Employee Loyalty In Tata Motors

Submitted in Partial Fulfillment of the Requirements of

Bachelor of Business Administration
Of
Guru Gobind Singh Indraprastha University.

2014 – 2017

Submitted by: Guided by:

Rohit Siwach Dr. Anita Sharma

03021201814

MAHARAJA SURAJMAL INSTITUTE

(Affiliated to Guru Gobind Singh Indraprastha University)

(Recognized by UGC U/S2 (F)) C-4 JANAK PURI, NEW DELHI-58

1
 Certificate

I ROHIT SIWACH, BBA (B&I) would like to declare that the project report entitled
“Employee Loyalty In Tata Motors” Submitted to Maharaja Surajmal Institute affiliated
to Guru Gobind Singh Indraprastha University.

It is an original work carried out by me under the guidance of Dr. Anita Sharma, all
respected guides, faculty member and other sources have been properly acknowledged
and the report contains no plagiarism.

To the best of my knowledge and belief the matter embodied in this project is a genuine
work done by me and it has been neither submitted for assessment to the University nor
to any other University for the fulfillment of the requirement of the course of study.

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 ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the
kind support and help of many individuals and my organization. I would like to extend my
sincere thanks to all of them who have helped shape my life and my work.

I owe my profound gratitude to Dr. Anita Sharma to give me this opportunity to do this
work and for his constant support and guidance throughout, which made me complete my
project on time.

The guidance and support received from all the members who contributed and who are
contributing to this project, was vital for the success of the project. I am grateful for their
constant support and help.

Lastly, I thank my parents, almighty and friends for their constant encouragement
without which this report would not be possible.

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 Table of Content

Topics Page No.

CHAPTER-1
Objectives
Scope of the study
Research Methodology
Limitations

CHAPTER-2
Company Profile

CHAPTER-3
Review of Literature

CHAPTER-4
Data Analysis

CHAPTER-5
Findings & Conclusions

CHAPTER-6
Suggestions

BIBLIOGRAPHY
QUESSTIONARE

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 Introduction
Talented men leave. Dead wood doesn't.

In today’s competitive business environment, employees can “make or break” an

enterprise when it comes to intellectual property (IP) protection. While there are several

legal and technical mechanisms that can be put in place for protecting IP assets of

enterprises, employee loyalty remains one of the biggest challenges faced by enterprises

in protecting their IP. This project describes the need for enterprises like TATA

MOTORS to build strong employee loyalty as a key element in their strategy for

protecting trade secrets. The project draws attention to the principle ways that could be

followed to obtain trust and commitment from employees, thus discouraging them from

unauthorized disclosing the trade secrets of an enterprise.

Philosophically, employee retention is important; in almost all cases, it is

senseless to allow good people to leave your organization. When they leave, they take

with them intellectual property, relationships, investments (in both time and money), an

occasional employee or two, and a chunk of your future. Employee Retention Strategies

helps organizations provide effective employee communication to improve commitment

and enhance workforce support for key corporate initiatives. We also provide full support

for your marketing-communication efforts by helping you build customer loyalty by

distinguishing and positioning your organization’s unique products and services in

today’s crowded marketplace .In this project I’m trying to evaluate Employee Loyalty in

TATA MOTORS and measures taken by TATA MOTORS for Employee Retention.

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 OBJECTIVES OF STUDY

Primary Objective

• The primary objective of the study is to identify the Employee Loyalty in TATA

Motors.

Secondary Objective

The secondary objectives are,

To identify the support working conditions in Tata Motors

To know the welfare measures

To study the organisational policy

To analyze the organizational culture in TATA MOTORS

To analyze the employee engagement in TATA MOTORS

To study and understand the job satisfaction among the employees.

To study the relationship between the personal factors of the employee

(Income, Designation, Educational qualification, Gender, etc…)

To study the various factors which influence job satisfaction and

satisfaction from the company.

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 RESEARCH METHODOLOGY

Research Problem

Research problem is backbone of a research. Without knowing the problem solutions can

not be opted.. The research statement describes the research problem. The research

statement of this research is “Employee Loyalty in Tata Motors “

Now knowing the questions fields on which answer are seek must be known. The question

arises on this research statement are:-

• Is it true that Employee are no more loyal to their Company?

• What are the factors dealing this?

• How this can be resolved?

For the above questions a good research methodology is required to seek answers

which is described blow.

METHODOLOGY

The procedures by which researchers go about their work of describing, explaining

and predicting phenomena are called methodology. Methods comprise the procedures

used for generating, collecting and evaluating data. Methods are ways of obtaining

information useful for assessing explanations.

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Method of Data Collection

Sources used for collecting the data are

Primary Data

Information obtained directly from the mechanics and during the course of

action is termed as primary data.

Secondary Data

Secondary data was collected with the help of company records.

Research Design

The type of research used in this project is descriptive in nature. Descriptive

studies aim at portraying accurately the characteristics of a particular group or

situation.

Sampling Design

Sample size

The sample size for the study is 100 respondents

Sampling procedure

The sampling techniques used in the study is non-probability convenience sampling

adapted and used for the study

Convenience sampling

Convenience sampling as the name implies is based on the convenience of the

researcher who is to select a sample. This type of sampling is also called accidental

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sampling as the respondent in the sample are included into merely on account of their

being available and the spot where the survey is in progress. Many times the researcher

is work under certain constraints.

Period of study

The period of the study is 40 days

Research Instrument

The instrument used by the researcher to collect the information is through the

questionnaire method.

Questionnaire method

The form of the question may be either closed (i.e. ‘Yes’ or ‘No’ type) or

open (i.e., inviting free response) but should be stated in advance and not constructed

during questioning.

I have prepared a questionnaire with both closed and open structure.

TOOLS

• Percentage analysis

• chi-square test as a non-parametric test

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Percentage analysis

The expression of date in terms of percentages is one of the simplest

statistical devices used in the interpretation of business and economic

statistics percentage is useful chiefly for the purpose of aiding comparison.

A percent is the number of hundred parts on number is of another. Using

the algebraic notation in which

P% represent the number of parts of 100, i.e. percentage to

represent the base used for comparison, b1 represents given data to be

compared with the base then the percentage of the given number in the

base may be defined as

P% = b1/b0*100

Generally percentages are recorded to one decimal place, sometimes

to grasp the relationships. Whole percentages should not be calculated if

the absolute number is small, especially if the base is appreciably less than

100.

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 SCOPE OF STUDY

Tata Motors Limited

Overview

Tata Motors Limited, formerly known as TELCO (TATA Engineering and

Locomotive Company), is a multinational corporation headquartered in Mumbai, India.

It is India's largest passenger automobile and commercial vehicle manufacturing

company. Part of the Tata Group, and one of the world's largest manufacturers of

commercial vehicles. The OICA ranked it as the world's 20th largest automaker, based

on figures for 2006.

Tata Motors was established in 1945, when the company began manufacturing

locomotives. The company manufactured its first commercial vehicle in 1954 in a

collaboration with Daimler-Benz AG, which ended in 1969 Tata Motors was listed on the

NYSE in 2004, and in 2005 it was ranked among the top 10 corporations in India with an

annual revenue exceeding INR 320 billion. In 2004, it bought Daewoo's truck

manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in South Korea. It

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also, acquired a 21% stake in Hispano Carrocera SA, giving it controlling rights in the

company. Tata Motors launched the Tata Nano, noted for its Rs 100,000 price-tag, in

January 2008.

In March 2008, it finalised a deal with Ford Motor Company to acquire their British

Jaguar Land Rover (JLR) business, which also includes the Rover, Daimler and

Lanchester brand names.The purchase was completed on 2 June 2008

Tata Motors has its manufacturing base in Jamshedpur, Pantnagar, Lucknow,

Ahmedabad and Pune.

1. History

Tata Motors launches its first truck in collaboration with Mercedes-Benz

Tata Motors is a part of the Tata and Sons Group, founded by Jamshedji Nussarwanji

Tata and J. Baker. The company was established in 1945 as a locomotive manufacturing

unit and later expanded its operations to commercial vehicle sector in 1954 after forming

a joint venture with Daimler-Benz AG of Germany.

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2.Cars

Tata Indica

After years of dominating the commercial vehicle market in India, Tata Motors entered

the passenger vehicle market in 1992 by launching the Tata Sierra, a multi utility vehicle.

After the launch of three more vehicles, namely, Tata Estate (1992, a stationwagon

design based on the earlier 'TataMobile' [1989] a light commercial vehicle which some

people may still think of as Tata's first passenger car), Tata Sumo (LCV, 1994) and Tata

Safari (1998, India's first sports utility vehicle); In 1998 Tata launched the Indica, the

first fully indigenous passenger car of India. Though the car was initially panned by

auto-analysts, the car's excellent fuel economy, powerful engine and aggressive

marketing strategy made it one of the best selling cars in the history of the Indian

automobile industry. A newer version of the car, named Indica V2, was a major

improvement over the previous version and quickly became a mass-favorite. A badge

engineered version of the car was sold in the United Kingdom as the Rover CityRover.

Tata Motors also successfully exported large quantities of the car to South Africa. The

success of Indica in many ways marked the rise of Tata Motors. Note: In 1996-97 Tata

launched the Tata Sumo Deluxe and the Tata Sierra Turbo variants respectively.

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3.Daewoo acquisition

Tata Novus is one of the best selling commercial trucks in South Korea.

With the success of Tata Indica, Tata Motors aimed to increase its presence worldwide.

In 2004, it acquired the Daewoo Commercial Vehicle Company of South Korea. The

reasons behind the acquisition were:

• Company’s global plans to reduce domestic exposure. The domestic commercial

vehicle market is highly cyclical in nature and prone to fluctuations in the

domestic economy. Tata Motors has a high domestic exposure of ~94% in the

MHCV segment and ~84% in the light commercial vehicle (LCV) segment. Since

the domestic commercial vehicle sales of the company are at the mercy of the

structural economic factors, it is increasingly looking at the international

markets. The company plans to diversify into various markets across the world in

both MHCV as well as LCV segments.

• To expand the product portfolio Tata Motors recently introduced the 25MT GVW

Tata Novus from Daewoo’s (South Korea) (TDCV) platform. Tata plans to

leverage on the strong presence of TDCV in the heavy-tonnage range and

introduce products in India at an appropriate time. This was mainly to cater to

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 the international market and also to cater to the domestic market where a major

improvement in the Road infrastructure was done through the National Highway

Development Project

On its journey to make an international foot print, it continued its expansion through the

introduction of new products into the market range of buses (Starbus & Globus).

4. Joint ventures

Tata MarcoPolo NON-AC City Bus in Delhi.The NON-AC version is only used in Delhi

while AC versions are used in Bangalore, Mumbai and Delhi alike

In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors

acquired 21% stake in Hispano Carrocera SA , Aragonese bus manufacturing company

and introduced its high-end inter-city buses in the country.

Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based

global leader, lead by Brian Behrle, in bus body building. This joint venture is to

manufacture and assemble fully-built buses and coaches targeted at developing mass

rapid transportation systems. The joint venture will absorb technology and expertise in

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chassis and aggregates from Tata Motors, and Marcopolo will provide know-how in

processes and systems for bodybuilding and bus body design.

5. Tata Ace

Tata Ace was India's first mini truck

Tata Ace, India's first indigenously developed sub-one ton mini-truck, was launched in

May 2005. The mini-truck was a huge success in India with auto-analysts claiming that

Ace had changed the dynamics of the light commercial vehicle (LCV) market in the

country by creating a new market segment termed the small commercial vehicle (SCV)

segment. Ace rapidly emerged as the first choice for transporters and single truck owners

for city and rural transport. By October 2005, LCV sales of Tata Motors had grown by

36.6 percent to 28,537 units due to the rising demand for Ace. The Ace was built with a

load body produced by Autoline Industries.By 2005, Autoline was producing 300 load

bodies per day for Tata Motors. Ace is still one of the number maker for TML, TML sold

the 2,00,000th Ace in August 2008, within 4 years since its introduction.

Tata Ace has also been exported to several European, South American and African

countries. Electric-versions of Tata Ace are sold through Chrysler's Global Electric

Motorcars division.

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6. 2007

Tata Pick Up, unveiled in 2007, is expected to enter European and American market by

2009.

In 2007, Tata Motors generated revenues of Rs 31,884.69 crore.

In 2007, Tata Motors launched several concept models and future designs of existing

models. It also formed joint ventures with various local companies in several countries to

assemble Tata cars. Tata Motors launched a re-designed version of Tata Xenon TL

during Motor Show Bologna which would be assembled in Thailand and Argentina. A

pick-up variant of Tata Sumo was also launched under the program 'Global Pick-Up'.

The company plans to launch the new pick-up model in India, Southeast Asia, Europe,

South Africa, Turkey and Saudi Arabia. Tata Motors also unveiled newer model of Tata

Indigo and Tata Elegante concept-car during the Geneva Auto Show.

Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel

engine technology.Tata Motors is looking to extend its relationship with Fiat and Iveco to

other segments like the 'Global Pick-Up' program. The launch of the 'Global Pick-Up'

will mark the entry of the company into developed markets like Europe and the United

States. The project was initially a collaboration between Tata Motors and its subsidiary

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Tata Daewoo Commercial Vehicles, but later Tata Motors decided to work with Iveco as

Daewoo’s design was not in sync with the needs of sophisticated European customers.

The company has formed a joint venture with Thailand’s Thonburi Company, an

independent auto assembler, in which Tata Motors will hold a 70% stake.

7.2008 onwards

8. Compressed air car

Motor Development International of Luxembourg has developed the world's first

prototype of a compressed air car, named OneCAT.In 2007, MDI owner Guy Negre was

reported to have "the backing of Tata"

It has airtanks that can be filled in 4 hours by plugging the car into a standard electrical

plug. In 2008 MDI planned to also design a gas station compressor, which would fill the

tanks in 3 minutes.There are no gasoline costs and no fossil fuel emissions from the

vehicle when run in town, but "the compressed air driving the pistons can be boosted by a

fuel burner".

OneCAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With full tanks it will run

at 100 km/h (62 mph) for 90 kilometres (56 mi) range in urban cycle. It is actually a dual

fuel car but it is more efficient than any present Hybrid cars.

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9. Tata Nano

Tata Nano

Tata has developed a car, named Tata Nano, that aims to sell in 2008. It is the least

expensive production car in the world: the price is about Rs. 1,00,000 (USD $2,000)The

company unveiled the supermini car during the Auto Expo 2008 exhibition in Pragati

Maidan, New Delhi. Bajaj Auto and Mahindra-Renault have[when?] plans to launch cars in

this price range.

Tata has faced controversy over developing the Nano. Some environmentalists are

concerned that the launch of such a low-price car could lead to mass motorization in

India with adverse effects on pollution and global warming. There was also strong

opposition to the compulsory acquisition of land for the proposed car factory in Singur

West Bengal. NowTata Motors Limited plan to set up the Nano factory in Sanand,

Gujarat, because of the problems faced in West Bengal.

To solve this, Tata is goingto produce the E-Nano, an electric version, in partnership

with Miljøbil Grenland AS

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10. Global operations

The purchase of Jaguar Cars is expected to help give Tata Motors a foothold in

European and American markets.

With the unveiling of Tata Elegante during Geneva Motor Show, Tata Motors revealed its

intention to enter the sedan and sports car markets.

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Tata Indica during an auto exhibition in Bangkok, Thailand. Indica and Xenon TL will be

assembled in Thailand and Argentina.

Tata Prima was unveiled during the Geneva Motor Show in 2009. The Luxury Sedan was

designed by Pininfrina and has marked the entry of Tata into the international sedan

market. The car is to be sold in India by 2013 and around the world by 2015

Tata Motors has expanded its production and assembly operations to several other

countries including South Korea, Thailand, South Africa and Argentina and is planning

to set up plants in Turkey, Indonesia and Eastern Europe.

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11.Future challenges

Tata Xover

Plastic Car Production- Tata plans on producing a car that is made of nearly 100%

plastic.

• Mahindra and Mahindra: JV with ITEC, North American leader in heavy trucks.

M&M has formed a 51:49 JV called Mahindra International with ITEC, USA

(parent Navistar International), to manufacture commercial vehicles and to

bolster its position in the CV business. ITEC is the leader in medium and heavy

trucks and buses in North America, and is the world's largest manufacturer of

medium-duty diesel engines. Mahindra International aims to have a presence

across the CV market (6-35 tonnes GVW) with variants of passenger transport,

cargo and specialised load applications and is likely to start producing

medium/heavy commercial vehicles from FY09.

• Force Motors Ltd: JV with MAN for manufacturing high-tonnage vehicles Force

Motors has paired up with MAN in a 70:30 JV to manufacture high-tonnage and

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 specialty vehicles, such as long-haul trucks, tippers, tractor trailers and multi-

axle vehicles in the 16-32 tonne range at its Pithampur plant, with an initial

capacity of 24,000 units per annum and at an investment of Rs7bn. The JV plans

to sell nearly half of its production in the domestic market, while the rest is to be

exported to the Middle East, Turkey, Russia, Asia and Africa. Further, the two

companies have formed another JV to manufacture buses in India from end-2007.

• Ashok Leyland: Acquisition of Czech Republic-based Avia. Ashok Leyland (ALL)

recently acquired the truck unit of Czech Republic-based Avia for US$35m. Avia

manufactures 6-9 tonne LCVs and has a capacity of 20,000 units per annum. The

acquisition has given ALL direct access to an entire range of Avia trucks, Avia’s

press shop with dies and tools, welding lines, state-of-the-art paint shop and R&D

facilities. ALL has also entered into technology agreements with Hino Motors of

Japan and ZF of Germany to complement its in-house R&D efforts and

developing complementary components and aggregates.

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 Other Tata services:

1) Tata Insurance:

Tata AIG Life Insurance Company Limited and Tata AIG General Insurance Company Limited

(collectively 'Tata AIG') are joint ventures of the Tata Group and American International Group, Inc.

(AIG). Tata AIG combines the strength and integrity of the Tata Group with AIG's international

expertise and financial strength,

2) Tata motor finance:

Tata Motors is the largest automobile company in this part of Asia. The company has

grown in a big way in recent years and has embarked on expansion and acquisition

programs. As part of it, Tata Motors has also strengthened and expanded on its finance

wing Tata Motor Finance that provides for loan and financing options to the customers

buying Tata Motors automobiles.Tata Motorfinance (TMF) is the automobile financing

wing of Tata Motors. It was launched in June 2003 and provides for loans on various

segments of company automobiles like passenger cars, utility and commercial vehicles

along with construction equipments. The company that has grown into most of the Indian

cities along with a significant presence in some of the foreign markets too, today boasts

of 109 branches in 22 Indian states.

Some of the terms associated with the Tata Motor finance are as follows:

• Car financing/loan options available for customers belonging to different

categories

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• The repayment period varies to the tune of 36 months-84 months

• The interest paid on the loans are on the lower end

• Finance on passenger and commercial vehicles on all Tata vehicles and Fiat

models Palio and Adventure include top up loans, used vehicle finance, loan

takeover and refinancing

• The paperwork is limited and the financing company's representative can be

called even at home to complete the formalities, including calculating the likely

Equated Monthly Instalment (EMI) that the customer might have to pay.

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 Review of Literature

The review of the related literature on the title unanimously acknowledges that

successful organizations share a fundamental philosophy of valuing and investing in their

employees (Maguire, 1995; Annand, 1997) and managing retention of promising

employees’ is considered as fundamental of mean of achieving competitive advantage

amongst organization (walker, 2001). Aliya and Fariduddin (2003), found the findings

tend to prove the hypothesis that the factors leading to positive attitude and those leading

to negative attitudes are different. It could also be said that the categories mentioned by

the content analysis technique are mostly applicable in our environment. The major drift

is seen in low feelings where some categories were added to record the responses. Only

one part of the original research has been replicated for the study; the extension of this

study is also possible were the responses could be coded as the sequences mentioned in

the original research. The study makes an original contribution to the study of retention

among Pakistani Professionals. It is hoped that it will lead to similar works in future,

particularly with respect to research areas identified herein.

Kehr (2004), explains that the implicit retention factors in spontaneous,

expressive and pleasurable behavior and can be divided into three variables; power,

achievement and affiliation. Power refers to dominance and social control. Achievement

is when personal standards of excellence are to be met or exceeded and affiliation refers

to social relationships which are established and intensified. Implicit and explicit

retention factors relate to different aspects of the person, but both are important

determinants of behavior.

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 Previous researches suggested several factors which play pivotal role in

employee retention Cappelli (2000). The factors which are considered and have direct

affect are; career opportunities, work environment, work life balance, Organizational

justice, and existing leave policy and organization image. Employees are stay and loyal

with such organization where employee have value, sense of pride and work to their full

potential Cole (2000). The reasons to stay employee in organization are organization

reward system, growth and development, pay package and work life balance.

Employees retaining is the most imperative target for the organization because

hiring of qualified candidate is essential for organization but their retention is more

important than hiring, because a huge amount is spending on the orientation and training

of the new indicated employees. Research finds that the cost of replacing of old

employees with new is estimated up to twice the employee annual salary. When Employee

leaves the job, organization lost not only employee, but also lost the customers & client

who ware loyal with the employee, knowledge of production, current projects, competitor

and past history of the organization

Organizations make enormous efforts to attract handfuls of employees and sustain

them in the organization. In today’s business scenario only high salary and designation is

not significant for employees to retain them in the organization, but others factors also

play important role in their retention. The intent of this research is to how the

organizations retain the talented employees in the organization focusing on the factors

i.e. career development, leave policy, leadership style, work environment, remuneration

& rewards, Organization Justice, and performance appraisal, and this research also

helpful to know the determent that why employees leave the organization.

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 Conceptual Review

Loyalty

Loyalty is Willingness to make an investment or personal

sacrifice to strengthen a relationship.

Fred Reichheld

Loyalty is faithfulness or a devotion to a person, country, group, or cause.

(Philosophers disagree as to what things one can be loyal to. Some, as explained in more

detail below, argue that one can be loyal to a broad range of things, whilst others argue

that it is only possible for loyalty to be to another person and that it is strictly

interpersonal.)

There are many aspects to loyalty. John Kleinig, professor of Philosophy at City

University of New York, observes that over the years the idea has been treated by

creative writers from Aeschylus through John Galsworthy to Conrad, by psychologists,

psychiatrists, sociologists, scholars of religion, political economists, scholars of business

and marketing, and — most particularly — by political theorists, who deal with it in

terms of loyalty oaths and patriotism. As a philosophical concept, loyalty was largely

untreated by philosophers until the work of Josiah Royce, the "grand exception" in

Kleinig's words John Ladd, professor of Philosophy at Brown Universitywriting in the

Macmillan Encyclopaedia of Philosophy in 1967, observes that by that time the subject

had received "scant attention in philosophical literature". This he attributed to "odious"

associations that the subject had with nationalism, including the nationalism of Nazism,

and with the metaphysics of idealism, which he characterized as "obsolete". He argued

that such associations were, however, faulty, and that the notion of loyalty is "an

28
essential ingredient in any civilized and humane system of morals" Kleinig observes that

from the 1980s onwards, the subject gained attention, with philosophers variously

relating it to (amongst other things) professional ethics, whistleblowing, friendship,

and virtue theory.

What is an Organization?

A set up where individuals come together and work in unison to achieve a

common goal is called as organization. Individuals working together in an organization

to earn their bread and butter as well as make profits are called employees. Employees

are the lifeline of an organization and contribute effectively to its successful running and

profit making.

An organization can’t survive if the employees are not serious about it and are

more concerned about their personal interests.

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Employee Loyalty

Employee loyalty can be defined as employees being committed to the success of

the organization and believing that working for this organization is their best option.

Not only do they plan to remain with the organization, but they do not actively search for

alternative employment and are not responsive to offers.

Employee loyalty as defined above is more than just tenure with the same

organization. It is about wanting to be there too. Said in this way, the leap from

employee loyalty to customer loyalty and ultimately, business success should no longer

be a stretch.

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 Importance of Employee Loyalty

Employees are a vital resource for nearly all organizations, especially since they

represent a significant investment in terms of locating, recruiting, and training let alone

salaries, healthcare plans, bonuses, etc.

There is considerable expense for replacing an employee whether it is the shoe

salesman who sold you your last pair of cross trainers or the lawyer who wrote your will.

Most managers do not realize how expensive losing workers can be. Of course,

we’re talking about the expense of losing ‘good’ workers, those who do their jobs well

and are productive. Anything less than a loyal, productive worker will cost a company;

which is why performance goal setting and review are so important for weeding out the

‘bad’ ones; or for providing additional training and support to those who can be

developed or rehabilitated.

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 But there is more than just the replacement expense when a desirable employee

leaves. Employees are pivotal in creating and delivering value to the customer, especially

when doing so by effectively implementing the organization’s business model.

In fact, for many customers, the employee is the organization!!

Consider all the ways in which employees can affect the customer’s experience,

internal process and operations, and, ultimately, organizational performance. Here are

just a few examples of the choices and decisions made by employees:

• Should I recommend my employer to prospective employees as a good

place to work?

• Would I enthusiastically recommend our products/services to potential or

existing customers?

• Do I take pride in my work and give it my best effort?

• Do I follow established processes to work efficiently and effectively?

• Do I look for ways to increase product/service quality and organizational

efficiency?

Employees affect their employer’s costs and revenues, in both direct and indirect

ways. Clearly, it is in the employer’s best business interests when employees answer any

of the above in favor of the organization. We know from the many quantitative studies

conducted by the Loyalty Research Center, employee commitment and loyalty to the

organization will impact how they answer. It is important that organizations take actions

to manage the strength of their relationships with employees, actions that increase

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organizational commitment and loyalty. But how does an employer know what actions to

take or even where their employees stand today?

Conducting Employee Loyalty Analysis

Similar to customer loyalty, employee loyalty cannot be determined through

direct questioning. Nor can it be assumed by whether or not the employee is today an

active employee. We know that loyalty is more than simply behavior…just as it is with

customer loyalty.

Although challenging, measuring employee loyalty is possible. By using valid

measurement techniques and a model that has been tested and proven to explain loyalty,

an organization can determine whether there is an employee loyalty problem. The

model, developed by the Loyalty Research Center, not only includes information that

identifies loyalty levels, but also contains specifics about the employee relationship that

can be used to identify actions to take to improve current loyalty levels. The three

components to employee loyalty analysis include:

• Constructing the employee loyalty profile

• Understanding employees’ perspectives and perceptions of the

relationship with their employer

• Determining the extent to which the organization can enhance

relationships with their employees and ‘migrate’ them to higher levels of

loyalty

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 A loyalty profile assigns each employee to a segment based on the strength of

their relationship with the organization. The Loyalty Research Center applies a tested

segmentation scheme which categorizes employees into any one of three groups: Loyal,

Neutral, or Vulnerable.

Employees in the Loyal segment exhibit behaviors that every organization values.

It isn’t difficult to convince an employer that Loyal employees are desirable. Of course,

it must be added that these loyal employees must also be ‘desirable’. They must perform

and be productive. Performance targets and measurement systems that are consistently

and regularly implemented can support an organization’s efforts to maintain a highly

productive and committed workforce that is focused on the customer.

Employees who fall in the Neutral category are what they sound like – middle of

the road with respect to their commitment to the employer. It is with these employees,

that the company will want to do what it takes (within business reason) to migrate them

to the loyal segment, if they are deemed ‘desirable.’

On the other hand, Vulnerable employees are likely to leave the organization, at

some future point, and in the meantime may ‘poison’ those around them – including the

customers they touch. Most organizations will want to migrate or terminate Vulnerable

employees as soon as possible. Depending on

the degree of anonymity promised and/or the follow-up agreements that may take

place, the organization will need to carefully think through its options. Minimizing the

percentage of Vulnerable employees should be a strategy for improving overall employee

satisfaction and productivity. Not only will other employees benefit from their departure,

but the customers’ experiences are likely to improve as well.

34
What is Employee Retention?

Employee retention refers to the various policies and practices which let the

employees stick to an organization for a longer period of time. Every organization invests

time and money to groom a new joinee, make him a corporate ready material and bring

him at par with the existing employees. The organization is completely at loss when the

employees leave their job once they are fully trained. Employee retention takes into

account the various measures taken so that an individual stays in an organization for the

maximum period of time.

35
 ERC's Retention Model

Employee Retention Connection's decades of applied organizational experience indicate

three primary drivers of employee retention:

1: Stimulating Work

• Variety of assignments

• Autonomy to make decisions

• Resources and support provided to do good

work

• Opportunity to learn

• Feedback on results

• Understanding the significance of one's

personal contributions

2: Motivational Leadership

1. Champion change and are open to new ideas

2. Inspire a share vision of organization direction

3. Motivate and recognize contributions

4. Develop the capabilities of others

5. Model behavior that reflects organization values

36
 3: Recognition & Reward

• Say "Thank you" for a job well done

• Reinforce desired behaviors

• Create an emphasis and focus on recognition

• Celebrate successes

• Build self-esteem

• Enhance camaraderie and teamwork

Integrated System for Retaining Employees

The Employee Retention Connection transforms your organization culture and enhances

your competitive edge through the following five-

phased approach:

Phase 1: ERC begins by analyzing your

organization's motivation and retention culture

through surveys and focus groups. What are the

motivating and demotivating aspects of your

culture?

Phase 2: ERC next designs high-involvement job and work assignments that include:

• Wide variety of tasks and skills

37
 • Opportunities to learn

• Authority to make decisions

• Feedback on results

• Resources and support to be successful

Phase 3: ERC trains supervisors and managers in proven methods of motivational

leadership:

• Inspiring a shared vision and direction

• Developing the capabilities of others

• Promoting organizational change

• Recognizing and appreciating employee contributions

• Serving as a role model

Phase 4: ERC delivers a plan for employee career paths and skill building:

• Designing career paths, not necessarily up the organizational chart

• Identifying core competencies for different career paths

• Planning training and other opportunities to build competencies

• Mentoring for employee direction

Phase 5: ERC builds a tailored reward and recognition system to fit your organization's culture:

• Identifying activities, attitudes and contributions to be recognized and rewarded

• Matching reward and recognition options to performance contributions

• Establishing specific motivational approaches for retaining employees

38
 DATA ANALYSIS & INTERPRETATIONS

1 Age

TABLE 1: AGE OF THE RESPONDENTS

Scale No. of Respondents Percentage

Below 30 45 45%

31 to 40 40 40%

Above 40 15 15%

FIGURE 1: AGE OF THE RESPONDENTS

Table-2

INTERPRETATION

The table shows that 45% of the respondents’ age is below 30, 40% of them are

between 31 and 40 years of age and the remaining 15% are above 40 years of age.

39
2 Monthly Income

TABLE- 2: MONTHLY INCOME

Scale No. of Respondents Percentage

Below Rs.10000 20 20%

10000-15000 45 45%

15000-25000 35 35%

FIGURE 2: MONTHLY INCOME

INTERPRETATION:

The table shows that the 20% of the respondents’ monthly income is below 10000,

45% of the respondents’ monthly income ranges from 10000 to15000 and remaining 35%

of respondents’ income ranges from 15000 to 25000.

40
3 Education Level

TABLE 3: EDUCATION LEVEL

Scale No of Respondents Percentage

Degree 35 35%

PG 45 45%

Others 20 20%

FIGURE 3: EDUCATIONAL LEVEL

INTERPRETATION:

The table shows that 35% of the respondents’ educational level is degree, 45%

of the respondents’ educational level is PG and remaining 20% of the respondents have

other educational qualifications.

41
4 Working Level

TABLE 4: WORKING LEVEL

Scale No. of Respondents Percentage

Admin 45 45%

Team leader 35 35%

Developers 20 20%

FIGURE 4: WORKING LEVEL

INTERPRETATION:

The table shows that the 45% of the respondents’ working level is admin, 35% of

the respondents are team leaders and remaining 20% of the respondents are developers.

42
5 Relationship with Supervisor

TABLE 5: RELATIONSHIP WITH SUPERVISOR

Scale No. of Respondents Percentage

Cordial 55 55%

Moderate 20 20%

Not moderate 25 25%

FIGURE 5: RELATIONSHIP WITH SUPERVISOR

INTERPRETATION:

The table shows that 55% of the respondents have cordial relationship with the

supervisors, 20% of the respondents have moderate relationship and remaining 25% of

the respondents do not have a cordial relationship.

43
6Satisfaction on Target Related Incentives

TABLE 6: SATISFACTION ON TARGET RELATED INCENTIVES

Scale No. of. Respondents Percentage

Satisfactory 54 54%

Neutral 36 36%

Not Satisfactory 10 10%

FIGURE 6: SATISFACTION ON TARGET RELATED INCENTIVES

INTERPRETATION:

The table indicates the respondents’ satisfaction on target related incentives. The

above table shows that 54% of the respondents are satisfactory with the incentives, 36%

of the respondents are neutral and remaining 10% of the respondents are not satisfied

with the incentives.

44
7Grievance handling system

TABLE 7: GRIEVANCE HANDLING SYSTEM

Scale No. of Respondents Percentage

Yes 54 54%

No 46 46%

FIGURE 7: GRIEVANCE HANDLING SYSTEM

INTERPRETATION:

This table indicates the response of the respondents regarding grievance handling

system. From the table, 54% of the respondents have said that there is a grievance

handling system and 46% of the respondents have said ‘No’

45
8Responsibility for Job

TABLE 8: RESPONSIBILITY FOR JOB

Scale No. of. Respondents Percentage

Yes 86 86%

No 14 14%

FIGURE 8: RESPONSIBILITY FOR JOB

INTERPRETATION:

This table indicates the respondents’ responsibility for job. The above table

shows that 86% of the respondents have said ‘Yes’ and 14% of the respondents have said

‘No’.

46
9Relationship with Co-workers

TABLE 9: RELATIONSHIP WITH CO-WORKERS

Scale No. of Respondents Percentage

Good 45 45%

Cordial 25 25%

Co-operative 15 15%

Not co-operative 15 15%

Figure 9: RELATIONSHIP WITH CO-WORKERS

INTERPREATION:

This table indicates the respondents’ co-works. The above table shows that 45% of the

respondents have said ‘good’, 25% of the respondents have said ‘cordial’, 15% of the

respondents have said ‘co-operative’, 15% of the respondents have said ‘not co-

operative’.

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10Accident Compensation Paid

TABLE 10: ACCIDENT COMPENSATION PAID

Scale No. of Respondents Percentage

Yes 88 88%

No 12 12%

FIGURE 10: ACCIDENT COMPENSATION PAID

INTERPRETATION:

This table indicates the respondents accident compensation paid. The above table

shows that 88% of the respondents have said ‘yes’, 12% of the respondents have said

‘No’

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11Welfare Measures Available

TABLE 11: WELFARE MEASURES AVAILABLE

Scale No. of. Respondents Percentage

Yes 90 90%

No 10 10%

FIGURE 11: WELFARE MEASURES AVAILABLE

INTERPRETATION:

This table indicates the respondents’ welfare measures available. The above table

shows that 90% of the respondents have said ‘yes’, 10% of the respondents have said

‘No’.

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12 Pay Package

TABLE 12: PAY PACKAGE

Scale No. of Respondents Percentage

Good 32 32%

Satisfactory 22 22%

Adequate 28 28%

Not adequate 18 18%

FIGURE 12: PAY PACKAGE

INTERPRETATION:

This table indicates the respondents pay package. The above table shows that

32% of the respondents have good,22% of the respondents have satisfactory, 28% of the

respondents have adequate, 18% of the respondents have not adequate

50
13 Participation in Decision Making

TABLE 14: PARTICIPATION IN DECISION MAKING

Scale No. of Respondents Percentage

Yes 75 75%

No 25 25%

FIGURE 13: PARTICIPATION IN DECISION MAKING

INTERPRETATION:

This table indicates the respondents are you views in decision making. The above

table shows that 75% of the respondents have said ‘Yes’, 25% of the respondents have

said ‘No’.

51
14 Employees Suggestion Scheme Available

TABLE 14: EMPLOYEES SUGGESTION SCHEME AVAILABLE

Scale No. of Respondents Percentage

Yes 55 55%

No 45 45%

FIGURE 14: EMPLOYEES SUGGESTION SCHEME AVAILABLE

INTERPRETATION:

This table indicates the respondents’ employee’s suggestion scheme available.

The above table shows that 55% of the respondents have said ‘yes’, 45% of the

respondents have said ‘No’.

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15 Level of Satisfaction on promotional Policy

TABLE 15: LEVEL OF SATIFISFACTION ON PROMOTIONAL POLICY

Scale No. of Respondents Percentage

Highly satisfied 40 40%
Satisfied 25 25%
Moderate 13 13%
Dissatisfied 12 12%
Highly dissatisfied 10 10%

FIGURE 15: LEVEL OF SATISFISFACTION ON PROMOTIONAL POLICY

INTERPRETATION:

This table indicates the respondents’ level of satisfaction on promotional

policy. The above table shows that 40% of the respondents have said highly satisfied,

25% of the respondents have said satisfied, 13% of the respondents have said

moderate, 12% of the respondents have said dissatisfied, 10% of the respondents

have said highly dissatisfied

53
 Findings

• 45% of the respondents’ age is below 30, 40% of them are between 31 and 40

years of age and the remaining 15% are above 40 years of age

• 20% of the respondents’ monthly income is below 10000, 45% of the respondents’

monthly income ranges from 10000 to15000 and remaining 35% of respondents’

income ranges from 15000 to 25000.

• 35% of the respondents’ educational level is degree, 45% of the respondents’

educational level is PG and remaining 20% of the respondents have other

educational qualifications.

• 45% of the respondents’ working level is admin, 35% of the respondents are team

leaders and remaining 20% of the respondents are developers

• 55% of the respondents have cordial relationship with the supervisors, 20% of the
respondents have moderate relationship and remaining 25% of the respondents

do not have a cordial relationship.

• 54% of the respondents are satisfactory with the incentives, 36% of the

respondents are neutral and remaining 10% of the respondents are not satisfied

with the incentives.

• 54% of the respondents have said that there is a grievance handling system and

46% of the respondents have said ‘No’

• Respondents’ responsibility for job have said ‘Yes’ and 14% of the respondents

have said ‘No’.

54
• 45% of the respondents have said ‘good’, 25% of the respondents have said

‘cordial’, 15% of the respondents have said ‘co-operative’, 15% of the

respondents have said ‘not co-operative’.

• 88% of the respondents have said ‘yes’, 12% of the respondents have said ‘No’

for accidental compensation paid.

• For welfare measures availability, 90% of the respondents have said ‘yes’, 10%

of the respondents have said ‘No’.

• 32% of the respondents have good,22% of the respondents have satisfactory, 28%

of the respondents have adequate, 18% of the respondents have not adequate

pakage Salary

• Views in decision making, 75% of the respondents have said ‘Yes’, 25% of the

respondents have said ‘No’.

• For suggestion scheme available, 55% of the respondents have said ‘yes’, 45% of
the respondents have said ‘No’.

55
 Conclusion

On analyzing the data from finding it can be found that Employees are not fully

satisfied with Company so measures should be taken to increase Employee welfare. It is

high time to look into Employee satisfaction as unsatisfied and good Employees will flee

the company causing loss to Assets of the Company, also hindering Business of the

Company.

This study helped the researcher and the management to identify

• The entire study started with a through knowledge about the job satisfaction and

Loyalty of employees with respect to TATA MOTORS, LUCKNOW.

• Study was conducted to assess the feedback level in the firm using a self

administered questionnaire and statistical tools to analyse the responses.

56
 Suggestions

• Provide a positive working environment

• Reward and recognition

• Involve and increase employee engagement

• Develop the skills and potential of your workforce

• Evaluate and measure job satisfaction

• Young energetic qualified and middle-aged qualified and experienced people to

be recruited for better quality.

• Organisation should try to adopt certain measures to enhance the team spirit and

co-ordination among employees.

• Employees performance should be appraisal from time to time so that

organisation can come to know about the efficiency of the organisation.

• The working environment can be improved which helps to increase the efficiency

of the workers

Ask employees

The easiest way to get in touch with your employees and know them and their needs

better is to simply call a monthly casual meeting where everyone is free to voice his or

her opinion regarding all aspects of the office. Be patient and hear everyone out before

addressing each topic accordingly. There is no compulsion for you to act upon each

complaint according to what your workers want it to be. But if you are willing to listen to

them, it shows that you at least care.

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Set up a suggestion box

Sometimes employees may find it uncomfortable to say what they think about certain

things in front of colleagues or their seniors. The best way to solve this problem without

ignoring the issue is to have a suggestion box where people can throw in a chit to express

what they feel regarding anything.

Maintain flexibility

Everyone likes flexibility in the work place. It gives them the sense of freedom that may

be lacking otherwise. Most working people are on a tight leash as far as completion of

projects and submission deadlines are concerned. Working hours and payment flexibility

somewhat compensates for this.

Don't be afraid to be personal

If you as a boss take an (healthy) interest in the personal lives of your employees then

this will make it easier for them to approach you without hesitation. Therefore, if one of

your employees had a child recently, award him a cog, or send him a card and flowers

expressing your congratulations. Similarly allow an employee a few days of leave if a

tragedy has struck in his or her personal life.

Reward Success

When an employee goes above and beyond to successfully complete a project or task, it

should be recognized by the employer. This creates a feeling among employees that the

management is engaged in their daily activities as well as appreciative of their efforts.

58
As soon as your workers realize that you care about them more than their work efforts

they will also feel a sense of loyalty to your company. Word of mouth works best in the

market as far as the reputation of a company is concerned. New young workers will be

keen to work for your organization. And old efficient ones will be ready to stick around

for as long as they can work.

59
 Reference

1) Organisational Behaviour Textbook-ICMR

2) Is employee loyalty dead? By Ray Williams Jul 6, 2011-5:45 PM ET Last

Updated: Jul 6, 2011 5:57 PM ET

3) C.R. Kothari – Research Methodology

4) L.M. Prasad - Human Resource Management

60
 QUESTIONNAIRE

A STUDY ON JOB STISFACTION OF EMPLOYEES

a) Name …………………………………………………

b) Gender:

a) Male [ ] b) Female [ ]

c) Marital status

a) Married [ ] b) Unmarried [ ]

1) Age

a) Below 30 yrs [ ] b) 31 to 40 [ ]

c) Above 40 yrs [ ]

2) Monthly income

a) Below Rs.10000 [ ] b) 10000 – 15000 [ ]

c) 15000 – 25000 [ ]

3) Education Level

a) Degree [ ] d) PG [ ]

c) Others [ ]

4) Working level

a) Admin [ ] b) Team Leader [ ]

c) Developers [ ]

5) How is your relationship with supervisor?

(a) Cordial [ ] (b) Moderate [ ]

(c) Not Cordial [ ]

61
6) Your level of satisfaction on target related incentives

(a) Satisfactory [ ] (b) Neutral [ ]

(c) Not Satisfactory [ ]

7) Are there any grievance handling system?

(a) Yes [ ] (b) No [ ]

If yes grievance are solved.

(a) Immediately [ ] (b) Not immediately [ ]

8) Are you’re given enough responsibility for your job

(a) Yes [ ] (b) No [ ]

9). How are your co-workers?

(a) Good [ ] (b) Cordial [ ]

(c) Co-operative [ ] (b) Not Co-operative [ ]

10). Are you satisfied with accident compensation paid?

(a) Yes [ ] (b) No [ ]

11). Are there welfare measures available?

(a) Yes [ ] (b) No [ ]

If yes are you satisfied with it?

(a) Satisfied [ ] (b) Not Satisfied [ ]

12). What do you feel about pay package?

(a) Good [ ] (b) Satisfactory [ ]

(c) Adequate [ ] (d) Not Adequate [ ]

13). Are you views asked in decision making?

(a) Yes [ ] (b) No [ ]

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 If yes to what extent your opinion is considered.

(a) Often [ ] (b) Sometimes [ ]

(c) Not at all [ ]

14). Is there any employee’s suggestion scheme available?

(a) Yes [ ] (b) No [ ]

15). Your Level of satisfaction on promotional policy of your company

(a) Highly Satisfied [ ] (b) Satisfied [ ]

(c) Moderate [ ] (d) Dissatisfied [ ]

(e) Highly dissatisfied [ ]

16. General Suggestion if any,

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