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CONTENTS
Chapter

Page No

Certificate of Originality

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Acknowledgment
Declaration
Original approved synopsis
Chapter I :

Introduction of the topic

Chapter II:

Rational for the Study, Objectives of the Study,

Chapter III:

Limitations of the Study and Research Methodology

Company Profile

Chapter IV:

Data analysis, Interpretation and Presentation

Chapter V:

Findings and Conclusion

Chapter VI:

Bibliography
Annexure

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CHAPTER I:
INTRODUCTION OF THE TOPIC

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CHAPTER I :
INTRODUCTION OF THE TOPIC
Employee plays a very important role in the industrial production of the country. The human
resource managers are really concerned with the management of people at work. It is necessary
to secure the cooperation of employee is possible only when they are fully satisfied with their
employer & the working condition on the job. In the past , industrialist & their employers
believed that their only duty towards their employee was to pay them satisfactory wages &
salaries. In the course of time, with the introduction of the concept of human resource
management, psychological researchers convinced them that the employee required something
more important. In addition to providing monetary benefits human treatment given to employees
plays a very important role in seeking their cooperation.

EMPLOYEE RETENTION
Effective employee retention is a systematic effort by employers to create and foster an
environment that encourages current employees to remain employed, by having policies and
practices in place that address their diverse needs.

A strong retention strategy, therefore,

becomes a powerful recruitment tool.

Retention of key employees is critical to the long-term health and success of any
organization. It is a known fact that retaining the best employees ensures customer satisfaction,
increased product sales, satisfied colleagues and reporting staff, effective succession planning,
and deeply embedded organizational knowledge and learning. Employee retention matters as
organizational issues such as training time and investment, lost knowledge, insecure employees,
and a costly candidate search are involved. Hence, failing to retain a key employee is a costly
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proposition for an organization. Various estimates suggest that losing a middle manager in most
BPO organizations costs up to five times his salary.
Intelligent employers always realize the importance of retaining the best talent.
Retaining talent has never been so important in the Indian scenario; however, things have
changed in recent years. In prominent Indian metros at least, there is no dearth of opportunities
for the best in the business, or even for the second or third best. Retention of key employees and
treating attrition troubles has never been so important to companies.
In an intensely competitive environment where HR managers are poaching from each
other, BPO organizations can either hold on to their employees tight or lose them to competition.
For gone are the days when employees would stick to an employer for years for want of a better
choice. Now, opportunities are abound. In fact, some reports suggest that attrition levels in IT
companies are as high as 40 percent. Though BPO industry shoots ahead at 40 to 50 percent a
year, it is now losing 35 to 40 percent of its 350,000-odd employees as well.
In India, there are few sectors where the attrition level is much larger compared to other
sectors, for example, IT sector and BPO; whereas, there are BPO organizations like Air India,
HAL, DRDO, BARC where the attrition is much lower nearly 5% or less than that.
Clearly, the only way out is to develop appropriate effective retention strategies.

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Magnitude of Employee Retention(factors)

JOB SATISFACTION
Employees seek a job, which offers them stratosphere level of responsibility and high growth of
trajectory. If the BPO organizations do not deliver on these expectations, employ exodus cannot
be contained.
SALARY AND PERKS
There may be any number of reasons as to why an employee leaves and one of the major facts is
the money. Nowadays companies have started wooing the best of the talents with mind boggling
salary levels and attractive designations.
WORK ENVIRONMENT
An employee may leave an organization if the fairness of the system does not inspire his/her
confidence. BPO organizations, which pay scant regards towards employee safety and care, will
also have to face the mounting attrition levels.
PRESSURE OF WORK
Companies in their zeal to squeeze out every little ounce of productivity from their employees
and further increase profitability may opt for less number of employees. In such situation
employees will be constrained to rethink their priorities and join an organization that promises a
relaxed piece of work.
RELATIONSHIP WITH SUPERVISORS AND CO-WORKERS
If the supervisor lacks confidence, empathy and trust in employees, they will fail to command
the respect of the sub-ordinates. Similarly lack of cordial relationship with co-workers will also
cause high rate of attrition.
MISCELLANEOUS
In addition to all the above factors some of the other causes of attrition can be health condition of
the person, geographical location and competency in the working environment.

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The concept of motivation

The word motivation has been derived from motive which means any idea, need or emotion that
prompts a man in to action. Whatever may be the behavior of man, there is some stimulus behind
it .Stimulus is dependent upon the motive of the person concerned. Motive can be known by
studying his needs and desires.
There is no universal theory that can explain the factors influencing motives which control mans
behavior at any particular point of time. In general, the different motives operate at different
times among different people and influence their behaviors. The process of motivation studies
the motives of individuals which cause different type of behavior.

Motivation.
According to Edwin B Flippo, Motivation is the process of attempting to influence others to do
their work through the possibility of gain or reward.

Significance of Motivation
Motivation involves getting the members of the group to pull weight effectively, to give their
loyalty to the group, to carry out properly the purpose of the organization. The following results
may be expected if the employees are properly motivated.
1. The workforce will be better satisfied if the management provides them with opportunities to
fulfill their physiological and psychological needs. The workers will cooperate voluntarily
with the management and will contribute their maximum towards the goals of the enterprise.
2. Workers will tend to be as efficient as possible by improving upon their skills and knowledge
so that they are able to contribute to the progress of the organization. This will also result in
increased productivity.
3. The rates of labors turnover and absenteeism among the workers will be low.

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4. There will be good human relations in the organization as friction among the workers
themselves and between the workers and the management will decrease.
5. The number of complaints and grievances will come down. Accident will also be low.
6. There will be increase in the quantity and quality of products. Wastage and scrap will be less.
Better quality of products will also increase the public image of the business.
Abraham H Maslow Need Hierarchy or Deficient theory of Motivation.
The intellectual basis for most of motivation thinking has been provided by behavioral scientists,
A.H Maslow and Frederick Heizberg, whose published works are the Bible of Motivation.
Although Maslow himself did not apply his theory to industrial situation, it has wide impact for
beyond academic circles. Douglous Mac Gregor has used Maslows theory to interpret specific
problems in personnel administration and industrial relations.
The crux of Maslows theory is that human needs are arranged in hierarchy composed of five
categories. The lowest level needs are physiological and the highest levels are the self
actualization needs. Maslow starts with the formation that man is a wanting animal with a
hierarchy of needs of which some are lower ins scale and some are in a higher scale or system of
values. As the lower needs are satisfied, higher needs emerge. Higher needs cannot be satisfied
unless lower needs are fulfilled. A satisfied need is not a motivator. This resembles the standard
economic theory of diminishing returns. The hierarchy of needs at work in the individual is today
a routine tool of personnel trade and when these needs are active, they act as powerful
conditioners of behavior- as Motivators.

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Hierarchy of needs; the main needs of men are five. They are physiological needs, safety needs,
social needs, ego needs and self actualization needs, as shown in order of their importance.

SelfActualization
Ego Needs
Social Needs
Safety Needs
Physiological Needs
Fig (2.1)
The above five basic needs are regarded as striving needs which make a person do things. The
first model indicates the ranking of different needs. The second is more helpful in indicating how
the satisfaction of the higher needs is based on the satisfaction of lower needs. It also shows how
the number of person who has experienced the fulfillment of the higher needs gradually tapers
off.
Physiological or Body Needs: - The individual move up the ladder responding first to the
physiological needs for nourishment, clothing and shelter. These physical needs must be equated
with pay rate, pay practices and to an extent with physical condition of the job.
Safety: - The next in order of needs is safety needs, the need to be free from danger, either from
other people or from environment. The individual want to assured, once his bodily needs are
satisfied, that they are secure and will continue to be satisfied for foreseeable feature. The safety
needs may take the form of job security, security against disease, misfortune, old age etc as also

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against industrial injury. Such needs are generally met by safety laws, measure of social security,
protective labor laws and collective agreements.
Social needs: - Going up the scale of needs the individual feels the desire to work in a cohesive
group and develop a sense of belonging and identification with a group. He feels the need to love
and be loved and the need to belong and be identified with a group. In a large organization it is
not easy to build up social relations. However close relationship can be built up with at least
some fellow workers. Every employee wants too feel that he is wanted or accepted and that he is
not an alien facing a hostile group.
Ego or Esteem Needs: - These needs are reflected in our desire for status and recognition,
respect and prestige in the work group or work place such as is conferred by the recognition of
ones merit by promotion, by participation in management and by fulfillment of workers urge for
self expression. Some of the needs relate to ones esteem
e.g.; need for achievement, self confidence, knowledge, competence etc. On the job, this means
praise for a job but more important it means a feeling by employee that at all times he has the
respect of his supervisor as a person and as a contributor to the organizational goals.
Self realization or Actualization needs: - This upper level need is one which when satisfied
provide insights to support future research regarding strategic guidance for organization that are
both providing and using reward/recognition programs makes the employee give up the
dependence on others or on the environment. He becomes growth oriented, self oriented,
directed, detached and creative. This need reflects a state defined in terms of the extent to which
an individual attains his personnel goal. This is the need which totally lies within oneself and
there is no demand from any external situation or person.

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