A STUDY ON EMPLOYEE RETENTION AT

HMT MACHINE TOOLS LTD

KALAMASSERY

A SUMMER PROJECT REPORT

SUBMITTED BY
Miss Vijaya R
(REG 08PIT35)

IN PARTIAL FULFILMENT OF THE REQUIREMENTS

FOR
THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
IT ORGANISATION AND ADMINISTRATION

UNDER THE GUIDANCE OF

Miss Sasikala Devi, M B A

AVINASHILINGAM SCHOOL OF MANAGEMENT

TECHNOLOGY

AVINASHILINGAM UNIVERSITY FOR WOMEN

COIMBATORE-641043
JUNE 2009

1
ACKWNOWLEDGEMENT

I acknowledge the chancellor Mr. T. K. Shanmugananthan, B.A, B.L and the

Vice Chancellor Dr. Saroja Prabhakaran, M.A, Dip. Ed, Ph.D and the
Registrar Dr. Gowri Ramakrishnan, M.Sc, M.Phil, Ph.D of Avinashilingam
University for Women, Coimbatore for having given an opportunity to
undertake this project work which forms a part of my curriculum.

I express my hearty gratitude to the Dean, Department of Management

Studies Dr. Shantha B Kurup, M.Com, M.Phil, Dip.Ed, M.B.A, Ph.D for her
support and encouragement.

This work would not have materialized but for the timely guidance given
by Miss Sasikala Devi, M.B.A, Lecturer, Department of Management
Studies who assisted and extended support through out the project.

I express my heartfelt thanks to all the faculty members of the Department of

Management Studies, whose immense support helped a lot to complete the
project.

I express my sincere gratitude to

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 CONTENTS

PAGE
CHAPTER NO CONTENTS
NO
1 INTRODUCTION 4
SYNOPSIS 4
INDUSTRY PROFILE 5
COMPANY PROFILE 8
2 OBJECTIVES 25
3 REVIEW OF LITERATURE 25
4 RESEARCH METHODOLOGY 29
5 LIMITATIONS 31
ANALYSIS &
6 INTERPERETATIONS 32
7 SUMMARY 46
FINDINGS 46
SUGGESTIONS 47
8 ANNEXURE 48

3
 INTRODUCTION

SYNOPSIS

Employee Retention

Employee retention is the initiatives taken by the management to keep

employees from leaving such as rewarding employees for performing their
jobs effectively, ensuring good relations between employees and managers
and maintaining a safe healthy environment. When you have hired good
people trained them, built them into high performing teams you don’t want
to loose them.

There are many different ingredients that go into reducing employee

turnover. There will be seven strategies focused on: money, building
relationships between employers and co-workers, a fearless culture, job
satisfaction, opportunities for personal growth, organizational direction,
And recognition of work/life balance needs. Retention is successful when
emotional bonds are built. Therefore, building relationships between
employers and co-workers is important when it comes to employee
retention.

4
 INDUSTRY PROFILE
INDIAN MACHINE TOOLS INDUSTRY
BACKGROUND AND HISTORICAL TRENDS
The machine tools industry in Indian dates back to the world back to
the Second World War. Due to non availability of imported machine tools, a
few British owned general engineering firms took up their manufacturing in
India. This was followed up by start of industrialization in the series of Five
year plans. The process of planning in the economy resulted in a second
phase of machine tools with public sector investment in Machine Tools
(HMT Ltd .1953. These two initial phase of development of Indian Machine
Tool industry saw the production of general purpose machine tools most of
which were produced under technical assistance from Foreign Collaborators
(Loudon, Ward, Herbert, Jones and Shipman, etc)
The 1960 marked the third phase of Machine Tool Industry. During
this phase, the range of product witnessed rapid, growth and various types of
machine tools including SPMs were manufactured(Multi Spindle Automats,
Gear cutting machine, SPMs, presses ,Broaching Machines, etc.).The Fourth
phase begins in the mid 1980s which saw the entry of Japanese Machine
Tools makers in the Indian Market though licensing agreements. (Mori
Seiki, Hitachi Seiki, Nachi fuji-koshi, Mit subshi, etc.

The Fifth and current phase began in the early nineties after the
liberalization of the Indian Economy. With the market share of bigger
companies expanding and the public sector giants shrinking and those of the
smaller company rising, in house design capability, entrepreneurial spirit,

5
greater technology freedliness, operational flexibility and lean management,
combined to give a greater competitive edge to the smaller companies setup
by technocrats resulting in a significant shift in machine tools production to
these medium sized companies.
International Trends
While Japan increased its lead over Germany Taiwan
edged part of United States to be among the top five machine tools
manufacturing countries. Italy and China remain in the Second and Third
slot.
Current Status in India
The Indian Machine Tools industry manufactures almost
the complete range of metal cutting and metal forming machine tools.
Customized in nature, the products from the Indian market comprise
conventional machine tool as well as Computer Numerically Controlled
(CNC) machines. Others include special purpose machines, robotics,
handling systems, and TPM-friendly machines.
Efforts with the Industry are now undergoing the
features of CNC machines, and provide further value additions at lower
costs, to meet specific requirement of users.
In India there are about 450 manufacturing complete
machines or their components. There are 150 in the organized sector. Almost
73% of the total machine tool production in India contributed by 10 major
companies in this industry. The industry has an installed capacity of over Rs
10 million and employees a workforce directly and indirectly totaling 65000
skilled and unskilled persons.
The hub of manufacturing activities concentrated in Mumbai and
Pune in Maharashtra, Chennai, Gujarat, Coimbatore, etc. All global leaders

6
namely, Makino, DGM, Yamazaki, Haus, Trumpf Daewoo, Schules are
present in India either through marketing agents, technical centers, service
centers or assembly centers.
These are critical issues to this industry.

 The competitiveness and quality of machine tools manufacturing

depends on the competitiveness and quality of its sub contractors.

 Attracting and retaining talented manpower is an issue

since the industry can grow only with knowledge
accumulation.
 High fragmentation is leading to low economies of scale.
 Indian educational curriculum in the ITI’s or engineering
colleges is not geared to impart the all round technical
knowledge required by the engineers and operator in this
sector.

It is well known and often repeated fact that the machine tools
industry forms the pillar for the competitiveness of the entire manufacturing
sector since machine tools which in turn produce the manufacturing goods.
Hence being an integral sector, growth of the machine tools industry has an
immense bearing on the entire manufacturing industry which is crucial for
country’s strategic requirement like Railway, Defense, Space and atomic
space.

7
COMPANY PROFILE
HISTORY OF THE COMPANY

HMT MACHINE TOOLS LIMITED

By the end of the Second World War, the Government of India was
confronted by a big problem of disposing the colossal war waste. Ultimately
a committee was constituted to enquire into the possibilities. The committee
report of 1948 proposed the establishment of a Government owned machine
tool industry. This was expected to fulfill two aspects. The first was being
utilization of the Rs 4000 Million worth of metallic waste. The second was
the incorporation of state owned infrastructure manufacturing facility. The
result was the birth of the HINDUSTAN MACHINE TOOLS LIMITED,
which diversified in due course of time to the present stature of the multi
core, multi location, multi unit, multi product, industrial gaint HMT Ltd.
The HMT Ltd was started as a single factory to produce Tool room
Lathes at Bangalore in collaboration with M/s Oerlikon of Switzerland in
1953, with a capacity to manufacture around 400 machines per year. Since
then different Collaborations, continued in house R & D and tremendous
marketing efforts brought HMT, to present in status.
The growth of HMT was characterized by backward and forward
integration of technology and product diversification. Thus, the company
that started with manufacturing and selling lathes expanded its machine tools
product range to evolve as the ultimate solution in metal cutting. The
product diversification efforts took the company to the business of watches

8
in 1962, Tractors in 1972, presses in 1972 Lamps and Lamp making
machinery in 1980, CNC system in 1986, Ball screw in 1986 and
Reconditioning in 1990.

The multi product activities made HMT Ltd changes its identity as
Hindustan machine tools Ltd. Today, HMT Ltd. has 22 product divisions,
spread through the length and breadth of India. A subsidiary namely HMT
(international) Ltd, undertakes the exports to several other Indian companies.
HMT Ltd was restructured in 1992 to facilitate
better administration of the multi product business activities. Accordingly,
the following business groups were established.

Machine tools business group, to concentrate on metal cutting

machines.

• Industrial machinery Business Group, to deal with printing machines,

Die casting and Plastic injection molding Machines, Food processing
Machines and metal forming machines.

• Agricultural Business group to concentrate on Tractors.

• Engineering components Business Group, to deal with Casting and

Ball Screws.
• Customer product Business Group, to deal with watches and Lamps.
In addition to these Business Group, the company owns three
subsidiaries as follows.
• HMT (International) Ltd .which undertakes the overseas projects and
exports.

9
 • Praga tools Ltd. which manufactures machine tools.
• HMT Bearing Ltd. which manufactures precision Bearing in
collaboration with m/s Koyo Japan.

As per the revival of this public sector Industry a turnaround plan has
introduced in the early days of this millennium and recognized as HMT Ltd
–holding company including Tractors division and presently comprises of
the following subsidiaries.
1. HMT MACHINE TOOLS LIMITED

2. HMT WATCHES LIMITED.

3. HMT CHINAR WATCHES LIMITED.

4. HMT INTERNATIONAL LIMITED.
5. PRAGA TOOLS LIMITED.

1. HMT MACHINE TOOLS LIMITED.

The HMT Machine tools limited is engaged in the manufacture and

marketing of General Purpose Machine tools, Precision machinery systems,
printing machines, Metal forming processes, die casting and Plastic Injection
molding machines, Ferrous and non ferrous casting.

THE PRODUCT RANGE OF HMT MACHINE TOOLS UNITS

BANGALORE

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 Heavy Duty Lathe.

 Single and Multi Spindle Automobile.

 Radial Drilling Machines.
 Multi Spindle Drills.
 Cylindrical and Surface Grinders.
 Laser Cutting Haber’s.
 Gear Cutting Machines.
 CNC Turn Mill Centers.CNC Wire cut EDM.
 Fine Boring Machines/SPMs.

PINJORE

 FMS AND FMC.

 Horizontal Machinery Centers.
 Vertical Machinery Centers.
 Milling Machines.
 Broaching Machines.

KALAMASSERY

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 CNC Turning centre.
 Turn Mill Centre.
 Flexible Turning Cell.
 Copying Lathes.
 Centre Lathes.
 Offset Printing Machines.
 Paper Cutting Machines.

HYDERABAD

 Special Purpose Machines.

 Horizontal Machining Centre.
 FMS.
 CNC Horizontal Boring Centre.
 Bed Type and Floor Type Boring Machines.
 Grinding Machines.
 SPM Grinders.
 CNC grinders.

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MAJOR MACHINES AND INSPECTION FACILITY AVAILABLE IN
DIFFERENT MACHINE TOOLS UNITS

1. CNC Ram Type Plano Millers.

2. Horizontal Machining Centers.

3. Vertical Machining Centers.
4. Horizontal Jig Boring Machines.
5. CNC Turning Centers.
6. Turn Mill Centers.
7. Slide Way Centers.
8. Cylindrical Grinders.
9. Internal Grinders.
10.Precision Gear Shapers.
11.Precision Gear Hobbes.
12.Gear Grinders.
13.Induction Hardening Machines.
14.3d-co-ordinate Measuring Machines

2. HMT WATCHES LIMITED:

HMT Watches Ltd manufactures and markets watches including Hand

Wound/ Automatic and Quarts.

3.HMT CHINAR WATCHES:

13
 HMT CHINAR WATCHES LTD is also one of the subsidiaries
engaged in the manufacture of Chinar model watches located in Srinagar,
Kashmir State.

4. HMT BEARING LTD:

HMT Bearing Ltd is one the subsidiaries engaged in the manufacture

of different types of industrial bearing, situated in Hyderabad.

5. HMT INTERNATIONAL LTD:

HMT International is engaged in the export of HMTs ranges of
product Worldwide HMT (I) also marketed other Engineering Products in
the World Market and backed by a good sales and service network also
undertake Turnkey Projects and technical services for developing countries.

6.PRAGA TOOLS LTD:

Praga tools limited is also a subsidiary of HMT Ltd engaged in the
manufacturing of Machine Tools located in Hyderabad.

PRODUCT PROFILE
THE KALAMASSERY COMPLEX OF HMT, KALAMASSERY.

14
 The Kalamassery Unit, the Forth Machine Tools Ltd was established in
1963 and started production in 1964. The Unit originally manufactured only
two types of Lathes namely, H&LB, but later added special purpose Lathes
like Copying and Turret. Lathes. Model LT-20 was the first product to be
indigenously developed by the unit (1968) and the development of this
product was a landmark in the history of the unit. The production of this
machine was later licensed to M/s QETCOS Kerala, MATOOLS,
Philippines, Ceylon steel corporation Srilanka. The original Centre Lathes H
& Lb were then replaced by a new family of unified series of lathes which
was designed and developed by the unit, incorporating the concept of
typification, standardization and unification.

PRODUCT DEVELOPMENT AT MACHINE TOOL LIMITED

KALAMASSERY.
The following products are developed by the machine tools unit of
Kalamassery indigenously.
YEAR PRODUCT
1969-70 LT-20
1976-77 NH/NL
1976-77 FC-25
1980-81 TL-20
1981-82 NHCNC
1981-82 SBCNC 35
1982-83 SBCNC 35
1986-87 STC 25
1990-91 STC 15
1991-92 ECONO CNC

15
 1992-93 STC 20
1993-94 STC 20
1994-95 NL 180
1996-97 TS 20 (Tcom Spindle)
1997-98 AUTOCOMP
1997-98 STALLION-200
1999-2000 AUTOMAN
2000-01 STALLION-100
2003 M CELL
2004 SMC WITH GANTORY LODER
2004 STALLION 100s
2007 MEGATURN.

DIVERSIFICATION OF KALAMASSERY UNIT AND BIRTH OF

PRINTING MACHINE DIVISION

During the period of 1972-73, kalamassery unit diversified its product

range to include Printing Machinery division (PMK) was with the two types
of latter presses namely. RTE and RTAFunder collaboration with m/s
Nebiolo of Italy. Auto platen an indigenous development comes up
subsequently. During the ensuring years Printing Machinery Division come
up with offset presses namely OMIR in collaboration with m/s Nebiolo.
Later indigenous offset presses namely .SOM 136 was introduced in the
market. The first two color machine from HMT was OMIR in collaboration
with M/s Koenig and Bauer of Germany. The latest development of PMK
was paper cutting, Guillotine PG 92 D3 in collaboration with m/s Divano
Binder of Italy

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THE CURRENT PRODUCT RANGE

PRODUCT MODEL
OFFSET PRINTING MACHINES SOM 436
SOM 425
SOM 236
SOM 231
SOM 225
SOM 136
SOM 131
SOM 125G
PG-92 D3

PAPER CUTTING MACHINES

The Kalamassery unit of HMT is famous for
development activities. Thus product has always fetched awards and prizes
at different Trade fairs and Competitions. To name a few are prizes begged
in different IMTEX fairs by FC-25, SBC and SBCNC Machines. The CNC
Lathe Model STC -25 has won VASVIK Industrial Research Award 1987
instituted by the Vivdhalaxi Audyogile Samsodhan Vikar Kendra
(VASVIK) Mumbai for o/s advancement of Science and Technology.
The Machine tool product of this unit has been certified by RWTUV-
Reinsih West Falischer Techniser Uber Wachiengs Verein – an international
certification agency of high repute as confirmining to Total Quality
Management System.

17
 Both the divisions have been awarded ISO 9001 certification by
IRQS
The manufacturing shops at MTK are supplied by various
infrastructural facilities like, High Technology CNC Centers, Testing
facilities, Foundry ,Heat Treatment, Computer system CAD system etc.
Around 800 well experienced form the human resources of the unit keeping
in line with the current corporate trends.

TRAINING CENTRE

This Unit views HRD as one of the concern to increase productivity and
enhance Social Stranding. The company has a well established training
system by personnel of technical and management skills.
The HRD undertaken by them includes the following:-
1. Management Orientation Programmes

2. Supervisory Development programs

3. Customer Training Programmes to equip the customer for the
optimum utilization of HMT Machines.
4. Periodic awareness Training programmes for employees relating to
safety, quality Advanced Technology, Information Technology etc.
5. Multi-skill Training to Machine Operators.
6. Induction and in plant Training to Fresh recruits and Transferees.
7. Apprentice Training Programmes under the apprentice Act.
8. Project guidance in Management and Technology to students.

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THE MARKETING NETWORK OF HMT MTL Ltd.

The Machine Tools Marketing Divisions with its head quarters at

Bangalore and having a wide network of Regional and Divisional offices
spread through –out caters to the marketing needs of this Unit at the primary
level, to co-ordinate the marketing activities at the unit level and to offer
technical support to Machine tools. Marketing, a strong sales and services
team is constituted at unit level .HMT’smajor Customers includes defense,
Railways, Automobile and other Engineering Industries in Various sectors.

MAIN INLAND COMPETITORS FOR THE UNIT’S PRODUCTS

1. Mysore Kirlosker Ltd.

2. ACE Designers.
3. NC Machines Private Ltd.
4. Lakshmi Machine Work.

MAIN FOREIGN COMPETITORS FOR THE UNIT’S PRODUCTS

1. Okuma, Japan.
2. Nori saiki. Co. Ltd Japan.
3. Tukisama, Japan.
4. Muzak, Japan.
5. Ikegai, Japan.
6. GDM, Germany.
7. Churchill, England.
8. Ernault Toyota, Japan.

19
 9. Victor, Taiwan.
10.Tuma, Korea.
11.EMAS, Germany.

WELFARE MEASURES IN HMT, KALAMASSERY

1. Company Quarters are provided to employees.

2. Subsidized Transport facility is provided for employees residing
outside HMT Township.
3. Company sponsors a central welfare association has subsidiary
clubs, that is Arts and Dramatic Club, Sports club, Social club,
Educational society.

ISO 9000:INTERNATIONAL STANDARDS FOR QUALITY

MANAGEMENT
Good quality system consists of sound technical and administration
procedures for assuring quality. QA offers more scope for reducing costs
prerequisites and characteristics of good quality assurance and quality
management. The challenge to a developing nation is to motivate processors
and manufactures to adopt and implement these standards and to establish a
credible nation quality registration scheme, which will be recognized by
trading partners.
In a increasing no of markets and industries third party quality
assessments and registration is becoming a pre requisite for doing
business.ISO 9000 registration is considered the minimum acceptable level
for supplier and those who cannot demonstrate this minimum level may not
only have difficulty in selling a certain markets they may be barred from
those markets. Not only must a defendant be able to demonstrate that the

20
product is manufactured consistently with in a system that conforms at least
two internationally acceptable standards.
IN ADDITION, ISO 9000 SERIES STANDARD ALSO:-
 Motivates Exporters..

 Set a base line

 Establishes reasonable standards for Government Procurement.
 Focus Training and Professional Development.
 Sets general market procedure for regulating health and safety.
 Reduces time consuming audits by consumers and regulators.
 Raises level of motivation, co-operation, workmanship and
quality awareness.
 Improves efficiency reduces scrap and rework
 The following topics are dealt within the ISO 9000 series of
standards.

1. ISO 9000 – Quality management and quality assurance

standard section and use.
2. ISO 9001 – Model of quality assurance in design
/development, production installation and servicing.
3. ISO 9002 – Model for quality assurance in production and
installation.
4. ISO 9003 – Model for quality assurance in final inspection.
5. ISO 9004 –Guidelines on development of quality
management system to minimize costs and maximize
benefits.

21
Kalamassery unit
The kalamassery Unit was commissioned on October 2nd 1964 with an
initial investment of Rs 7.5 crores in Ernakulum district near the Cochin Port
.The total plot of the unit was 1150 acres. It is the second unit and fourth
division of HMT Company. The kalamassery unit started with machine tool
division since 1965. Then Printing machinery division with additional
investment of Rs 3.3 crores .In 1994 the company earned ISO 9001
certificate.
Welfare facilities
1. HMT School

2. SBT Branch
3. Bharath Gas supply unit (only for employees)

The kalamassery Unit manufactured only2 Types of lathes namely H & LB

but added special purpose lathes like copying and current lathes. Model LT:
20 was first product indigenously developed by the unit in 1968.

Corporate Objectives and goals

1. To encourage the modernization of Indian industry through the supply
of engineering goods and services of world class excellence.

2. To technological leadership through continuous efforts to update

product technology and manufacturing methods.

22
 3. To globalize our operation by developing a mix of international
markets and business.
4. To ensure a satisfactory return on capital employed to meet the
growth needs and aspiration of our share holders.
5. To present an active and pleasant working environment.

Company Mission

“Quality, Reliability & commitment “is the main mission of the company
.HMT machines are designed to meet the functional requirements so as to
give “maximum customer satisfaction”.
1. To establish as one of the world premier companies in the engineering
field having strong international competitiveness.

2. To achieve market leadership in India through ensuring customer

satisfaction.
3. To achieve sustained growth in the earning of the group on behalf of
share holders.
4. Wealth maximization.

Vision
 To be a leading global engineering conglomerate focused on
customers delight in our fields of endeavors.

23
ORGANIZATION STRUCTURE

24
25
COMPANY STRUCTURE

HMT LTD

HMT
HMT INTERNATIONA HMT BERINGS,
WATCHES LTD L HYDERABAD
LTD.BANGLORE
HMT MTL
HMT CHINNAR
WATCHES,
KASHMIR PRAGA TOOLS LTD,
FACTORIES HYDERABAD

KALAMASSE HYDERABA
BANGLORE AJMIR PINJORE
RY D

26
OBJECTIVES

1) To know the ways to retain employees in big bazaar Ltd.

2) To study various factors that helps in employee retention.

REVIEW OF LITERATURE (EMPLOYEE RETENTION).

27
1) Employers have a need to keep employees from leaving and going to
work for other companies. This is true because of the great costs associated
with hiring and retraining new employees. The best way to retain employees
is by providing them with job satisfaction and opportunities for advancement
in their careers (Eskildesen 2000, Hammer 2000).

2) Employees that are satisfied and happy in with their jobs are more
dedicated in doing a good job and taking care of customers that sustain the
operation. Job satisfaction is something that working people seek and a key
element of employee retention (Marini 2000; Denton 2000).

3) Research has shown that there may be many environmental features

that can be created and maintained to give employees job satisfaction. Pay
and benefits, communication, motivation ,justice and leisure time all seem
to play a part as to whether employees are satisfied with their jobs,
according to studies which helps to retain employees. (Brewer 2000;
Employee 2000; Money 2000; Wagner 2000).

4) The employees are extremely crucial to the organisation since their value
to the organization is essentially intangible and not easily replicated
Meaghan et al. (2002). Therefore, managers must recognize that employees
as major contributors to the efficient achievement of the organization’s
success (Abbasi et al. (2000)).

5) Employee engagement, the organization’s capacity to engage, retain, and

optimize the value of its employees hinges on how well jobs are designed,
how employees' time is used, and the commitment and support that is
shown to employees by the management would motivate employees to stay
in organization’s (Johnson et al (2000)).

6) Knowledge accessibility, the extent of the organisation’s

collaborativeness and its capacity for making knowledge and ideas widely
available to employees,would make employees to stay in the organisation.
Sharing of information should be made at all levels of management.This
accessibility of information would lead to strong performance from the
employees and creating strong corporate culture Meaghan et al. (2002).

28
7) Workforce optimization, the organisation’s success in optimizing the
performance of the employees by establishing essential processes for getting
work done, providing good working conditions, establishing accountability
and making good hiring choices would retain employees in their
organisation. (Badawy, 1988; Basta and Johnson, 1989; Garden, 1989;
Parden, 1981; Sherman, 1986).

8) With increased competitiveness on globalizations, managers in many

organizations are experiencing greater pressure from top management to
improve recruitment, selection, training , and retention of good employees
and in the long run would encourage employees to stay in organizations
( Kanungo,1982).

9)Involvement in terms of internalizing values about the goodness or the

importance of work made employees not to quit their jobs and these
involvements are related to task characteristics. Workers who have a
greater variety of tasks tend stay in the job (Couger, 1988; Couger and
Kawasaki, 1980; Garden, 1989; Goldstein and Rockart,1984).

10) Job satisfaction, job involvement and organisational commitment are

considered as some employee retention factors (Brooke and Price, 1989).

11) Organisational commitment is an affective response to the whole

organisation and the degree of attachment or loyalty employees feel towards
the organisation. Job involvement represents the extent to which employees
are absorbed in or preoccupied with their jobs and the extent to which an
individual identifies with his/her job (Brooke et al., 1988).

12) Empowerment of employees could help to enhance the continuity of

employees in organisations (Malone, 1997).

13) Superiors empowering subordinates by delegating responsibilities to

them leads to subordinates who are more satisfied with their leaders and
consider them to be fair and in turn to perform up to the superior’s
expectations (Keller and Dansereau, 1995).

14) Retaining talent is difficult but not impossible. The employees and
supervisors are required enough to sensitize the reasons as why do
employees quit the organizations and what makes them motivated to stick to
them. There is end number of reasons for driving people out of their jobs.

29
But if the employees and supervisors smartly sensitize to the issues related
to employee attrition and devise retention strategies judiciously the talented
employees can be retained.(Dr S R Chary, Prof Harish Kumar)

15) Retention experts agree that businesses can keep the talented people they
have worked hard to secure, and don't have to spend a lot of money to do so.
"It is not about having to pay exorbitant salaries," says Daniel Dixon of
Consolidated-Products. "It's about creating a vested interest for employees
and that can be done with simple creativity and a little effort."

REFERENCES

1) Personnel Management, 2 (3):333-342.

30
 2) Badawy MK (1988). "What we’ve learned about managing human
resources in R&D in the last fifty years", Res. Technol.Manage. 31(5):
pp.19-35.

3) Brooke PP, Russell DW, Price JL (1988). "Discuss validation of

measures of job satisfaction, job involvement and organizational
commitment", J. Appl. Psychol. 73 (2) : 139-145

4) Couger DJ (1988). "Motivators vs. demotivators in the IS environment",

J. Syst. Manage. 39 (6):36-41.

5) Garden AM (1989). "Correlates of turnover propensity of software

professionals in small high tech companies", R&D Manage. 19 (4):325-34.

6) Johnson J, Griffeth RW, Griffin M (2000). "Factors discrimination

functional and dysfunctional sales force turnover", J. Bus. Ind. Mark.15 (6):
399-415.

7) Keller T, Dansereau F (1995). "Leadership and empowerment: a social

exchange perspective". Hum. Rel. 48 (2):127-146.

8) Meaghan Stovel, Nick Bontis (2002), Voluntary turnover: knowledge

management-friend or foe? J. intellect. Cap. 3 (3): 303-322
9) "The relationship between factors in the work
environment and turnover propensities among engineering and technical
support personnel", IEEE Transactions on Engineering Management, 33: 72-
78.

10) Malone TW (1997). "Is empowerment just a fad? Control, decision

making, and IT", Sloan Manage. Rev. 38 (2): 23-9.

11) Image Theory: Decision Making in Personal and

Organizational Contexts, pp. 3-10

12) “Development of the job diagnostic survey” J. Appl. Psychol. 60: 159-
70.

13) Kerala Personnel- pp 24-26

31
14) By Boyens, John ,Publication: Franchising World

15) By Rivenbark, Leigh,Publication: HRMagazine

RESEARCH METHODOLOGY

Research is an organized, systematic, data based investigation into a specific

critical, objectives, scientific inquiry or problem undertaken with the
purpose of finding answers of solution of it Research design is the blue print
for the collection measurement and analysis of data.

RESEARCH DESIGN.

A research design is the measurement, collection and analysis of data. The

research comes under descriptive research. Research purpose may be
grouped into four categories:

1) Exploratory
2) Descriptive
3) Diagnostic
4) Experimentation

DATA COLLECTION

Data collection method is the integral part of research design. There are
several data collection methods, each with its own advantages and
disadvantages. Data can be collected in a variety of ways in different
settings from different sources. The data are classified into two categories,
primary and secondary data.

32
 PRIMARY DATA
Primary data refer to information obtained first hand by the researcher. In
this study the researcher used interview method by using structured
questionnaires, telephone interviews for collecting the primary data. Here
Primary data was collected through questionnaires.

SECONDARY DATA
Secondary data can be obtained from the publications, industry analysis
offered by the websites, internet and so on. In this survey the secondary data
collected from the journals, books & from HMT Machine Tools Ltd,
Kalamassery.

TARGET GROUP

Employees of HMT Machine Tools Ltd are the target group for this study.

SAMPLE SIZE

The sample size taken was 100 employees of HMT Machine Tools Ltd,
Kalamassery.

SAMPLING EXTENT

The survey was conducted at HMT Machine Tools Ltd, Kalamassery.

SAMPLING TECHNIQUE

In this study the researcher adopted convenience sampling technique.

Convenience sampling refers to the collection of information from
members of the population who are conveniently available to provide. In
this the researcher selected 100 as sample size from the population.

QUESTIONNAIRE DESIGN AND TESTING

The questionnaire used was mainly quantitative with few qualitative

questions. The questionnaire before being used in survey was tested with a
pilot study and corrections were made with the help of guide from the

33
organization and from the faculty of Department of Management Studies
that made it more effective.

RESEARCH TOOLS

1. Survey- Detailed questionnaire were given to employees to get

the primary data for the project.
2. Questionnaire- Primary data were collected by means of
questionnaire.
3. Statistical tool- After the data has been collected, an analysis
has been done with the data using simple percentage analysis.

LIMITATIONS OFF THE STUDY

1. Getting suggestions from the employees were very difficult as

they had only very little free time to spare.
2. Due of the shift system some of the employees were not
available for the interview.
3. Some of the employees might not have understood the real
purpose behind the survey and hence their answers were vague
and not up to the point.
4. The conclusion was made upon the information obtained from
100 employees only. As in any sample it may not be an exact
representation of the population and there may be variation in
the findings to that extend.

In spite of all the limitations maximum care and effort were taken to make
the study scientific and meaningful.

34
ANALYSIS AND INTERPETATION

The data analysis and interpretations were done from the following data
collected from the employees.

AGE GROUP OF EMPLOYEES

NO OF PERCENTAGE
AGE
RESPONDENTS ANALYSIS
BELOW 30 0 0
30-40 0 0
40-50 43 43
50-60 57 57

AGE OF EMPLOYEES

60
NO OF RESPONDENTS

50

40 NO OF RESPONDENTS

30
PERCENTAGE
20 ANALYSIS

10

0
BELOW 30-40 40-50 50-60
30
AGE

From the above data 57% of employees are aged between 50 and 60, 43% of
employees are aged between 40 and 50 and others are zero.

35
EXPERIENCE IN THE ORGANISATION

NO OF PERCENTAGE
YEARS
RESPONDENTS ANALYSIS
BELOW
5 0 0
5 to 10 0 0
10 to 15 6 6
15 to 20 83 83
ABOVE
20 11 11

EXPERIENCE IN THE ORGANISATION

90
NO OF RESPONDENTS

80
70
60 NO OF RESPONDENTS
50
40 PERCENTAGE
30 ANALYSIS
20
10
0
BELOW 5 to 10 10 to 15 15 to 20 ABOVE
5 20
YEARS

From the above data 11% of employees have experience more than20 years,
83% of employees have experience between 15 and 20 years, 6% of
employees have experience between 10 and 15 and others are zero.

36
RATE OF MONETARY BENEFITS IN THE ORGANISATION

NO OF PERCENTAGE
RATING
RESPONDENTS ANALYSIS
VERY
GOOD 6 6
GOOD 20 20
BAD 51 51
VERY BAD 23 23

RATE OF MONETARY BENEFITS

60
NO OF RESPONDENTS

50

40 NO OF RESPONDENTS

30
PERCENTAGE
20 ANALYSIS

10

0
VERY GOOD BAD VERY
GOOD BAD
RATING

51% of employees said that the monetary benefits in the organization is bad,
23% of employees rated monetary benefits in the organization as very bad,
20% rated as good and only 6% rated the monetary benefits in the
organization as very good.

37
RATE OF ADDITIONAL BENEFITS

NO OF PERCENTAGE
ADDITIONAL BENEFITS
RESPONDENTS ANALYSIS
TRANSPORTATION
ALLOWANCE 29 29
IMPROVEMENT IN
TOWNSHIP 6 6
TRAINING IN OTHER
INSTITUTIONS 17 17
CANTEEN- FOOD
VARIETY 8 8
MEDICAL- ACCIDIENT
INSURANCE 40 40

RATE OF ADDITIONAL BENEFITS

NO OF RESPONDENTS

45
40
35 NO OF RESPONDENTS
30
25
20 PERCENTAGE
15
10 ANALYSIS
5
0
INSTITUTIONS
TRANSPORTATIO

INSURANCE
ACCIDIENT
TRAINING IN

MEDICAL-
N ALLOWANCE

OTHER

ADDITIONAL BENEFITS

38
40% rated accident insurance as most important additional benefit required,
29% for transportation allowance, 17% for training in other institutions, 8%
for canteen food variety and 6% for improvement in township.

RATE OF REASONS FOR LEAVING THE ORGANISATION

NO OF PERCENTAGE
REASONS
RESPONDENTS ANALYSIS
FINANCIAL PROBLEMS 51 51
STRESS 6 6
BETTER EMPLOYMENT
OPPURTUNITY 29 29
STAGNATION 14 14

RATE OF REASONS FOR LEAVING THE

ORGANISATION
NO OF RESPONDENTS

60
50 NO OF RESPONDENTS
40
30
20 PERCENTAGE
10 ANALYSIS
0
OPPURTUNITY
EMPLOYEMEN
PROBLEMS
FINANCIAL

BETTER

REASONS

39
51% rated financial problem as the major reason for leaving the
organization, 6% rated stress, 29% rated better employment opportunity and
14% rated stagnation as the major reason.

POSITIVE MOTIVATIONAL ACTIVITIES WILL INCREASE

RETENTION

NO OF PERCENTAGE
RATING
RESPONDENTS ANALYSIS
STRONGLY
AGREE 6 6
AGREE 38 38
NEUTRAL 4 4
DISAGREE 44 44
STRONGLY
DISAGREE 8 8

RATE OF POSITIVE MOTIVATIONAL ACTIVITIES

50
NO OF RESPONDENTS

45
40
35
30 NO OF RESPONDENTS
25
20 PERCENTAGE ANALYSIS
15
10
5
0
STRONGLY NEUTRAL STRONGLY
AGREE DISAGREE
RATING

40
38% agreed that positive motivational activities will increase retention, 44%
disagreed, 8% strongly disagreed, 4% rated as neutral and only 6% strongly
agreed to this point.

RATE OF WELFARE SCHEMES IN THE ORGANISATION

RATING NO OF RESPONDENTS PERCENTAGE ANALYSIS

VERY
GOOD 6 6
GOOD 45 45
BAD 23 23
VERY BAD 26 26

RATE OF WELFARE SCHEMES

50
45
NO OF RESPONDENTS

40
35
30
NO OF RESPONDENTS
25
PERCENTAGE ANALYSIS
20
15
10
5
0
VERY GOOD GOOD BAD VERY BAD
RATING

45% rated welfare schemes as good, 23% as bad, 26% as very bad and 6%
rated as very good.

41
RATE OR ENVIRONMENTAL FACTORS

1) RATING OF VENTILATION, JOB SHIFTS GIVEN TO EMPLOYEES

NO OF PERCENTAGE
RATING
RESPONDENTS ANALYSIS
STRONGLY AGREE 17 17
AGREE 46 46
NEUTRAL 23 23
DISAGREE 8 8
STRONGLYDISAGREE 6 6

RATING OF VENTILATION, JOB SHIFTS GIVEN TO

EMPLOYEES
NO OF RESPONDENTS

50
45
40
35
30 NO OF RESPONDENTS
25
20 PERCENTAGE ANALYSIS
15
10
5
0
STRONGLYDIS
NEUTRAL
STRONGLY

DISAGREE
AGREE
AGREE

AGREE

RATING

42
17% strongly agreed that proper ventilation, job shifts are provided to them.
46% agreed, 8% disagreed, 6% strongly disagreed and 23% said it as
neutral.

2) RATE OF SAFETY MEASURES IN THE ORGANISATION

NO OF PERCENTAGE
RATING
RESPONDENTS ANALYSIS
STRONGLY AGREE 8 8
AGREE 17 17
NEUTRAL 20 20
DISAGREE 43 43
STRONGLY
DISAGREE 12 12

NO OF RESPONDENTS

12% 8%

STRONGLY AGREE 17%

AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE 43%
20%

43
8% of employees strongly agreed that safety is provided to them.
17% agreed, 20% said it as neutral, 43% disagreed and 12%
strongly disagreed.

RATE OF JOB SATISFACTION

1) RATE OF WORK EQUIPMENTS PROVIDED

NO OF PERCENTAGE
RATING
RESPONDENTS ANALYSIS
STRONGLY
AGREE 11 11
AGREE 51 51
NEUTRAL 19 19
DISAGREE 11 11
STRONGLY
DISAGREE 8 8

NO OF RESPONDENTS

8% 11%
11%

19%

51%

STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

44
8% of employees strongly disagreed that necessary work
equipment are provided to them. 51% agreed, 19% said it as
neutral, 11% disagreed and 11% strongly agreed.

2) RATE OF OPPORTUNITY PROVIDED

NO OF PERCENTAGE
RATING
RESPONDENTS ANALYSIS
STRONGLY AGREE 14 14
AGREE 43 43
NEUTRAL 23 23
DISAGREE 14 14
STRONGLY
DISAGREE 6 6

NO OF RESPONDENTS

STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

6% 14%
14%

23%
43%

45
6% of employees strongly disagreed that enough opportunities are
provided to them. 43% agreed, 23% said it as neutral, 14%
disagreed and 14% strongly agreed.

3) RATE OF EMPLOYEES OPINION CONSIDERED BY

ORGANISATION

NO OF PERCENTAGE
RATING
RESPONDENTS ANALYSIS
STRONGLY
AGREE 11 11
AGREE 14 14
NEUTRAL 57 57
DISAGREE 12 12
STRONGLY
DISAGREE 6 6

60
NO OF RESPONDENTS

50
40
NO OF RESPONDENTS
30
PERCENTAGE ANALYSIS
20
10
0
E
E
AL
E

RE

RE
RE

RE

R
UT

G
AG

AG
AG

A
NE

IS
S
LY

DI

D
G

LY
N
RO

G
N
ST

RO
ST

RATING

46
6% of employees strongly disagreed that employee’s opinion are
considered by the organization. 14% agreed, 57% said it as
neutral, 12% disagreed and 11% strongly agreed.

RATE OF RIGHT JOBS GIVEN TO RIGHT PERSON

RATING NO OF RESPONDENTS PERCENTAGE ANALYSIS

YES 52 52
NO 48 48

RIGHT JOB TO RIGHT PERSON

53

52
NO OF RESPONDENTS

51
50 YES
49 NO

48

47

46
NO OF RESPONDENTS PERCENTAGE ANALYSIS
RATING

52% of employees said that right jobs are given to right person whereas 48%
said that right jobs are not given to right person.

47
FEEL AT ANY TIME TO LEAVE THE ORGANISATION

PERCENTAGE
RATING NO OF RESPONDENTS ANALYSIS

YES 34 34

NO 66 66

LEAVE THE ORGANISATION

70
60
NO OF RESPONDENTS

50
40 YES
30 NO

20

10
0
NO OF RESPONDENTS PERCENTAGE ANALYSIS
RATING

48
66% of employees think not to leave the organization whereas others think
differently.

SUMMARY

FINDINGS

1. The survey reveals that majority of employees working in the

organization are aged more than twenty years.
2. Majority of employees rate monetary benefits compared to their
experience in the organization was bad. From the survey I can find that this
was the serious issue of labour turn over in the organization.
3. Majority of employees demand that they want additional benefits which
will provide some relief to employees.
4. Employees agreed that good working environment will reduce attrition
rate.
5. Majority of the employees rated that the welfare activities in the
organization was good.
6.Most of the employees agreed that positive motivational activities will
increase employee retention.

49
 SUGGESTIONS

1. Change the present salary structure so as to make more earning

to employees
2. Employees suggested some additional benefits such as:
Transportation allowance
Accident insurance
Training in other institutions
3. The reasons employees expressed for leaving the organization
are:
Financial problem
Stagnation
Better employment opportunity

50
 ANNEXURE

QUESTIONNAIRE

I Vijaya R , is conducting a study on employee retention in HMT Machine

Tools Limited, Kalamassery. As a part of my academic purpose I am
conducting a survey. I request your
co-operation.

(Make your choice in appropriate option by making a tick mark)

1) Designation-----------------------------

2) Department-----------------------------

3) Mention your gender

a) Male b) Female

4) Your age
a) Below 30 b) 30-40 c) 40-50 d) 50-60

51
5) Years of experience in BIG BAZAAR?
a) Below 5 years b) 5-10 years c) 10-15 years d) 15-20years

6) Your opinion about monetary benefits existing in BIG BAZAAR

a) Very good b) good c) bad d) very bad

7) Do you agree that additional benefits other than salary will prevent you from
leaving the organization?
a) Yes b) No

8) If agree, grade the benefits according to your preference

*(Grade as 1,2,3,4,5. eg 1- Highly preferred, 2 for the one which you think is less
preferable when compared to1.)

a) Transportation allowance
b) An improvement in township
c) Training in other institutions
d) Canteen- Food variety
e) Medical facilities- accident insurance

9) Grade according to your opinion the reasons that make you to leave the
Organization
*(Grade as 1,2,3,4,5. eg 1- Highly preffered , 2 for the one which you think is less
Preferable when compared to1.)

a) Financial problems
b) Stress
c) Better employment opportunity
d) Stagnation

10) Positive motivational activities such as recognitions, appreciations etc from

superiors will motivate you to continue in the organization.
a) Strongly agree b) agree c)neutral d)disagree e) strongly disagree

11) How do you rate the welfare schemes in the organization?

a) Very good b) good c) bad d) very bad

12)

52
 ENVIRONMENTA STRONGLY AGREE NEUTRAL DISAGREE STRONGLY
L FACTORS AGREEE DISAGREE
a) Enough space,
ventilation, job shifts
are given to you
b) Good safety
measures are there in
the organization

13)
JOB STRONGLY AGREE NEUTRAL DISAGREE STRONGLY
SATISFACTION AGREE DISAGREE
a) Do you have
the materials and
equipment that
you need in order
to do your work
rightly?
b) At work do
you have the
opportunity to do
what you do best
everyday?
c) At work do
your opinions
seems to be
counted?

14) Do you think higher authorities are giving right jobs to right person?
a) Yes b) No

15) Have you ever thought of leaving the organization?

a) Yes b) No
If yes please reveal the reason in the space provided--------------------------------------
----------------------------------------------------------------------------------------------------

53
54