“A STUDY ON ATTRITION ANALYSIS AT KONE ELEVATORS

INDIA PRIVATE LIMITED.”

BY

Y.MALA
(REG. NO: 11906631046)

OF

VEL TECH ENGINEERING COLLEGE

A PROJECT REPORT
Submitted to the

FACULTY OF MANAGEMENT STUDIES

In Partial Fulfillment of the Requirements

for the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

IN
HUMAN RESOURCE MANAGEMENT

ANNA UNIVERSITY
CHENNAI-600 025
JULY-2007
 BONAFIDE CERTIFICATE

This is to certify that the project work titled “A STUDY ON

ATTRITION ANALYSIS AT KONE ELEVATORS INDIA PRIVATE LIMITED”

is a bonafide work done by Y.MALA with Reg.No. 11906631046 in partial fulfillment of

requirement for the award of the degree in Master of Business Administration of ANNA

UNIVERSITY during the academic year 2006 – 2008 and it is original work.

Mr.SHYAMSUDIN M.B.A Mr. PRAVEEN M.B.A

Head of the Department Faculty Guide
 DECLARATION

I MALA.Y (REG. NO: 11906631046) Student of department

of management Studies, Vel Tech Engineering College, Chennai, Would
like to declare the Project work entitled “A STUDY ON ATTRITION
ANALYSIS AT KONE ELEVATORS INDIA PRIVATE LTD” is a
Confide work of Myself in Partial Fulfillment of Master of Business
Administration Course under Anna University which has independently
done by me under the guidance of Mr.K.C.PRAVEEN M.B.A Lecturer of
Management Studies, Vel Tech Engineering College.

This is My Original work and not Submitted for the award of

any other degree diploma fellowship or other similar titles for press.

Place: Chennai
Date: MALA.Y
 ACKNOWLEDGEMENT

My sincere thanks to our Honorable Founder Chairman

MR.R.RANGARAJAN BE. (ELEC), M.S (AUTO) for his sincere
endeavor in educating me in his premier institution.

I would like to acknowledge my sincere thanks to our principal

Dr. K.V.Sundaresan, M.Tech, Ph.D who gave timely suggestions and
helped me in all aspects.

I would never forget to thank Mr. Shamshuddin M.B.A the Head of the
Department, Mr.K.C.Praveen M.B.A Lecturer in Vel Tech Engineering
College for their valuable guidance in the preparation of this project.

It is the most pleasant to record my gratitude to Mr. S.Jaheer Ismail,

Executive-Recruitment, who allowed me to do the project work and also
given his continuous support and encouragement and guidance.

I would also like to extend my thanks to my beloved Family, my friends

who helped me in computing this project work successfully.
 ABSTRACT

The intention of the project is to make "A study on attrition analysis" in Kone
Elevators India Pvt. Ltd. This project is extended to all the departments.

The Project study is aimed at analyzing the attrition rate and to suggest measures
to reduce it in the organization.

The sample size of 31 employees has been contacted through phone to obtain
primary data. The survey is based on primary and secondary data which has been
obtained through structured questionnaire and exit interview. The information collected is
classified, tabulated and analyzed with helped of statistical tools like percentage method
and chi-square test. From the collected data findings and suggestions are obtained to
enable the company to know the present attrition rate of the organization.

From the findings, it is suggested that the company should take further steps to
decrease the attrition rate.

More attention should be given periodically to minimize the manpower turnover

that exists in the organization at present.
 CONTENTS
LIST OF TABLES
LIST OF CHARTS
 CONTENTS

CHAPTER NO. CHAPTER NAME PAGE NO.

INTRODUCTION 1
1.1 Company Profile 2
1.2 Business Environment 4
I 1.3 Review Of Literature 7
1.4 Objectives Of The Study 12
1.5 Scope Of The Study 14

2.1 Research Methodology 16

II
2.2 Limitations Of The Study 21
III 3.1 Analysis and Interpretation 22
IV 4.1 Findings 54
5.1 Suggestions 57
5.2 Conclusion 59
V
Bibliography
Annexure
 LIST OF TABLES

Table Page
Particulars No.
No.
1. Gender classification 38

2. Year of Experience 39

3. Job Related 40

4. Personal Career Goals 41

5. Training Session 42

6. Pay & Fringe Benefits 43

7. Preferable 44

8. Quality of Supervision 45

9. Work Environment 46

10. Company Policy & Procedures 47

11. What you like most 48

12. Chi- Square Test no. 1 49

13. Chi- Square Test no. 2 50

 LIST OF CHARTS

Table Page
N Particulars No.
o.
1. Gender classification 38

2. Year of Experience 39

3. Job Related 40

4. Personal Career Goals 41

5. Training Session 42

6. Pay & Fringe Benefits 43

7. Preferable 44

8. Quality of Supervision 45

9. Work Environment 46

10. Company Policy & Procedures 47

11. What you like most 48

INTRODUCTION
 CHAPTE
R- I
 INTRODUCTION

ATTRITION
Turnover

Turnover is the voluntary and involuntary permanent withdrawal from an

organization. A high turnover rate results in increased recruiting, selection and training
costs. In addition a high rate of turnover can disrupt the efficiency of the organization
when knowledgeable and experienced personal leave and replacement must be found and
prepared to assume positions of responsibility.

All organizations, of course, have some turnover. In fact, if the right people are
leaving the organization the marginal and sub marginal employee’s turnover can be
positive. It may create the opportunity to replace an under performing individual with
someone has higher skill or motivation, open up increased opportunities for promotion
and new and fresh ideas to the organization.

But turnover often involves the loss of people the organization doesn’t want to
lose. For instance, one study covering 900 employees who had resigned their jobs found
that 92% earned performance ratings of ”satisfactory” or better from their superiors. So
when turnover is excessive, or when it involves valuable performers, it can be a
disruptive factor, hindering the organization’s effectiveness

Retrenchment refers to the termination of the services of employees because of the

replacement of labor by machines or the closure of the department due to continuing lack
of demand for the product manufactured in that particular department of the organization.

1
COMPANY
PROFILE
 1.1 COMPANY PROFILE:

Established in 1910, KONE is one of the world’s leading elevator and

escalator companies. It provides its customers with industry-leading elevators and
escalators and innovative solutions for their maintenance and modernization.
KONE also provides maintenance of automatic building doors. KONE provides
safe and easy access for hundreds of millions of people daily in all parts of the
world. The company guarantees local service for builders, developers, building
owners, designers and architects in 800 location countries.

KONE has annual net sales of EUR 3.6 billion and about 29,000
employees. Its Class B shares have been listed on the Helsinki Stock Exchange
since 1967.During the past 96 years, KONE has proven its ability to adapt to a
changing world as well as to create new opportunities for growth. Stable
management by four generations of the same family has created a strong and
supportive environment for continuous development.

KONE provides complete and innovative

solutions for the installation, modernization
and maintenance of elevators and escalators
and the maintenance of automatic building
doors. The company offers safe and easy
access for hundreds of millions of people daily
in all parts of the world. KONE operates some
800 service centers in more than 40 countries.
At KONE, we provide planners, architects,
developers, and building owners with elevators,
escalators, and auto walks that increase the value
of your business over time.

Each KONE solution is designed with the

needs of your specific building type in mind,
whether it is residential apartments, office
blocks, or any number of public access
buildings, such as shops, railway stations,
airports, or schools.
 B
USINESS
 ENVIRON
MENT

1.2BUSINESS ENVIRONMENT

The annual size of the market for elevator installation, maintenance,

repair and modernization is estimated to exceed EUR 30 billion. The
corresponding escalator market is approximately EUR 3 billion, and the market
for door service amounts to roughly EUR 5 billion annually. KONE has
operations in all key markets through some 800 service centers worldwide.
KONE’s share of the global elevator and escalator market is approximately 10
percent.

PROFITABILITY AND ORDER INTAKE TARGETS ACHIEVED

• The restructuring of KONE Materials Handling was completed through the

divestment of Forest Machines, non-core holdings, and, in January 2004, the
Tractors business. The new Kone Cargotec consists of Kalmar (container
handling) and Hiab (load handling).
• The value of orders received rose to MEUR 4,558 (2002: 3,261). KONE
Elevators & Escalators accounted for MEUR 2,021 (2,129), which represents two
percent growth at comparable exchange rates. Order intake in Kone Cargotec and
other materials handling operations was MEUR 2,537. Kone Cargotec accounted
for MEUR 1,482, reflecting growth of 18 percent at comparable exchange rates.
• Net sales totaled MEUR 5,344 (4,342). KONE Elevators & Escalators’ sales
amounted to MEUR 2,814 (2,970), which represents two percent growth at
comparable exchange rates. Sales in Kone Cargotec and other materials handling
operations totaled MEUR 2,530. Kone Cargotec accounted for MEUR 1,335
reflecting growth of six percent at comparable exchange rates.
• Operating income before goodwill amortization (EBITA) was MEUR 418.5
(340,2), or 7.8 (7.8) percent of net sales. In Elevators & Escalators, EBITA was
MEUR 298.6 (287.0), or 10.6 (9.7) percent of net sales. The EBITA in Kone
Cargotec and other materials handling operations was MEUR 133.4. Kone
Cargotec accounted for MEUR 74.9 or 5.6 (3.4) percent of net sales.
• Cash flow from operating activities before financial items and taxes was MEUR
498.7 (615.6).
• Interest-bearing net debt decreased to MEUR 661.9 (end of 2002: 1,251.5).
• Net income rose 38 percent to MEUR 216.9 (157.1).
• Earnings per share rose to EUR 3.10 from EUR 2.54. The EUR 21.6 million
capital gain from the sale of Forest Machines is included in extraordinary items
and is not included earnings per share.
• The board of directors proposes that the dividend be raised to EUR 2.00 from
EUR 1.50 per class B share.
 REVIEW
OF
LITERATUR
E
1.3 REVIEW OF LITERATURE

Turnover

Turnover is the voluntary and involuntary permanent withdrawal from

an organization. A high turnover rate results in increased recruiting, selection and
training costs. In addition a high rate of turnover can disrupt the efficiency of the
organization when knowledgeable and experienced personal leave and
replacement must be found and prepared to assume positions of responsibility.

All organizations, of course, have some turnover. In fact, if the right

people are leaving the organization the marginal and sub marginal employee’s
turnover can be positive. It may create the opportunity to replace an under
performing individual with someone has higher skill or motivation, open up
increased opportunities for promotion and new and fresh ideas to the
organization.
 But turnover often involves the loss of people the organization doesn’t
want to lose. For instance, one study covering 900 employees who had resigned
their jobs found that 92% earned performance ratings of ”satisfactory” or better
from their superiors. So when turnover is excessive, or when it involves valuable
performers, it can be a disruptive factor, hindering the organization’s
effectiveness.

SATISFACTION AND TURNOVER

Satisfaction is also negatively related to turnover, but the correlation is

stronger as for the absenteeism. The other factors such as labor market
conditions, expectations about alternative job opportunities, and length of tenure
with the organization are important constraints on the decision to leave their
current job. The pay raises, praise, recognition,
Increased promotional opportunities are major constraints for retaining the
employees.

SEPARATIONS

Lay-offs, resignations and dismissal separate employees from their

employer. Separations are painful to both the parties and should, therefore, be
administered carefully.
LAY-OFF

Section 2(kkk) of the industrial disputes act, 1947, defines lay-off, as the
failure,
Refusal or inability of an employer to give employment to a worker whose name
is
Present on the rolls but who has not retrenched.
A lay-off may be occasioned by one of the following reasons:
1. Shortage of coal, power or raw material.
2. Accumulation of stocks.
3. Breakdown of machinery.

RESIGNATION

A resignation refers to the termination of employment at the instance of

the employees. An employee’s reason for resignation may be the better prospect,
further studies, health problem, and personal problems especially for the females
when they get married.

DISMISSAL AND DISCHARGE

Where the termination of employment is initiated by the employer, it is

known as dismissal or discharge, which is a drastic step and should be taken
after carefully thought. A dismissal needs to be supported by just and sufficient
reasons.
The reason for the dismissal can be the following:
1. Excessive absenteeism.
2. Serious misconduct.
3. False statement of qualification at the time of employment.
4. Theft of company’s property.
 RETRENCHMENT

It refers to the termination of the services of employees because of the

replacement of labor by machines or the closure of the department due to
continuing lack of demand for the product manufactured in that particular
department of the organization.

VOLUNTARY RETIREMENT SCHEME

Beginning in the early 1980s, both in public sector and in private sector
have been sending home labor for good, not strictly by retrenchment, but by a
novel scheme called VRS, euphemistically called the golden handshake plan.
Handsome compensation is paid to those workers who opt to leave.
1. Lump sum payment equal 2.25 times the July 1992 salary multiplied by remaining
years of services.
2. Pension equal to 70% of the July 1992 salary payable till the age of 60.
3. Prizes such as computers, trucks, houses, and so forth to the decided on the basis of
a lucky draw.
 OBJECT
IVES OF
THE STUDY
1.4RESEARCH OBJECTIVE

PRIMARY OBJECTIVE:

A study of “The Attrition Analysis at KONE Elevators India Private Limited”.

SECONDARY OBJECTIVE:

1. To determine the attrition rate of the company.

2. To determine whether the company is loosing good performers.
3. To frame the strategy for retaining the performers.
 SCOPE OF
THE STUDY

1.5 SCOPE OF THE STUDY

• To determine the gap between the management and employee’s and reducing it.

• For offering the necessary support to the work force.

• For implementing the needs of the workforce.

• To find what motivates the performing work force.

 • The study provides the feedback for what is currently provided and
implemented for the workers.

• It provides the actual expectation of the employee’s.

CHAPTER - II
 RESE
ARCH
METHODOLOGY 15

2.1 RESEARCH METHODOLOGY

Research design:
The research design is descriptive research design, which is concerned
with the study concerning the characteristics of particular individual.

Data collection method:

The primary data which is collected for the first time are found to be
fresh and secondary data which is already collected are used for some other
purposes.

The primary data are collected through the questionnaire and the
secondary data are obtained from the exit interview forms and from the
Human Resource Department of KONE Elevators Private Limited.
 The data collection method used is primary and secondary data.

SAMPLING METHOD:
The technique adopted here is the convenience sampling. The whole
process of sampling is in non-probabilistic sampling.

SAMPLE SIZE:
A sample size of 31 was selected for this study which includes both
male and female respondents.

STASTICAL TOOL DESCRIPTION:

The researched used mainly types of tools to valuable the results namely.

 Chi-square test.
 Percentage analysis.

CHI-SQUARE TEST:
The Chi-square test is one of the simplest and most widely used on
parametric test in statistical work. It is defined are

χ2 = Σ (O-E) 2 /E
O =Observed frequency
E =Expected frequency.

DEGREE OF FREEDOM:
 While comparing the calculated value of χ 2 with the table value we
have to determine the degree of freedom. By degrees of freedom we mean the number of
classes to which the values can without violating the restriction or limitations placed.

USER:
It is used as a test of independence.
It is used to test the goodness of fit.

PERCENTAGE ANALYSIS:

Percentage refers to a special kind of ratio. Percentage is used in making

comparison about two or more series of data. Percentage as also used to describe
relationship. It is also used to compare the relative term’s dx of two or more series of data

Formula:
Number of respondents
x 100
Total no. of respondent
PREPARATION OF THE REPORT:

From the information gathered through questionnaire, the report was

prepared, showing the analysis and interpretations, findings, suggestions and
conclusions.

RESEARCH INSTRUMENT:

The Questionnaire entitled a study on attrition in KONE Elevators

Private Limited is the main instrument used to collect data. The Questionnaire
is designed to elicit the information about the reason for Attrition and it is
going to be the feedback of what is currently implemented for the employees.

CONSTRUCTION OF QUESTIONNAIRE:

The Questionnaire is constructed based on the variables Image, Motivation,

Growth, expectation, Support, Opinion, Adequacy, Maintenance, Training,
Safety, Initiatives, Programmes, Transport, and Medical.

To rate the responses of the employees the five point rating scale is used which
consists of,
1. Strongly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly disagree

The Questionnaire also contains Demographical data of the

respondents like Age, Gender, Experience.
 LIMITATIONS OF
THE STUDY
20

2.2 LIMITATIONS OF THE STUDY:

1. The employees due to the fear of management may not have disclosed all the facts,
this might have led to wrong findings in the study.

2. The period of the study, having been very short, research was not conducted with
required pace.

3. Lack of interest shown by the employees towards the study may lead to some
limitations and this might have resulted in respondent’s bias.
 CHAP
TER - III
 ANALYSIS AND
INTERPRETATION
3.1 ANALYSIS BASED ON SECONDARY DATA
N um
1800
1600
1400
M an
80 0

60 0

40 0
25

20
 Re

2 6%
 Fun
300

250

200
 Fu

35 35
30
25
 A ttrit io n

60

50

40
 A t t r it io n

60

50
S e r v ic e
A ge

17%
N um ber o
P ercenta
In fe re n c es
– A g e a n d S e rv ice w is e a n a ly s is

• 5 1 % am on gs t t h e res ign ed e m p lo y ees are les s t h an 1 ce

y ear
- T ohis
f s erv
cl early
i
ind icat es t h e l ack o f ad ap t ab ilit y am o n gs t t h e y o un gs
K tEers
I Ctuolt tuhe
re and
W o rk in g En viro n m en t .
• Yo u n gst ers fail t o s ee t he “ B i g P i ct ure”an d get s at toract
rt-t erm
ed blucrat
y s h iv e
gro w t h o ffered b y o t h er in d us t ries.
• A m o n gs t t h e res ign ed e m p lo y ees 3 2 % of t he em p lo y eeso hf av
1-3e Ye
s erv
arsice.
T h ey h ad acqu ired cert ain co re co m p–etan
encies
d C o m p et it o rs p ick t hem u p as
t rain ed lo t s .
• B ein g a Sin gle P ro d u ct C o m p an y , ev en t ho u gh t he C o m np ganmy oisr e gro
t h an
wi
t h e m ark et t h ere ap p ears t o b e an ap p reh en s io n t o t heabo
y ou
u t ntgs
h et ers
C areer
G ro w t h an d P ro m ot io nal as p ect s .
 Inferences– Ex

• Most of the time e

making it difficult fo
• However, with the
Top 5 reasons for em
 Inferences –

Emplo
high favorability
• Motivation,
• Job Satisfaction
Inferences – Compensation Practices

• While co mparing KEI co mpensation with that of the competitors, it appears

that the some of the Co mpetitors like Schindler and OTIS are pay ing more

than KEI by about 30% for certa in critical positions.

• Co mpetition is also fle xib le to pay more than 50% to 60% as premiu m salary

for picking up trained personnel fro m KEI.

• Few Co mpetitors like Schindle r for examp le is providing Car, Lap tops and

Co mpany Mobile Phones to even Junior level Executives.

• They also pay Guaranteed Bonus Pay / Incentives which is a fixe d sum,

whereas in KEI it is strictly related performance.

 3.2 ANALYSIS BASED ON PRIMARY DATA:

Table: 1 Gender classification:

Gender Number Percentage(%)

Male 26 83%
Female 5 17%
Total 31 100%

INFERENCE:
From the above table it is shown that 83% of the respondents are male and 17%
are female.

Chart: 1

G e n d e r C la s s ific a tio n

17%

M a le
F e m a le

83%
Table: 2 Year of Experience:

Year of Experience Number Percentage (%)

< 1 yr 14 45 %
1-3 yrs 9 29 %
3-5 yrs 4 13 %
> 5 yrs 4 13 %
TOTAL 31 100%

INFERENCE:
From the above table it is shown that 45% of the respondents belongs to less than
1 year of experience, 29% of the respondents belongs to 1-3 years of experience, 13% of
the respondents belongs to 3-5 years of experience and 13% of the respondents belongs
to greater than 5 years of experience.

Chart: 2
Year Of Experience

13%
< 1 yr
13% 45%
1-3 yrs
3-5 yrs
> 5 yrs
29%
Table: 3 Job Related:

Job Related Number Percentage (%)

DS 7 23 %
FS 9 29 %
Sat 15 48 %
TOTAL 31 100%

INFERENCE:
From the above table it is shown that 23% of the respondents shows
dissatisfaction towards their job & job content, 29% of the respondents shows fair
satisfaction towards that and 48% of the respondents shows satisfaction towards that.

Chart: 3

Job R elated

23%

DS
48% FS
Sat

29%
Table: 4 Personal Career Goals:

Personal Career Goals Number Percentage (%)

Given Full Attention 6 19 %

Partial Attention 17 55 %
No Attention 8 26 %
TOTAL 31 100%

INFERENCE:
From the above table it is shown that 19% of the respondents said that their
personal career goals were given full attention, 55% said that their personal career goals
were given partial attention and 26% said that their personal career goals were given no
attention.

Chart: 4

Personal Career Goals

19%
26% Given Full
Attention
Partial Attention

No Attention

55%
Table: 5 Training Sessions

Training Sessions Number Percentage (%)

Positive Effect On Job 14 45 %

Partially Helpful 15 48 %
No Effect 2 7%
TOTAL 31 100%

INFERENCE:
From the above table it is shown that 45% of the respondents said that the training
session had positive effect on their job, 48% said that it had helped partially and made
their work easier and 7% said that the it had no effect on their job.

Chart: 5

Training Sessions

48%
50% 45%
Positive Effect On
40%
Job
30% Partially Helpful

20%
No Effect
7%
10%

0%
Table: 6 Pay & Fringe Benefits

Pay & Fringe Benefits Number Percentage (%)

Yes 9 29 %
No 22 71 %
TOTAL 31 100%

INFERENCE:
From the above table it is shown that 29% of the respondent were happy with
their pay & fringe benefits and 71% were not happy.

Chart: 6

Pay & Benefits

29%

Yes
No

71%
Table: 7 Preferable:

Preferable Number Percentage (%)

Monetary 23 74 %
Non monetary 8 26 %
TOTAL 31 100%

INFERENCE:
From the above table it is shown that 74% of the respondents prefer monetary
incentives and 26% prefer non-monetary incentives.

Chart: 7

Preferable

26%

Monetary
Non monetary
74%

Table: 8 Quality of Supervision:

Quality of Supervision Number Percentage (%)

1st 5 17 %
2nd 7 22 %
3rd 13 41 %
4th 3 10 %
5th 3 10 %
TOTAL 31 100%

INFERENCE:
From the above table it is shown that 17% of the respondents had rated the quality
of supervision as 1st , 22% had rated as 2nd , 41% had rated as 3rd, 10% had rated as 4th and
10% had rated as 5th.

Chart: 8

Q u a lity O f S u p e rv is io n

45% 41%
40%
35% 1st
30%
2nd
25% 22%
3 rd
20% 17%
4th
15% 10% 10%
10% 5th
5%
0%
P e rc e n t a g e (% )
Table: 9 Work Environments:

Work Environments Number Percentage (%)

Favorable & Helpful 6 19 %

Fairly Conductive 3 10 %
Difficult To Work 22 71 %
TOTAL 31 100%

INFERENCE:
From the above table it is shown that 19% of the respondents had said that the
work environment was favorable and helpful, 10% said that it was fairly conductive and
17% said that it was difficult to work.

Chart: 9

Work Environment

80%
71%
70%
60%
Favorable &
50% Helpful
Fairly Conductive
40%
30% Difficult To Work
19%
20%
10%
10%
0%
Table: 10 Company Policy & Procedures:

Company Policy & Number Percentage (%)

Procedures

Yes 2 7%
No 29 93 %
TOTAL 31 100%

INFERENCE:
From the above table it is shown that 7% of the respondents said that company
policy and procedure made difficult to execute their job and 93% it is not so.

Chart: 10

C o m p a n y P o lic y & P ro c e d u re s

7%

Y es
No

93%

Table: 11 what you like most:

Features Number Percentage (%)

Company ethics and policies 11 35 %

Cohesiveness among people 5 17 %
Favorable superior 3 10 %
subordinate relationship
Good pay and additional 1 3%
benefits
Opportunity for career 11 35 %
growth
TOTAL 31 100%

INFERENCE:
From the above table it is shown that 35% of the respondents liked the company
ethics and policies, 17% liked the cohesiveness among people, 10% liked the favorable
superior subordinate relationship, 3% like the good pay and additional benefits and 35%
like the opportunity for career growth.

Chart: 11

C om p any's Featu res

35% 35%
35%
30%
A
25%
B
20% 17%
C
15% 10% D
10% E
3%
5%
0%
 Chi Square Test

Chi- Square Test no. 1

Null Hypothesis (Ho):

Year of experience & the satisfaction with their job & job
content are independent.

Alternate Hypothesis (Hi):

Year of experience & the satisfaction with their job & job
content are dependent.

Job & job

Year content
of DS FS Sat Total
experience
<1 3 5 6 14
1-3 3 1 5 9
3-5 - 2 2 4
>5 1 1 2 4
Total 7 9 15 31
 Oi Ei Oi - Ei (Oi – Ei)² (Oi - Ei)² / Ei
3 3 0 0 0
5 4 1 1 0.25
6 7 -1 1 0.14
3 2 1 1 0.5
1 3 -2 4 1.33
5 4 1 1 0.25
- 1 -1 1 1
2 1 1 1 1
2 2 0 0 0
1 1 0 0 0
1 1 0 0 0
2 2 0 0 0
Total 4.47

χ² = ∑ (Oi - Ei)² / Ei = 4.47

Tabulated value of χ² for (4-1) (3-1) = 6 d.f @ 5% level of significance

12.592
Since calculated value of χ² is less than the tabulated value, it is not
significant @ 5% level of significance and we accept the null hypothesis.

Chi- Square Test no. 2

Null Hypothesis (H0):

Year of experience & their judgment (or) rating of the quality of
supervision are independent.
Alternate Hypothesis (H1):
Year of experience & their judgment (or) rating of the quality
of supervision are dependent.

Quality of
supervision
Year rate
1 2 3 4 5 Total
of
experience
< 1 yr 3 3 6 1 1 14

1-3 yrs 1 1 4 2 1 9
3-5 yrs - 2 2 - - 4
> 5 yrs 1 1 1 - 1 4
Total 5 7 13 3 3 31

Oi Ei Oi - Ei (Oi – Ei)² (Oi - Ei)² / Ei

3 2 1 1 0.5
 3 3 0 0 0
6 6 0 0 0
1 1.5 -0.5 0.25 0.17
1 1.5 -0.5 0.25 0.17
1 1 0 0 0
1 2 -1 1 0.5
4 4 0 0 0
2 1 1 1 1
1 1 0 0 0
- 0.5 -0.5 0.25 0.5
2 1 1 1 1
2 1.5 0.5 0.25 0.17
- 0.5 -0.5 0.25 0.5
- 0.5 -0.5 0.25 0.5
1 0.5 0.5 0.25 0.5
1 1 0 0 0
1 1.5 -0.5 0.25 0.17
- 0.5 0.5 0.25 0.5
1 0.5 0.5 0.25 0.5
Total 6.68

χ² = ∑ (Oi - Ei)² / Ei = 6.68

Tabulated value of χ² for (4-1) (5-1) = 12 d.f @ 5% level of significance

21.026
since calculated value of χ² is less than the tabulated value, it is not
significant @ 5% level of significance and we accept the null hypothesis.
CHAPTER - IV
FINDINGS
53

4.1 FINDINGS
1. The study shows that 83% of the respondents are male and 17%
are female.

2. The study shows that 45% of the respondents belongs to less than
1 year of experience, 29% of the respondents belongs to 1-3 years
of experience, 13% of the respondents belongs to 3-5 years of
experience and 13% of the respondents belongs to greater than 5
years of experience.

3. The study shows that 23% of the respondents shows dissatisfaction

towards their job & job content, 29% of the respondents shows fair
satisfaction towards that and 48% of the respondents shows
satisfaction towards that.

4. The study shows that 19% of the respondents said that their
personal career goals were given full attention, 55% said that their
personal career goals were given partial attention and 26% said
that their personal career goals were given no attention.

5. The study shows that 45% of the respondents said that the training
session had positive effect on their job, 48% said that it had helped
partially and made their work easier and 7% said that the it had no
effect on their job.

6. The study shows that 29% of the respondent were happy with their
pay & fringe benefits and 71% were not happy.

7. The study shows that 74% of the respondents prefer monetary

incentives and 26% prefer non-monetary incentives.
8. The study shows that 17% of the respondents had rated the quality
of supervision as 1st , 22% had rated as 2nd , 41% had rated as 3rd,
10% had rated as 4th and 10% had rated as 5th.
9. The study shows that 19% of the respondents had said that the
work environment was favorable and helpful, 10% said that it was
fairly conductive and 17% said that it was difficult to work.

10.The study shows that 7% of the respondents said that company

policy and procedure made difficult to execute their job and 93% it
is not so.

11.The study shows that 35% of the respondents liked the company
ethics and policies, 17% liked the cohesiveness among people,
10% liked the favorable superior subordinate relationship, 3% like
the good pay and additional benefits and 35% like the opportunity
for career growth.

12.The study shows that Year of experience & the satisfaction with
their job & job content are independent.

13. The study shows that Year of experience & their judgment (or)
rating of the quality of supervision are independent.
CHAPTER - V
 SUGGES
TIONS
5.1 SUGGESTIONS

1. The involuntary attrition is more, so the

discipline should be taken in to account while recruiting
employees and disciplinary matters need to be covered during
induction.

2. A positive awareness should be created

about the fact that the employee’s should report in advance
about their permanent separation from the company, So that the
HR department can make alternative arrangements for their
permanent absence from the job.

3. Retention bonus for the experienced

employees need to be offered.

4. To consider providing cars, laptops, mobile

to the junior level employees.

5. Promotions should be given in a regular

basis.

6. Creating new avenues for rewarding the

employees performance by way of appreciation and
recognition.

7. Employee’s opinions should be given

importance.

8. The superior should communicate the

happenings of the company and the educational opportunities
to the employee’s.
9. The Organization needs to consider
improving the work environment.

10. Improving the transport facilities existing

in the company.

11. The youngsters working in the

Organization should be given a clear view about their growth
level in the future.
 CONCLUSION

CONCLUSION

Even though the individuals are integral part of the organization, certainly there is
difference between each and every individual. Placed in similar situation, all people do
not act alike. However, there are certainly fundamental consistencies underlying the
behaviour of all individuals that can be identified and used to alter conclusions based on
individuals difference.

Satisfaction is also negatively related to turnover, but the correlation is stronger as

for the absenteeism. The other factors such as labor market conditions, expectations about
alternative job opportunities, and length of tenure with the organization are important
constrains on the decision to leave their current job. The pay raises, praise, recognition,
increased promotional opportunities are major constrains for retaining the employees.

The project has been fruitful both to the researcher and the company. The
researcher could get a practical insight about the attrition that exist in the organization
and the company could get a first hand report about the same and suggestion for
improvement in the future

59
BIBLIOGRAPHY
60
BIBLIOGRAPHY

1. Research Methodology

By C . R . Kothari

2. Organizational Behaviour

Concepts, controversies and Applications

By Stephen P. Robbins

3. Personnel / Human Resource Management

By David A. Decenzo &

Stephen P. Robbins

4. Manual on Statistical package on social science

(PC Based)-SPSS – Inc

5. Dimension of Personality

By Harvey London &

John E. Exner

6. Attrition.com
Web Site
 ANNEXURE
QUESTIONNAIRE

A STUDY ON ATTRITION ANALYSIS AT KONE ELEVATORS INDIA

PVT.LTD.

NAME:

DESIGNATION:

JOB RELATED:

a. Was your job and job content satisfying you?

□ Dissatisfying
□ Fairly satisfying
□ Satisfying
□ Other

b. Were your personal career goals and aims given attention to

□ Given full attention

□ Partial attention
□ No attention

c. Did your training sessions

□ Have a position effect on your job

□ Partially helpful and made work easier
□ Have no effect on job

d. What is the one thing you would have wanted to change in your job?

e. What was the percent jump you received from your company after resigning from
KONE?

COMPENSATION

a. Were you happy with your pay and fringe benefits?

 □ Yes
□ No

b. Which according to you is preferable?

□ Monetary incentives
□ Non-Monetary incentives

ENVIRONMENT

a. How was the quality of supervision rate on a scale of 1 to 5?

1 2 3 4 5

b. What should have been done to improve the supervisor’s management style?

c. Was the work environment a conducive?

□ Conducive
□ Very conducive
□ Favorable

OVERALL OPINION

a. Did any company policy or procedure make it difficult your job?

□ Yes
□ No

if Yes why?

b. What is the one thing you liked most about this company?

□ Company ethics and policies

□ Cohesiveness among people
□ Favorable superior and sub-ordinate relationship
□ Good pay and additional benefits
□ Opportunity for career growth
c. Based on your experience with us, what do you think it takes to succeed at this
Company?

d. Are you currently working at KONE’s competitors or are you working outside the
industry ?