledge of employees is a considerable asset for a
company to possess. Everyone has something of value to add to
an organization and an employer that experiences a lot of
turnover is going to see a lot of that valuable knowledge
walking right out the door. Perhaps even into a competitor's
entryway and join their organization to share their knowledge

The business impact of good and bad attrition can be felt in both
tangible and intangible ways. The tangible aspects are: -
42
o Loss of knowledge capital.
o Delay in execution of projects / assignments.
o Loss of production.
o Increasing cost of recruitment.
On the intangible front, it would result in: -
o Impact on employer brand.
o Burden and burn-out on existing employees.
o Internal information and knowledge is being shared outside.
o Existing team also gets de-focused / de-motivated for some
time.
Job loss is one of the most difficult work-related situations that a
company and an individual may encounter in the present scenario.
Yet, sometimes job loss may also turn into a blessing in disguise.
Combining the career literature with the literature on unemployment,
the current paper addresses potential positive outcomes of job loss by
career adaptability activities that individuals can undertake to obtain
these outcomes.

43
EXIT INTERVIEW FORM (SAMPLE)
This questionnaire is designed to improvise the work culture and
organizational climate prevailing in Bharat Forge. Your sincere
advice will help us in making the work culture more satisfying and
fulfilling for our associates. We would appreciate it if you would take
a few minutes to respond to the questions below. All answers will be
held in strict confidence. Thank you.
Name: Designation: Department:
Branch:
Period of service in
BF:
Resigning /
Termination:
1. What are your primary reasons for leaving Bharat Forge?

44
2. What did you find most satisfying about your job?
3. What did you find most disappointing about your job?
4. Would you recommend Bharat Forge to a friend as a good place
to work?
5. Is there anything the company could have done to prevent you
from leaving?
6. If you are leaving for a new position, what makes it more
attractive than the one you are leaving?
 Compensation and benefits  Opportunity for
advancement & growth
 More desirable location  More responsibility
 Opportunity to work on good projects  Working for a Big
industry
 More job flexibility  others (please specify)

45
7. How would you rate the following?
Good Poor
Comments
Performance reviews  
Opportunity for advancement & growth  
Training received  
Company policies and practices  
Your job responsibilities  
Support you received from management & superiors  
Your compensation & benefits  
Transparency in company’s processes  
Internal Communication  
8. What suggestions do you have in terms of responsibilities,
growth and future prospects associated with your position in
Bharat Forge?

9. Do you feel you were fairly compensated for the position you
46
held?
10. Did you like/enjoy your job?
11. Was your job what you expected it to be? If not, how did it
differ?
12. Do you feel you were placed in a position compatible with
your skills? If not, explain.
13. Do you feel that there was the possibility for advancement
in your position? If not, what do you feel prevented
advancement?
14. Do you think you should have been offered more
training/development within the position you held?
15. What was the greatest challenge you faced in your
position?

16. Are there any particular practices or working conditions
that either led to your decision to resign or that you feel are
detrimental to a satisfactory working relationship? If so, have
you any suggestions on how to eliminate them?
17. Are there any particular practices or working conditions
that you feel are particularly beneficial to an effective working
relationship and that should be maintained?
18. Did you feel a sense of security in your position? If not,
47
why?
19. How did you find the morale within your department?
20. Were you motivated to reach peak of your performance?
21. Were you ever discouraged?
22. Did you gel well with your teammates & superior?

23. Was there anything the company could have done to
48
improve morale?
24. Were the working conditions suitable? (i.e. hours, work
area, etc.)
25. Did you feel you were well informed regarding the
company’s policies and procedures? If not, why?
26. Is there anything we could have done differently that may
have affected your decision to leave?
27. Would you care to make any other comments?
Interviewer Signature Employee
signature

49
RESEARCH METHODOLOGY
INTRODUCTION
 TECHNIQUE:- Descriptive
 SAMPLE SIZE:- 50
 POPULATION:- 200
 SAMPLE METHOD:- Convenience sampling
 DATA COLLECTION:-
1. PRIMARY DATA:- QUESTIONAIRE
QUESTIONAIRE TYPE: - Closed ended
2. SECONDARY DATA: - Company record, company
brochure, reference books, and internet.
BASIC FEATURES OF RESEARCH PROCESS
ARE:-
Research always starts with a question or a problem. Its
purpose is to find answers to questions through the
application of scientific
method. It is a systematic and intensive study directed
towards a more complete knowledge of the subject
studied.
METHODS OF DATA COLLECTION
Data collection is an elaborate process in which the
researcher makes a planned search for all relevant data and
is the foundation of all researches. A researcher functions

with the raw material. The task of data collection begins
after a research problem has been defined and research
plan is chalked out. While deciding about the method of
data collection to be used for the study the researcher
should keep in mind two types of data viz., primary data
and secondary data. In order to carry out the project work,
both the methods are used. Primary data was collected
through questionnaire form, observation method and
interview. Whereas secondary data was gathered by
referring the official documents, files, books, literature,
etc.
50
SOURCES OF DATA
A. SECONDARY DATA
Secondary data is the data already collected by others for purposes
other than solutions of the problem at hand. In case of secondary data,
the nature of data collection work is merely that of compilation.
Secondary data has several supplementary uses.
1. INTERNAL SOURCES
Company records
Service reports
Annual reports
Company brochure
Company websites.

51
2. EXTERNAL SOURCES
Reference books
Magazines
Newspapers
B. PRIMARY DATA
The data that is being collected for the first time or
particularly fulfill the objectives of the project is known as
primary data. In my study work, interpersonal interview was the
method of data collection. The most effective form of collecting
the data for project was the questionnaire form. A questionnaire
was prepared in a series covering the matter required for the
purpose of study. A sample size of 50 employees was selected
from different departments and the questionnaire was handed
over to them. The feedback was taken from the employees in the
answer form. Then the data collected from the feedback was
sorted and analyzed in order to carry out the further study. From
the feedback, the similar responses were grouped together. These
groups were then represented in graphical form covering the
overall information needed from the employees.
DATA EVALUATION
All the data and information collected from the secondary
sources and company officials was filtered and only
relevant data is introduced in the report which helped in
achieving objective of the project. This relevant data is
finally evaluated to make the final report in addition, to
draw the conclusion.

52
DATA INTERPRETATION AND ANALYSIS
Q1 What according to you is the most important reason for
attrition??
Ans: 1) lack of proper work environment
2) Remuneration is not according to skills
3) Lack of job rotations
4) Lack of rewards for performance
5) Other
Options Members
lack of proper work environment 20
Remuneration is not according to skills 10
Lack of job rotations 10
Lack of rewards for performance 5
Other 5
Total 50
lack of rewards for
INTERPRETATION
lack of proper
environment
42%
performance
10%
Other
6%
lack of job rotation
21%
remuneration is not
according to skills
21%
According to the analysis, it can be observed that due to lack of
proper work environment, there is attrition problem in the company

53
Q2 According to you, which of the following solutions can help
reduce attrition in the company??
Ans: 1) Bring positive changes in work environment
2) Provide training and development
3) Enhance the competence of managers
4) Provide equal work opportunities
5) Other
Options Members
Bring positive changes in work
environment
18
Provide training and development 12
Enhance the competence of managers 8
Provide equal work opportunities 7
Other 5
Total 50
INTERPRETATION
Being positive
changes in work
envi ronment
36%
Other
10%
Provide equal work
opportunities
14%
Enhance the
competence of
Provide training
and development
24%
managers
16%
According to the analysis, it can be observed that if there are certain
positive changes made in the work environment, then the rate of
attrition can be controlled.

54
Q3 As an employee do you feel that the rate of attrition can be
lowered??
Ans: 1) Yes
2) No
Options Members
Yes 35
No 15
Total 50
0% 0%
INTERPRETATION
Yes
70%
No
30%
According to the analysis, it has been observed that the attrition rate
can be controlled by the company.

55
Q4 Are you satisfied with the working conditions prevailing in your
company??
Ans: 1) Yes
2) No
3) Can’t say
Options Members
Yes 10
No 35
Can’t say 5
Total 50
0%
Can't Say
INTERPRETATION
Yes
33%
17%
No
50%
According to the analysis, it can be observed that the most of the
members of the company are satisfied by the working conditions
provided by the company.

56
Q5 Was the work environment conducive ??
Ans: 1) Very conducive
2) Conducive
3) Favorable
Options Members
Very conducive 15
conducive 20
Favorable 15
Total 50
INTERPRETATION
Very
0%
Conducive
30%
Conducive
40%
Favorable
30%
According to the analysis, it can be observed that most of the
members feel that the work environment is encouraging.

57
Q6 what do you expect the notice period should be??
Ans: 1) 14 days
2) 1 month
3) 3 months
4) or less than 14 days
Options Members
14 days 25
1 month 10
3 months 10
Or less than 14 days 5
Total 50
Or less than 14
days
2%
3 months
22%
1 month
22%
INTERPRETATION
14 days
54%
According to the analysis,it can be observed that most of
the members agree to have a notice period of 14 days because it helps
them to find better opportunities.

58
Q7 what sort of fringe benefits do you expect from the company??
Ans: 1) Trips
2) Bonuses
3) Free education to children
4) Other
Options Members
Trips 8
Bonuses 12
Free Education 20
Other 10
Total 50
INTERPRETATION
Trips
19%
Bonuses
29%
Free Education
49%
Other
3%
According to the analysis, it can be observed that most of the
members prefer free education for their further studies rather than the
other benefits provided to them.

59
Q8 From how long have you been working with the company??
Ans: 1) 1 year
2) 2 years
3) 6 months
4) or less than 3 months
Options Members
1 Year 15
2 Year 20
6 Months 15
Or less than 3 Months 0
Total 50
1 Year
29%
Or less than 3
Months
2 Year
39%
6 Months
29%
3%
INTERPRETATION
According to the analysis, it can be observed that there are more than
35% of the members who are working for more than 2 years.

60
Q9 Are you provided with training and development sessions??
Ans: 1) Yes
2) No
Options Members
Yes 50
No 0
Total 50
INTERPRETATION
0%
Yes
100%
According to the analysis, it can be observed that the company
provides their members with training and development sessions for
their and company’s betterment.

61
Q10 what kind of work environment revolves in your company??
Ans: 1) Good
2) Average
3) Excellent
Options Members
Good 5
Average 35
Excellent 10
Total 50
Good
61%
Excellent
14% 0%
Average
36%
INTERPRETATION
According to the analysis, it is been observed that most of the
members of the company are satisfied with the work environment.

62
Q11 On a rating scale how would you scale your performance
management system??
Ans: 1) Good
2) Average
3) Excellent
Options Members
Good 15
Average 20
Excellent 15
Total 50
INTERPRETATION
0%
Good
61%
Excellent
22%
Average
36%
According to the analysis, it is been observed that the members rate
their performance management system on a rating scale as average.

63
Q12 Do you think poor performance appraisal is the main reason for
attrition??
Ans: 1) Strongly agree
2) Neutral
3) Somewhat agree
4) Somewhat disagree
5) Strongly disagree
Options Members
Strongly agree 8
Neutral 12
Somewhat agree 5
Somewhat disagree 10
Strongly disagree 15
Total 50
Strongly agree
16%
Neutral
24%
Somewhat agree
10%
Strongly
disagree
30%
Somewhat
disagree
20%
INTERPRETATION
members disagree that performance appraisal is not only the main
reason for attrition.

64
Q13 Do you justify your performance review by the manager??
Ans: 1) yes
2) No
3) Maybe
Options Members
Yes 20
No 15
Sometimes 15
Total 50
INTERPRETATION
Yes
40%
0%
Sometimes
No
30%
30%
members of the company, justify their review by the manager.

65
Q14 How would you rate your team working skills??
Ans: 1) Average
2) Excellent
3) Below Average
Options Members
Average 10
Excellent 35
Below Average 5
Total 50
0%
INTERPRETATION
Average
20%
Below
Average
10%
Excellent
70%
According to the analysis, it is been observed that 70% of the
members of the company rate their team working skills as excellent.

66
Q 15 How would you rate employee motivation in this company??
Ans: 1) Above average
2) Average
3) Below average
Options Members
Above Average 30
Average 15
Below Average 5
Total 50
Below
Average
3%
0%
Average
32%
INTERPRETATION
Above
Average
65%
members rate their employee motivation above average.

67
LIMITATIONS
 The project had to be completed in a stipulated time therefore all
demerits pertaining to stipulated time are also applicable to my
project.
 The industry did not provide the confidential data to the summer
trainees which could be helpful for the further analysis.
 The candidate gave biased answer to the questionnaire.
 The communication duration between the employees and
employers was less.

68
SUGGESTIONS
 Offer fair and competitive salaries. Fair compensation alone
does not guarantee employee loyalty, but offering below-market
wages makes it much more likely that employees will look for
work elsewhere. In fact, research shows that if incomes lag
behind comparable jobs at a company across town by more than
10 percent, workers are likely to bolt. To retain workers,
conduct regular reviews of the salaries you offer for all job titles
— entry-level, experienced staff and supervisory-level.
Compare your department's salaries with statistically reliable
averages. If there are significant discrepancies, you probably
should consider making adjustments to ensure that you are in
line with the marketplace.
 Remember that benefits are important too. Although benefits are
not a key reason why employees stick with a company, the
benefits you offer can't be markedly worse than those offered by
your competitors
 Train your front-line supervisors, managers and administrators.
It can't be said often enough: People stay or leave because of
their bosses, not their companies. A good employee/manager
relationship is critical to employee satisfaction and retention.
Make sure your managers aren't driving technologists away.
Give them the training they need to develop good supervisory
and people-management skills.
 Clearly define roles and responsibilities. Develop a formal job
description for each title or position in your department. Make
sure your employees know what is expected of them every day,

what types of decisions they are allowed to make on their own,
and to whom they are supposed to report.
 Provide adequate advancement opportunities. To foster
employee loyalty, implement a career ladder and make sure
employees know what they must do to earn a promotion.
Conduct regular performance reviews to identify employees'
strengths and weaknesses, and help them improve in Areas that
will lead to job advancement. A clear professional development
plan gives employees an incentive to stick around.
 Make someone accountable for retention. Measure your
turnover rate and hold someone responsible for reducing it. In
too many workplaces, no one is held accountable when
employees leave, so nothing is done to encourage retention.
 Conduct employee satisfaction surveys. You will not know
what's wrong or what is right unless you ask. To check the pulse
of your workplace, conduct anonymous employee satisfaction
surveys on a regular basis. One idea: Ask employees what they
want more of and what they want less of.
 Write a mission statement for your department. Everyone wants
to feel that they are working toward a meaningful, worthwhile
goal. Work with your staff to develop a departmental mission
statement, and then publicly post it for everyone to see. Make
sure employees understand how their contribution is important.
 Provide a variety of assignments. Identify your employees'
talents and then encourage them to stretch their abilities into
new areas. A variety of challenging assignments helps keep the
workplace stimulating.
69

70
CONCLUSION
Human resource management is a process which involves around four
basic functions- acquisition, development, motivation and
maintenance of human resources. These basic elements are the key
steps for achieving organizational goals. The basic influencing factor
of these components is organizational goal because such activities are
to be performed within the given constraints in order to accomplish
the task. These four elements or factors of HRM can be described as
follows:
 Acquisition
 Development
 Motivation

71
 Maintenance
The main aim of any organization is to earn profit. But to attain the
maximum profit, the organization should concentrate more on
employees and the ways to retain them for their long run.
To control attrition level in the Bharat Forge Ltd., the company
should focus on
 What the employees really expect from the organization?
 The common reasons for which the employees feel to change
their job?
 What makes employee to get dissatisfy in the organization?
From the study it is identified that, own business, the marriage
and working conditions are the major problem, which makes
employees to change their job from this organization.
This study concludes that to reduce attrition, Bharat
Forge Ltd should create some opportunities for the
growth of their employees through adopting new
Innovative Technologies, Effective training programs and the
company can recruit people’s who are around ,so the family
issue factor will not lead to attrition in future and the company
can curb attrition.

72
FINDINGS
1. Most of the respondents are males.
2. Majority of the respondents are between the age group of 25-45.
3. Most of the respondents are coming under the experience group of
2-3 years.
4. 35% of the employees agree that they have job security.
5. The employe es agree rules, regulat ions, procedures
and pol icies of the company.
6. Majority of the respondents were highly satisfied with monetary
benefits.
7. Majority of the respondents have agreed that training opportunities
are been provided by the company.
8. Majority of the respondents said that organization uses motivation
principles to improve their performance at work.

73
QUESTIONAIRE
Given by Leena Thomas H.R. Manager at Bharat Forge
Q1 What according to you is the most important reason for
attrition??
Ans: 1) lack of proper work environment
2) Remuneration is not according to skills
3) Lack of job rotations
4) Lack of rewards for performance
5) Other
Q2 According to you, which of the following solutions can help
check attrition in the company??
Ans: 1) Bring positive changes in work environment
2) Provide training and development
3) Enhance the competence of managers
4) Provide equal work opportunities
5) Other
Q3 As an employee do you feel that the rate of attrition can be
lowered??
Ans: 1) Yes
2) No
Q4 Are you satisfied with the working conditions prevailing in your
company??
Ans: 1) Yes
2) No
3) Can’t say
Q5 Was the work environment a conducive (encouraging)??

74
Ans: 1) Very conducive
2) Conducive
3) Favorable
Q6 what do you expect the notice period should be??
Ans: 1) 14 days
2) 1 month
3) 3 months
4) or less than 14 days
Q7 what sort of fringe benefits do you expect from the company??
Ans: 1) Trips
2) Bonuses
3) Free education to children
4) Other
Q8 From how long have you been working with the company??
Ans: 1) 1 year
2) 2 years
3) 6 months
4) or less than 3 months
Q9 Are you provided with training and development sessions??
Ans: 1) Yes
2) No
Q10 what kind of work environment revolves in your company??
Ans: 1) Good
2) Average
3) Excellent

75
BIBLIOGRAPHY
While undergoing the project for collecting various information’s and
details We have referred the following:-
1) http://www.chrmglobal.com
2) http://www.citehr.com/
3) http://www.bharatforge.com/
4) www.wikipedia.org
5) www.hrmglobal.com
6) www.answers.com
7) www.edu.co.in
8) www.scribd.com
11) www.highbeam.com
12) www.indianmba.com
13) www.mbaarticles.com
BOOKS
 Human Resource Management Reference Book
 Himalaya Publishing House, 2007
 Strategic Human Resource Management by K Ashwatappa
 Human resource management by Michael Armstrong

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