PRANVEER SINGH INSTITUTE OF

TECHNOLOGY
Affiliated to Dr.
APJAKTU

SUMMER TRAINING PROJECT

REPORT
Submitted in partial fulfillment of Master of Business Administration

Session- 2017-2018

Employee Attrition

Company Guide Submitted By:

[Guide Name] [Student Name]

[Designation] [Roll Number]

Internal Guide

[Guide Name]

[Faculty-Business Administration
 ACKNOWLEDGMENT [FONT 12 ] in case of PSIT Coe

Research Project Report is the one of the important part of MBA program, which

has helped me to gain a lot of experience, which will be beneficial in my succeeding

career.

For this with an ineffable sense of gratitude I take this opportunity to express my

deep sense of indebtedness and gratitude to Dr. S. K Bhalla, Director PSIT COE for the

encouragement, support and guidance in carrying out the project.

I am very much thankful to, my Project Guide [Guide Name], [Designation] for

their interest, constructive criticism, persistent encouragement and untiring Guidance

throughout the development of the project. It has been my great privilege to work under

his/her inspiring guidance.

I am also thankful to my Parents and my friends for their indelible Co-operation for

achieving the Goal of this study. [FONT 12 AND DOUBLE SPACING]

Introduction

Larsen & Toubro is a major technology, engineering, construction, manufacturing and financial services
conglomerate, with global operations. L&T addresses critical needs in key sectors - Hydrocarbon,
Infrastructure, Power, Process Industries and Defence - for customers in over 30 countries around the
world.
L&T is engaged in core, high impact sectors of the economy and our integrated capabilities span the entire
spectrum of design to deliver. With over 7 decades of a strong, customer focused approach and a
continuous quest for world-class quality, we have unmatched expertise across Technology, Engineering,
Construction, Infrastructure Projects and Manufacturing, and maintain a leadership in all our major lines of
business.
Every aspect of L&T's businesses is characterized by professionalism and high standards of corporate
governance. Sustainability is embedded into our long-term strategy for growth.
The Companys manufacturing footprint extends across eight countries in addition to India. L&T has
several international offices and a supply chain that extends around the globe.

History [edit]
Larsen & Toubro originated from a company founded in 1938 in London by two Danish
engineers, Henning Holck-Larsen and Soren. The company began as a representative of Danish
manufacturers of dairy equipment. However, with the start of the Second World War in 1939 and the
resulting restriction on imports, the partners started a small workshop to undertake jobs and provide
service facilities. Germany's invasion of Denmark in 1940 stopped supplies of Danish products. The
war-time need to repair and refit ships offered L&T an opportunity, and led to the formation of a new
company, Hilda Ltd, to handle these operations. L&T also started to repair and fabricate ships
signaling the expansion of the company. The sudden internment of German engineers in British
India (due to suspicions caused by the Second World War), who were to put up a soda ash plant for
the Tata's, gave L&T a chance to enter the field of installation.[8]
In 1944, ECC was incorporated by the partners; the company at this time was focused on construction
projects (Presently, ECC is the construction division of L&T). L&T began several foreign
collaborations. By 1945, the company represented British manufacturers of equipment used to
manufacture products such as hydrogenated oils, biscuits, soaps and glass. In 1945, the company
signed an agreement with Caterpillar Tractor Company, USA, for marketing earth moving equipment.
At the end of the war, large numbers of war-surplus Caterpillar equipment were available at attractive
prices, but the finances required were beyond the capacity of the partners. This prompted them to raise
additional equity capital, and on 7 February 1946, Larsen & Toubro Private Limited was
incorporated.[8]
After India's independence in 1947, L&T set up offices in Calcutta (now Kolkata), Madras
(now Chennai) and New Delhi. In 1948, 55 acres of undeveloped marsh and jungle was acquired
in Powai, Mumbai. A previously uninhabitable swamp subsequently became the site of its main
manufacturing hub. In December 1950, L&T became a public company with a paid-up capital of 20
lakh (US$31,000). The sales turnover in that year was 1.09 crore (US$170,000). In 1956, a major
part of the company's Mumbai office moved to ICI House in Ballard Estate, which would later be
purchased by the company and renamed as L&T House, its present headquarters.[8]
During the 1960s, ventures included UTMAL (set up in 1960), Audco India Limited (1961), Eutectic
Welding Alloys (1962) and TENGL (1963).[8]

RAILWAYS
Mumbai Monorail
 Dedicated Freight Corridors Complete Civil and Track Works

Railway Electrification Signaling and Telecommunication

Dedicated Rail links and

Steel / Concrete Bridges and Tunnels
Merry-Go-Round Systems

Technology and Construction Features

Railways are the lifeline of nations and L&T has established itself as a unique service provider for delivering turnkey solutions
for all types of projects in the rail and urban transit sector.

L&T offers Engineering, Procurement and Construction solutions encompassing design, engineering, supply, project planning,
quality control and field execution.

At the forefront of building railway infrastructure for mainline and dedicated freight corridors, L&T has been meeting the
demands of the country by applying project management competencies, new technologies and mechanized construction methods.
With a proven track record and more than three decades of experience, L&T has introduced several pioneering techniques for the
execution of projects with innovation, quality and speed.

L&T is the only private organization which is qualified to undertake integrated rail construction projects for the Indian Railways.
Its expertise includes Ballast less Tracks, Rigid Overhead Conductor Systems (ROCS) and Gas Insulated Switchgear (GIS). L&T's
railway construction business segment has played a lead role in constructing India's first monorail system at Mumbai and also
brings in extensive experience of working on large-scale underground rail infrastructure.

Capability Spectrum

Integrated solutions for railway construction

Railway electrification

Dedicated rail links and merry-go-round systems

Complete civil and track works

Signaling and telecommunication

Steel / concrete bridges and tunnels
 ROADS
Creating high quality transportation infrastructure in India as well as overseas is one of the prime operations for L&T's Transportation
Infrastructure vertical. Having designed and constructed the full spectrum of highways, small to large, urban to rural, simple
to complex, L&T has to its credit more than 13,500 lane km of road and several bridges which include expressways, National / State
highways, toll plazas and complex road interchanges in both India and neighboring countries. Expertise also covers the construction
of race tracks / test tracks for high speed motor sport that demands precision and specialized surface treat men.

Infrastructure
Turnkey Design and Build solutions backed by experience and capabilities across multiple sectors.

o Buildings and Factories

o Heavy Civil Infrastructure
o Transportation Infrastructure
o Smart World & Communication
o Geo-Structure
o Water & Effluent Treatment
o Infrastructure - Concessions
 Power
Integrated solutions, systems and equipment for the entire Power value chain. Design & engineering for power plant
equipment.

o Coal & Gas Power Plants

o Nuclear Power Plants
o Renewable Energy
o Power Transmission & Distribution
o Power Development - Projects
o Turbines
o Boilers
o Plant Equipment

Hydrocarbon
L&Ts Hydrocarbon Engineering Business serves the Oil & Gas sector across multiple geographies.

o Upstream
o Mid & Downstream
o Construction & Pipelines
o Plant & Equipment
 Process Industry
Custom designed equipment and systems for critical process industries, delivered to customers around the world.

o Process Plant Equipment

o Metallurgical & Material Handling

o Valves

o Special Steels & Forgings

o Critical Piping

Defence
Solutions and systems for the defence sector, backed by a strong focus on R&D.

o Shipbuilding
o Defence Systems
o Aerospace

Information Technology
IT Solutions and services offered worldwide, through a network of offices.
 o L&T Infotech

o L&T Technology Services

Products, Systems & Equipment

A wide range of innovative products, equipment & systems for various industries.

o Electrical & Automation

o Valves
o Construction & Mining Equipment
o Welding Alloys
 Finance
Financial services offered through L&Ts subsidiary company, L&T Finance Holdings.

o L&T Finance
o Mutual funds
o Infrastructure Finance
o Housing Finance

Real Estate
Real estate offerings for the commercial & residential sectors.

o L&T Realty
Intro of topic employee attrition

Employee turnover and employee attrition both occur when an employee leaves the company. Turnover,
however, may result from a number of employment actions, such as discharge, termination, resignation or
job abandonment. Attrition occurs when an employee retires or when the company eliminates his job. The
major difference between the two is that when turnover occurs, the company seeks someone to replace the
employee. In cases of attrition, the employer leaves the vacancy unfilled or eliminates that job role.

Basics

To calculation your company's attrition rate, you divide the number of employees who leave in a given year
by the total number of positions you have. For instance, if you have 100 positions available and 30
employees leave the company in a given year, your attrition rate is 30 percent. This may be high or low,
depending on the industry. Retail, as an example, tends to have a relatively high level of attrition as an
industry.

Concerns

A major problem in high employee attrition is its cost to an organization. Job postings, hiring processes,
paperwork and new hire training are some of the common expenses of losing employees and replacing
them. Additionally, regular employee turnover prohibits your organization from increasing its collective
knowledge base and experience over time. This is especially concerning if your business is customer
facing, as customers often prefer to interact with familiar people. Errors and issues are more likely if you
constantly have new workers.

How to Measure Employee Attrition Rate

Calculating your company's employee attrition rate allows you to determine the percentage of employees
that left your business over a specified period of time, usually one year. Attrition includes all employees
who leave the company, whether the leaving was voluntarily and involuntarily. An employee who chooses
to leave a company for another job is an example of voluntary employee attrition. On the other hand, an
employee fired by the company is an example of involuntary attrition.
Ad

SNMP Monitoring Tool

Detect Security Events, Downtimes & Malfunctions. 30-day Free Trial!

gfi.com

1. Calculate the average number of employees who worked at the company during the year. To calculate a
simple average, add the number of employees who began the year with the company to the number of
employees remaining at the end of the year and divide this sum by two. For example, assume a company
had 1,000 employees at the beginning of the year and 1,100 employees at the end of the year; 1,000 plus
1,100 equals 2,100, divided by two equals 1,050. This figure represents the average number of employees
employed by the company during the year.

2. Determine the number of employees who left the company during the year by examining the past year's
employment records. If your company does not keep a running tally of employee attrition, physically count
the number of employees who left the company over the year. As an example, assume that 300 employees
left the company during the year.

3. Divide the number of employees who left the company during the year by the average number of
employees employed by the company during the year to arrive at an employee attrition rate. Continuing the
above example, 300 divided by 1,050 equals .286. Multiply this figure by 100 to arrive at .286, or 28.6
percent. This figure represents the company's employee attrition rate for the past year.

Larsen & Toubro

Parent Company Larsen & Toubro
Category Construction Services
Sector Conglomerates
Tagline/ Slogan Its all about Imagineering
One of the largest and most respected companies in India
for engineering, manufacturing and integration of custom
USP made technology-intensive equipment and systems
STP
Based on business type; Based on geography India, Rest
Segment of Asia, the Americas, Africa, Europe, Australia
Technology, engineering, construction and manufacturing
projects

Target Group Predominantly targets Indian projects

Positioning A company that focuses on technology leadership
SWOT Analysis
 1. Market leadership providing competitive edge - The
company can leverage its strong brand name and market
leadership position to gain competitive advantage and also
expand into international markets
2. Strong technical expertise reinforce leadership position -
L&T has set up an engineering and project management
centre in Abu Dhabi to undertake oil and gas related
projects as well as engineering and consultancy services
3. Diversified revenues providing resilience - In FY2011,
the companys revenues were distributed among business
divisions as follows: engineering and construction,
electrical and electronics, machinery and industrial
products, financial services, developmental projects and
others. This enables L&T to alleviate its business risk as
fluctuations in a single offering have lesser impact on
diversified offerings and provide resilience to its revenues

4. Over 45,000 employees form a part of its workforce

5. It has offerings like Construction, Heavy equipment,

Electrical equipment, Power, Shipbuilding, Financial
Strengths services and IT Services
1. Dependence on domestic operations for revenue
generation - In FY2011, the company's domestic (India)
operations contributed more than 80% of the total revenues.
2. Increasing debt impacting financial flexibility - L&Ts
interest and brokerage expenditure over the period
Weaknesses increased
1. Strategic joint ventures strengthening business - L&T
has formed a strategic partnership with Cyan Holdings plc,
a UK-based integrated system design company. L&T and
Cassidian entered into a partnership in February 2011, to
become an electronics house

for defense and security

2. Strong project pipeline ensures revenue growth

3. Growing Indian construction & engineering industry - In

2015, the Indian construction & engineering industry is
Opportunities forecast to grow
1. Rise in cost of construction may affect margins - The rise
in crude prices, will increase the cost of transportation.
Threats
2. Challenges in land acquisition likely to affect business -
in 2011, Indian government introduced The Land
Acquisition, Rehabilitation and Resettlement Bill, 2011.
As per the bill, compensation for the owners of the
acquired land shall be four times the market value in rural
areas and twice in urban areas
3. Intense competition may reduce profitability few
competitors have substantially greater resources and
superior capabilities than L&T
Competition
1. ABB Ltd

2. Bechtel

3. Hindalco

4. Sundaram Fasteners

5. Gammon India

6. Lanco Infratech
Objectives
To know the satisfactory level of employees towards
their job and working conditions

To identify the factors which make employees dissatisfy

about companys policy and norms.

To find the areas where companies is lagging behind

To know the reasons, why attrition occurs in

manufacturing industries in Nellore District.
To find the ways to reduce the attrition in
manufacturing industries in Nellore District.