A STUDY ON EMPLOYEE TURNOVER AT TRANSFORM TOOL INDIA PVT LTD AT

CHENNAI

CHAPTER I

INTRODUCTION

All businesses, large and small, have some way of keeping track of their finances.
Businesses are constantly looking for more ways to keep expenses low. One factor that is often
overlooked, however, is the cost of employee turnover.

High employee turnover can cost a company more than they might realize in the long run.
This report explains some causes of high employee turnover, who it affects the most, and ways
companies can decrease employee turnover in order to cut hidden costs.

Employee turnover occurs when employees voluntarily leave their jobs and must be
replaced. Turnover is expressed as an annual percentage of the total workforce.

Turnover should not to be confused with layoffs, which involve the termination of
employees at the employer's discretion in response to business conditions such as reduced sales
or a merger with another company.

The severity of turnover varies widely by type of business and the economic health of the
region where companies are located. Innovative high-tech companies and the most successful
manufacturers frequently experience low turnover rates while fast-food restaurant managers
expect turnover to be as high as 50 to 75 percent

WHAT IS EMPLOYEE TURNOVER?

Employee turnover is technically and mathematically defined as ―the ratio of the

number of workers that had to be replaced in a given time period to the average number of
workers. Put simply, it is an instance when an employee leaves their position at their workplace
and needs to be replaced.

Employee turnover is a ratio comparison of the number of employees a company must

replace in a given time period to the average number of total employees. A huge concern to most
companies, employee turnover is a costly expense especially in lower paying job roles, for which
the employee turnover rate is highest.

Many factors play a role in the employee turnover rate of any company, and these can
stem from both the employer and the employees. Wages, company benefits, employee
attendance, and job performance are all factors that play a significant role in employee turnover.

In a human resources context, turnover or labour turnover is the rate at which an

employer gains and losses employees. Simple ways to describe it are "how long employees tend
to stay" or "the rate of traffic through the revolving door."

Turnover is measured for individual companies and for their industry as a whole. If an
employer is said to have a high turnover relative to its competitors, it means that employees of
that company have a shorter average tenure than those of other companies in the same industry.

High turnover can be harmful to a company's productivity if skilled workers are often
leaving and the worker population contains a high percentage of novice workers

TYPES OF EMPLOYEES TURNOVER

1. INTERNAL VS. EXTERNAL

Turnover like recruitment, turnover can be classed as 'internal' or external.
Internal turnover involves employees leaving their current position, and taking a new
position with the same organization.
Both positive (such as increased morale from the change of task and supervisor)
and negative (such as project/relational disruption,) effects of internal turnover exist, and
thus this form of turnover may be as important to monitor as its external counterpart.
Internal turnover might be moderated and controlled by typical HR mechanisms, such as
an internal recruitment policy or formal succession planning.
2. SKILLED VS. UNSKILLED EMPLOYEES
Unskilled positions often have high turnover, and employees can generally be replaced
without the organization or business incurring any loss of performance. The ease of
replacing these employees provides little incentive to employers to offer generous
employment contracts; conversely, contracts may strongly favour the employer and lead
 to increased turnover as employees seek, and eventually find, more favourable
employment.

However, high turnover rates of skilled professionals can pose as a risk to the business or
organization, due to the human capital (such as skills, training, and knowledge) lost.

Notably, given the natural specialization of skilled professionals, these employees are
likely to be re-employed within the same industry by a competitor. Therefore, turnover of these
individuals incurs both replacement costs to the organization, as well as resulting in a
competitive disadvantage to the business

VOLUNTARY VS. INVOLUNTARY TURNOVER

1. Involuntary: -
In this case, the employee ceases to work for the company due to being laid off or
terminated. It could be because the company is trying to cut costs, or the employee has
violated company policy.
2. Voluntary: -
Voluntary turnover is when an employee terminates employment on their own accord.

There are several possible causes:-

 Relocation going
 Back to school
 Starting a family
 Taking care of an elderly relative
 General job dissatisfaction such as low pay, lack of benefits, or poor management

CAUSES OF EMPLOYEE TURNOVER

There are several factors that cause high turnover within companies. This report will focus on
voluntary turnover, because voluntary turnover is something that companies are more able to
control. Employees voluntarily quit for several reasons, specifically:

 Pay is too low

 Lack of benefits
  Tasks are too repetitive
 Circumstances listed above such as family, school, or moving
 Poor management
 Lack of advancement
 Burnout
 Compensation package differences job and employee skill mismatch: the job may be less
or more satisfying and challenging according o the employee.
 Inferior facilities, tools, etc
 Less recognition
 Less or no appreciation for work done
 Less growth opportunities
 Poor training
 Poor supervision
 Less work and life balance practices

There are some other numbers of factors that contribute to employee turnover. We explore some
of these factors in more detail below:-

 The economy - in exit interviews one of the most common reasons given for leaving is
the availability of higher paying jobs. Some minimum wage workers report leaving one
job for another that pays only 50 cents an hour more. Obviously, in a better economy the
availability of alternative jobs plays a role in turnover, but this tends to be overstated in
exit interviews.
 The performance of the organization - an organization perceived to be in economic
difficulty will also raise the spectre of impending layoffs. Workers believe that it is
rational to seek other employment.
 The organizational culture - much has been written about organizational culture. It is
sufficient to note here that the reward system, the strength of leadership, the ability of the
organizations to elicit a sense of commitment on the part of workers, and its development
of a sense of shared goals, among other factors, will influence such indices of job
satisfaction as turnover intentions and turnover rate.
  The characteristics of the job - some jobs are intrinsically more attractive than others. A
job's attractiveness will be affected by many characteristics, including its repetitiveness,
challenge, danger, perceived importance, and capacity to elicit a sense of
accomplishment. A job's status is also important, as are many other factors.
 Unrealistic expectations - Another factor is the unrealistic expectations and general lack
of knowledge that many job applicants has about the job at the time that they receive an
offer. When these unrealistic expectations are not realized, the worker becomes
disillusioned and decides to quit.
 Demographics - empirical studies have demonstrated that turnover is associated in
particular situations with demographic and biographical characteristics of workers. But to
use lifestyle factors (e.g. smoking) or past employment history (e.g. many job changes) as
an explicit basis for screening applicants, it is important for legality and fairness to job
applicants to verify such bio data empirically.

CAUSES OF HIGH AND LOW EMPLOYEE TURNOVER

High turnover often means that employees are unhappy with the work or compensation, but
it can also indicate unsafe or unhealthy conditions, or that too few employees give satisfactory
performance (due to unrealistic expectations or poor candidate screening).

The lack of career opportunities and challenges, dissatisfaction with the job-scope or conflict
with the management has been cited as predictors of high turnover. High rate of turnover may
lead to decrease in:

 Productivity
 Service delivery
 Spread of organizational knowledge

Low turnover indicates that none of the above is true: employees are satisfied, healthy
and safe, and their performance is satisfactory to the employer. However, the predictors of low
turnover may sometimes differ than those of high turnover.
 Aside from the fore-mentioned career opportunities, salary, corporate culture,
management's recognition, and a comfortable workplace seem to impact employees' decision to
stay with their employer

A little rate of employee turnover may result into:

 Bringing in new ideas and skills from new hires.

 Better employee-job matches.
 More staffing flexibility.
 Facilitate change and innovation.

MEASURES TO REDUCE THE RATE OF TURNOVER

 Benefits. Offering employees an affordable medical, dental, and vision package in this
day and age is a great way to keep employees happy. Healthy employees are happy
employees, and being able to provide affordable health care for their spouses and families
as well is something every company should offer.
 An added bonus could be vacation time, sick leave. On-site child care would be
extremely helpful for parents who have to work long or late hours—especially single
parents.
 Higher pay. Giving employees regular raises and paying well over minimum wage
would be an incentive for them to stay.
 A set schedule. In food service and retail, and most service industries as well as health
care, employees are forced to work six or more—even up to ten days in a row without a
day off. Days off may even be split up, so the employees never really get a chance to rest.
Giving them the opportunity to choose which days off they want, or at least giving them
two in a row and not working them more than five, would be extremely beneficial in
employee retention. This would also increase productivity and would be beneficial to the
company.
 Job variation. Employees get burned out on performing the same job every hour of
every day, day in and day out for years, even months. Cross-training should be done,
especially in food service and retail, in order to avoid burnout.
  A positive attitude from superiors. Most employees don’t like negativity from their
superiors. Instead of always being told what they’re doing wrong, they need positive
reinforcement as well as constructive criticism. Managers and supervisors should always
have a positive attitude toward their employees and never insult, criticize, or berate them.
 Proper training for management. Managers should be trained thoroughly and
consistently. The policies from location to location should be the same, and every
manager and supervisor in the company should be trained the same way and be in
agreement and consistent with company policies. Managers should be trained to treat
their employees with respect, because without those employees, the business could not
operate

BACKGROUND OF THE STUDY

 Employee turnover is one of the most study important issues to organizations, and one
that needs special attention.
 It has some significant effects on organizations; new employees must be hired and
trained, it is also needed to consider the time required for a new employee to be
effectively productive.
 Staffs turnover is a warning sign of low morale and it is the amount of movement in and
out of employees in an organization. In general, employees either leave their jobs
voluntarily by their own decision or forced to leave by the decision of the employer
 Employee’s turnover is one of the factors which affects the organization’s productivity;
which is considered to be one of the challenging issues in business nowadays.
 The impact of turnover has received considerable attention by senior management,
human resources professionals and industrial psychologists. It has proven to be one of the
most costly and seemingly intractable human resource challenges confronting by several
organizations globally.
 Porter and Steers (1973) suggested that the issue of met expectations was central to the
individual’s decisions to leave an organization. Each employee has his or her own set of
expectations upon entering an organization.
 Should these expectations not be met, the individual will become dissatisfied and leave..
  In Ethiopia, even though few studies like: study conducted on ERA and IRC shows about
turnover of employees, there is no empirical studies conducted on public organizations
employees’ turnover which were supported by formal and published research.
 Enterprise because of employees’ turnover is a big issue in the organization. Currently,
most young employees are leaving the organization due to unknown reasons.
 Hence, this study clearly identified the causes of employees’ turnover and its
management or retention mechanism will help in developing appropriate policy and
training program at country level in general and at public organizational level in
particular.

SIGNIFICANCE OF THE STUDY

 Governmental and public sector organizations success can be measured mainly through
delivery of quality service to their beneficiaries.
 This can be achieved through well formulated plans and programs, allocation of
resources, assignment and retention of committed and competent employees.
 However, since skilled work force turnover can affect the organization has to achieve the
intended objectives and expected results will not be achieved. Therefore, the study insight
the issue in context public enterprise experience. It also might serve as literature for
future studies on the topic.
 In addition it might also use as input for policy makers and implementers though the
study is academic and has no guarantee of implementation.

NEED FOR THE STUDY

 The success of any manufacturing organization depends largely on the workers, the
employees are considered as the backbone of TRANSFORM TOOL INDIA PVT LTD
AT CHENNAI
 The turnover rate of the company is 11.4%. So this study focused on why the Turnover
occurs and the possible ways to reduce it.
 This study can be helpful in knowing, why the employees prefer to change their job and
which factors make employee dissatisfy.
  Since the study is critical issue, it is needed by the originations in order to assess the
overall interest and the feelings of the employees towards their nature of job and
organization.
 This study can be helpful to the management to improve its core weaknesses by the
suggestions and recommendations prescribed in the project.
 This study can serve as a basis for measuring the organization’s overall performance in
terms of employee satisfaction.
 The need of this study can be recognized when the result of the related study need
suggestions and recommendations to the similar situation.

OBJECTIVE OF THE STUDY

 To identify the rate of turnover of ―employees
 To identify the causes of employees turnover
 To suggest measures to reduce the rate of turnover
 To identify the actual reasons of turnover
 To analyze how turnover affects productivity on organizations.
 To find out the possible solutions of reducing turnover.
 To help business organizations by identifying their problems, analyzing the information’s
and recommending for possible solution

SCOPE OF THE STUDY

 The scope of the study was limited to the participants who left the department
 Due to the restricted research timeframes and resource, the researcher did not focus on
the involuntary turnover causes including those employees who were employed on a
contractual basis.
 Though there could have been many motives behind staff turnover at various levels that
could have provided a more balanced finding, but the researcher focused on voluntary
turnover.
LIMITATIONS OF THE STUDY:

 The results and findings were limited to a single organization – the Gauteng Department
of Finance;
 Employees may not be willing to share their experiences and therefore not willing to
participate;
 Employees may have changed their telephone numbers and numbers on the
TRANSFORM TOOL INDIA PVT LTD AT CHENNAI records no longer applicable,
thus limiting necessary data outcomes;
 The study was limited to English and this was not the preferred means of communication
for various participants;
 Due to budgetary, access and time constraints, the study focused on the questionnaires as
means of gathering data, hence limiting usage of other research methods that could have
added value to the study

COMPANY PROFILE AND INDUSTRY PROFILE

COMPANY PROFILE
PROFILE
Established in the year 2011, we, 'Transform Tools India Pvd Ltd', are reckoned as an eminent
trader, retailer and wholesaler of Micrometers & Torque Multipliers. Apart from this, we also
offer Precision Measuring Instruments, Solid & Brazed Carbide Tipped Tools Carbide Inserts
and Carbide Cutting Tools. These products are developed to be rugged, dependable and capable
of being customized to fit the varied requirements of our clients. Furthermore, our organization is
reckoned as a reputed innovator for offering chosen technologies and offering the clients with
unique solutions for fulfilling their different application needs. With the assistance of our
experts, we have been investing in offering our clients with products that help us in providing
technological solutions that are not available off-the-shelf from other suppliers.
Each of the products is procured from some of the certified and leading manufacturers, who
utilize high-grade raw material and state-of-the-art technologies to develop the entire range.
Furthermore, known for their outstanding characteristics and unique properties, these products
are recommended to be used in paper, metal, engineering, automobile, aircraft, ferrous & non-
ferrous and other related industries. Our entire product line can be custom-made in accordance
with the specifications provided by clients.

TEAM
Backed and supported by a team of skilled professionals, we have been able to cater to the
precise needs of our valuable customers in the most efficient manner. They are trained through
seminars and workshops, for the purpose of enhancing their technical and professional skills in
the most efficient manner. Owing to their skills and experience of this domain, they hold
expertise in their field of work. We work to attain maximum customer approval and satisfaction,
boasting of a very friendly working environment.

Our team comprises:

 Procurement agents
 Engineers
 Quality controllers
 Warehousing & logistics personnel
 Sales & marketing executives
 Administrative staff
 Skilled workers
YOU’RE ADVANDAGE
 We store tools for you
 We supply 'Just In Time'
 Choice of money alternatives of national & international brands of tools available
 Tool Bank" under one roof
 Quick safe quality tools
VENDOR BASE
The industrial tools offered by us are procured from some of the reputed and esteemed
manufacturers. Vendors selected by us are well-equipped with requisite amenities and state-of-
the-art infrastructure facilities that allow them to execute their operations in an organized and
systematic manner. Furthermore, the selected vendors respond to our bulk & urgent demands
with efficacy and ensure to deliver the desired orders within the prescribed time frame. Our
management selects these vendors keeping in mind their credibility in the market, financial
status, manufacturing facilities, past clientele and experience in this domain.
WE SERVE
 We store tools for you
 We supply 'Just In Time'
 Choice of money alternatives of national & international brands of tools
available
 Tool Bank" under one roof
 Quick safe quality tools

OUR STRENGTH
We are a name of great repute in the field of providing an innovative range of Micrometers &
Torque Multipliers to our clients. The cost-effective and durable product line offered by us has
helped us in garnering a rich client base across the nation.
Furthermore, we have inculcated the following attributes that have helped us in gaining an edge
over our counterparts:
 Quality range of products
 Team of expert professionals
 Timely delivery
 Competitive prices
 Ethical business policies
 Client oriented approach
 Rich vendor base
 Capacious warehousing unit
WHY AS
With our ability to meet bulk orders of Micrometers & Torque Multipliers in the most efficient
manner, we have been able to win the trust of our valuable customers in the most efficient
manner. Custom centric approach is followed while working in close coordination with our
customers, in a zest to attain maximum customer approval and satisfaction. Ethical business
practice and timely delivery coupled with transparent transaction policies are offered, keeping
the convenience of our customers in mind.
WELCOME TO
TRANSFORM TOOLS INDIA PVD LTD
Known for wholesaling, trading and retailing of a wide range of the best quality of Micrometers
& Torque Multipliers, Transform Tools India Pvd Ltdstarted its operation in the year 2011.
Inclusive of Precision Measuring Instruments, Solid & Brazed Carbide Tipped Tools Carbide
Inserts and Carbide Cutting Tools, we offer a wide range of products. For engineering the
offered range of industrial products as per the industry set norms, our engineers and support staff
make use of latest machinery and sophisticated equipment. Their optimum accuracy, efficiency,
less power consumption, low maintenance, high performance, sturdy construction, longer serving
life, low working cost and compact design, makes these industrial products highly demanded.

We have been able to provide our customers with quality range of products, utilizing the skills
and experienced of skilled professionals, who hold expertise in their area of operations. Timely
delivery of the offered range at the customers’ end, has helped us in catering to the precise needs
of our valuable customers in the most efficient manner.
Product Showcase

Carbide Cutting Tools

Carbide End Mills

Torque Wrench

HMT & BFW

Machine Spares

ICROMETER & TORQUE MULTIPLIER

We are reckoned for trading, retailing and wholesaling a wide range of Micrometers &
Torque Multipliers. Manufactured with the support of experienced engineers at our
vendors' unit, these products can be customized as per the detailed specifications of our
patrons. Furthermore, we conduct various tests to measure the quality of each product at
our vendor's unit prior to approving it to be delivered to the clients.
Precision Measuring Instruments
We are a leading Wholesaler & Trader of Precision
Measuring Instruments such as Dial Gauge, Internal
Groove Gauge, Micrometers & Depth Micrometer,
Vernier Calliper, Depth Micrometer, Sheet Metal
Micrometer and many more items from India.

Solid & Brazed Carbide Tipped Tools Carbide Inserts

Pioneers in the industry, we offer Solid & Brazed
Carbide Tipped Tools Carbide Inserts such as Solid
Carbide & Brazed Carbide Tipped Tool and Solid &
Brazed Carbide Tipped Tool from India.
Carbide Cutting Too
Wholesaler & Trader of a wide range of products which
include Carbide Cutting Tools such as Carbide Tips,
Carbide Drill Bit, Brazed Carbide Tools, Carbide End
Mills, Carbide Drills, Solid Carbide Tools and many
more items.

Torque Wrenches & Multipliers

Providing you the best range of Torque Wrenches &
Multipliers such as Torque Wrench, Torque Multiplier, Torque
Screw Driver, Torque Calibration Rig, Dial Type Torque
Meter and Torque Wrench & Multiplier with effective &
timely delivery.
Pneumatic tools
We are a leading Wholesaler & Trader of Pneumatic
tools such as Pneumatic Air Wrench, Pneumatic Air
Drill, Air Die Grinder, Air Riveter and Air Angle
Grinder from India.

Guage Tools
Pioneers in the industry, we offer Guage Tools such as
Guage Block, Guage Block Accessories, Slip Gauge,
Plain Plug Gauge, Thread Plug Gauges and Permanant
Magnetic Chunks from India.
Hydraulic Tools
Creating a niche of Hydraulic Tools such as Hydraulic
Bottle Jacks and Pipe Bending Machine at its best, with
utmost quality.

Inspection Mirror
Knurl wheel and Holder
Leading Wholesaler and Trader from Mumbai, our
product range includes Knurl wheel and Holders such
as Knurl Wheel and Knurl Holder.

Dial Gauge for Laboratory

Wholesaler & Trader of Dial Gauge for Laboratory.
Our product range also comprises of Precision
Measuring Instruments, Solid & Brazed Carbide
Tipped Tools Carbide Inserts and Carbide Cutting
Tools.

Torque Wrench for Automobile Industry

We are a leading Wholesaler & Trader of Torque
Wrench for Automobile Industry such as Torque
Handles, Sockets Accessories, Impact Sockets, Socket
Sets, Torque Spanner, Chain Pipe Wrench and many
more items from India.
Hand Tool for Electric Industry
Wholesaler & Trader of Hand Tool for Electric
Industry. Our product range also comprises of Precision
Measuring Instruments, Solid & Brazed Carbide
Tipped Tools Carbide Inserts and Carbide Cutting
Tools.

CNC Tools
Wholesaler & Trader of a wide range of products which
include CNC Tools such as High RPM Revolving Centres and
CNC Revolving Center.
INDUSTRY PROFILE
INRODUCTION TO THE INDUSTRY
Machine tools are the basic building blocks of manufacturing. They are used in durable-goods
industries to make items ranging from aircraft to appliances as well as other, more specialized,
production machinery. During the year 2010, turnover by the 28 principal machine tool
manufacturing countries, totaled 66.3 billion US Dollars, and represented a gain of 21% over the
previous year. During 2011, machine tool production across the globe increased further by about
35% over 2010, amidst indications that growth rate was starting to level off. Japan and Germany
saw very substantial percentage gains in their production, completely shaking off the effects of
the deep recession that swept the worldwide industry in 2009. China, already established as both
the world’s largest consumer and its biggest producer, also reported double-digit expansion in
dollar-volume output and continues to be far ahead in the listings, obviously with complete
support for the industry from the government on all fronts. All the three other major Asian
Machine Tools manufacturing countries-Korea, Taiwan and India- grew at over 65% and secured
leading positions of fifth, sixth and thirteen, respectively in the overall productions ranking in
2010. During 2011, in most of the countries, national industries registered revival from their
2009 hit. Japanese builders whose shipments of machine tools had fallen by more than half
during the collapse four years ago, increased production substantially in 2011, following an
excellent rebound in 2010. Third-place producer Germany too reported output gains during 2011.
Year-to-year increases in several countries looked even better when converted to U.S. dollars.
American machine tool builders saw a solid 25% gain in shipments during 2011; among other
top-ten producers, South Korea, Switzerland, Spain and Italy experienced similar improved
activity.
The machine tool industry constitutes the backbone of the industrial sector and is vital for the
growth of the Indian machine tool industry. Even though the Indian machine tool industry is a
small segment of the engineering industry, it plays a very important role in the development and
technology up gradation of the engineering industry. The quality and cost of engineering
products depends on the quality of mother machine tools and their automation level. The
development of the machine tool industry is therefore of paramount importance for a competitive
and self- reliant industrial structure. The growth of Indian machine tool industry and major user
industries clearly shows the close inter dependencies of indigenous machine tools and the major
user industries. This level of performance of the major user industries has been made possible
only because of the support from indigenous manufacturers large and small, to meet almost all
the requirement of machine tools, conventional, CNC special purpose, and flexible
manufacturing lines required by them. Had the indigenous machine tool industry not been able to
meet the major user industries demand, then these machine tools would have to be imported, at
much higher prices, irrespective of rising cost of foreign exchange or not. This would have
severely affected not only the country GNP and the overall economy of the country but also
severely impaired the country’s space and defense sector.
GLOBAL SCENARIO
Machine Tools have got a great demand in foreign market. TRNASFORM TOOL INDIA PVT
LIMITED has different units in different countries in different names they are as follows:
1. Sonelgaz, Algeria Turkey project for manufacture of Gas Meters/Water Meters and
Regulators.
2. Engineering Design & Fabrication Centre, Federal Institute of Industrial Research,
Nigeria
3. Tool Rooms
4. Training and Development Centers
5. Project Consultancy
6. Alloy Steel Foundry for Alloy Steel Castings, Kenya
7. GLS Lamp Manufacturing Unit, CEILMAC, Tanzania
8. Welding Electrode Manufacturing unit, Kenya

INDIAN SCENARIO
The Indian machine tool industry manufactures almost the complete range of metal-cutting and
metal-forming machine tools. Customized in nature, the products from the Indian basket
comprise conventional machine tools as well as computer numerically controlled (CNC)
machines. There are other variants offered by Indian manufactures too, including special purpose
machine, robotics, handling systems, and TPM-friendly machines. Efforts within the industry are
now underway to improve the features of CNC machines, and provide further value additions at
lower cost, to meet specific requirements of users. In keeping with the current trends, and
emerging demands, the CNC segment could be the growth for the machine tools in India. The
slowdown in the Indian economy since mid- 1999 had its impact on the prospectus of Indian
machine tools manufactures. Output by domestic metal working machine tool manufacturers in
2001 calendar year declined to the lowest of just RS.5, 175 millions making the fourth year of
decline since 1997 for the Indian machine tools industry. Much of this fall was due to subdued
investment in 2002 by all the major user segments of machine tools, except the defense industry,
primarily because of the higher capital expenditure outlay. However in the last two calendar
years, output of the industry registered significant growth and the industry had achieved a higher
growth in the past two years. While the decrease in the domestic production was lower in the
case of conventional metal working machine tools, computer numerically controlled (CNC)
machine tools manufacturers too suffered, although marginally. Lathes, machining centers,
special purpose machines, and grinding machines were categories of machine tools that
sustained much of the order inflow even during 2001 although these segments registered a
decline, in comparison with the previous year.
An industry, which has undergone a radical paradigm shift in its thinking, the Indian machine
tools industry is now recognized as a provider of low cost, high quality lean manufacturing
solutions. The industry resiliently supports its entire user to enhance productivity as well as
improve competitiveness for the betterment of the final customer. It is a well-known and often
repeated fact that the machine tool industry forms the pillars for the competitiveness of the entire
manufacturing sector since machine tools produce capital goods which in turn produce the
manufactured goods. Hence being an integral sector, growth of the machine tools has an
immense bearing on the entire manufacturing industry which is crucial for the countries’
strategic requirements such as defense, railways, space, atomic energy etc. world over too,
industrially developed countries have created market on the back of a well-developed and
supportive machine tool sector. In India, indigenous machine tools have the highest impact on
the capital output ratios. Machine tools consumption of Rs.2500Cr. truly supports the
advancement of countries engineering sector output which is estimated to be worth over Rs.1,
50,000 crore. In India there are about 450manufacturers manufacturing complete machines or
their components. There are 150 units in the organized sector. Almost 73% of the total machine
tool production in India is contributed by 10 major companies in this industry. The industry has
an installed capacity of Rs. 10 billion and employs a workforce directly or indirectly totally
65,000 skilled and unskilled persons.
The hub of manufacturing activities is concentrated in Mumbai and Pune in Maharashtra,
Jalandhar and Ludhiana in Punjab, Ahmadabad, Baroda, Jamnagar, and Rajkot in Gujarat,
Coimbatore and Chennai in Tamil Nadu, Bangalore and Mysore in Karnataka, and some parts of
east India. All the global leaders namely Makino, DMG, Yamazaki, Haas, Trumpf, Daewoo,
Agia Charmilles, Schuler etc. are present in
India either through their marketing agents, technical centers, service centers or assembly
centers. There are a number of issues of critical importance to the industry.
These are:
 The competitiveness and quality of machines tools manufacturer depend on the
competitiveness and quality of its subcontractors.
 Attracting and retaining talented manpower is an issue since the industry can grow only
with knowledge accumulation.
 High fragmentation is leading to low economies of scale.
 Indian educational curriculum in the ITIs or engineering colleges is not geared to impart
the all round technical knowledge required by the engineers and operators in this sector.
For example, a service engineer in the sector needs knowledge in hydraulic, mechanical,
electronics and electrical. The market share and the total market size of the product range
covered by the study as per CMIE data is given below. These include companies who
manufacture components as well as complete equipment.

TRNASFORM TOOL INDIA PVT LIMITED: OVERVIEW

OWNERSHIP PATTERN
The company is owned and managed by Central Government, 96% of shares are with the
government and remaining 4% are with the public. The decisions are taken by the company,
which will be sanctioned by the government.
HISTORY
By the end of Second World War, the government of India was confronted by a big problem of
disposing the colossal war waste. Ultimately, a committee was constituted to inquire into the
possibilities. The committee report of 1948 proposed the establishment of a government owned
machine tool industry. This was expected to fulfill two aspects. The first was utilization of the
Rs.4000 million worth of metallic waste. The second was the incorporation of a state owned
infrastructure-manufacturing facility. The result was the birth of TRNASFORM TOOL INDIA
PVT LIMITED which diversified in due course of time to the present stature of a multi core,
multi-location, multi-unit, and multi-product industrial giant TRNASFORM TOOL INDIA
PVT LIMITED
CORPORATE VISION:
To be a leading Global Engineering Conglomerate Focused on Customers Delight in our field of
Endeavour
CORPORATE MISSION:
 To establish ourselves as one of the world’s premier companies in the engineering field
having strong international competitiveness.
 To achieve market leadership in India through ensuring customer satisfaction by
supplying internationally competitive products and services.
 To achieve sustained growth in the earnings of the group on behalf of shareholders.
CORPORATE OBJECTIVES:
 To encourage the modernization of Indian Industry through the supply of engineering
goods and services of world class excellence.
 To maintain technological leadership through continuous efforts to update product
technology and manufacturing method.
 To globalize operations by developing a mix of international markets and businesses.
 To ensure a satisfactory return on capital employed, to meet the growth needs and the
aspirations of stakeholders.
 To present an active, pleasant and productive working environment.

GROWTH AND DEVELOPMENT

The growth of TRNASFORM TOOL INDIA PVT LIMITED . Was characterized by
the forward and back ward integration of technology and product diversification. Thus the
company that started with manufacturing and selling lathes expanded its machine tools products
range to evolve as the ultimate solution in metal cutting. The products diversification efforts took
the company to the business of watches in 1962, tractor in 1971, die-casting on plastic machinery
in 1971, printing machinery in 1972, presses in 1972,lamps & lamp making machinery in 1976,
food processing machinery in 1980,CNC systems in 1986, ball screws in 1986 and
reconditioning on 1990.
FUTURE EXPANSION
 Infrastructure development like online facility, increasing computer usage.
 Technological acquisition for latest printing machine technology and
collaboration to launch vertical lathe machines.
 Reconditioning and up gradation of the existing plant.
LEGAL FRAMEWORK OF THE COMPANY
 Legal frame work of the company means the rules and regulations which governs the
company. To be more precise it means the rules and regulations that each and every
individual employees of an organization perform. TRNASFORM TOOL INDIA PVT
LIMITED has a well- structured legal frame work that can be considered to be the most
important factor for the success of the organization.
 A standing order has been issued to each and every member of the organization.
 This standing order prescribes the manner in which every member should perform their
respective tasks. It also contains a detailed report on the rights of each individual in the
organization. An employer cannot dismiss a particular employer cannot dismiss a
particular employee in the organization without following certain procedures and they
must act within the legal frame work of the organization.
 In compliance with the Guidelines on Corporate Governance for Central Public Sector
Enterprises framed by the Department of public Enterprises, applicable to Government
Companies and as per the applicable provisions of the Companies act, 1956, the
Company is committed to maintain the highest standards of Corporate Governance and
initiate appropriate action for compliance of the Guide lines on Corporate Governance.
 ORGANISATIONAL HIERARCHY

BOD

CHAIRMAN
MANAGING DIRECTOR
DEPT .GENERAL
MANAGER
MANAGER
SENIOR ENGINEER
ASSISTANT MANAGER
SALES EXECUTIVE
JUNIOR ENGINEER
COMPUTER PROGRAMER
WORKERS

CHAPTER II
REVIEW OF LITERATURE
REVIEW OF LITERATURE
 Researchers have comprehensively studied on employee turnover attitudes. They give
their efforts to develop and understanding of employee attitudes. Employee leaves
organization with specific reason. In an attempt to clarify the relationships among
various attitudinal antecedents of turnover, Tett and Meyer (1993) they perform meta-
analysis on 178 samples from 138 studies.
 They work on the relationships between job satisfaction, turnover intention,
organizational commitment and actual turnover (Tett and Meyer, 1993).
 In their research they state that organizational commitment and employee job
satisfaction both objects are perform independently in employee turnover. In this both
object employee job satisfaction is more effective then organizational commitment.
Means as per Tett and Meyer research employees job satisfaction is a major part in
their job.
 Lee, Holtom, Mc Daniel, Hill and Mitchell (1999), also done a research on this topic.
They strongly argue that only attitudinal findings are not sufficient to explain this issue.
They do a more then 17 years research on this topic and suggests that many employee
left current organization without any specific reason.
 Hom, Caranikas-Walker, Prussi and Griffeth (1992) start a meta-analysis on employee
turnover. As per them opinion only employee job satisfaction is not important but
sometimes external economic issues or employment rate are also play important role in
employee turnover. Generally as per current theory employee low job satisfaction is a
major reason for leave organization.
 But as per Lee et al (1999) there are new theories are needed to explain the different
situation and reason. Some need to find out possible reason for which & why people
leave the organizations.
 The psychological viewpoint and goal is showing different object such as job
dissatisfaction, employee demography and organization not full fill their commitment
are the main issue in employee turnover (e.g. Discenza & Gardner, 1992;
 William H. Price & Richard Kiekbusch & John The is in his study on causes of
employees turnover have talked about the causes and the implementation. Further he
highlighted that providing a challenging job, and offering realistic promotion
opportunities. Other variables that have less impact are schedule input, insurance and
family income. Good communication and job satisfaction
 Beri G.C., Human Resource Tata McGraw New Delhi, in his study on the cause of
factor influencing turnover and retention of staff and retention problems for
professional have talked about the Working hours, workload and work schedules which
are also common concerns to both groups.
 In addition, career development, promotion and appreciation of contribution were
important retention factors, while a supportive professional environment, reduction in
workload and working hours and more flexible work patterns were important to
consultants.
 Cari McLean, Labour Management in Agriculture, in her study knowing the reason
why workers leave or edge in improving working condition and have talked about
dissatisfaction with work or working condition, select and train new personnel,
 conducting workers satisfaction survey, find specific problem area to watch and
improve .
 Joseph & Ang, 2003). This research show important and insight reason for why IT
employee leave their job and change organization frequently. Recent organizational
behaviour and psychological result show that actual reason behind employees turnover
are salary package levels, Promotion, mobility, and skill demands and jobs availability
(Hom & Kinicki, 2001; Trevor, 2001).
 Psychological research's show that employee turnover is individual factors. It is show
that employee leave their job due to job dissatisfaction or employee work place or
organizational commitment. This research has show why IT employees leave their
current organization.
 Jing and Klein (1999), they reported that In fortune 500 firms IT employees job
turnover ratio is 25 To 35%. Moreover, Human resource management have a facing a
key issue of IT employee job change ratio (e.g. Niederman, Brancheau and Wetherbe,
1991). This research is same focus on attitudes leading to purpose to employee
turnover finding as reported by Tett and Meyer (1993).
 The study of "IT Retention: The social context of turnover among information
technology professional Lee (2002)". This study was focus on social support from
employee's colleagues and company's management. If they give a support each other
the company minimize employee turnover. That means social supports are also play a
important role in employee turnover.
 If employee got this support then they neglect other object like job satisfaction,
wedges or organization commitment. So as per Lee, social support is a most important
part in employee turnover.
 William H. Price & Richard Kiekbusch & John Theis in his study on causes of
employee’s turnover have talked about the causes and the implementation.
 Further he highlighted that providing a challenging job, and offering realistic
promotion opportunities. Other variables that have less impact are schedule input,
insurance and family income. Good communication and job satisfaction.
 Beri G.C., Human Resource Tata McGraw New Delhi, in his study on the cause of
factor influencing turnover and retention of staff and retention problems for
 professional have talked about the Working hours, workload and work schedules which
are also common concerns to both groups.
 In addition, career development, promotion and 4appreciation of contribution were
important retention factors, while a supportive professional environment, reduction in
workload and working hours and more flexible work patterns were important to
consultants.
 Cari McLean, Labour Management in Agriculture, in her study knowing the reason
why workers leave or edge in improving working condition and have talked about
dissatisfaction with work or working condition, select and train new personnel,
conducting workers satisfaction survey, find specific problem area to watch and
improve Cosenza, Robert M.in his study on the causes of the cost of employees
turnover due solely to unfairness in the workplace and have talked about the effect of
unfairness upon an employee’s decision to leave their employer and the financial to
employer due to voluntary turnover.
 Further he highlighted Recruiting and retaining the best and the brightest Remove the
barriers and biases which create unfair workplace. Moore, in her study on the cause of
an informative report regarding employee’s turnover and retention on the causes of
high employee turnover which affect the most, and the companies can decrease
employees turnover in order to cut the hidden cost.

CHAPTER III
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It is
understood as a science of studying how systematically a research is done scientifically. In it we
study steps that are generally adopted by the researcher in studying the research problem along
with the logic behind them.
RESEARCH DESIGN:

The research design indicates the type of research methodology under taken to collect
the information for the study. The researcher used both descriptive and analytical type of
research design for his research study.
The main objective of using descriptive research is to describe the state of affairs as it
exists at present. It mainly involves surveys and fact finding enquiries of different kinds. The
researcher used descriptive research to discover the characteristics of customers.
Descriptive research also includes demography characteristic of consumer who use the
product. The researcher also used analytical research design to analyze the existing facts from
the data collected from the customer.

RESEARCH PROBLEM:
The present study is titled as a Project Report on TRANSFORM TOOL INDIA PVT
LIMITED AT CHENNAI
AREA OF STUDY:
The area of study is confined to employees of J TRANSFORM TOOL INDIA PVT
LIMITED AT CHENNAI
RESEARCH INSTRUMENT:
The Structured questionnaire is used as the research instrument for the study.
QUESTIONNAIRE DESIGN:
 The questionnaire framed for the research study is a structured questionnaire in which
all the questions are predetermined before conducting the survey.
 The form of question is of both closed and open type.
 The questionnaire for the research was framed in a clear manner such that it enables
the respondents to understand and answer the question easily.
 The questionnaire was designed in such a way that the questions are short and simple
and is arranged in a logical manner.
PILOT STUDY:
It is appropriate to conduct pilot survey to check the reliability of the questionnaire. So
pilot study was conducted on 150 respondents which is a 10% of the sample.
DATA COLLECTION METHOD
Normally two types of data are used for the purpose of carrying out research. For
this survey also I have collected these data i.e.
 Primary data
 Secondary data

PRIMARY DATA:

Primary data is one, which is collected from fresh sources and for the first time while
conducting the research. For the project, primary survey has been undertaken through a survey
instrument consisting of structured questionnaire filled by employees by the way of personal
interviewing

SECONDARY DATA:

Secondary data is that data which has been collected for some other purpose. There are two
types of sources for collecting secondary data:

 Internal sources
 External sources Internal sources of secondary data includes the data generated within the
organization E.g. Annual Publications, Books, Magazines and Internet etc.

SAMPLE SIZE:
Sample size=150 samples, variance and confidence methods are used for determining
sample size.
SAMPLING PLAN

A sampling plan is a definite design for obtaining a sample from the sampling frame. It
refers to the technique or the procedure the researcher would adopt in selecting some sampling
units from which interpretations about the population is drawn. Sampling design is determined
before any data are collected.
 Selective Sampling technique was adopted. In this method the researcher select those
units of the population in the sample, which appear convenient to him or the management of the
organization where he is conducting research.

SAMPLE OF STUDY-

The sample is a basic unit consisting of the elements of the population to be sampled.
Sample population includes employees from TRANSFORM TOOL INDIA PVT LIMITED
AT CHENNAI. The population includes the employees of the various departments in the
organization.

SAMPLE DESIGN-

To select the samples, the sampling technique used was Simple Random Sampling.
Themain benefit of Simple Random Sampling is that it guarantees that the sample chosen is arep
resentative of the population.

This ensures that the statically conclusions will be valid. In this technique each member
of the population has an equal chance of being selected as subject.

The entire process of sampling is done in a single step with each subject selected
independently of the other member of the population.

TOOL FOR DATA COLLECTION-

The research instrument used in this study is structured questionnaire which consists of
25 questions. It was predetermined before conducting the survey. The questions are open ended.

STATISTICAL TOOLS USED IN THE STUDY-

For the analysis of data percentage analysis is used.

DESCRIPTION OF STATISTICAL TOOLS USED

 Percentage method

 Chi-square test
STATISTICAL TOOLS AND TECHNIQUES
HYPOTHESIS:
There is a between employee and the firm
PERCENTAGE ANALYSIS:

Percentage = (No. Of respondents / total no. Of respondents)*150

WEIGHTED AVERAGE METHOD:
Formula:
Mean score = total score/no of respondents.
Where total score = no of respondents*weighted average
CHI – SQUARE TEST:
1. Null Hypothesis (Ho): There is no difference in attributes
2. Alternate Hypothesis(H1): There is a difference in attributes
3. Level of significance α = 0.05
4. Degrees of freedom = (r-1)(c-1)
5. Expected frequency:
E = R.T × C.T
6. Calculation of :
Σ = Σ (O-E)2
7. The tabulated value of at given level of significance with (r-1)(c-1
 ANNEXURE

A STUDY ON EMPLOYEE TURNOVER IN TRANSFORM TOOL INDIA PVT

LIMITED AT CHENNAI

QUESTIONAIRE:

1. Name:

2. Age :

a. Below 25
b. 25-35
c. 35-45
d. Above 45
3. Gender:

a) Male
b) Female
4. Marital status:

a) Married
b) Unmarried
5. Designations:

a) Manager
b) Supervisor
c) Accountant
d) Others
6. Educational:

a) HSC
b) Degree
c) ITI
d) Diploma
e) AMIE
 f) PG

7. Experience in the field:

a) Less than 5 years

b) 5-10 years
c) 10-15 years
d) Above 16 years
8. Type of Employment.

a) Permanent
b) Probationary
c) Temporary
d) Contract
e) Others

9. Monthly income:

a) Less Than 5000

b) 5000-10000
c) 10000-15000
d) 15000- 20000
e) Above 20000
10. Training period:

a) One day
b) 1-3 Days
c) 1 Week
d) 1 Month
 11. The ET system helps in fast and better decision making.
a) Strongly disagree
b) Disagree
c) Neither nor
d) Strongly agree
e) Agree
12. ET helps in enhanced productivity or service quality.
a) Strongly disagree
b) Disagree
c) Neither nor
d) Strongly agree
e) Agree
13. Implementing Results in sharing best practices.

a) Strongly disagree
b) Disagree
c) Neither nor
d) Strongly agree
e) Agree
14. ET makes it easy to ET different market types.

a) Strongly disagree
b) Disagree
c) Neither nor
d) Strongly agree
e) Agree
15. ET helps in increased innovation by the employees.

a) Strongly disagree
b) Disagree
c) Neither nor
d) Strongly agree
e) Agree
 16. Application of ET system results in increased market share.

a) Strongly disagree
b) Disagree
c) Neither nor
d) Strongly agree
e) Agree
17. ET increases the learning/adaptation capability of employees.

a) Strongly disagree
b) Disagree
c) Neither nor
d) Strongly agree
e) Agree
18. ET helps in better staff attraction.

a) Strongly disagree
b) Disagree
c) Neither nor
d) Strongly agree
e) Agree
19. ET results in enhanced collaboration within the organization.

a) Strongly disagree
b) Disagree
c) Neither nor
d) Strongly agree
e) Agree
20. ET helps to address the communication gap in the organization.

a) Strongly disagree
b) Disagree
c) Neither nor
d) Strongly agree
 e) Agree
21. ET helps in constant and continuous transformation of individual learning to organizational

a) Strongly disagree
b) Disagree
c) Neither nor
d) Strongly agree
e) Agree
22. ET results in increased delegation of authority and accountability to individuals.

a) Strongly disagree
b) Disagree
c) Neither nor
d) Strongly agree
e) Agree
23. ET helps to achieve better standards.
a) Strongly disagree
b) Disagree
c) Neither nor
d) Strongly agree
e)Agree