A STUDY ON EMPLOYEE RETENTION STRATEGY IN FIPL FINAL PROJECT REPORT Submitted in the partial fulfillment of the requirements For

the award of the degree OF MASTER OF BUSINESS ADMINISTRATION BY VIDHYA RAMESH (REG NO:3511111094) UNDER THE GUIDANCE OF DR. P. RAVILOCHANAN PROFESSOR, ASSOCIATE RESEARCH

FACULTY OF ENGINEERING AND TECHNOLOGY SCHOOL OF MANAGEMENT KATTANKULATHUR-603203 MAY 2013

DECLARATION

I am Ms. VIDHYA RAMESH [Reg. No. 3511111094] is a bonafide student of SRM UNIVERSITY, Kattankulathur, Kanchipuram (dist). I would like to declare that the project entitled A STUDY ON EMPLOYEE RETENTION STRATEGY IN FIPL is submitted by me in partial fulfillment of the requirement for the award of degree Master of Business Administration (MBA) is my original work.

PLACE: CHENNAI DATE:

SIGNATURE

SRM UNIVERSITY FACULTY OF ENGINEERING AND TECHNOLOGY DEPARTMENT OF BUSINESS ADMINISTRATION KATTANKULATHUR-603203

BONAFIDE CERTIFICATE

Certified that this project report A STUDY ON EMPLOYEE RETENTION STRATEGY IN FIPL is the bonafide work of Ms. VIDHYA RAMESH [RegNo:3511111094] who carried out the project work under my supervision. Certified further,that to the best of my knowledge.The work reported herein does not form part of any project report or dissertation on the bases of a degree or award was conferred on the ealier occasion on this or any other candidate.

Signature of the Guide

(Dr. P. Ravilochanan ) (Proffessor, associate research)

DEAN / MBA
( Dr.Jayashree Suresh) (Professor & Dean)

Internal examiner

External examiner

Date: Place:

CONTENTS CHAPTERS TITLE COVER PAGE TITLE PAGE DECLARATION BONAFIDE COMPANY CERTIFICATE ACKNOWLEDGMENT CONTENTS LIST OF TABLE LIST OF CHARTS 1 INTRODUCTION 1.1 INDUSTRY PROFILE 1.2 ECONOMIC GROWTH 1.3 GROWTH OF INDUSTRY 1.4 ORGANIZATIONAL PROFILE 2 3 2.1 LITERATURE REVIEW 3.1 RESEARCH METHODOLOGY 3.2 NEED OF THE STUDY 3.3 STATEMENT OF PROBLEM 3.4 SIGNIFICANCE OF STUDY 3.5 OBJECTIVE OF THE STUDY 3.6 SAMPLE DESIGN 3.7 TOOLS OF ANALYSIS 3.8 LIMITAIONS OF THE STUDY 3.9 CHAPTER SCHEME 4 5 4.1 DATA ANALYSIS 5.1 SUGGESTIONS 5.2 SUMMARY 5.3 CONCLUSION ANNEXURE 1 : QUESTIONNAIRE BIBLIOGRAPHY PAGE NO I II III VI VII VIII IX X XI 1 3 8 8 10 19 23 24 24 25 25 26 28 29 29 32 68 69 71 73 79

LIST OF TABLES TABLE NO 4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 4.1.6 4.1.7 4.1.8 4.1.9 4.1.10 4.1.11 4.1.12 4.1.13 4.1.14 4.1.15 4.1.16 4.1.17 4.1.18 4.1.19 4.1.20 4.1.21 4.1.22 4.1.23 4.2.1 4.2.2 4.2.3 4.2.3 TITLE GENDER OF THE EMPLOYEES MARITAL STATUS OF THE EMPLOYEES EDUCATIONAL QUALIFICATION OF EMPLOYEES AGE LEVEL OF EMPLOYEES TOTAL EXPERINCE OF EMPLOYEES EXPERIENCE IN FIPL CAREER DEVELOPMENT OF EMPLOYEES LEVEL OF COMFORT SATISFACTORY LEVEL OF EMPLOYEES IMPORTANCE GIVEN TO EMPLOYEES RETENTION MEASURE RETENTION STRATEGY IN THE ORGANIZATION EXPECTATION OF EMPLOYEES PERSONAL BARRIERS COUNSELING PROGRAM COMMUNICATION FACILITY IMPROVE UNDER PERFORMER APPRAISAL MECHANISM REWARD SYSTEM TRUENESS OF STATEMENT WILLINGNESS WELFARE PROVISION GROUP HARMONY GENDER AND WILLINGNESS OF WORK MARITAL STATUS AND EXPECTATION TOTAL EXPERIENCE AND EXPECTATION TOTAL EXPERIENCE IN FIPL AND EXPECTATION PAGE NO 32 33 34 35 36 37 38 39 40 44 45 46 47 49 50 51 52 53 54 55 56 57 58 60 61 63 64

LIST OF CHARTS CHART NO 4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 4.1.6 4.1.7 4.1.8 4.1.9 4.1.14 4.1.15 4.1.16 4.1.17 4.1.18 4.1.19 4.1.20 4.1.21 4.1.22 4.1.23 4.1.24 4.1.25 4.1.26 4.1.27 TITLE GENDER OF THE EMPLOYEES MARITAL STATUS OF THE EMPLOYEES EDUCATIONAL QUALIFICATION OF EMPLOYEES AGE LEVEL OF EMPLOYEES TOTAL EXPERINCE OF EMPLOYEES EXPERIENCE IN FIPL CAREER DEVELOPMENT OF EMPLOYEES LEVEL OF COMFORT SATISFACTORY LEVEL OF EMPLOYEES IMPORTANCE GIVEN TO EMPLOYEES RETENTION MEASURE RETENTION STRATEGY IN THE ORGANIZATION EXPECTATION OF EMPLOYEES PERSONAL BARRIERS COUNSELING PROGRAM COMMUNICATION FACILITY IMPROVE UNDER PERFORMER APPRAISAL MECH9NISM REWARD SYSTEM TRUENESS OF STATEMENT WILLINGNESS WELFARE PROVISION GROUP HARMONY PAGE NO 32 33 34 35 36 37 38 39 40 44 45 46 47 49 50 51 52 53 54 55 56 57 58

CHAPTER-1

EMPLOYEE RETENTION

1. Introduction

Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee.

Employees today are different. They are not the ones who dont have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next job. It is the responsibility of the employer to retain their best employees. If they dont, they would be left with no good employees. A good employer should know how to attract and retain its employees.

Retention involves five major things: Compensation Environment Growth Relationship Support

Compensation:

Compensation constitutes the largest part of the employee retention process. The employees always have high expectations regarding their compensation packages. Compensation packages vary from industry to industry. So an attractive compensation package plays a critical role in retaining the employees.

Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options, bonuses, vacations, etc.

Environment:

It is not about managing retention. It is about managing people. If an organization manages people well, employee retention will take care of itself. Organizations should focus on managing the work environment to make better use of the available human assets. Growth:

Growth and development are the integral part of every individuals career. If an employee can not foresee his path of career development in his current organization, there are chances that hell leave the organization as soon as he gets an opportunity.

Relationship:

Sometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization. The management is sometimes not able to provide an employee a supportive work culture and environment in terms of personal or professional relationships. There are times when an employee starts feeling bitterness towards the management or peers. This bitterness could be due to many reasons. This decreases employees interest and he becomes de-motivated. It leads to less satisfaction and eventually attrition.

Support:

Lack of support from management can sometimes serve as a reason for employee retention. Supervisor should support his subordinates in a way so that each one of them is a success. Management should try to focus on its employees and support them not only in their difficult times at work but also through the times of personal crisis. Management can support employees by providing them recognition and appreciation.

1.1 INDUSTRY PROFILE

In India there are 100 people per vehicle, while this figure is 82 in china. It is expected that India automobile industry will achieve mass motorization status by 2014. INTRODUCTION Since the first car rolled out on the streets of Mumbai (Bombay) in 1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked by the government and the police were also not favorable. The Liberalization police and various tax reliefs by the Govt. of India in recent years have made remarkable impact on Indian Automobile industry. Indian auto industry, which is currently growing at the pace of around 18%per annum, has become a hot destination for global auto player like Volvo, general motors and Ford. HISTORY The automobile history dates back to the late 18th century. Nicolas Joseph Cugnot, a French engineer is credited with inventing the first self-propelled automobile. Cugnot's vehicle used steam power for locomotion. The vehicle found military application in the French army. Cugnot's automobile was never commercially sold. In the beginning automobile industry was dominated by steam-powered vehicles. The vehicles were expensive and difficult to maintain. The incidence of frequent boiler explosions also kept potential purchasers away. Commercial history of automobiles started with the invention of gasoline powered internal combustion engines. The German inventor, Karl Benz constructed his first gasoline powered vehicle in 1885 at Mannheim, Germany. Commercial production of Benz cars started in 1888.Levassor of France was the first company to exclusively build and sell motor cars from 1889.The early 1900s saw many automobile manufacturing companies coming into existence in number of European countries and the United States. The first mass produced automobile in the United States was the curved-dash Oldsmobile. It was a three-horsepower machine and sold5000 units by 1904. The economics of the US car market was disrupted by the arrival of Henry Ford and his Model T car. The Model T was the world's first mass produced vehicle- a million units are sold.

INDIAN AUTOMOBILE INDUSTRY Indian automobile sector consist of the passenger cars and utility vehicles, commercial vehicles, two wheelers and tractors segment. The total market size of the auto sector in India is approximately Rest 540 billion and has been growing at around 8 percent per annum for the last few years. Since the last four to five years, the two wheel segment has driven the overall volume growth on account of the spurt in the sales of the motorcycle. However, lately the passenger cars and commercial vehicles segment has also seen a good growth due to high discount lower financial rate and pickup in industrial activity respectively. The automobile industry is fairly concentrated as in most of the segment two or three players have cornered a major chunk of the total sales. For instance in passenger car segment, MUL, Tata Motors and Hyundai motors control around 85% of the total annual sales. Similarly, in the two-wheelers segment the sales volume of Hero Honda, Bajaj auto and TVS motors constitute around80% of the total sales and in the commercial vehicle segment the market leader Telco controls around 56% of the total annual sales. The auto components industry on the other hand is highly fragmented through there are dominating players in some of the critical segment. OUTLOOK The expected rise in income levels, wide choice of models and easy availability of finance at low interest rates will drive growth in passenger cars segment, which is likely to be over12 percent per annum for a next four to five years. Two wheelers growth is likely to marginally low down, but still grow at an average annual growth rate of around 10 percent. The commercial vehicles segment is likely to grow at a rend rate of 6-8 percent driven mainly by the increase in industrial and economic activity on account of the expected growth in the economy, though annual growth rates may fluctuate widely with the cyclical ups and downs of the economy. Tractor industry growth is likely to turnaround and posts a growth in volume in2005-06. However, it will likely to turnaround and posts a moderate growth of around 4-5 percent growth rate. SCOPE OF INDIAN AUTOMOBILE SECTOR The Indian automobile industry is going through a phase of rapid change and high growth. With the new project coming up on a regular basis the industry is undergoing technological change. The major players are expanding their plants and focusing on mass customization, mass production, etc. Nearly every automobile company is investing at a 5

higher rate than ever before to achieve a high growth trajectory. The overall investment in the sector has been increasing quite rapidly. It is expected that by the end of the 2011 Indian automobile sector will be investing a huge amount40, 000 cores. AUTOMOBILE INDUSTRY TRENDS In keeping with the Automobile Industry Trends, the leading automobile manufacturers are turning to the Asian markets that appear set to grow immensely over the next decade. The automobile markets in the U.S., Europe and the Japan have almost matured as a result of saturation and appear set to decline through the next decade. In contrast, the automobile markets spread over the entire Asian continent (with the exception of Japan), are constantly increasing in size and will be the destination for most of the globally leading automobile manufacturers. The Automobile Industry Trends reveal that the emerging markets of the developing nations of Asia especially China, and India are backed by their huge population growth rate, to add to the growing national economy of these two nations. The rapid growth of the national economy of the BRIC countries (including Brazil, Russia, India, and China) has enabled a growing section of the population of these countries to purchase automobiles. Global surveys conducted recently reveal that within the next ten years, these emerging automobile markets will account for nearly a whopping 90 percent of the global automobile sales growth. As a result of this, leading Automobile manufacturers of the world are setting up factories in the emerging markets, in order to serve the potential consumers better as well as reduce manufacturing and shipping costs. In addition, these arrangements are enabling the leading global automobile manufacturers to compete with the local automobile manufacturers, which were flourishing in the absence of quality competition. The prosperity of the national economy is reflected in the rising per capita income of the developing nations. Therefore, increasing Gross Domestic Product and per capita income have raised the purchasing ability of the population that constitutes these emerging markets. As a growing percentage of the population in the developed nations age rapidly, in comparison to the rest of the world, these aging numbers necessitate automobiles to fit the physiological change of the world population.

THE KEY PLAYER IN INDIAN AUTOMOBILE INDUSTRY MarutiUdyog Limited Ford India Ltd. Eicher Motors Hindustan Motors Royal Enfield Motors TVS Motors Hero Motors limited Tata Groups Bajaj Auto Limited Mahindra Group Ashok Leyland Hyundai Motors India Limited Toyota Kirloskar Motors Privates Limited Honda Siel Cars India Ltd. Nissan Motors India Pvt. Ltd

THE KEY FACTORS BEHIND THE UPSWING Sales incentives, introduction of new models as well as variants coupled with easy availability of low cost finance with comfortable repayment options continued to drive demand and sales of automobiles during the first two quarters of the current year. The risk of an increase in the interest rates, the impact of delayed monsoons on rural demand, and increase in the costs of inputs such as steel are the key concerns for the players in the industry. As the players continue to introduce new models and variants, the competition may intensify further. The ability of the players to contain costs and focus on exports will be critical for the performance of their respective companies. 7

The auto component sector has also posted significant growth of 20 per cent in 200910, to achieve a sales turnover of Rs.30, 640crore (US$ 6.7 billion). Further, there is a potential for higher growth due to outsourcing activities by global automobiles giants. Today, this sector has emerged as another sunrise sector.

1.2 ECONOMIC GROWTH DURING LIBERALIZATION MEASURES :

The American economy grew more slowly than expected in the first quarter of 2012, expanding at a rate of 2.2 percent. While the numbers are another illustration that the economic recovery is still on the right track (particularly compared to European countries that have fallen back into recession), they fell short of estimates. One bright spot of the Commerce Departments Bureau of Economic Analysis report, however, is that the American auto industry is continuing its resurgence and adding to economic growth:

Motor vehicle output added 1.12 percentage points to the first-quarter change in real GDP after adding 0.47 percentage point to the fourth-quarter change.

That the auto industry helped boost economic growth is yet another sign that letting the industry fail as many Republicans, including presumptive GOP presidential nominee Mitt Romney, wanted to do would have had disastrous effects on the American economy. The auto industry rescue, according to some estimates, saved more than one million jobs. Since it was saved, the industry is growing again its biggest companies are adding jobs, boosting sales, and posting record profits. As todays report shows, thats having a sizable impact on Americas economic growth, and its translating into job growth as well: in March, nearly 10 percent of the 120,000 jobs added to the economy came from growth in the auto and parts manufacturing sector.

1.3 GROWTH OF AUTO MOBILE INDUSTRY DURING RECENT DECADE : Automotive Industry comprises of automobile and auto component sectors and is one of the key drivers of the national economy as it provides large-scale employment, having a strong multiplier effect. Being one of the largest industries in India, this industry has been witnessing impressive growth during the last two decades. It has been able to restructure 8

itself, absorb newer technology, align itself to the global developments and realize its potential. This has significantly increased automotive industry's contribution to overall industrial growth in the country. Growth Drivers of Indian Automobile Market

Rising industrial and agricultural output Rising per capita income Favourable demographic distribution with rising working population and middle class Urbanisation

Increasing disposable incomes in rural agri-sector Availability of a variety of vehicle models meeting diverse needs and preferences Greater affordability of vehicles Easy finance schemes Favourable government policies Robust production

India's Position in World's Production

Well-developed, globally competitive auto ancillary industry Established automobile testing and R&D centres Among one of the lowest cost producers of steel in the world Worlds second largest manufacturer of two wheelers Fifth largest manufacturer of commercial vehicles Manufactures largest number of tractors in the world Ninth largest car manufacturer in world

1.4 COMPANY PROFILE

FORD MOTOR COMPANY Ford motor company is an American multinational corporation and one of the worlds largest automakers. TYPE INDUSTRY FOUNDED FOUNDER(S) HEAD QUARTERS PLANTS KEY PEOPLES : : : : : : : Public company Automotive June 16, 1903 Henry Ford Dearborn, Michigan, U.S. 90 Plants in 26 Countries on 6 Continents William C Ford (Executive Chairman) Alan R Mulally (President, CEO) PRODUCTS SERVICES : : Automobiles, Automotive Parts. Automotive Finance, Vehicle Leasing, Vehicle Service REVENUE OPERATING INCOME NET INCOME TOTAL ASSETS EMPLOYEES SUBSIDIARIES : : : : : : U$$136.26 BILLION (2012) U$$8.681 BILLION (2012) U$$20.21 BILLION (2012) U$$178.35 BILLION (2012) 164,000(2012) Automotive Components Holdings, Ford Credit CBG : The Americans, Ford of Europe, 10

Asia Pacific and Africa, Ford Motor Credit Company PRODUCTS : Ford Endeavour, Ford Fiesta, Ford Figo, Ford Eco Sport INTRODUCTION TO FORD INDIA LIMITED Ford India, originally an American company entered the Indian market with Ford escort in the year 1988. The 2001 model Ford ikon was a successful car on Indian roads. The company added more happening brands to the market, such as Ford fusion, Ford fiesta, Ford mondeo and Ford Endeavour. The company has invested heavily in India to give the finest in automobiles. Rest 1700 core has been invested in integrated manufacturing plant at Marginalia Nagar, 45 KM from Chennai. The plant is equipped with state-of-the-art Ford technology in an area of 350 acres. It has a capacity of 100000 vehicles per annum. FORD INDIA Established in 1995, Ford India is a wholly owned subsidiary of Ford motor company, a global automotive industry leader. Ford India manufactures and distributes automobiles at its modern integrated manufacturing facility at Maraimalai Nagar near Chennai. The company models Endeavour, Figo, Fiesta are manufactured at Maraimalai Nagar spread across 350 acres, with an initial investment of Rs.1700 Core. Ford India employs a large workforce of skilled personnel. The company endorses equal opportunity. Ford India has set up fully equipped primary health care center named sanjeevi near its facility in Maraimalai Nagar for the local community. The center provides free primary healthcare to the neighboring villages. COMPANY FLASHBACK Ford Motor Company, an American company, manufactures and sells automobiles worldwide. The company was launched wagon factory with Rs. 28,000 cash from twelve investors. Henry Ford, the founder, was 40 years old when the company was founded.

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Today, it is the largest family-controlled company in the world. It has been in continuous family control for over 100 years. Ford introduced itself in India in 1988 with its Ford escort model. Later in 2001 it was replaced by locally produced Ford Ikon. Since then it has added fusion, fiesta, mondeo and Endeavour to its product line. Worlds fourth largest automaker, Ford motor company, was founded by Henry Ford and incorporated on June 16, 1903. Ruling the automobile sector for over a decade, the company had a modest start with a capital of just $28,000 from 12 investors. In the early years, the company produced just a few cars a day at its factory on Mack Avenue in Detroit, Michigan. Today, Ford has major manufacturing operations in Canada, Mexico, the United Kingdom, Germany, turkey, Brazil, Argentina, Australia, the peoples republic of china, India and so on. The four wheelers manufactured are widely renowned for their unique styling, excellent performance and providing utmost luxury. Fords automotive brands include Aston martin, Lincoln, Mazda, mercury and Volvo. In the wake of economic liberalization in India, Ford entered the Indian market and since then Ford India limited has registered an impressive growth. The companys venture into the Indian automobile market dates back to 1926, but sadly it was shut down in 1954. Despite its failed attempt the automaker once again entered the Indian automobile business in 1995, as a 50-50 joint venture with Mahindra & Mahindra (M&M). The plant is located in Maraimalai Nagar near Chennai has the capacity to produce 100000 vehicles per annum. Three years then, in 1998, Ford acquired 72% of the share in MFIL, thereby renaming the company as Ford India. The company made a debut in India with escort, its first passenger car. With the advancement of technology and to adopt with the rising demand, Ford replaced its escort with Ford ikon in 2001. This indigenous car was an instant hit and allured the Indians. After the magnanimous success of ikon, the company added some more luxurious cars to its product line, including fiesta, fusion, mondeo, Endeavour. The other models include the Ford Zetec (MIFL) and Ford Escorts (MIFL). Vision To become the worlds leading Consumer Company for automotive products and services. Mission 12

We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world. wor We anticipate consumer need and deliver outstanding products and services that improve peoples lives. Values Our business is driven by their consumer focus, creativity, resourcefulness, and entrepreneurial spirit. We are an inspired, diverse team. We respect and value everyones contribution. The health and safety of our people are paramount. We are a leader in environmental responsibility. Our integrity is never compromised and they make a positive contribution ontribution to society. We constantly strive to improve in everything they do. Guided by these values, we provide superior returns to their shareholders.

ORGANIZATION OF FORD INDIA

FIPL FORD INDIA FTSC FBSC

FORD INDIA PRIVATE LIMITED (FIPL) It is a state of art facility spread across 350 acres, of which 179 acres are used, 71 acres for supplier part and Visteon and 100 acres are for future use. There are nearly 3800 employees. The investment is approximately Rs.1700 cores with the capacity of producing 100000 vehicles per annum. FIPL has 164 dealership facilities in 97 cities. Ford investment in Chennai gears it for the eco-friendly volume production and position. Ford India is to become a major export producer. FORD TECHNOLOGY SERVICE INDIA (FTSC) It is a center of excellence in Asia pacific Africa(APA) region designed to capitalize on Indias IT skilled manpower and low cost. It is delivers affordable best in class IT and call 13

center technology solution for Ford APA as well as the extended Ford enterprise. It is partnered with Lovan systems, Satyam and Third ware to provide the appropriate solutions. FORD BUSINESS SERVICE CENTRE (FBSC) It was established in 1998 to provide accounting, finance and operational services. More than 100 qualified salaried employees are working in FBSC. It has a 24/7 service center, supporting Ford operations across US, Europe, Asia pacific and 130 different countries across the globe. ORGANIZATION STRUCTURE

FUNCTIONAL DEPARTMENTS 1. Human Resources Department 2. Finance Department 14

3. Marketing &sales Department 4. Purchase Department 5. Production Department 6. Health & Safety Department

PRODUCTION PROCESS

SIGNIFICANT MILESTONES 1997 Ford escort wins the JD power award in the initial quality. Ford also topped the customer satisfaction index (CSI) ratings for the two consecutive years, in 1997 and 1998, in the customer satisfaction survey conducted by JD power & associates. 1999 -Maraimalai Nagar integrated plant dedicated. Ford ikon was launched on November 22, 1999 in versions 1.6l petrol and 1.8l diesel. 2000- The Ford ikon 1.6 Rally sport, Ford ikonexi, Ford ikonsxi, the josh machine launched. Dealership across the country inaugurated. 15

Ford voted the most appealing mid-size car by JD power Asia pacific. Overdrive, the car and bike magazine voted Ford Ikon as the most exciting new car. 2001- Ford ikon launched in Mexico and South Africa. 2002- Mondeo Premium Luxury car launched. Ikon won the BBC wheels Best Mid-Size Car. In December 2003,Endeavour was launched in India. Ford India ranked highest in India sales satisfaction study for the year 2003 by JD power Asia pacific.

Ford ikon 1.6 sxinxt won the best car award in the Rs.5-8 lakhs. Category from BCC wheels in December 2003. 2004- Launch of fusion- urban activity vehicle. 2005- The Ford ikon achieved a historic milestone with the 100,000th car rolling out of Ford India plant. To celebrate the occasion, a josh 100 series was introduced in India.

Ford fusion awarded the Best drivers car by CNBC TV 18 auto car award in 2005 Ford fiesta was launched in India. 2006- Ford fiesta was awarded the Best Midsize car of the year by car India and NDTV profit awards. Launch of freshened fusion.

2007- Ford India among top 25 best employers in India Ford India certified TS16949& ISO 14001

2008- Ford sells Jaguar and Land Rover to Tata Motors. 2010- Ford India- Best manufacturers of the year Ford Figo introduced.

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TOTAL WORKERS, EMPLOYEES & EMPLOYERS:

Staff Team leaders Hourly Total - 766 - 315 - 3895 = 6976

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CHAPTER-2

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2.1 LITERATURE REVIEW

EMPLOYEE RETENTION

INTRODUCTION: Employee retention refers to policies and practices companies use to prevent valuable employees from leaving their jobs. How to retain valuable employees is one of the biggest problems that plague companies in the competitive marketplace. Not too long ago, companies accepted the "revolving door policy" as part of doing business and were quick to fill a vacant job with another eager candidate. Nowadays, businesses often find that they spend considerable time, effort, and money to train an employee only to have them develop into a valuable commodity and leave the company for greener pastures. In order to create a successful company, employers should consider as many options as possible when it comes to retaining employees, while at the same time securing their trust and loyalty so they have less of a desire to leave in the future.

MEANING:

Employee retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. Corporate is facing a lo of problem in employee retention these days. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring. There is no dearth of opportunities for talented person. There are many organizations which are looking for such employees. If a person is not satisfied by the job hes doing, he may switch over to some other more suitable job. In todays environment it becomes very important for organizations to retain their employees.

DEFINITION:

According to HERMAN "Employee retention is the conscious and deliberate effort to retain quality individuals on the company payroll. Stated otherwise, it is the proactive methods utilized by successful organizations to stop the drain of company profits caused by excessive employee turnover".

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The Benefits of Employee Retention:

Every company should understand that people are their best commodity. Without qualified people who are good at what they do, any company would be in serious trouble. In the long run, the retention of existing employees saves companies money. As Beverly Kaye and Sharon Jordan-Evans stated in Training and Development: "Studies have found that the cost of replacing lost talent is 70 to 200 percent of that employee's annual salary. There are advertising and recruiting expenses, orientation and training of the new employee, decreased productivity until the new employee is up to speed, and loss of customers who were loyal to the departing employee. Finding, recruiting, and training the best employees represents a major investment. Once a company has captured talented people, the return-on-investment requires closing the back door to prevent them from walking out."

When an employee leaves a company for a direct competitor, there is always a chance that they will take important business strategies and secrets with them to be exploited by the competition. This is yet another reason why the retention of employees is so crucial to some businesses. While this practice seems a bit unscrupulous, it stills happens quite frequently. As Bill Leonard stated in HR Magazine: "Because employers know that the best-qualified applicants will come directly from competitors, recruiting and hiring employees away from the competition becomes a necessity in an ultra-tight labor market. And necessity is the mother of inventive and sometimes controversial business practices. Recruiting and hiring from your competitors is probably as old as business itself. But what is newand a hot topic among employersis how to attract and retain qualified candidates in a highly competitive labor market while also preventing their own intellectual capital from winding up in the hands of competitors."

One way for a company to prevent employees from giving valuable information to competitors is to make it a policy to enforce strict noncompeting and confidentiality agreements amongst its employees. The existence of such agreements could in fact deter a competitor from hiring a valuable employ because they might not want to risk possible legal entanglements with the other company. Of course, all this could possibly lead to animosity with the employee who could feel that his or her options are being limited. Many employees don't always remember signing such a document, so a copy of it should 20

always be kept on file for the employee to refer to. This area could prove to be a highly sensitive one between employer and employee, so extreme caution is suggested in all instances.

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CHAPTER-3

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3.1 RESEARCH METHODOLOGY

This chapter describes the research methodology adopted by the researcher for the purpose of the study.

Research means a scientific and systematic search for pertinent information on a specific topic. Research comprises defining and redefining problems, formulating hypothesis of suggested solution, collecting, organizing and evaluating data; making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis.

Methodology is defined as The study of methods by which we gain knowledge, it deals with cognitive processes imposed on research the problems rising from the nature of its subject matter

Research methodology is a way to systematically solve the research problem. It is a science of studying hoe research is done scientifically. In it, we study the various steps that are generally adopted by a researcher in studying his/her research problem along with the logic behind them.

Descriptive Research :

As the name suggests, descriptive research is undertaken to describe the situation, community, phenomena, outcome or programme. The main goal of this type of research is to describe the data and characteristic about what is being studied. It is contemporary, topical and time bound. It addresses the establishment or exploration of a formulated proposition. For who buy normal petrol and those who buy premium petrol. Is the consumption of organic food more in affluent south delhi is compared to the other areas in Delhi ? What is the level of involvement of middle level versus senior level managers in a company's stock-related decisions ?

Organizational climate studies are conducted in different organizations. A study of inventory management practices in the best managed companies is another example. The 23

commonality between all these research studies is the fact that unlike the exploratory, these are being conducted to test specific hypotheses and trends. They are relatively more structured and require a formal, specific and systematic approach to sampling, collecting information, collating and testing the data to verify the research assumptions.

The findings of descriptive studies are largely of a diagnostic nature, i.e., the studies indicate the existing symptoms of a particular situation without establishing the causality of the relationship.

This project is analyzed based on descriptive research. As the primary objective of the project is to find the strategies followed in the FIPL. The outcome of the project will lead to improve the strategy in order to retain the employee in the organization. Employee plays a major part in the research analysis as they are the one who involved in the retention practices. This project indicates the existing symptoms of employee retention in the organization and the reasons for their retention.

3.2 NEED OF THE STUDY

It is the responsibility of the employer to retain their best employees. This project hopes to find the various retention techniques that are to be followed in FORD INDIA PVT LTD to retain their employees.

To assist the organization to retain their employees by providing necessary measures. In order to prevent the companies privacy policy to be pirated by the competitors.

3.3 Statement of problem : Employee retention refers to policies and practices companies use to prevent valuable employees from leaving their jobs. How to retain valuable employees is one of the biggest problems that plague companies in the competitive marketplace. Not too long ago, companies accepted the "revolving door policy" as part of doing business and were quick to fill a vacant job with another eager candidate. Nowadays, businesses often find that they spend considerable time, effort, and money to train an employee only to have them develop into a valuable commodity and leave the company for greener pastures. In order to create a

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successful company, employers should consider as many options as possible when it comes to retaining employees, while at the same time securing their trust and loyalty so they have less of a desire to leave in the future.

Every company should understand that people are their best commodity. Without qualified people who are good at what they do, any company would be in serious trouble. In the long run, the retention of existing employees saves companies money. Finding, recruiting, and training the best employees represents a major investment. Once a company has captured talented people, the return-on-investment requires closing the back door to prevent them from walking out. When an employee leaves a company for a direct competitor, there is always a chance that they will take important business strategies and secrets with them to be exploited by the competition. This is yet another reason why the retention of employees is so crucial to some businesses.

In the case of FORD INDIA PVT LTD most of the employees were employed for direct productions. The only isssue Ford facing is the compensation issues that have been a dampener to the success of the company. Career growth in Ford is mixed bag, the growth is not is step by step process. A batch of people end up in various levels of the company in given period of time. This stress buster is the main reason for the employee absenteeism. 3.4 SIGNIFIANCE OF THE STUDY

This study was carried in FORD INDIA PVT LTD, Kanchipuram. This project will help the organization to identify the effective retention practices needed to retain the employees.

This project will also help the organization to know about the satisfaction level of the employees on different aspects of the job

This project was carried from the time frame of 01.03.2013 to 24.04.2013.

3.5 OBJECTIVES OF THE STUDY:

Primary Objective:

To analyze the Employees Retention in FIPL. 25

Secondary Objective:

To analyze the retention factors that are followed in FIPL. To observe the satisfaction levels of employees in different aspects of the job. To improve the strategies for employee retention.

3.6 SAMPLE DESIGN

Descriptive Research has been used, which involves surveys and fact-findings of different kinds. The major purpose of descriptive research is the description of the state of affairs, as it exists at present. The main characteristics of this method are that the researcher has no control over the variable; he can only report what has happened or what is happening.

SELECTION OF SAMPLES

Sample Design

Probability sampling requires complete knowledge about all sampling units in the universe . Due to time constraint non-probability sampling was chosen for the study. Sample size

The sampling size for the study was 40 employees of FIPL, Kanchipuram. The employees selected were from different department. Target population is Team members those who are directly dealing with the production and service department.

Tools for data collection:

After careful analysis of the available data collecting devices, questionnaire was found to be the most appropriate data-collecting device since it is suitable and flexible to elicit information from the responded. Under this method, a questionnaire containing relevant questions was designed by the researcher himself and the same was used to collect the pertinent details required for the study.

26

Primary Data

The primary data consists of those data, which are collected afresh and for the first time and therefore happen to be original in character. The main data that was subjected for statistical analysis was primary in nature and it was collected using the tool designed by the researcher himself.

DESCRIPTION OF THE TOOL USED FOR COLLECTING THE PRIMARY DATA

QUESTIONNAIRE

The questionnaire to study the employee retention is consist of open ended, close ended, multiple choice and anchor rating scale questions. During the process of questionnaire designing following factors were considered Type of information needed. Meeting the project objectives. Type of words used. Sequencing of questions. Logical order.

The parts of questionnaire designed to elicit information is described as below:

Part 1 consists of the personal details regarding gender, age, educational qualification and experience of the employees.

Part 2 consist of questions to understand their view of current retention practices, their satisfaction level and their expectations.

Secondary Data

Secondary data consists of that information which has been collected and compiled by other people for the purpose of their study. The secondary data used in the study is the profile information collected from books, journals and internet. 27

3.7 TOOLS OF ANALYSIS

After the relevant data has been collected, the researcher conducted a number of closely related operations such as establishment of categories, applying the established categories to the raw data through coding, classifying and tabulation and diagrammatic representations. The tabulated data were condensed into a few manageable groups and tables for further analysis.

STATISTICAL TOOLS APPLIED: The following tools and techniques have been used for the analysis of the data. Percentage analysis Chi square

3.7.1 PERCENTAGE ANALYSIS : A proportion or share in relation to a whole an amount, such as an allowance, duty, or commission that varies in proportion to a larger sum, such as total sales: work for a percentage. One of the simple methods of analysis is the percentage method. It is one of the traditional statistical tools. Though the use of percentage, the data are reduced in the standard form with the base equal to 100, which facilitates relative comparision. The formula used to compute percentage analysis is,

Percentage of the respondents

No of respondents Total no of respondents

x 100

3.7.2 CHI-SQUARE TEST : There are many situations in which it is not possible to make any rigid assumptions about the distribution of the population from which samples are being drawn. This limitations has led to the development of group of alternative technique known as nonparametric test are used, no assumptions about the parameters of the population or population from which we draw our samples are made. Chi- square test is the useful tool for testing the independency.

28

It s a measure to study the divergence of actual and expected frequencies. It is represented by the symbol
2

, Greek letter chi. It describes the discrepancy theory and

observation. The formula used is, Chi2 = (O-E)2 E

O - Observed frequency E - Expected frequency

E = (RT * CT) / GT , RT- Row total, CT - Column total, GT- Grand total. 3.8 LIMITATIONS OF THE STUDY

The results obtained in this study cannot be generalized as the employees voice of other cities as this study is restricted to Chennai city only.

There is a possibility of ambiguous replies and omission of replies altogether to certain items mentioned in the questionnaire.

Sampling error can also considered as a limitation of the study.

3.9 CHAPTER SCHEME

CHAPTER-1

Chapter-1 deals with introduction, statement of the problem, objective of the study need for the study, significance of the study, Industry profile, company profile, review of literature, chapter scheme and limitations.

CHAPTER -2

Chapter-2 deals with type of research, sample design, tools for data collection, tools for analysis.

29

CHAPTER-3

Chapter-3 deals with results and discussions.

CHAPTER-4

Chapter-4 deals with suggestion and recommendations.

CHAPTER-5

Chapter-5 deals with summary, conclusion and direction for future research.

30

CHAPTER-4 DATA ANALYSIS

31

TABLE 4.1.1:

Table representing Genders of the Employees

Gender Female Male

No. of Respondents 20 20

Percentage of Respondents 50 50

CHART 4.1.1: Chart representing Genders of the Employees

Male 50%

Female 50%

Inference: The above mentioned table and chart shows that 50% of the respondents are Male and 50% of the respondents are Female. This shows a balanced demography of employee, which shows the companies view on both the gender and a healthy competition between them.

32

TABLE 4.1.2: Table representing Marital Status of the Employees. Employees

Marital Status Married Single

No. of Respondents 8 32

Percentage of Respondents 20 80

CHART 4.1.2: Chart representing Marital Status of the Employees. Employees

Maried 20%

Single 80%

Inference: Above mention table and chart shows that 20% of respondents are Married and 80% of respondents are Single. Single are those who have less dependence as a family. They can easily work at a better and adjustable work pressure.

33

TABLE 4.1.3: Qualification of the Employees. Table representing Education Qualification Education Qualification No. of Respondents SSLC HSC DIPLOMA UG PG 12 15 12 1 0 Percentage of Respondents 30 37.5 30 2.5 0

CHART 4.1.3: Chart representing Education Qualification Qualifica of the Employees

40 35
30

37.5

30

30

Percentage

25 20 15 10 5 0
2.5 0

Education Qualification

Inference: Above table and chart shows that 30% of the respondents have studied SSLC, 37.5% of the respondents have studied HSC, 30% of the respondents have studied Diploma, 2.5% of the respondents have studied UG and no is PG. This graph proves that training is a crucial factor and needs to be continue in each phase of their career.

34

TABLE 4.1.4: Table representing Age level of the Employees.

Age 18-25 26-30 31-35 36-40 Above 40

No. of Respondents 33 6 0 1 0

Percentage of Respondents 82.5 15 0 2.5 0

CHART 4.1.4: Chart representing Age level of the Employees.

90 80 70

82.5

Percentage

60 50 40 30 20 10 0 18-25 26-30 31-35 Age 36-40 Above 40

15 0 2.5 0

Inference: Above mentioned table and chart shows that 82.5% of the respondents are at the age level between 18-25, 25, 15% are at the level of 26-30, 26 30, 2.5% are at the level of 36-40. 36 This graph proves that the employee population is all of young blood who are striving to come up and achive in life. They are the correct mix of youth and experience.

35

TABLE 4.1.5: Employees Table representing Total experience of the Employees.

Total Experience Below 1yr 1-3yr 3-5yr Above 5yr

No. of Respondents 1 10 16 13

Percentage of Respondents 2.5 25 40 32.5

CHART 4.1.5: Chart representing Total experience of the Employees. Employees

2% 33% 25% Below 1yr 1-3yr 3-5yr 40% Above 5yr

Inference: Above mentioned table and chart shows that 2.5% of employees have total experience below 1yr, 25% of the employees have experience of 1-3yrs, 1 40% of the employees have experience of 3-5yrs 3 5yrs and 32.5% of the employees have experience of above 5yrs. Ford has maximum chunk of employees who have experience the auto field of above 3 years. This is an asset for the company.

36

TABLE 4.1.6:

Table representing Experience of the Employees in the FIPL.

Experience in FIPL Below 1yr 1-3yr 3-5yr Above 5yr

No. of Respondents 13 25 2 0

Percentage of Respondents Responde 32.5 62.5 5 0

CHART 4.1.6: Chart representing Experience of the Employees in the FIPL.

Above 5yr Experience 3-5yr 5yr 1-3yr 3yr Below 1yr 0

0 5 62.5 32.5 20 40 Percentage 60 80

Inference: Above mentioned table and chart shows that 32.5% of the employees have their experience of below 1yr in FIPL, , 62.5% of the employees have experience of 1-3yrs, 1 5% of people have experience of 3-5yrs. 3 Major chunk of its employees are those with max of 3yrs of work in Ford. This portrays that there is a hint on high rate of absentisim.

37

TABLE 4.1.7: Table representing Career development of the Employees in the FIPL.

Career Development Rapid Growth Medium Slow Not at all

No. of Respondents 9 19 4 8

Percentage of Respondents 22.5 47.5 10 20

CHART 4.1.7: Chart representing Career development of the Employees in the FIPL.

50 45 40 35

47.5

Percentage

30 25 20 15 10 5 0

22.5

20 10

Rapid Growth

Medium

Slow

Not at all

Career Develepmont

Inference: Above mentioned table and chart shows that 22.5% of the employees have rapid growth in their career, 47.5% of the employees have medium growth, 10% of employees have slow growth and 20% of employees have said they have no career development in FIPL. In Ford, d, it is been proved that those who perform are rewarded. Medium devolpment in carrer means all performers are rewarded.

38

TABLE 4.1.8:

Table representing Level of comfortable of the employees with the job nature.

Job Nature Highly Comfortable Comfortable Neutral Uncomfortable Highly Uncomfortable

No. of Respondents 14 17 5 4 0

Percentage ge of Respondents 35 42.5 12.5 10 0

CHART 4.1.8: Chart representing Level of comfortable of the employees with the job nature.
42.5

45 40 35
35

Percentage

30 25 20 15 10 5 0 Highly Comfortable Neutral Highly Uncomfortable

0 12.5 10

comfortable Level

Inference: Above mentioned table and chart shows that 35% of the employees are highly comfortable with job nature, 42.5% of the employees are comfortable with the job nature, 12.5% of the employees are neutral in their jab nature, 10% 0% of the employees are uncomfortable ble with the job nature. Most of the employee are in total sync with the job profile and they seem to be happy to be in their respective field of work.

39

TABLE 4.1.9: Table representing the Satisfactory level of employees in various parameters of the job .

Parameters Compensation Org Culture HR team Relationship with Co- Employee Leave facility Recreational facilities Growth Environment Support

Highly Satisfactory 0 30 52.5

Satisfactory Average 42.5 17.5 32.5 40 15 30 27.5 5

Dissatisfactory 10 40 7.5 2.5

Highly Dissatisfactory 5 12.5 2.5 0

Working Hour 27.5

25 55 22.5 15 42.5 12.5

30 32.5 42.5 42 27.5 30

20 5 20 26 10 40

15 7.5 12.5 7.5 15 7.5

10 0 2.5 9.5 5 10

CHART 4.1.9: Charts representing the Satisfactory level of employees in various parameters of the job.

Highly Satisfactory
Working Hour Compensation Org Culture HR team Relationship with Co- Employee Leave facility Recreational facilities Growth Environment Support

40

CHART 4.1.10

Satisfactory
Working Hour Compensation Org Culture HR team Relationship with Co- Employee Leave facility Recreational facilities Growth Environment Support

CHART 4.1.11

Average
Working Hour Compensation Org Culture HR team Relationship with Co- Employee Leave facility Recreational facilities Growth Environment Support

41

CHART 4.1.12

Dissatisfactory
Working Hour Compensation Org Culture HR team Relationship with Co- Employee Leave facility Recreational facilities Growth Environment

CHART 4.1.13

Highly Dissatisfactory
Working Hour Compensation Org Culture HR team Relationship with Co- Employee Leave facility Recreational facilities Growth

Inference: Above mentioned table shows that 42.5% of the employees are satisfied with the working hour, 40% of the employees are dissatisfied with the compensation package, 32.5% of the employees are satisfied with organization culture, 52.5% of the employees are highly satisfied with the HR team, 30% of the employees are satisfied with the co-employee, 55% of the employees are highly satisfied with the leave facility and 42.5% of the employees are satisfied with the recreational facilities, 42% of the employees are satisfied with their career

42

growth, 42.5 % of the employee are highly satisfied with the environment and 40% of employees are satisfied with the support given by the organization.

The employee are happy with the leave procedure that the company is following. They are also happy with the environment and the team that they work with. This only enhances productivity level of the company and increases the output. Where Ford lacks is the very lean effort it puts forward to the recreation facilities for its employess. Recreation is important it rejuvenates everyones mind and it will be shown in the results. They also feel that they are not paid for their effort they put in this demoralize them and they become pessimist in their atmosphere.

43

TABLE 4.1.10: Table representing Importance level given to the employees by the management.

Importance to Employee Yes No

No. of Respondents 23 17

Percentage of Respondents 57.5 42.5

CHART 4.1.14: Chart representing Importance level given to the employees by the management.

60
57.5

50

Percentage

40 30 20 10 0 Yes No

42.5

Importance

Inference: Above mentioned table and chart shows that 57.5% of the employees respond that management aware that employees are as an Asset of an organization, 42.5% of employees respond no to this statement. The response given by them is a mixed bag of results they have a difference opinion the company has to sort this out.

44

TABLE 4.1.11: Table representing the Presence of retention measure in FIPL.

Retention Measure Yes No

No. of Respondents 20 20

Percentage of Respondents 50 50

CHART 4.1.15: Chart representing the Presence of retention measure in FIPL.

50

50

50 45 40 35 30 25 20 15 10 5 0 Yes No

Percentage

Retention measure

Inference: Above mentioned table and chart shows that 50% of the employees said that organization takes necessary measures to retain them in the organization and 50% of the employees said there is no such measures. There needs to be serious consideration conside done on the retention policy followed here, they need much more assistance.

45

TABLE 4.1.12: Table representing Retention strategy in the organization.

Retention Strategy Recognition Training Support Promotion Motivation

No. of Respondents 6 15 8 4 7

Percentage of Respondents 15 37.5 20 10 17.5

CHART 4.1.16: Chart representing Retention strategy in the organization.

40 35 30
37.5

Percentage

25
20

20 15

15 10

17.5

10 5 0

Retention Strategy

Inference: Above mentioned table and chart shows that 15% % of the employees said recognition is the retention strategy used by organization, 37.5% % of the employees said training as a retention strategy, 20% 0% of employees said support support as a retention strategy, 10% 10 of the employees said promotion tion as a retention strategy, 17.5% .5% of the employees said motivation as a retention strategy. The response given by them is a mixed bag of results they have a difference opinion the company has to sort this out. 46

TABLE 4.1.13: employees from the organization apart from Table representing the Expectations of the employees compensation.

Expectations Recognition Self Respect Freedom to implement Job security Moral support

No. of Respondents 12 6 7 5 10

Percentage of Respondents 30 15 17.5 12.5 25

CHART 4.1.17: Chart representing the Expectations of the employees from the organization apart from compensation.

30 25 20

Freedom to implement, 17.5

15 10 5 0

Self Respect, 15

Inference: Above mentioned table and chart shows that 30% of the employees expect recognition from the organization, 15% of the employees expect self respect, 17.5% of the employees expect freedom to implement, 12.5% of the employees expect job security and 25% of the 47

Job security, 12.5

Moral support, 25

Recognition, 30

employees expect moral support from the organization. The chart gives you an exact expectation of the employee from the management side. If the company tries to achive a certain amount of fulfillment of their employee expectations they will be represented in results.

48

TABLE 4.1.14: Table representing the managements help to overcome personal barriers.

Management Help Always Usually Sometimes Rarely Not at all

No. of Respondents 0 10 6 1 23

Percentage of Respondents 0 25 15 2.5 57.5

CHART 4.1.18: Charts representing the managements help to overcome personal barriers.

60 50 40

57.5

Percentage

30 20 10
0

25 15

2.5

Management help

Inference: Above mentioned table and chart shows that 25% of the employees have said that management help them usually, 15% of the employees have said management help them sometimes, 2.5% of the employees have said that rarely they are helped by management and 57.5% of the employees have said that there is no help given by the management to overcome ove their personal barriers. The company is a bad player in providing moral support, if provided that will have a better peace of mind to exhibit results and excel in the performence 49

TABLE 4.1.15: t counseling program conducted by the management. Table representing the

Counseling Program Always Usually Sometimes Rarely Not at all

No. of Respondents 0 3 9 5 23

Percentage of Respondents 0 7.5 22.5 12.5 57.5

CHART 4.1.19: Charts representing the t counseling program conducted by the management.

60 50 40

57.5

Percentage

30 20
7.5

22.5 12.5 0

10 0

Counseling program

Inference: Above mentioned table and chart shows that 7.5% of the employees have said that management conduct counseling program usually, 22.5% of the employees have said that sometimes management has conduct the counseling program, 12.5% of the employees have said that management program rarely conduct the counseling program and 57.5% of the employees have said that there is no such counseling program. As explained in the previous chart the company is a bad performer in providing moral support. 50

TABLE 4.1.16: Table representing the communication facility in the organization.

Communication Facility To great extent To some extent Not at all

No. of Respondents 14 21 5

Percentage of Respondents 35 52.5 12.5

Chart 4.1.20: Chart representing the communication facility in the organization.

60 50 40
35

52.5

Percentage

30 20 10 0 To great extent To some extent Not at all

12.5

Communication facility

Inference: Above mentioned table and chart shows that 35% of the employees have said that organization structure facilitates free flow of communication to a great extent, 52.5% of the employees have said that to some extent, and 12.5% employees have said that there is no free flow of communication facility in the organization structure. The communication process is a feeble link they need more transparency transparency for better positivity in the organization.

51

TABLE 4.1.17: Table representing the tools used to improve the under performer in the organization.

Tools used to improve Performance Training Extra Period to finish work Threatening Encouragement Counseling

No. of Respondents 16 5 5 10 4

Percentage of Respondents 40 12.5 12.5 25 10

CHART 4.1.21: Chart representing the tools used to improve the under performer in the organization.

40 35 30 25

40

25

Percentage

20 15 10 5 0

12.5

12.5 10

Tools

Inference: Above mentioned table and chart shows that 40% of employees have said training as a tool, 12.5% of the employees have said that employees are provided with extra time to finish their work, 12.5% of the employees have said threatening as a tool, 25% of the employees have said encouragement as a tool and 10% of the employees have said that counseling is a tool used to improve the under performer. The underperformers are given age old technique for increased productivity. They need to bring out of the box technique tec for rapid effect.

52

TABLE 4.1.18: Table representing the percentage of ratings to appraisal mechanism

Appraisal mechanism Rate 1 2 3 4 5

No. of Respondents 10 17 9 12 2

Percentage of Respondents 25 42.5 22.5 5 5

CHART 4.1.22: Chart indicating rating given to Appraisal mechanism by the employees

5 4 No. of Respondents 3 2 1 0 5 10 15 20 Appraisal mechanism Rate

Inference: Above mentioned chart shows that 2 employees have rate 5, 12 employees have rate 4, 9 employees have rate 3, 17 1 employees have rate 2 and 10 employees have rate 1. The employee have no faith in the employee appraisal system followed in the company. This means the have to gain a little confidence fromthem and change the process by a bit.

53

TABLE 4.1.19: Table representing the basis of reward in the organization.

Basis of Reward Performance Discipline Commitment Dedication

No. of Respondents 34 4 0 2

Percentage of Respondents 85 10 0 5

CHART 4.1.23: Chart representing the basis of reward in the organization.

85

90 80 70

Percentage

60 50 40 30 20 10 0
10 0 5

Basis of Reward

Inference: Above mentioned table shows that 85% employees have said performance is used as a basis of reward, 10% of the employees have said discipline, 5% of the employees have said that dedication is used as a basis of reward. The result shown here gives a clear extract that only performance gives them a reward. It is a performance based reward structure.

54

TABLE 4.1.20: according to the employees. Table representing trueness of statements given according

Statements First Second Third Fourth

No. of Respondents 3 23 10 4

Percentage of Respondents 7.5 57.5 25 10

CHART 4.1.24: Chart representing trueness of statements given according to the employees.

60 50

57.5

Percentage

40 30 20 10 0 First Second Third Fourth

7.5 25

10

Sentences

Inference: Above mentioned table have shown that 7.5% of the employees are involving in promoting Brand Image of the organization, 57.5% of the employees are enhance their own performance in order to show better output, 25% of the employees are willing to extend their the working hour, 10% of the employees are willing to refer their friends to join FIPL Group. The chart proves that the research done is in the purest and true form. They have exhibited their truest form of expression.

55

TABLE 4.1.21: willingness or employees to work after two years. Table representing willingness

Level of Willingness Like very much Like Neutral Dislike Dislike very much

No. of Respondents 10 17 9 2 2

Percentage of Respondents 25 42.5 22.5 5 5

CHART 4.1.25: Chart indicating the level of willingness to work after two years

Dislike very much Dislike Neutral Like Like very much 0 10 20 30 40 50 Percentage of Respondents No. of Respondents

Inference: Above mentioned chart shows that 25% of employees are like very much, 42.5% of employees are like to work, 22.5% of employees are neutral in their view, 5% of the employees are dislike to work and 5% of the employees are dislike veru much to work after two years. The is a good number of turnout for employee whowould like to have long innings in their company, this is a good sign and brings down the cost of various various other factors of recruitment down.

56

TABLE 4.1.22: Table representing Welfare provisions in the organization.

Statutory Welfare Yes No

No. of Respondents 35 5

Percentage of Respondents 87.5 12.5

CHART 4.1.26: Chart representing Welfare provisions in the organization.

90 80 70 60 50 40 30 20 10 0 Yes

87.5

Percentage

12.5

No

Statutory Welfare

Inference: Above mentioned table shows that 87.5% of the employees said they are provided with all statutory welfares and 12.5% of the employees said they are not provided with such welfares. The company is in the good book of employees when it comes to their welfare. They consider that they are taken a good care by the company.

57

TABLE 4.1.23: inter relation among employees. Table representing Group harmony and inter-relation Group harmony To great extent To some extent Not at all No. of Respondents 22 14 4 Percentage of Respondents 55 35 10

CHART 4.1.27: Chart representing Group harmony and inter-relation inter relation among employees.

55 60 50 Percentage 40 30 20 10 0 To great extent To some extent Not at all Group Harmony 10 35

Inference: Above mentioned table shows that 55% of the employees said that group harmony is used to great extent to achieve organization goal, 35% of the employees said to some extent and 10% of the employees said that there is no group harmony between the employees. There seems to be a good rapport between the co workers. It is always that a team excels more than a single gle person trying to provide a gigantic result. And todays work culture is group oriented and success comes in group that is having a good relationship among themselves.

58

CHI-SQUARE TEST

59

4.2.1 Distribution of respondents based on the Gender and their willingness to work after two years Like very much 4 6 10 Like 12 6 18 Neutral 4 2 6 Dislike 0 3 3 Dislike very much 0 3 3 Total 20 20 40

Female Male Total

Hypothesis: Null Hypothesis (Ho): There is no significant relation between Gender and their willingness to work after two years. Alternative Hypothesis (H1): There is a significant relation between Gender and their willingness to work after two years.

Significance Level (): Test Statistic:

0.05

Expected numbers for willing to work =/Total sample size

Oi 4 6 12 6 4 2 0 3 0 3

Ei 20 20 9 9 3 3 1.5 1.5 1.5 1.5

2 = (Oi-Ei)2 / Ei 12.8 9.8 1 1 0.33 0.33 1.5 1.5 1.5 1.5 31.26

60

Calculated Value: 2 = 31.26 Table Value: D.O.F = (r-1)(c-1) = (2-1)(5-1) =4 = 0.05 2 = 9.488

Conclusion: | 2 table | < | 2 calculated | Calculated value is greater than table value. Thus Alternative hypothesis is accepted and Null hypothesis is rejected.

Therefore there is a significant relation between gender and their willingness to work after two years. This research proves from the above test that the gender that gives the maximum output has to be identified and motivated for the betterment of the organization.

4.2.2 Distribution of respondents based on the marital status and their expectations towards job Self Respect 7 10 17 Freedom to implement Job security 0 0 9 2 9 2 Moral support 0 2 2 Total 8 32 40

Recognition Married 5 5 Single 10 Total Hypothesis: Null Hypothesis (Ho):

There is no significant relation between marital status and their expectations towards job.

Alternative Hypothesis (H1): There is a significant relation between marital status and their expectations towards job. 61

Significance Level ():

0.05

Test Statistic:

Oi 5 5 7 10 0 9 0 2 0 2

Ei=(RT*CT/GT) 2 8 3.4 13.6 1.8 1.6 0.4 1.6 0.4 1.6

2 = (Oi-Ei)2 / Ei 4.5 1.125 3.812 0.953 1.8 4.625 0.4 0.1 0.4 0.1 18.115

Calculated Value: 2 = 18.115 Table Value: D.O.F = (r-1)(c-1) = (2-1)(5-1) =4 = 0.05 2 = 9.488

Conclusion: | 2 table | < | 2 calculated |

Calculated value is greater than table value. Thus Alternative hypothesis is accepted and Null hypothesis is rejected. Therefore there is a significant relation between marital status and their expectations. With change in the marital status there occurs a change in the attitude of a person.

62

4.2.3 Distribution of respondents based on the total year of experience and their expectations towards job Self Respect 6 4 0 0 10 Freedom to implement Job security 2 1 0 2 2 2 3 2 7 7 Moral support 1 0 2 3 6 Total 16 6 8 10 40

Below1yr 1-3 yr 3-5 yr Above 5 Total

Recognition 6 0 2 2 10

Hypothesis:

Null Hypothesis (Ho): There is no significant relation between total year of experience and their expectations towards job. Alternative Hypothesis (H1): There is a significant relation between total year of experience and their expectations towards job. Significance Level (): 0.05

Test Statistic:

Oi 6 6 2 1 1 0 4 0 2 0 2 0 2 2

Ei=(RT*CT/GT) 2 = (Oi-Ei)2/ Ei 4 4 2.8 2.8 2.4 1 1 0.7 0.7 0.6 2 2 1.4 1.4 1 1 0.2 0.2 0.8 1 9 0.7 2.4 0.6 0 2 0.25 0.25 63

2 2 0 3 2 3

1.2 2.5 2.5 1.7 1.7 1.5

2.7 0.1 2.5 0.99 0.05 1.5 27.24

Calculated Value: 2 = 27.24 Table Value: D.O.F = (r-1)(c-1) = (4-1)(5-1) = 12 = 0.05 2 = 21.026

Conclusion: | 2 table | < | 2 calculated | Calculated value is greater than table value. Thus Alternative hypothesis is accepted and Null hypothesis is rejected. Therefore there is a significant relation between total years of experience and their expectations. With the increased experience there is an increased expectation level from those who have high profile behind them.

64

4.2.4 Distribution of respondents based on the total year of experience in FIPL and their expectations towards job Self Recognition Respect 6 6 3 3 1 1 0 0 10 10 Freedom to implement Job security 0 6 0 3 2 1 2 0 4 10 Moral support 0 1 2 3 6 Total 18 10 7 5 40

Below1yr 1-3 yr 3-5 yr Above 5 Total

Hypothesis:

Null Hypothesis (Ho): There is no significant relation between total year of experience in FIPL and their expectations towards job. Alternative Hypothesis (H1): There is a significant relation between total year of experience in FIPL and their expectations towards job. Significance Level (): 0.05

Test Statistic:

Oi 6 6 0 6 0 3 3 0 3 1 1 1

Ei=(RT*CT/GT) 2 = (Oi-Ei)2/ Ei 4.5 4.5 1.8 4.5 2.7 2.5 2.5 1 2.5 1.5 1.7 1.7 0.5 0.5 1.8 0.5 2.7 0.1 0.1 1 0.1 0.17 0.28 0.28 65

2 1 2 0 0 2 0 3

0.7 1.7 1.15 1.2 1.2 0.5 1.2 0.7

0.12 0.28 0.6 1.2 1.2 4.5 1.2 7.5 24.63

Calculated Value: 2 = 24.63 Table Value: D.O.F = (r-1)(c-1) = (4-1)(5-1) = 12 = 0.05 2 = 21.026

Conclusion: | 2 table | < | 2 calculated | Calculated value is greater than table value. Thus Alternative hypothesis is accepted and Null hypothesis is rejected.

Therefore there is a significant relation between total years of experience in FIPL and their expectations. As every common person expectation exceeds with the position of experience.

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CHAPTER - 5 SUMMARY AND CONCLUSION

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5.1 Suggestions

1. Since more than 40% of the employees are not satisfied with the compensation package it can be increased.

2. Employees can be encouraged and their performance can be recognized as most of the employees expect the same from the organization to render their service.

3. Promotion can be given to experienced people according to their performance.

4. Most of the employees are not clear with appraisal mechanism so they have to be educated with the appraisal mechanism.

5. Rewards can be given genuinely to all the employees without bias.

6. Many employees are not aware of the statutory welfare measures like PF, ESI etc so it has to be clearly explained to them.

7. Employees personal feelings have to be understand, their suggestions can be taken.

8. Employees feel that there should be a good rapport with the management.

9. First shift employees feel that timing is inconvenient so it can be modify from 8.30am -3.30pm to 9.00am - 4.00pm.

10. Employee engagement activities can be conducted once in a month so that employees can enjoy in their work place.

11. Employees prefer tour arrangement & events.

12. Lunch can be given to all employees at a nominal price.

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5.2 Recommendations

In todays environment the human resources is also important as the financial assets, technologies, etc. So organizations have to consider the human resource because these are very important for betterment of the organization. And as the results of this research shows that the better(friendly) working environment, career development opportunities, rewards are more important factors that affect the retention of employees with organization; should be focused and try to improve them.

The other observed recommendations are 1800 Appraisal system can be implemented. Employee engagement activities can be implemented in order to motivate the employees. Basic training required for all the employees regarding their job profile and job nature. Increment in compensation packages. Motivation leads to increase in sales and it will create a relationship between the employee and the employer.

5.3 SUMMARY OF FINDINGS

Findings from percentage method

1. Most of the employees are Single (80%).

2. 37% of the employees have studied HSC.

3. 82% of the employees at the age level between 18-25.

4. 40% of the employees have 3-5yrs of total experience.

5. More than 62% of the employees have 1-3yrs of experience in FIPL. 69

6. 47% of the employees have medium career growth in FIPL.

7. 42% of the employees are comfortable with the job nature.

8. 42% of the employees are satisfied with the working hour.

9. 40% of the employees are dissatisfied with the compensation package.

10. 32% of the employees are satisfied with organization culture.

11. Majority of the employees are highly satisfied with the HR team and Leave facility.

12. 30% of the employees are satisfied with the co-employee.

13. 42% of the employees are satisfied with the recreational facilities.

14. 57% of the employees respond that management aware of employees are as an Asset of an organization.

15. 50% of the employees said that organization takes necessary measures to retain them in the organization.

16. 12% of the employees respond the motivation is the retention strategy using in the organization at present.

17. 30% of the employees expect recognition from the organization.

18. 57% of the employees respond that there is no help given by the management to overcome their personal barriers.

19. 57% of the employees respond that there is no counseling program in the organization.

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20. 52% of the employees respond that to some extent organization structure facilitates open/free flow of communication.

21. 40% of employees respond that organization use training as a tool to improve low performer.

22. 85% of employees respond that performance is used as a basis of reward in to organization.

23. 57% of the employees are enhancing their own performance in order to show better output.

24. 87% of the employees said they are provided with all statutory welfares.

25. 55% of the employees said that group harmony is used to great extent to achieve organization goal. 5.4 Conclusion

Retaining the resource of an organization is very critical in any organization. This assumes greater significance in a Retail industry. HR faces a challenging task of addressing this issue. The various measures mentioned above will go a long way in motivating and retaining the employees. As it is said, motivated and satisfied employees reflect an organizations wealth than a positive balance sheet.

From this study it is concluded that the employees are somewhat satisfied with the few aspects of their job. Employees are significantly loyal to the organization. But the current retention strategy is not enough efficient to satisfy the employees so it has to review and modify. Modification can be done in the compensation, growth and environment. Employees are ready to work for a long time in this same organization if they are provided an opportunity to shine and grow. If the same is done the possibility of retaining the current employees will be more and the attrition rate can be reduce.

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By looking at the above characteristics, senior management will be able to get to the core issues of retention and determine a strategy for organizational change. Creating an environment where attrition is kept to a minimum will help to improve productivity, enhance employee morale, reduce staffing expenses and enrich the quality of service provided to customers all factors that contribute to a world class organization. 5.5 Direction for future research The outcome of the project is based only on FORD INDIA PVT LTD, S.P Koil. So the project can be extended to all the branches of FORD. Once all strategies were analyzed, a centralized strategy can be created and can be implemented throughout all the branches. Employee Retention involves with employee's job satisfaction so the project can also be extended towards the satisfaction level of the employee's which will lead to increase in sales and production.

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ANNEXURE

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QUESTIONNAIRE

Dear sir/madam,

I am Vidhya Ramesh pursuing MBA final year in SRM University. I am very much glad to inform you that I am doing a project on Employee retention in FORD INDIA PVT LTD. I request you to render kind co-operation towards this programme. I assure you that the information given by you will be kept confidential.

1. PERSONAL DETAILS:

a. Name:

b. Designation:

c. Gender

Male

Female

d. Marital status

Single

Married

e. Education: SSLC HSC Diploma Undergraduate Postgraduate

f. Age(in yrs): 18-25 26-30 31-35 36-40 above 40

2. What is your total year of experience? Below 1 yr 1-3 yr 3-5 yr Above 5 yrs

3. What is your total year of experience in Future group? Below 1 yr 1-3 yr 3-5 yr Above 5 yrs

4. Please mention your career development views in Future group? Rapid growth Medium slow not at all

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5. How far you were comfortable with your nature of job? Highly comfortable comfortable neutral Un comfortable

Highly Un comfortable

6.

Please rate your satisfaction levels on the following parameters (Put a tick mark) Highly Satisfactory Satisfactory Average Dissatisfactory Highly Dissatisfactory

Working hours Compensation package Organization culture HR team Relationshipwith Co-Employee Leave facility Recreational facilities Growth Environment Support

7. Whether your Management aware that employees as an Asset in which one needs to invest and not a Cost to reduce? Yes No

8. Does your Organization takes necessary measures to retain you? Yes No

If Yes. How they retain you? Recognition Training Support Promotion Motivation 75

9. What do you expect from your organization to render your service apart from compensation? Recognition Job security Self respect Moral support Freedom to implement

10. Whether the Management helps you to overcome personal barriers to achieve organization goals? Always Usually Sometimes Rarely Not at all

11. Whether your Organization conducts any counseling program to reduce the work stress? Always Usually Sometimes Rarely Not at all

12. Do you think your organizational structure facilitates open/free flow of communication? To great extent To some extent Not at all

13. In what ways the organization improve the under performers to achieve goals? Training Extra period to finish work Counseling Threatening

Encouragement

14. Rate the appraisal mechanism of the organization

Clear

Ambiguous

15. On what basis you are rewarded in the Organization? Performance Discipline Commitment Dedication

16. According to you which is correct from the followings: We involve in Promoting Brand Image of our organization We regularly enhance our own performance to show better output. We extend our working hour when it is needed We recommend my friend to join Future group 17. How likely are you to be working at this organization two years from now? Like Very much Like Neutral Dislike Dislike Very much 76

18. Does your organization provide all statutory welfares to the employees? Yes No

19. Whether there is group harmony and inter-relationship exist among team member to achieve organizational goal? To great extent To some extent Not at all

20. Your suggestions to improve Employee Retention in Future group

Contact number :

Signature

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REFRENCES

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BIBLIOGRAPHY
BOOKS: 1. Human Resource Development by Randy L. Desimone, Jon, M. Werner, David M. Harris, Thomson Southwestern Publication, 3rd edition, Employee Socialization, 280-286. 2. Human Resource Management by Fisher, Schoenfeldt, Shaw, Biztantra, 5th edition, Performance Appraisal, 483-531. 3. Human Resource Management by Gary Dessler, Pearson education, 10th edition, Career Development, 350-357. 4. Statistics For Management by P. N. Arora, S. Arora, S. chand Publication, Revised edition, Chi-Square, 168-199. 5. C.R. Kothari, Research Methodology, Vishwa Prakashan, second edition-2003. 6. Research Methodology by Deepak Chawla, Neena Sondhi

WEBSITES: www.india.ford.com www.citehr.com http://wfnetwork.bc.edu/glossary_entry.php?term=Retention http://www.articlesbase.com/human-resources-articles/employee-retention http://www.keepem.com/ http://www.shrm.org/Pages/login.aspx?ReturnUrl=%2fhrdisciplines%2fstaffingmana gement%2fArticles%2fPages%2fCreativityCanDriveRetention.aspx http://onlinelibrary.wiley.com/doi/10.1002/ert.20058/abstract

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