HRM Dissertation Indian Organisation [www.writekraft.com]

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Dissertation
Influence of HRM practices on the retention of core employees of an India
organisation
Master of Business Administrator (MBA)
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Lecturer:

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Table of Contents
DECLARATION............................................................................................................................3
ACKNOWLDGEMENT..................................................................................................................4
LIST OF TABLES..........................................................................................................................5
ABSTRACT ..................................................................................................................................6
CHAPTER ONE............................................................................................................................7
1.1. Introduction..................................................................................................................7
1.2. Aim and Objectives of the Study ...................................................................................10
1.3. Background of the Study............................................................................................... 11
1.4. Value of the Study........................................................................................................ 12
1.5. Limitations of the study................................................................................................ 12
Chapter Two: Literature Review................................................................................................... 14
2.1. Introduction................................................................................................................ 14
2.2. HR Models of Architecture ........................................................................................... 15
2.3. HRM Practices............................................................................................................. 19
2.4. HRM factors deciding retention....................................................................................20
2.5. HR Factors in Retention...............................................................................................22
2.6. Organisational Commitment.........................................................................................30
Chapter 3 : Research Methodology...............................................Error! Bookmark notdefined.
3.1. Introduction................................................................Error! Bookmark notdefined.
3.2. Secondary Data............................................................Error! Bookmark notdefined.
3.3. Primary Data...............................................................Error! Bookmark notdefined.
3.4. Research Approach......................................................Error! Bookmark notdefined.
3.5. Approach Justification .................................................Error! Bookmark notdefined.
3.6. Ethical Considerations .................................................Error! Bookmark notdefined.
References: ............................................................................................................................... 7 0

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DECLARATION
I declare that this Research work is my own original study and has never been
presented to any other university for award of any academic certificate or anything
similar to such. I seriously accept and stand to correct any inconsistence.
Signature
…………………………………………………..
DATE :
…………………………………….
STUDENT’S NAME

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LIST OF TABLES
Table 4.1 - Top 5 HR factors affecting retention
Table 4.2 - Top 5 organisational factors affecting retention
Table 4.3 - Demographic information of Participants (Age, Gender, Occupation)
Table 4.4: Regression findings for Organisational Commitment as Dependent Variable
Table 4.5: Regression Results for Organisational Commitment as Dependent Variable
Table 4.6: Regression Results for Turnover Intention as Dependent Variable
Table 4.7: Regression Results for Turnover Intention as Dependent Variable

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ABSTRACT
In recent times it has been acknowledged by many organisation that employee
retention in one of the main challenges they are facing. Retaining their most
productive and skilled employee becoming difficult day by day for the organisations
and its very for companies future growth and development that they keep their
existing staffs. This research will analyse the existing HR practices that the INDIAN
organisations adopt to retain their key and important staffs. This study mainly points
out the important HR practices of organisation which affects the staffs decision to
stay with their companies.
The research divided into two parts. First part will be a qualitative approach and will
involve an in-depth one to one interaction with HR practitioners from an Indian
organisation to gain more data from them. Data gained from this will help the
researcher to build a more efficient tool for part two. Part two will involve a survey of
core and critical staffs of Indian organisation. This is quantitative analysis. This part
analysis the research question - ''Which of the HRM factors plays an important role
in the decision of employees to stay in an organisation"?
The findings from this research will help in determining the different HR factors which
helped in employee retention of Indian organisations. These factors belong to two
groups - HR Factors and Organisational Factors. The conclusion of HRM-retention
association will be studied via organisational dedication and earnings intent by
means of multiple regression analysis.
This study will make a contribution in HR practices of Indian and other worlds
organisation related to staff retentions via empirical evidence. This will point that
different HR factors that influences employee retention.

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CHAPTER ONE
1.1. Introduction
In today's generation firms has to compete with new ideas, trends and innovations
like new products, technologies, globalisation, changes of rules and regulation,
demographic variability etc and at the same place they have to make sure that the
new changes have been updated or implemented in their services/organisations and
products (Kane 2000). The result of this ever changing environment in business
sector makes it hard for the organisations to retain their core and critical employees.
It has been noted that society is more knowledge based in recent times and human
resources are proving vital elements in the survival of an organisation or for the
fruitful running of businesses. According to Porter, M.V (2001), these days all the
employees are running for acquiring the services best talent pool available in the
market. The new concept of the Business Management system in the organisations
are to retain and motivate skilful employees who can overcome the hurdles of
organisation pressure, market downturn, recession or reorganisation etc (Clarke
2001).
It has been noted that in today's era employees’ commitment towards their firms is
less as compared to old times when employer used to get employees loyalty in
return of job security but now employers cannot promise the job stability and
longevity to employees. According to Handy, C. (1995), “the trend of career portfolio
seems to be geared up in recent times". Employee loyalty has been decreased
whereas job flexibility has been increased due to volatility and divergence in market.
The divergence and volatility in job resulted in reduced job tenure and job insecurity
among the employees. Instability in job is contributing towards the increasing
inequality in social status, family income and economic security in India, UK and
other parts of world.
Human resources management (HRM) have been developed by organisations to
reflect their faith and values and also it helps in maintaining cordial relationship
between management and staffs. HRM also deals with employees problems and
needs. Organisation commitments towards employees are shown by implementing
HRM practices within the organisation and management trustworthiness (Whitener
2001 & Setton et al. 1996). This support of organisation towards employees result is
commitment of employees towards the organisation. Staffs performance and
attitudes are proportionate to their view and expectations towards the organisation

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and it also reflects the treatment they get from the organisation. According to
multilevel HR practice model of Ostroff, C. & Bowen, D.E (2000) human resource
actions are directly linked with staffs perceptions and attitudes. New and well defined
programs are placed in Human resource practices in organisations to increase the
staff retention rate. Plans like flexi leave, flexi working time and child assistance are
given to staffs to entice them to remain with the company. In recent time it has been
noted that HRM has become more strategic in its aim and operation (Hays &
Kearney 2001). HRM is modes which connect staffs to its organisational values, aim
and goals but it has been noted that many changes had occurred in the HRM
practices in last decades. In considering the future forecast of HRM, it is sensible to
scrutinize the improvements and guidelines of HR policies in terms of their
significance to the current personnel especially in the area of drawing and retention
of staffs. Researchers on retentions have defined retention management as a
planned, logical procedure that begins with an assessment of the cause that staffs
join an organisation (Davies 2001; Solomon 1999)
1.1.1. The Influence of HR Practices on Retention
Human resource rules and policies that organisation make truly reflect their
philosophy and opinion and the connection between management and staffs.
Sometimes policies are only meant for solving problems and needs of employees.
As explained by Oakland, S and Oakland, J.S (2001), Human resource practices
consist of selection and recruitment, Training/Development, performance
measurement practices, wage and reward systems, quality, health and safety,
information systems etc. In 90's several researchers and authors like Becker B. &
Gerhart B. (1996), Pfeffer, J (1994) had argued that good HR practices is the only
way for sustaining in developing market and it also helps in gaining competitive edge
over competitors. Human resource practices helps in creating a workforce that will
be unique and valuable to gain market advantage and it will be hard for competitors
to copy those practices (Pfeffer, 1998). According to Porter & Tripoli (1997), Number
of different researches at the organisational level concluded that many of the HR
practices influences the outcomes of organisation through influencing staffs
performance and attitudes.
As suggested by Whitener, E.M (2001) an organisation commitment towards it
employees is reflected by its HR practices and management trustworthiness. In
return of this commitment employees reciprocate back by showing their

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commitments towards the organisation. Commitment policy can be seen as equal
and opposite reaction of employers and employees towards each other. It can be
good or bad. Organisation handling which employees receive can be reflected from
employees’ attitudes and performance. The connection between human resource
practice and employee’s perception and attitudes is well defined by multimodal
model of Ostroff & Bowen (2000).
It has been proposed by many researches that retention of employees can be
enhanced by high-involvement job pattern. In most of the cases retention efforts are
to be considered from employer’s side and hence new and well defined practices
has been introduced in the view of getting good and positive results out of it.
According Perry-Smith, J & Plum, T.C (2000) in many incidents it has been seen that
not all practices can be enjoyed by all employees like child care plans and flexi-hour
working benefits cannot be taken by every employee’s. It has been observed that
requirements depends on the employees career stage like younger employers will
need more salary, growth opportunities and more leave but where as a person with
family will need job security and benefits like fund and all. Also requirements will
depend on genders – a woman employee need will be different from men (Beck,
2001).
In recent times it has been noticed that HRM practices has develop into more tactical
in its focus and function. HRM is supposedly being seen as a strategic employee
endeavour associated with organisational principles, aim and vision. As a result,
there is now bigger focus on to determining and improving staff and organisational
working; equal job opening and positive action procedures planned and executed by
human resources offices have added vastly to the variety if the workforce;
recruitment system have develop into more refined way; member of staff
remunerations systems have increased ( Oakland and Oakland, 2001). There have
been lots of changes in HRM policies in last ten-twenty years and many reforms
have been introduced in this. In considering the future scenario of HR practices, it is
sensible to study the expansions and trends of HR strategies with respect of their
significance to the current personnel especially in the field of holding and retention of
staffs.

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1.1.2 Strategic System - Retention Management
Researchers have said that retention management starts with finding the reason why
an employee agrees to join a particular company. As described by Fitzenz, J. (1990)
Retention management depends on following key parameters: company’s culture
and arrangement, staffing policies, wages and remuneration policies, staff support
systems in organisation and career growth prospects. The retention techniques that
can be very effective are career growth opportunities, incentives and rewards
programs. As per many studies it has been established that reviewing of advancing
HRM tools in training, reimbursement and incentive involvement have shown that
these can guide to reduced return and non-attendance, enhanced value of work and
improved economic outcome
To determine the retention parameters among the employee groups within an
organisation and then paying attention towards these factors helps an organisation in
forming a successful retention tools in their system. There are many key factors like
wages, compensation, quality of work, work relationship, award and recognition,
working hours, communication etc helps an organisation in retaining their talented
and skilful employees.
1.2. Aim and Objectives of the Study
It has been noted that in UK, Indian and other part of world that despite having HRM
practices in place many organisations is losing their key staffs. The purpose of this
study is to critical analyse and examine the existing HR practices on the retention of
main employees in Indian organisations. HR practice and retention relationship will
be examined in this study and also fundamentals related to the HR practices, which
affects the employee decision to stay with an organisation, will be identified in this.
Result extracted from this study may help an organisation to expand its effective
HRM retention policies. Retention of an employee is very vital for organisation with
respect of its strategic polices. Study may help an organisation in recruiting those
individuals who can commit themselves to their organisation and it will also aid in
improving the retention percentage of their highly talented and skilled core
workforce.

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The research objectives are:
 To evaluate which HRM factors is most influential for employees to make
them stay with company?
 To identify the factors that contribute to staff retention within the chosen
organisation
 To analyze the relationship between Human Resource Practices and
retention.
 To help in the development of an effective HRM retention policy for
organisations.
1.3. Background of the Study
In recent times when it has been seen that due to recession in market many
organisations have to cut down their head count few organisations have focused in
retaining their key staffs by investing money and time. The attention has been on
sorting out employees from the firms and not strengthening the bonds. The high loss
rate of key staffs is expensive to organisations. Losing a important employee means
organisation is losing the vital human resource, key expertise and institutional
reminiscence with them (Entrekin, 2001). With the loss of key workforce from a
group, company only they suffer low productivity nut also they lose the expertise
which can be valuable for companies growth. Skilful employees have the better
understanding of market in which organisation works, how to achieve competitive
advantage in market, they work on companies weakness and convert them to their
strength and also have better knowledge of customers and products. As stated by
Gutherie, J.P (2001), the knowledge and information stored in these key individuals
is an important part of company equity. There has been substantial attention in the
management study relating to the improvement of key competences so that
companies market value and performance can be improved (Prahalad & Hamel,
1990). Keeping these important key staffs is important part of corporate strategic
model and also for gaining competitive edge in market.
It has been noted that there is not enough empirical studies related to the Indian
organisations retention policies. This raises few concerns like: is one HRM practise
is OK for all or do we need different HR policies for different group of staffs? These
and some other untouched issues will form the background of this study. In order to

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achieve superior perceptive into the procedures and tools that organisation employ
to retain its staff, important research questions were created to carry out this study.
1.4. Value of the Study
It has been noticed that in current researches related to HRM literatures in employee
retention field is very limited in Indian organisations. There are many queries related
to the retention policies were asked by researchers. All these queries ask for theory
advancement and call for new models to be developed in the area of retention
policies especially in technical and engineering organisations of India, UK and other
parts of world. These unknown matters will be the research focus. In addition, this
study will progress the HRM literature on the rising pattern of the this era.
Fundamentally, this research will try to clarify the existing employment relationships
in Indian technical organisations.
This study will help in understanding the importance of retaining core employees in
an organisation. Study will add value in finding the reasons why retaining core staff is
beneficial to the organisations. Since there in not much literature about the benefits
of retaining employees this study will reflect how managing an employee is an
important aspect in this competitive market and also this study will assist in
developing the more comprehensive theoretical model of the HRM-retention
relationship.
1.5. Limitations of the study
According to Poole and Van de Ven (1989), a fine hypothesis is by description, a
inadequate, comparatively accurate picture. There is constant strain among internal
uniformity and the scope of hypothetical models. The criterion for prudence, firmness
and consistency has motivated this thesis to communicate a small but internally
reliable outline. The other face of the coin is the disapproval of the ideas for being an
unfinished illustration of difficult phenomenon. Numerous irrelevant, unrestrained
aspects could manipulate the model parameters. Though, this has to be countered
by the detail that the study was mainly related with retention management of core
and key important workforce in technical organisations of India.
One of the limitations were the facts gathered will be cross-sectional, so cause and
effect cannot be surely examined. Also, research will be restricted to specific kind of
industries hence the generalisation of the research may be limited due to the small
number of industry.

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Other research limitations are:
 Time factor is one of the important factors in carrying out any research. This
can hamper the progress of study and its result.
 Response rate is other important factor in carrying out this type of research.
Research result is purely based on the response rate of the participants.
 Biasness in response can be one of the limitations in the research.
 Cost of carrying out research can be a factor in the progress of research.
Sometime researcher needs to travel from one point to another several times
and finance can affect his or her research.
 In some instances data gathered from Secondary research is not sufficient
and dependable to back the data and result which is concluded from the
primary research method.

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Chapter Two: Literature Review
2.1. Introduction
In the recent times it has been observed that managing and developing people at
work plays an important role in improving the organisational functioning (Marchington
and Wilkinson 1997). As stated by Accenture (2001) in their statement that ‘people
are our most important asset’ reflects the importance of working staff. As per
Maguire, S. (1995) it has been established that there is common thinking of
appreciating and spending in the workforce among the successful companies.
Several theories established that Human Resource Management (HRM) is the
source of gaining competitive edge in the market among different players (Delery,
1998; Walker 2001). Employee retention is one of the important aspect of the HRM.
Moseley, Jeffers and Paterson (2008) stated that employee retention is key to
companies, as improved turnover generates unsteadiness and adds extra pressure
and stress on remaining employees, escalating job displeasure and therefore
affecting the turnover cycle.
Many of the organisations in recent times keep on struggling with retention because
they are depending on wages enhancement and bonuses to avoid turnover (Gumbus
and Johnson 2003). Fundamentally, many companies are now accepting that
retention is a strategic subject and correspond to a competitive edge in the market
(Walker 2001). The easiest means to retain staffs is to boost satisfaction levels; but
this will only be efficient if executed correctly (Denisi & Griffin, 2008). The challenge
is in handling or meeting different staff requirements, as these are diverse (Mello,
2010). Retention policy should be in place that deal with the requirements of staffs
who are more likely to leave.
This chapter explains the association between HRM practices and the retention of
core (important) staffs in the perspective of the Human Resource Architecture. It
inspects the roots of bad employee commitment and specially investigates
appropriate literature to recognize fundamentals of HR policies that influence staff
retention. The related literature is presented in this chapter to provide an overview of
the areas covered in the study.

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2.2. HR Models of Architecture
A HR model of architecture is a structure by which to differentiate staffs in order to
plan human resource aid procedures. It has been observed that in between 1990s
and 2000s huge amount of downsizing was done in companies in order to enhance
productivity and cost reduction. Though, the continuous cycle of reforming and re-
structuring by organisations had changed the new employment association (Wright
1995). The growing model for this employment association took many shapes.
The labour flexibility model by Atkinson’s (1985), proposes that corporations can
shape their employees actively to reach their organisations goals using flexible staff
scheme. Atkinson recognized 3 kinds of flexibility employment scheme: (1) numerical
flexibility (2) functional flexibility and (3) financial flexibility. This model recognises
“core” and “secondary” staffs. Secondary staffs include provisional, part time or
contractual staffs. Usually these staffs had been mentioned to as ''atypical'' and
''Contingent'' staffs in Europe and America respectively. These staffs are used for
numerical flexibility which includes the extension and reduction of staffs depends on
market variations and competitive demands (Lesperance 2001). Kaye and Jordan-
Evans (2010) stated that retention is even more important as a outcome of:
 The scarcity of skilled staffs,
 Transformation in staffs attitudes,
 The accessibility of new employment opportunities,
 The bigger revenue linked with employing new talent, and
 The reality that in the current market condition, acquiring talented staffs is the
separator.
Core or fulltime staffs gives corporations with functional flexibility and their skills and
talent can be transferred within the company because of change in demand of
product market and expertise. This set of the work force is multi-talented and well
trained to help a fast and soft deployment of staffs between works and assignments.
Retention is important for core employees because a leaving employee may have
the crucial skills and talent essential for a particular job or carrying out a task for a
project. It has been noted that because of such leavings product line may suffer. A
key talented staff may be hard to substitute – at least in the short term.
Finally, financial flexibility is explained as a condition where the amount a staff is
paid rest on the work done, working hours, or the organisational affordable sum
(Atkinson 1984; Nollen 1996). It may include a change to payment schemes such as
performance incentive (PI) to help either numerical or functional flexibility. Profit

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Sharing and employee share ownership plans (ESOPS) are other examples of
financial flexibility.
The RC Company (2010) comes up with three types of factors that decide an
organisation's capability to draw and retain core staffs. Factors are shown below in
figure 1.
Of the three groups mentioned above, organisational influences are the most
manageable; given a consideration of what is presently going on and what should be
occurring in an organisation. However, it may not be feasible or even legal to
manage person characteristics, it is comparatively simple to recognize connection
between them and job fulfilment and then adjust companies policies accordingly.
ORGANISATIONAL
INFLUENCES
Employment plans, policies
and the variety of other
factors which make up the
working climate or culture
in an organisation
INDIVIDUAL
INFLUENCES
Characteristics of
individual employees that
may indicate likelihood of
their joining and staying
with a given employer
External
Factors
These are outside the
organisation such as the
global labour market or
overall economic climate
Attraction
and
Retention
Figure 1: Source: The RC Company 2010

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Organisational influences that impact retention of employees are: career growth,
incentives/numeration, positive feedback, staff engagement and administration.
Similarly, Lepak & Snell (1999) Lepak and Snell came up with the basis of a HR
model that line ups diverse employment means and employment associations. This
model divided staffs into four sections as per the worth and exceptionality of their
skills/talent relative to the “core processes” of the company. The 4 employment
sections are (1) internal growth (core), (2) acquirement, (3) contracting and (4)
coalition. The descriptions of these 4 types of employees are outlined in Table 1
below:
Table 1:Four Different Employment Modes of HR Architecture. Source: “The human
resource architecture: toward a theory of human capital allocation and development,”
Academy of Management Review, vol. 24(1), Jan 1999, p. 31 (1), Lepak and Snell,
1999
Section 1 stand for core and key staffs that an organisation will spend in, with
respect of training and development, compensation/bonus and reimbursement and
other self improvement HR plans that will guard their investment (Entrekin and Court
2001; Lepak and Snell 1999).
Section1: Internal Growth
High value, high uniqueness employeesare ‘core’ employees
and a source of competitive value. Their value and
uniqueness may be based on ‘tacit knowledge’ that would
be valuable toa competitor.
These employees would be developed internally and the
organisation wouldinvest intheirtraining anddevelopment.
Section 3: Contracting
Low value, low uniqueness employees are those with low-
level skills that arewidely available in themarket. In this
case labour is treated as a commodity to be acquired when
needed.Thereis no long termrelationship, rathera
short-termeconomic exchange.
No investment intraining and development.
Section2: Acquirement
High value, low uniqueness employees are those whose skills
are valuedbut arewidely available inthemarket,for
example, accountants. These employees are likely to be
career-focused and havea conditional loyalty toa specific
organisation.
HR strategy is to buy from the market, emphasising
recruitment and immediate deployment of skills. Little
investment intraining and development.
Section4: Coalliton
Low value, high uniqueness employees are those who are not
essential to creating value and are therefore not ‘core’ but
who have skills that the organisation needs from time to
time, such as lawyers.
This is an alliance relationship for example, a law firm who
looks after a company’s legal affairs. There would be little or
no training and development.

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Section 2 stand for a substantial amount, independent skilled professionals like CA,
solicitors, academics, engineers. These key personnel have important skills and
talent that are not exclusive to a particular organisation and are reasonably
extensively spread in the labour market. These staffs have a provisional reliability at
best and are dedicated to their occupation (Entrekin and Court 2001; Lepak and
Snell 1999).
Section 3 stands for staffs whose skills and talent are low in worth and exclusivity
and basically stand for staff as a commodity which is broadly accessible and can be
procured and disposed of as necessary. Employees are more often than not
contractual and sub let. Provisional workforce in office and secretarial sector, call
centre staff, cleaning and maintenance are jobs that comes into this group (Entrekin
and Court 2001; Lepak and Snell 1999).
Section 4 stands for small value high exclusivity employees that the organisation
need not to directly hire or employ. They are low in worth and unsuccessful to
improve value to the core procedures or add to a competitive gain. The skills are
exclusive in that a organisation do not want them frequently enough to validate their
full time service. An example - coalition between a organisation and a academic
institution to offer particular kind of study contributions on a regular basis where the
combined worth of the association surpass the value both institution can create on its
own. (Entrekin and Court 2001;Lepak and Snell 1999).
The HR architecture unveils two outlook: the first outlook is that every employment
form holds with it an intrinsically dissimilar form of employment connection.
Rousseau (1995) explains employment associations as the "psychological
agreement of individual philosophy, formed by the company, about conditions of an
exchange contract between personnel and their companies". As employment forms
change, so does the character of the psychological agreements. Flex Execs
Management Solutions (2010) hypothesize that the answer to most people leaving
organisation is because of their line manager, supervisor or team leaders. One may
enquire what it is about this office association that formulates that it is the biggest
cause why so many persons leave their employments. Fundamentally, it is the
shortage of faith, contact, applicable and well-timed feedback, positive reception, fair
treatment and information.

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The second outlook of the HR model contemplates the outlines of HR procedures or
HR compositions to aid describe the employment means, sustain the employment
connection and eventually sustain the strategic character of human resources.
2.3. HRM Practices
Fundamentally, key staffs execute the necessary responsibilities in the organisation,
and human resource systems of that organisation are intended to provide help and
handle this human resource (Gramm and Schnell 2001). In companies human HRM
procedures act as a moderator between HRM policies and HRM outcomes.
Sheppeck and Militello (2000) split HRM policies into four categories: employement
talent and job policies, accommodating surroundings, performance mark up and
strengthening, and market organisation. As argued by Stavrou‐Costea (2005) that
Efficient HRM can play an influential aspect in a organisational success. As per Lee
and Lee’s (2007) research, the result of HRM practices on company performance
like learning and development, team effort, reimbursement/incentive, HR
development, performance evaluation, and staffs security aids enhance organisation
business execution including staff's productivity, quality of product and the
organisation flexibility. Present HRM philosophy put importance on the benefits of
fulfilling employee requirement and facilitating staffs to have power over their
professional lives. Many organisations identify the requirement to offer the data,
flexibility and say that staffs want to add to organisational achievement (Capelli
2000).
Ostroff & Bowen (2000) stated that HR strategies influence employees attitudes by
shaping staffs views regarding how organisation work and impacting their
anticipations of the nature and wisdom of their association with the company. There
is a common concept that HR practices cooperate with insight of organisational
endorsement to shape employee loyalty. As stated by Armstrong (2009), the
common idea of HRM is to make sure that a company is capable to attain
achievement via its work force. A familiar matter in HRM study is to grasp of ‘new
style’ HRM procedures intended to reach high levels of worker capability, flexibility,
and loyalty (Bach & Sisson, 2000). This denotes that current HR procedures have a
a great deal of direct bond to companies' strategy making and performance matters
than the conventional way to human resources management (Bach & Sisson, 2000).
High Involvement or commitment human practice methodology enhances
organisational efficiency by generating circumstances where staffs become greatly

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involved in the company and put effort to achieve the organisation's objectives
(Arthur 1994; Bishop 1998). Many team leaders and managers in recent time
identify the profits of "high involvement and commitment" HRM practices that react to
staffs requirements, promote workforce to take liability for their professional lives,
and encourage staffs to perform in ways that help the company (Baron and Kreps
1999). Knowledge sharing, communication accessibility, development and training,
and numeration are some of the way constantly establish in this "high involvement
and commitment" group. High involvement and commitment practices are those
procedures that motivate staffs to take on high levels of accountability for the
accomplishment of an organisation’s objectives. According to D'Cruz & Noronha
(2011) stated that high loyalty and commitment HRM practices improves staffs level
of ability, inspiration, data, and authorisation. With respect to make sure that this
procedure is doing well, HR unit must expand and execute HR practices that help
the employees to become self‐trained and self‐managed (Guthrie, 2001).
If high involvement and commitment HR procedures are used highly then it is
possible to have two bigger implications. One, as previous studies by different
authors (Arthur, 1994; Huselid, 1995; Shaw, Delery, Jenkins, & Gupta,1998).
suggested that high commitment and involvement in to work procedures increases
staff retention. Second, bigger use of these procedures may add to organisations
exposure to allocations connected with the staff loss (Guthrie, 2001). Huselid (1995)
proposes, after conducting a research of over 900 US companies, that HR practices
can be classed into two groups: one that enhance skills, and second that increases
staff motivation. The research observes that 1st group HR practices i.e includes
recruitment, training, learning, and development are connected with incomes and
financial accomplishment, and the 2nd group HR practices i.e staff motivation
includes performance evaluation and reimbursement actions are linked with
quantification of efficiency. Arthur (1994) likewise discovers a intense association
among staff retention and productivity in high involvement and commitment HR
practices.
2.4. HRM factors deciding retention
In the value chain of an organisation role of HRM is very important. It has been
hypothesized by several researchers that the responsibility of HRM in a company is
a major factor in the organisation's capacity to attain its organisational goals and
extend a viable competitive gain within the market where it functions.

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This can be accomplished by the strategies every organisations endorses, and the
process it adopt to entice and keep the correct workforce for its requirements
(Holland, et al., 2007). Studies done by many researchers reflected that there is
increasing indication
that HRM can act as an important factors in retaining a high skilled and talented
employees. It has been noted that advanced HRM policies in training,
reimbursement and remuneration contribution have shown that these can guide to
decreased turnover and non-attendance, good quality product/services, and
enhanced financial result. Adding to this is the study done by Accenture (2001) in
INDIAN, Europe and other part of the world on retention strategies of the
organisations. These strategies comprises of following:
 Providing broad training and development—to all employees irrespective of
whether staffs are full time, part-time or contract.
 Giving opportunities to workforce to work on different projects to keep them
interested and challenged in work and at the same time giving them chance
to enhance their skills
 Authorising and delegating employees by responsibility and making sure that
there is balance between personal and professional life and appropriate
working culture.
 Flexible working hours should be provided
 Proper Mentor and buddy should be allocated to staffs and staff must have
knowledge of their own progress growth.
 Staff should be updated with latest methodology and principles
 Making sure that staff have good access to their seniors
 Staff should be motivated to work towards business goals.
 Staff benefits should be provided like club membership, insurances etc.
 Good reward and salary packages to be offered.
Appointing competent individuals is an alluring point of leaving in the process; but
forming and keeping dedicated employees is more expected to be assisted by the
introduction of a series of refined HRM setup (Y. Chew, 2005). As per Fitz-enz
(1990), staff retention management program is governed by quite a few important
aspects, which must be handled correspondingly are: firm’s culture and organisation,
employment policies, salary and reimbursement values, staff welfare programs, and
a learning and training opportunities and career growth scheme. Subsequently,

22
companies’ make use of a broad array of these HRM aspects guiding retention and
involvement/commitment (Beck 2001; Parker and Wright 2001; Stein 2000).
In this study, all the factors are assessed and divided into two groups – one is HR
factors includes employee organisation fit, salary/benefits, leaning and training and
career growth, exciting openings or opportunities. Other group is of organisational
Factors include top management actions, team unity, organisational environment
and culture and organisational strategies. In below section these two groups are
explained.
2.5. HR Factors in Retention
 Employee Organisation Selection (fit)
Recruitment is a process in which an organisation look for candidates and invite
promising employees whereas selection is a process through which an organisation
find out those candidates with the talent, learning knowledge, expertise, capabilities,
and other qualities that will aid it accomplishing its objectives (De Cieri & Kramar,
2008).The concept of employee-job (E-J) selection (fit) stresses complementing
employee and jobs with respect of credentials based on understanding, talent and
knowledge, or capability, and observing other personal qualities of candidates that
possibly will be fit for the evaluation of "fit." (Edwards 1991). Though, as the job
complexity enhances, companies are adopting new selection techniques to get more
skilled workforce to do the job. Several employee-job selection studies shown that
employees attracted to works with difficulty levels in the job and that will
proportionate with their capability (Wilk and Sackett 1996). Companies attempt to
pick and employ the correct candidates. On the other hand, candidates collect
information regarding companies and recent jobs market trends and offers; because
they cannot get full information of all options and their possible descriptions, they
depend on inadequate data’s (Chan & Kuok, 2011). Many researches related
employee organisation selection point out the importance of having similarity
between employee's principles and the organisational principles for the reason that
values are visualised of as essential and comparatively permanent (Van Vianen
2000). In this study, principle similarity and employee-culture fit are considered as
equal terms.
 Salary, Benefits/reward and appreciation of employee value

23
Salary is a vital attribute of HRM. As stated b De Cieri & Kramar (2008) that the
salary scheme has a significant role in implement strategies. Work quality,
employee’s behaviour and their loyalty and willingness to improve are all
proportionate to the salary paid. A good amount of salary and benefits as compared
to the other players in the market can guarantee that a business draws and retains
high‐quality workforce (De Cieri and Kramar, 2008). Salary and benefits are the
modes by which employees measures whether the effort and time given by them to
organisation is worthwhile or not (Ryan & Sagas, 2009).
Organisations often offer sfalary packages better than the other players in market for
key talent. These packages comprise special salary payments, share options, or
additional benefits like bonus. Salaries have an effect on the recruitment process
and staff retention (Parker and Wright 2001;Williams and Dreher 1992) and thus play
an important part in the hiring process. Though, these studies correlate that wages,
by itself, will not be sufficient enough to keep staffs. It has been noted that less
wages or salary may be the case of employees leaving the company, but retention
cannot be guaranteed by higher packages. People remaining in company may
because they have better understanding with their working colleagues and are
occupied and attracted by work they do and thinks that it is refining their skills. Salary
carries on being vital in shaping motivation to execute (McCallum 1998). Previous
motivational concepts like expectancy and equity concepts had calculated
dissimilarities in motivation and this is because of altering valences of results as
salary (Das 2002). Staffs will be satisfied with their wages if they will feel that what
the are getting in return of their time, effort and dedication is same as other. If this is
not the case then dissatisfaction might happen within the employees. (Ryan &
Sagas,2009). Nonetheless, wages is read as one of the options and it has been
noted that time and again it is considered with little exactitude (Mitchell and Mickel
1999).
Though a relationship is present among reimbursement fulfilment and dedication and
is one of the factors of company’s commitment, nonetheless, it has to be measured
as one of the portions in a multifaceted scenario (Boyd and Salamin 2001).
Organisation must not concentrate only on wages, remuneration and benefits, but
also towards other greatly appreciated employment aspects like balance between
lifestyles and flexible working hours systems. Mentioned all are nonmonetary
remunerations known as intrinsic awards and they play an important part in
compensation contentment (Mitchell and Mickel 1999; Parker and Wright 2001).
Employees are likely to stay with the company if they realise that their potential, hard

24
work and performance inputs are acknowledged and valued (Davies 2001).
Reimbursement gives recognition, but few other types of non-monetary appreciation
are also imperative. Acknowledgment from top management, team co-workers,
colleagues and customers improve loyalty and commitment (Walker 2001). It has
been noted that one of the most important aspect in retention is to allow employees
to participate in decision making and let them take the lead.
 Learning, training and career growth
Training is regarded as a type of human resources investment irrespective of
whether that investment is sanctioned by an individual or by the firm (Goldstein
1991; Wetland 2003). Training programs are meant to enhance the employee’s skills
once they were recruited to the organisation. Once an employee joins an
organisation he is expected to gain new expertise and knowledge through
companies training scheme and he must start applying those skills on the job, and at
the same time must communicate those with fellow colleagues (Noe 1999). World’s
several successful organisations are knowledgeable that the training and
development provisions they are making rest at the centre of their capability to entice
and retain the finest staffs for their company. Hence it is essential that companies
must offer an chance for their personnel to learn (Bernsen, Segers, & Tillema, 2009),
as practical development plans will enhance the potentials of their team and also it
will encourages workforce and consequently bring about a more dedicated staff
group (Kyndt, Dochy, Michielsen, & Moeyaert, 2009). Training and development
could be of increasing fundamental literacy, learning of new technology and getting
familiar with existing one, interactive communication, or training related to how to
solve a problem.
Investment in training and development plans are developing as a key part of HRM
and result of the researches done on different industries and market sectors is that
there exist a positive association among training investment and staff loyalty. For
example, research done by Irving & Thomas (1997) and Marchington & Wilkinson
(1997) on staff dedication amongst staff of hospital sector like administrators, nurses,
service staffs, and data management staffs, and on the other hand it was also
conducted on doctors, research scientist and engineers; both result verify that staffs
were more dedicated to their works and attaining the companies goal when they
realise that the organisation do care about their training, leaning and development
requirements.

25
It has been observed that staff turnover and training level are inversely correlated i.e
the high turnover level means less training required. This hypothesis is established
on the interpretation that the if a staff stays for long time with a organisation, the
training outcome will be higher. A research done by Frazis et al. (1998) showed
That staffs of comparatively small companies spent about 59% of their entire training
time in formal training whereas in bigger orgainisation only 18% of staff invest time in
formal training. From the staff’s perspective if technical training is provided as per
company’s requirement then eventually it will reflect in the company’s productivity. If
productivity increases so does the wages of staffs will and hence giving them eason
to stay with company. It won’t be incorrect to say training can provide lower turnover
(Frazis et al. 1998; Wetland 2003). In summary, arrangement of proper training and
development can give positive result in the area of staff retention because through
this staffs feels that they are recognised for their abilities and talent and it generates
opportunities to expand their qualities (Kyndt, et al., 2009;Visser, 2001).
 Challenging and Exciting job opportunities and openings
It is very imperative that staffs should be engaged with the new exciting challenges
always else they will look for other opportunities where they will find the exciting jobs
to be done. One way to counter this issue is by allocating employees to the projects
in which they want to work and also keeping the options of inter unit or cross country
transfers. Engaging staffs with exciting and challenging projects and ensuring that
there is system in place through which performance can be measured and proper
feedback is gives and all this is vital for a good performance setting in which staffs
can accomplish their personal objectives (Furnham 2002). The need and eagerness
of learning new techniques keeps staffs fulfilled and inventive (Walker 2001). It has
been noticed that staffs always look for bigger responsibility and in quest of different
kind of works. Gaining cross function experience is also one of the factors which can
help in staff retention. In this if a employee stays with a company for a long period
then he can easily change his field like if he is good in technical then he can move to
management side to gain experience in that field. Shifting talented staffs in this way
not only guarantee that they will be tested, but also helps staffs to gain broad range
of experience within the group in the view that someday they will take leadership role
in the company.
Staffs who feels that company is not doing enough to provide them exciting and
challenging jobs and there is also not much scope of creativity and development,
those staffs will express their displeasure and will lack the dedication towards its

26
employers. More precisely, when the agreement linked to self-sufficiency and
development and bonuses and openings were violated, staffs were more prone to
register negative attitudes and displeasure toward the company, will also show low
commitment, and bigger signs to leave the company (Phillips 1997).
2.4.2. Organisational factor in Retention
 Top Management and Leadership
Leadership is explained as the actions of the person that ends in non-coercive affect
while that person is managing and organising the tasks of a team to the achievement
of a common objectives (Bryman 1992). Leadership and top management is
theorised with respect of four responsibilities that are required to be attained in every
organisation: giving objectives and direction, giving surety association, generating
loyalty and commitment and facing ever changing challenges (Risher and Stopper
2002). Leaders and Managers are key to the development of generating cultures,
schemes and arrangements that promote knowledge formation, sharing and
development (Bryant 2003). It has been noticed that after late 1990's organisations's
started putting emphasis on how leadership and top management behaviour
impacting the performance of a company (Giambatista, 2004; Rowe, Cannella,
Rankin, & Gorman, 2005). Lots of researchers had argued that the style of
leadership is important in achieving organisational success and it also affect the total
performance of an organisation (Rowe, et al., 2005). Many theories indicated that
leadership improved organisational loyalty and commitment. However differences
among the transformational and charismatic leadership concepts can be found,
academicians nowadays seeing them as they have many things in common which
they can share and coming up with new type of concepts known as the new
leadership or neo-charismatic theory (Gumbus and Johnson 2003; Nanus 1992).
Leaders from Transformational theory are considered as dynamic leaders with four
unique characteristics: charisma, motivation, logical stimulation and personanlised
consideration (Kouzes and Posner 1995). Many studies related to the leadership
have observed the influence of transformational and charismatic leaders, and results
shows that these leadership styles helps in obtaining bigger number of followers,
inspiration and loyalty as well as better organisational performance (Podsakoff,
McKenzie and Bommer 1996; Steyrer 1998). Hence, from the literature review, it can
be concluded that leadership behaviour has a constructive impact on firms
commitment and turnover intention.

27
 Organisational culture and Strategies (policies)
Organisational culture is explained as the indistinguishable factors that outline life in
a business company (Fitz-enz 1990; Sheriden 1992). Top Management and
leadership thinking and approach, interactions procedures and policies, customs and
taboos act together to generate the exclusivity of each organisation (Furnham 2002;
Guzzo and Noonan 1994). It has been observed that workforce tends to join those
organisation where they find working culture and overall environment appealing. But
it has been seen in last decades that cultural style of industries , in the past decade
the cultural characteristics of some industries have changed noticeably. And as soon
as the culture and environment transformed, whether because of expansion, new
management or financial and policies interference, some staffs become uneasy and
choose to leave the organisation in search of new company whose culture will best
suits them (Stum 1998). Structure is supplement of culture, which is created by
environment, culture and expertise. Structure begins by job designing and workflow
outlines, and comprises of strategies and processes, control period, interaction
associations and other aspects that govern how task is to be completed and
conducted. In view of the fact that employee enter organisations partially for the
reason that they are engrossed to the environment, working culture and
configuration, and that's where retention management starts. Managers and leaders
who scrutinise how efficient their organisational culture/environment and
arrangement are at retaining staffs require to do same from the bottom level (Judge
and Cable 1997; Sheriden 1992). From an organisational growth point of view, the
idea of organisational environment and culture proposes an opportunity for nurturing
modifications in performance and attitudes in bid to bring on required outcomes. But
to carry on this effectively, company's experts related to development should
discover if they can forecast specific manners and approaches based on outline of
company working culture. Supporters of tactical cultural transformation
characteristically craft a number of unconditional postulations. First, organisations
owns noticeable working cultures, which influence quality and execution of work.
Second, even though cultures may be defiant to change but to some degree they are
compliant and controllable. Thirdly, it is likely to recognise specific cultural
characteristics that make possible or reduce high-quality performance, and it must
be practicable for leader and managers to plan policies for cultural transformation.
Finally, it is believed that whichever profits attained from the cultural change will
overshadow any non-functional cost.

28
According to Allen, 1996, Staff commitment and loyalty may be encouraged by
owner-staff associations that permit the achievement of organisation financial
objectives as well as make available to staff. Study has revealed that workforce
commitment and loyalty to an corporation influences how better the organisation
executes in different styles. If it is seen that staff commitment changes in specific
expected style from a cultural style to another, company's development experst can
attempt to reinforce staff commitment and, so, organisational efficiency by altering
the company culture. All these researches and subjective support recommends a
encouraging relation among corporations working cultures and staff loyalty and
commitment (Koene et al 1997).
 Communication and consultation
Effectual communication has come into view from the complete literature review as
an important aspect of man management be it communicating the objectives, aims,
vision, policies and strategies of an organisation or the announcement of details,
information and data communication arrangement (Hart, Miller and Johnson 2003).
As per Clarke (2001), Effective communications reinforce member of staff
recognition with the organisation and create confidence (Levine 1995). For a
successful organisation, a uniform both way communication, mainly one to one with
staffs, was recognized as an significant aspect in building trust and a sense of being
appreciated (Fourtou 1997). Fundamentally, both ways communication is
considered as a key management capability and as a core management
accountability. The management accountabilities for efficient communication
comprise (1) making sure employee are informed on cores subjects, (2) fair and
honest communication on all subjects that can impact workforce, (3) motivating
employees to talk about organisations matters and provide upward responses and
(4) making sure issues from employees are passed to higher management and
appropriate reply on time is given (Fourtou 1997; Mumford and Hendricks 1996).
Numerous official and casual communication means are present; all intended to
promote an atmosphere of open channel of communication, shared skills and
knowledge and data also faith in an effectual cross functional arrangement. Standard
staff meetings and other information's permit workforce to regulate their hard work to
sustain organisation goals. Chances for responses offer staffs an opportunity to
control their own work and organisation strategies. Grievance process offer a official
way through which staffs issues can be point out there discontent by a verdict or
result (Gopinath and Becker 2000). Team leaders and colleagues are therefore
mainly accountable for communicating role potentials and responses regarding

29
activity performance (Miller and Jangwoo 2001). Therefore, companies that runs
efficient communications make sure that internal communications aid their staffs
and create the link amid positive facets of their job place and effectual management
strategies (Walker 2001).
 Team working relationships
It has been seen that staffs stay with organisation when they have good bonding with
their fellow co-workers (Clarke 2001). In today's generation it has been noted that
Companies promote team building chances and the projects opportunities where
team can work together. Also companies are putting emphasis on social dealings on
and off the job. One significance of team-oriented group is the relationship they build
between team members. Like Ray (1987) stated, "Talking about stress may provide
workers with a sense of camaraderie and esprit de corps that adds value to the
meaning of their work environment" (pp. 188-89). Fellow colleagues helpfulness
denotes to the responsiveness of and the degree to which colleagues give notice to
staff remarks and concerns ( Miller and Johnson 2003). Communications with fellow
workers may provide "an affective psychological function by providing emotional
support against the stresses of the organisation's socialisation initiatives and
uncertainties of the work setting" (Jablin 1987, p.702). In recent times, the attention
on collaboration, authorisation and flatter organisations places a incentive on
organisational behaviour that sustains a sponsorship that staffs perform
impulsively to advantage both the company and one's team. Basically, staffs who
function as a unit are more liable to believe an augmented commitment to the job
teams efforts and the company as a whole (Cohen and Bailey 1997; Meyer and
Allen 1997). Subsequently, staffs be likely to stay in organisations due to the good
association they have build at the workplace (Clark 2001; Marchington 2000).
 Satisfactory working conditions
Personal and family life balance is the one of the most important factor that
management must realise to gather employee commitment is management's. In
leaving and staying of employee in a company sometimes depend on their personal
problems and circumstances. People will remain with a organisation that evidently
thinks and concerns for their career precedence's, wellbeing, geographic location,
family, and other individual requirements (Gonyea and Googins 1992). For example,
many organisations are offering flexi-hour schemes and are looking for different
plans that will help a staff to manage its personal and professional life (Perry-Smith
and Blum 2000; Solomon 1999). Gumbus and Johnson (2003) points that the

30
enhancement to several work-life proposals intended at a organisational culture
depend upon performance and staff commitment. She stated, "We believe in a
healthy, well-balanced workplace that treats the employee as an individual, a family
member, and a member of the community." For that reason, several organisations
have effectively formed an staff friendly situation by amalgamating dedicated work
configuration such as flexi-hours, telecon, work from home and family-leave help to
help staffs in generating a work/life balance. Few academicians proposes that for
productive job experiences to enhance commitment considerably, staffs must think
that such job experiences are a outcome of efficient management strategies (Parker
and Wright 2001). So construct a positive culture into improved commitment may
rely on how better managers thrive at realising employees to credit good
management for their constructive experiences. Previous study in organisational
behaviour and HRM has shown that an organisation's commitment to its
staff tends, in return, to generate a further committed and responsible employees
(Eisenberger et al. 1990; Organ 1990) Hence, it come into view that the
employee/environment-selection hypothesis presumes that, as staffs accumulate
positive job experiences, corresponding commitment increases consequently.
(Lahiry 1994).
2.6. Organisational Commitment
In literature there are so many explanations of organisational commitment in the. It is
said that organisational commitment is multidimensional, linking staffs’ commitment
to the company and their enthusiasm to accomplish its objectives, keep its ethics
and foster its membership (Bateman & Strasser, 1984). Various attitudes and
manners associated to loyalty are acknowledged by Mowday, Steers and Porter
(1979). Porter, Steers, Mowday and Boulian (1974) acknowledged the chief factors
of commitment as ‘acknowledging and understanding the goals of the organisation
and the eagerness to work with loyalty to the organisational membership’. Sheldon
(1971) identified commitment as a affirmative outcome of Functional turnover i.e
non-performing staffs leave, but good performing employees remain whereas
Dysfunctional turnover means that better performing staff leave, but non- performers
remain.
Buchanan (1974) reflects that commitment is a link among the staff (individual) and
the company. Organisational behaviour is evaluated by monitoring organisational
loyalty. This is the personnel approach at the job place is strongly correlated to his or
her organisational commitment (Koch & Steers, 1978; Porter, et al., 1974). Bateman

31
and Strasser (1984) identify that loyalty to an organisation is connected to (i)
attitudinal performance and workforce behaviour, (b) work satisfaction efficiently
enhanced, (c) staffs job and role of accountability and (d) personnel features like
staff age, job period and more. Commitment is also explained as the level of
recognition and participation that persons have with their company's assignment,
principles and objectives (Mowday et al. in Price, 2003). It has been commented that
this commitment is subjective to the company’s rules and policies (Kyndt, et al.,
2009), and particularly by the organisational environment (Kaliprasad,2006). Foote,
Seipel, Johnson and Duffy (2005) also explained that authors have recognized
organisational loyalty as both an predecessor and a result of any number of
work‐connected factors. They include that the bulk of researches describe
organisational commitment as loyalty aimed particularly toward the company as an
administrative body. Porter et al. (1974) defined organisational commitment as:
(1) The confidence in and recognition of organisational aims and purposes.
(2) The eagerness to provide greater efforts on behalf of the company.
(3) A clear-cut intent to stay in the organisation.
Primarily, the meaning of commitment depend on the view that devoted
staffs have a aspiration to stay employed with their company (Meyer & Allen,
1997). The notion of organisational commitment was the centre of research carried
out in public, private, and non‐profit sectors. One section of research that attracted a
great deal of attention in the late seventies and early eighties involved the concepts
of commitment‐related attitudes and commitment‐related behaviours (Angle & Perry,
1981; Mowday, et al., 1979).
Some section of studies are determined on the cost of staff commitment. Reichers
(1985,) considers that ‘though the literature is fairly clear with respect to the
outcomes of commitment, the antecedents of commitment seem to be much more
varied and inconsistent…due to the several different ways in which commitment has
been defined and operationalized’. As per Steers (1977) and Gellatly (1995),
important conclusions of staff commitment is superior levels of turnout by
employees. As mentioned above in a study set of nurses in a hospital, it was
recognized that those workers of less commitment towards organisation verified
bigger absenteeism (Somers, 1995). Becker (cited in Silva, 2006,) affirms that study
on organisational commitment proposes that commitment is of 4 kinds: i) towards
organisation, ii) towards leadership and management, iii)towards current team

32
leaders and iv) towards work colleagues. All mentioned aspects have proposition for
HRM.
Allen and others (stated in Price, 2003,) discussed that one factor of commitment is
affective dedication, which indicates to personnel emotional connection towards
company. That is an employee with affective commitment towards a company is
committed since they have same principles with the organisation and its associates
(Sommer, Bae, & Luthans, 1996). Normative commitment defines to commitment
related on a wisdom of responsibility and the accountability a self senses toward the
company(Allen et al.,in Price 2003,). Those with normative commitment stay with the
company because they sense that they have to. Continuance commitment (Allen et
al., cited in Price, 2003,) indicates towards individual’s awareness of the
expenditures and risks linked with departing a company. Staffs with continuance
commitment stay with the company because of monetary compulsion and
compensations, like health benefits and pensions etc (Sommer, et al., 1996).
Meyer and Allen (1997, p. 35) suggest that ‘commitment develops as a result of
experiences of satisfying employees’ needs motivational and/or are compatible with
their values’. it has been stated that if organisations is able to manage experience of
employees profitably then, they will be able to cultivate the needed commitment; on
the other hand, if staffs thoughts that the organisation is not committed to them, they
will react with feeling of less committed to the organisation, replicated in their
intention to remain or depart(Meyer & Allen, 1997).
Generally, INDIAN workforce demonstrate a better level of faithfulness to their
organisations, but differences can be predicted given personal dissimilarities or
geographic aspects and other factors like age, education, term, wages, and position
etc.. It is easy to assume that dissimilarity in personal characteristics and work
variables may guide to disparity in reliability. The idea of organisational commitment
is related to the degree to which workforce stay loyal to their company, while work
participation recounts to the likeness level of individuals towards the accomplishment
of their job related goals. It is supposed that via improving jobs, escalating rewards,
and authorising staffs- employers can raise the organisational commitment of their
employees (Ongori, 2007). Retention ask for paying attention to and doing job with
staffs.

33
Research Methodology
As per Collis and Hussey (2005) research is a systematic technique by which the
data could be collected, examined and deduced so as to understand the incidence
about which the researcher is a lot fascinated.
The chief motive of the research was that the scholar must search the aspects in the
corporation that has an influence on the senior persons working in the corporation
with reference to the retention of the higher management staff. The chief motive of
assisting the corporation is making it capable enough to formulate plans that are
associated to the retention of the staff and the corporation has to update the persons
about the outcome of the research. The research has been prepared after a suitable
study with reference to the professional growth, compensation, affirmative
appreciation, staff member involvement and administration that have an affirmative
influence on the retention of the employees in the corporation. The approach that
has been employed in the current research is the procedural approach that was put
forward by the Collis and Hussy (2009) in which the qualitative as well as the
quantitative approach have been employed. Hence these methods give an
authorization also that was not granted by Gill and Johnson (2002). In the current
research the researcher has employed the primary as well as secondary technique
to look for the information.
The procedure of procuring an answer to certain question in a methodical way is
called the research methodology. It comprises of the several stages and processes
that are used by the scholars to investigate the theme of the study and the scopes
related to it. Any person who is occupied with certain exploration or research has to
be familiar and assertive with the investigation techniques and processes as well as
the procedures to do the research. The research methodology blends the
investigation techniques and processes along with the motives and the causes that
are reason for the use of these processes.

34
Every research methodology has 3 standards. The standard can be defined as a
means of collective group of entire norms, sense and ideas that describes the
methodology of the study. The 3 standards of the study as talked over are:
1. Quantitative
2. Qualitative
3. Mixed research
Quantitative research
The present research is done mostly on the grounds of gathering of quantitative
information. Quantitative data here implies the quantifiable extents and measures. It
is valid for problems or difficulties that can be characterized or revealed by a
particular computable measure. Its features are:
 The human conduct engaged in the research is constant and can be
projected.
 The technique is based on inference from the genuine information that are
quantifiable entities.
 The emphasis of the research is founded on quantifiable entities that are
employed to recognize any theoretical incidence.
 The character of the research is objective type.
 The aims of this study are to define and describe a specific method and
forecast the results.
 The data gathering process is founded on exact and strict techniques of
quantity.
 The outcomes can be comprehended generally.
 Data study is founded on numerical methods.
The human resource principally comprises of the managing of the persons,
quantitative research approach is a technique in which the participants or the person
who are under study or used for gathering data gives the scholar with more
enhanced and thorough responses which have proven important for examining the
information required for this study. For some company to do certain research based
on quantitative numerical on the performance of the firm, it is extremely essential to
investigate the performance of the staff.

35
Qualitative research
The qualitative research has been discovered from the societal science and it is
related to the social conduct of the individuals.
Data Analysis
Since 50 questionnaires were dispersed, a summary of the answers established
from the people regarding the questionnaire is presented in tabular and graphical
appearance. Subsequent to every part, the outcome is conversed. For analytical
reason, every questionnaire result was established to be dependable. The section
ends with a summary of all the results.
Data Collection Tools
The data could be grouped in two elementary kinds:
 Primary data
 Secondary data
Primary Data
The data which is gathered for the study during research under process is termed as
primary data. The primary data can be gathered by three ways:
1. Observation
2. Questionnaire
3. Interview
Secondary Data
The data which is gathered for some definite cause and has been provided and can
be pulled out from the archives of the corporation and from its journals is termed as
Secondary data.
In my research I have employed primary as well as secondary kind of the data. The
technique used to gather primary data is a properly planned questionnaire. The
resources that were used for the gathering secondary data were the HR strategy
handbook of the companies involved and the data from the web pages and business
journals of the firm.

36
Research Approach
Inductive approach
Inductive approach is the approach of expansion of a hypothesis which forms as the
basis of the research. This approach is also known as a foot to head approach. It is
generally related to qualitative research.
Deductive approach
Deductive approach is the opposite of the deductive research and a definite issue is
the centre of the research. Hence it is also known as a top to down approach. It is
generally associated and is followed in quantitative research. In the present research
the researcher has adopted an deductive research as there is no hypothesis and
researcher is framing the study on a specific issue.
Quantitative research
The primary study conducted on the present research is entirely based on
quantitative data collection method. The quantitative method is the use of statistical
and numerical data that can be measured and represented in form of quantities. The
quantitative method was used owing to the limited time period of the study wherein
qualitative technique would have needed more time since the sample comprises of
employees from various organizations. Further, it was not feasible take detailed
feedback from employees form the various organizations under study that is needed
for qualitative techniques. Further, the study required exact details regarding
satisfaction levels and other data that cannot be acquired by means of qualitative
study. Furthermore, the aim of the research is to provide a generalized result that
can be applied to all the organizations, and this can be achieved only through
measurable data, hence quantitative research is the most suited for this research.
Qualitative research
The qualitative research has developed out the social science and it is concerned
with the social behaviour of the people. The qualitative technique has emerged from
social science and is basically the study of social behaviour of people. Under the
present research qualitative study has also been adopted as internal environment of
every organization differs and thus a generalized statement regarding the

37
satisfaction levels of employees and other aspects cannot be achieved by means of
merely quantitative analysis.
Interviews
Interviews are discussion with subjects under study on a certain theme or topic
under study. Various issues and questions are out forward and a detailed feedback
of the participant is on the queries are acquired.
There are two types of interviews, namely
 Structured interview
 Unstructured interview
Structured Interviews
In structured interview a general topic is given and they are asked to discuss their
opinion upon it. Every respondent is given sufficient time to put forward their views
Unstructured interview
Under unstructured interview a set of questions are put forward to the respondents
and they can provide their feedback at a later time.
In the present research the researcher has adopted a unstructured interview
technique as bringing together various participants at a single place was not feasible
owing to tight schedule of higher level managers.
Research Strategy
Case Study
This comprises of a thorough analysis of a certain situation or a person or an
organization.
Survey
A survey is conducted by distributing a predesigned set of questions among the
targeted participants. In the present research the survey strategy has been utilized
by implementing questionnaires based method. The survey was used because
retention and human resource strategy is different in different organizations hence a
studying a single case would to be sufficient for the study.

38
Strengths of the questionnaire Based Data Collection Instrument
The main benefit in the data gathering process based on questionnaire was the
influential method which can be applied in the specified time span. Further, it was
tremendously handy together for the researcher as well as the participants.
Further, the questionnaire based method let the participants to give their responses
liberally devoid of any constraints and fear. Moreover, due of the guarantee of the
secrecy of the individuality, the participant gave unbiased feedbacks. Besides, the
questionnaire provided sufficient time to recall and reply and also had possibility for
altering the answers. It was very advantageous taking in account the several
restrictions related with different data gathering methods.
2.7. Design of the Questionnaire
The design of the questionnaire was associated to the formation of plans instead of
the retention concept and they too have structure concerns. The structure of the
study is taken by the aspects or the grouping from the section two. The
questionnaire was designed by means of plain and simple concepts about the study.
The questionnaire was made keeping in mind the main objective to provide the
answer to the study questions. In that the questions were converted into topics and
the participants were requested to give their opinions about it.
The structure of the study was dispersed in 6 sub segments in which the particulars
of the retention could be specified.
A. Retention Strategies
B. Career Development
C. Remuneration
D. Positive Recognition
E. Staff Engagement
F. Management
2.8. Testing the Questionnaire
Before circulating, the questionnaire was circulated to 10 participants for the
analysis. The pilot study is a very essential entity of analysis of the questionnaire

39
before the circulation. The questionnaire was sent to the participant over the e-mail.
The participants were told that the secrecy of their identity will be maintained and
only on their desire the identity would be disclosed otherwise not.
Sampling
Random sampling was employed. The sample comprises of senior managers and
personnel from some well known companies of India. The name of the company has
not been disclosed as per the request of the mangers.
Distribution
The questionnaire was sent to 50 participants over the e-mails. The address of
persons which were selected to mail the questionnaire has to be provided from the
management roll of the selected companies. The questionnaire was kept along with
a cover note and the scholar had asked to return the questionnaires to him once they
are done with it.
Also questionnaires were e-mailed to managers from companies in the business in
order to study their opinions about the problems.
Limitations of the Study
 Because of the character of the interview cantered technique, a noticeably
less populace of the businesses can participate for the research.
 The verdict and the outcomes could not be summarized in general. Here, this
implies that the verdicts and the remarks documented from a specific
interview at any instance cannot be same as other.
The documentation and the analysis of the questionnaire had been done in a
particular time intermission. This has a main disadvantage as the situations and
atmosphere may vary previously or in the time to come and therefore there can be
few disagreements in the information documented as compared to the genuine skills
that may differ to some extent as per the time frame for which it is noted. For
example, the company may have provided incentives to the staff keeping in mind the
profit in view or any other cause; consequently this would have raised their
enthusiasm intensities and could influence the participant’s own opinion on the
matter of the questionnaire.

40
 The employee can be partial in the response
There are prospects that some persons may be partial and may not give exact
information of what they have been through and their true opinions. This may be
because of the individual gratifications and doubt about the secrecy of the
questionnaire or may consider the questionnaires to be a segment of an in-house
research of the company and therefore it is better to provide positive responses to
the query rather than giving genuine information.
 Lack of faith on format
The participants may not be assured of the secrecy of their identity. He/she may be
afraid that their individuality may be exposed and as a result feel reluctant to give
actual response or any information at all.
Questionnaire could not be distributed in comprehensive form. There may be
situations where the participant may not get the complete questionnaire because of
the technical causes or some other reasons. Consequently, this will lead to
inadequate data.
 Lack of interest
There will be cases when the participant might not be interested in replying the
queries however could have replied with just for formality sake and hence providing
unusable data which can at times be distracting as well.
Strengths of the questionnaire Based Data Collection Instrument
The main benefit in the data gathering process based on questionnaire was the
influential method which can be applied in the specified time span. Further, it was
tremendously handy together for the researcher as well as the participants.
Further, the questionnaire based method let the participants to give their responses
liberally devoid of any constraints and fear. Moreover, due of the guarantee of the
secrecy of the individuality, the participant gave unbiased feedbacks. Besides, the
questionnaire provided sufficient time to recall and reply and also had possibility for
altering the answers. It was very advantageous taking in account the several
restrictions related with different data gathering methods.

41
Measures To Minimize the Effects of the Limitations
To diminish the influence of the limitations several methods were developed. To
minimize the threats linked with incorrect data being given, every response of the
participant was re-assessed for any incidence of a specific or impractical response
related to the situation. For covering the technical issues, every participant was
requested to respond whether he has got the whole cluster of forms for a second
time in event of denial.
Moreover, the questionnaire was planned remembering that the queries may not
lead to doubts in the thoughts of the participants and they may interpret the
intentions mistakenly. It was clearly explained that the questionnaire is entirely for
educational purpose and the participants were respectfully asked for their feedbacks.
Further, they were also guided that the research will eventually help them. As the
research targets at enhancing the senior staff which are essentially the participants
themselves, these measures were commenced to ensure that all persons who were
a part of the research reply the queries with full keenness and honesty. Moreover, to
diminish any anxiety that the questionnaire may be the portion of any in-house
research of the firm, the motives and the entire detail regarding the questionnaire
was described in a way that participants completely agreed that the research was
purely an educational practice and has significant implication for their individual
welfare. This was tremendously essential for preventing lack of curiosity of the
participant in the questionnaire. Further, it was a concern as well to observe that the
participant is not biased in his attitude. For this we began with the cross examination
to make sure of any overstatement. If some overstatement of affirmative information
of the firm was observed then the entire questionnaire was revaluated to look for the
biased and unfair method of any participant.
The several approaches were used remembering that doing study on the schemes
for the growth of employee management involves the managing of the persons or
the personalities. Hence the utmost significant aspects that had to be taken in
account and which were very decisive to the research were the employees
themselves. Therefore while choosing some specific research methodology for some
particular information gathering methods; it was very crucial that it links with the
human conduct and response features of the research. The research structure could
not be based out of the facts as they just disclose performance however not the in-
house approach of the staff in the direction of the company. Hence there can be

42
instance when for certain span a company may demonstrate fine performances by
quantitative research however its staff might be weakening we talk about their
obligation and enthusiasm in the direction of the company in time yet to come.
Further, for any research, the information gathering method used should take into
account both the character and the time confined activities that are related. These
gathering methods have to be simple enough to let open movement of the productive
along with the censure of the guidelines and the situation. They should reveal the
pleasure as well as satisfaction of the participant along with his frustration.
2.9. Data Analysis
As 50 questionnaires were circulated, a summary of the responses proven from the
individuals about the questionnaire is available in a table and graphic form and is
available in the parallel sequence of the question in the research questionnaire. Next
to each section, the result is stated. The conclusion of this research throws an
additional light on the discussion.

43
Results
2.10. Conclusions of the questionnaire A
The retention approach about the influence on the inspiration to work at the
firm
Q No. Motives Differ Approve
1 The firm is a fine investor in
persons
10 40
2 The firm nurtures an
atmosphere in which the
miscellaneous persons can
work collectively and
efficiently.
20 30
3 Staff is treasured as the
possessions to the firm
05 45
4 The firm helps the staff in
maintaining perfect work life
equilibrium
20 30
0 20 40 60
The company is a good investor
in people
The company fosters an
environment in which the…
Employees are valued as the
assets to the company
The company assists the
employees and ideal work life…
No.of Respondents
The retention strategy about the influence on
the inspiration to work at the firm
Agree
Disagree

44
As shown in the overhead table, an appealing portion of participants approve that
they are valued as possessions to the firm. 30 participants approve that the firm
assists employees to maintain ideal work-life equilibrium. Furthermore, 30
participants agree that the firm nurture an atmosphere where mixed individuals can
work collectively and effectively. Also, 40 participants agree that the firm is an
outstanding investor in its human resources or staffs.
Career Development
Company offers
human resources
the under
mentioned aid for
their career growth
5 The firm offers
monetary help
20 30
6 The firm offers
education holiday
14 36
7 The firm offers
operational
exercises
10 40
0 20 40 60
The company provides financial
assistance
The company provides study
leave
The company provides effective
training
No.of Respondents
Career Development
Agree
Disagree

45
From 50, 30 participants approved that the firm provides monetary help such as
educational loans, etc. to their staffs. Furthermore, 36 approved that the firm offers
leaves for education to their staffs. Also, 40 participants approved that the firm offers
operational exercise to their staffs.
Remuneration
8 Total Remuneration
is reasonable
12 38
9 Marginal welfares
are fine
14 36
10 Salary Gratification 8 32
11 Worthy Service
Incentive
6 54
From 50, 38 participants approved that the complete compensation of the firm is
reasonable. Furthermore, 36 approved that the peripheral paybacks of the firm are
fine. Also, 32 participants approved that they are gratified with the pay provided by
the firm. Moreover, 54 participants approved that firm offers fine service incentives to
the senior staffs.
0 20 40 60 80
Total Remuneration is
competitive
Fringe benefits are good
Pay Satisfaction
Good Service Bonus
No.of Respondents
Remuneration
Agree
Disagree

46
Positive Recognition
12 Managers get
acknowledgment on
worthy performance
10 40
13 Firm provides
worthy performance
promotions
12 38
From 50, 40 participants approved that the staffs of the firm get appreciation when
their performance is good. Also, 38 participants approved that the firm provide
worthy performance promotions to their staffs.
0 20 40 60
Employees get recognition on
good performance
Company offers good
performance appraisals
No.of Respondents
Positive Recognition
Agree
Disagree

47
Staff Engagement
14 Care about the
well-being of the
branch
14 36
15 Happy with the
designation in the
branch
20 30
From 50, 36 participants approved that they care regarding the well-being or the
prospect of their branch. Also, 30 participants approved that they are happy with
their designation or job allocated in their specific branch.
0 20 40 60
Care about the welfare of the
department
Satisfied with the role in the
department
No.of Respondents
Staff Engagement
Agree
Disagree

48
2.11. Findings of the Questionnaire B (Respondents from other
companies in the industry)
Management
1 Management
converses evident
vision and objective
14 36
2 Management
assists fresh
thoughts
8 42
3 Management
recompenses staffs
of the firm
10 40
From 50, 36 participants approved that the management of the firm converses
evident vision and objective to their staff. Besides, 42 participants approved that the
management of the firm assists fresh thoughts. Also, 40 participants proven that the
management of the firm recompenses their staffs.
0 20 40 60
Management communicates
clear vision and mission
Management supports new
ideas
Management rewards
employees of the company
No.of Respondents
Remuneration
Agree
Disagree

49
Possible Reasons for Leaving the Company
4 Unsatisfied with the
current profession
12 38
5 Receiving less
salary
14 36
6 Anticipated to start
own venture
42 8
From 50, 38 participants approved that they are displeased with their current
profession and it is the chief motive for resigning the job. Also, 36 participants
approved that they get lesser salary and due to this they commonly quit their job.
While, just 8 participants approved that they wish to start their own ventures and
because of this they desire to quit their job. This connects with the finding of the
staffs of the company group in which from 50, 36 participants approved that they
care about the well-being or the prospect of their branch. Also, in the company group
participants approved that they are happy with their job or designation allocated in
their individual branch.
0 20 40 60
Unsatisfied with the present job
Getting lower remuneration
Desired to get self employed
No.of Respondents
Possible Reasonsfor Leaving the Company
Agree
Disagree

50
2.12. Quantitative Findings
A fact has been evolved from the findings of the study that there exists an extremely
important link among the features of the firm and the retention of the staffs in the
similar firm. The firm has also selected a method which will offer the worker a
genuine route and give few suggestions by means of which the staff could be
retained in the similar firm as well. This method is focused in the direction of the
career development of their staffs. This line up with the conversation in the literature
review in which it was said by Schuler and Jackson (2006) that the better opponent
is one which enhances their staff in order to make them ready to face all the
possibilities that could arise and also for the time where they could put in their full
strength so as to attain their objectives. In case the staffs and the company have to
accomplish a competitive benefit over its opponents in that situation they have to
improve the expertise of the employees. The term career development could be
observed as a tool by which the managers are capable to look for the requirements
and desires of their staffs. By providing the opportunity by which the careers of the
individuals could be progressed is that they would have to be dedicated for the
company in which has employed them.
The chief administrative aspect is the career development in that by the model of
The company the persons search that nearly 90 percent of the staffs got that there
was no future in the firm for career development and nearly 89 percent of them
mention that their individual desires for the growth were not satisfied the way they
wanted and nearly 79 percent of them mentioned that neither of them in the firm had
been through the training and guidance packages that would enhance their skills.
The conversation in the literature review syncs with this feature of the findings and it
shows that it will be a severe condition for the firm’s retaining strategies. As talked
over in the review that growth aspect is there in each big firm and when any staff
member senses the requirement to utilize it they can effortlessly do. So as to
recognize this goals of the firm and they should do what the firm has assured to
them. The researcher have termed the career development as the procedure by
which constant or active and they have to go through from several levels or stages
and in each level they have to answer every non-similar queries, jobs or subjects.
Horwitz (2008) mentions that in the time to come the nations such as Japan, china
and several other Asian nations will be confronting a severe risk of absence of
trained and partially-trained employees. Accordingly in that situation the entire load

51
of the trained staff will be confronted by the nations and after that they will confront
few issues in the worldwide market with reference to the staffs.
The advices made by the scholar are very supportive for the organization when the
firm is deciding the yearly policy with reference the career development of the staffs.
In the firm nearly 89 percent of the individual’s mention that the questionnaires were
done in the firm in specific interval and nearly 89-99 percent mentioned that they
were not pleased about the sub-groups available in the administrative aspect that
was positive credit. It was the scholar’s advices that the performance management
and the development mechanism should be comprised in the research.
This syncs with the conversation in the literature review in which it was observed that
from years the staffs of the dissimilar firms expected that their job profile should be
extremely innovative, valuable and the job should be very stimulating (Phillips and
Connell, 2003). The findings and the outcomes of the questionnaire reflects the
conversation in the literature review that for maximum of the staffs their works
reveals their persona and they sense the necessity that they need to employ their
brains in any kind job they are working on in their occupation and they are of the
opinion that this would be an significant input for the development and the progress
of the firm. In case during their profession they do not figure out of what they are
expecting from the profession they will not look for another career, instead they will
hang on the similar profession.
Presently, the staffs in the firm are turning out to be enough capable to manage the
atmosphere of the office in which they are employed. Besides, the basic answer to
this is that they should build up their interaction skills so as to make our task easier.
Hence the staffs should select that firm in which the interaction structure is extremely
supple (Phillips and Connell, 2003).
Numerous personnel are searching for that mechanism wherein the staffs get more
incentives which demonstrate their input in the firm (Schuler and Jackson, 2006). In
the firm wherein they are not rewarded on performance basis, then the employees
search for the firm which provides the right worth of their services and the aptitudes.
Moreover in the firm the staffs desire that their appreciation should be returned in
form of money and not just as reward for the hard work that they have paid to the
firm. For several ages in the firm the simple gadget that is the cause of the

52
encouragement is the firm’s consistent response that it takes from the staffs and
enhances the area wherein they are behind others.
Qualitative Findings
2.13. Introduction
This chapter gives the results of the qualitative section of the research. It is an in-
depth interview with HR managers of a large Indian Organization was conducted.
The interview questions were made to reflect below research questions:
1. Is the importance placed on HRM factors linked to retention?
2. How are these influential HR factors managed in organizations?
3. Who are core employees?
2.14. Respondents’ Profile
The partaking company was from India and function in various areas like
telecommunication, exploration, education, Oil and Gas, Insurance etc. This
organisation is one the largest organisation of India with over more than 10000
employees. From Interview it has been noted that more than 52% of employees in
there organisation are core employees.
The rationale for getting the percentage of core staffs of participating organisation
was to find out the significance the organization give on retaining a sensible level of
core staffs within its organisation. The company does nevertheless admit that cost
restraints and the nature of the working sector were the influential factors for their
lesser selection of core staffs. Seventeen HR managers were interviewed. They
consisted of 12 females and 5 males. With respect to their experience with the
company 7 of the HR managers are there for more than 6 years, 5 are between 3-4
years and remaining are less than 2 years with the company.
Interview Outcomes
Primarily, the interviewees were told to point to the classification of their key
employees. The following character has been chosen by respondents as per their
impotence for their core employees:
1. Have knowledge, talent and characteristics that are directly associated with the
current or future goals of company.
2. Maintain or adhere to the company's traditions and vision.
3. Distribute their skills and information's to make sure companies success.

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