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Project report submitted to PRIST UNIVERSITY In partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION
Under the guidance of Prof.V.R.RADHAKRISHNAN, Associate Dean, Management Studies Department PRIST SCHOOL OF BUSINESS CHENNAI.
PRIST SCHOOL OF BUSINESS PRIST UNIVERSITY THANJAVUR 613 403 APRIL 2013
DECLARATION
I, PRIYANKA.S, hereby declare that the dissertation entitled A STUDY ON ATTRITION RATE IN ICM SOLUTIONS CHENNAI submitted to the PRIST University, Thanjavur for the award of the degree of Master of Business Administration is my original work and has not formed the basis for the award of any degree or diploma, fellowship, associate ship, or any other similar title.
Place: Date:
PRIYANKA.S
PRIST SCHOOL
OF BUSINESS
PRIST UNIVERSITY
VALLAM, THANJAVUR 613 403
Date: 02/4/2013
BONAFIDE CERTIFICATE
This is to certify that the project report entitled A study on attrition rate, is the bonafide record of the work done by PRIYANKA.S (REG.NO. 50111860003 ) a full time student of PRIST SCHOOL OF BUSINESS, in partial fulfillment of requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION. This project to the best of my knowledge has not formed the basis for the award of any degree or any other similar title and that it represents entirely an independent work on the part of the candidate under my overall supervision.
ACKNOWLEDGEMENTS
I express my gratitude to the Almighty for his blessings showered upon me, which has helped me to complete this project work successfully. I owe my sincere thanks to our honorable Prof.P.Murugesan, CHANCELLOR PRIST UNIVERSITY for providing an excellent environment and infrastructure for successfully completing my mba project work. I express my deep sense of gratitude to our VICE CHANCELLOR, PRIST UNIVERSITY for his motivation and successful completion of the project work. I express my sincere thanks to our REGISTRAR, PRIST UNIVERSITY for his motivation and successful completion of the project work. With a deep sense of gratitude, I express my sincere thanks to the DEAN and DIRECTOR, PRIST SCHOOL OF BUSINESS for all the encouragement and whole hearted co-operation extended in completing the project work successfully. I express my deep sense of gratitude and indebtedness to Prof.V.R RADHAKRISHNAN, Associate Dean, and Management Studies Department for his kind, invaluable guidance and whole hearted advice, support and encouragement for the completion of this project work in time and in a successful manner. It is my pleasure to record my deep sense of thankfulness to MR.B.SIVA HR, who helped me in all my efforts throughout the journey of my project. Im thankful to the respondents who have answered the questions in spite of their busy schedule. i would like to acknowledge the whole hearted support of my parents, faculty members and friends who helped me at various stages in completing this project work successfully.
PRIYANKA.S
CONTENTS
Chapter
Particulars
Page no.
INTRODUCTION 1.1 Attrition Definition 1.2 Reasons For Attrition 1.2.1 Organizational Matters 1.2.2 Working Environments 1.3.3 Job Matters 1.2.4 Salary And Other Benefits 1.2.5 Personal Reasons 1 3 4 4 4 5 5
II
COMPANY PROFILE 2.2 Founder Of ICM Group And Solutions 2.2 CEO Of ICM SOLUTINS 2.3 Message From CEO 2.4 HR Of ICM SOLUTIONS 2.5 Service Regulations And Rules 2.6 ICM TECHNOLOGY 6 7 8 9 10 12
SCOPE OF STUDY OBJECTIVE OF STUDY REVIEW OF LITERATURE RESEARCH METHODOLOGY DATA ANALYSIS AND INTERPRETATION FINDINGS, SUGGESTIONS AND CONCLUSION BIBLIOGRAPHY ANNEXURE
24 25 26 28 32 63
LIST OF FIGURES
1. 1 1. 2 1. 3 2. 1 2. 2 2. 3 2. 4
ATTRITION DEFINITION REASONS FOR ATTRITION REASON FOR ATTRITION FOUNDER OF ICM SOLUTION CEO OF ICM SOLUTIONS ICM MODEL ICM PROCESS
LIST OF TABLES
Table
2.1
Icm Technology
Table
2.2
Project Management
Table
2.3
Table
2.4
Quality Control
Table
2.5
Methodology
Table
2.6
Integration
Table
2.7
Client Speak
Table
7.1
Table
7.2
Table
7.3
Table
7.4
Table
7.5
Table
7.6
Table
7.7
Table
7.8
Table
7.9
Table
7.10
LIST CHARTS
CHART7.1 CHART7.2 CHART7.3 CHART7.4 CHART7.5 CHART7.6 CHART7.7 CHART7.8 CHART7.9 CHART7.10 CHART7.11 CHART7.12
Classification of respondents based on salary Classification of respondents based on age Classification of respondents based on superiors Classification of respondents based on working Classification of respondents based on training Classification of respondents based on job matters Classification of respondents based on relocation Classification of respondents based on organization Classification of respondents based on working hours Classification of respondents based on higher studies Classification of respondents based on personal reasons Classification of respondents based on performance
ABSTRATCT
This study was conducted wit the few objectives in mind which were to study the HR practices in organization , to find out the problems faced by employees of the organization ,to find out the certain factors responsible for high attrition rate in the organization and to suggest some way by which the company can retain its employees. Employee attrition is a serious issue, especially in todays knowledge-driven marketplace where employees are the most important human capital assets; attrition impacts an organizations competitive advantage. Turnover is measured for individual companies and for their industry as a whole. If an employer is said to have a high turnover relati ve 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 contain a high percentage of novice workers With these objectives a primary research was conducted .For Secondary data ,detailed analysis of the attrition patterns department wise ,grade wise ,time span wise, qualification wise and month wise was done. Based on which the Report has been formed. The Primary data was collected through a few unstructured interviews and questionnaire which were administered to employees of ICM SOLUTIONS. During the research 50 Employees were covered .survey Results revealed tat most important factor behind employee attrition is opportunity for development and growth, Second most important factor is Salary ,Third most important content is job content and fourth most important content is relationship wit the supervisor . At the end I suggest certain activities that ICM can take in order to reduce the attrition rate and retain the employee.
INTRODUCTION
I INTRODUCTION 1.1 ATTRITION DEFINITION A REDUCTION IN THE NUMBER OF EMPLOYEES THROUGH RETIREMENT, RESIGNATION OR DEATH
Figure 1.1
In the best of worlds, employees would love their jobs, like their co workers, work with dedication for their employers, get a good salary for their work, have sample opportunities for growth, and flexible schedules so they could attend to personal or family needs when necessary. And never leave. But then there's the real world. And in the real world, employees do leave, either because they want more money, hate the working conditions, hate their co workers, want a change. The attrition rate plays a significant role in an organization. High attrition rate of employees in an organization is a serious concern because the employees are the human capital. Some of the organizations have started searching the cause due to which the employees are leaving the organization. There are some organizations specially belonging to IT, Telecom, and various other sectors which are facing high attrition rate. Due to high attrition rate, cost of the organization increases due to training, development, socialization and other costs on the employees. Attrition rate is high basically in an organization whose work is mostly dependent on knowledge workers.
Attrition is defined as reduction in the number of employees through retirement, resignation or death. The rate of shrinkage in size or number of employees is known as attrition rate. Attrition of employees in a limited measure is desirable for influx of new ideas in any type of organization. It helps organizations to maintain their agility in fast changing environment. It brings in new blood, opens up new vistas for change, development and improvement, shows avenues to expand operations and add to the creative lines of the organizations. Attrition in a limited measure can thus bring gains to the organization. However if attrition increases beyond a certain level, the gains are transformed into pains. Recruiters explain that high attrition rates significantly increase the investment made on employees. Significant investments in time and money need to be made for acquiring employees in any organization. These can never be translated into profit when attrition is high. Different organizations use different method to calculate the rate of attrition. The most common formula to calculate the rate of attrition used by many organizations is: ATTRITION RATE = ((NO. OF ATTRITIONS X 100) / (ACTUAL EMPLOYEES + NEW JOINED)) /100. Employee attrition especially in sales force is one of the critical problems which are faced by IT Companies during these days. In an ideal situation an employee consider multiple comfort level while working in a office for e.g. employer's goodwill in the market, remuneration, future growth, working condition, co-workers, current role's scope in the market & most important future stability with the organization. In a survey, approximate 70% of the working population in India is not happy at all due to one of the aspect (as mentioned aforesaid) which is not fulfilled while working in a organization which caused higher attrition rate. In broad term, attrition is a situation which employer face when employee left the organization due to job dissatisfaction, new opportunity in the market, retirement & natural cause (death/illness).. Earlier it wasn't important for the organization, whether their employees are committed or not, but now the time has been changed. The company cannot afford to lose its best employee to competitors. Therefore, It is a paramount consideration for insurance companies to think, why people are vacating their positions.
Figure 1.2
It is not easy to find out as to who contributes and who has the control on attrition of employees. Various studies/survey conducted indicates that every one is contributing to the prevailing attrition. Attrition does not happen for one or two reasons. The way the industry is projected and speed at which the companies are expanding has a major part in attrition. For a moment if we look back, did we plan for the growth of this industry and answer will be no. The readiness ain all aspects will ease the problem to some extent un our country we start the industry and then develop the infrastructure. All the major IT companies have faced these realities. If you look within, the specific reasons for attrition are varied in nature and it is interesting to know why the people change jobs so quickly. Even today, the main reason for changing jobs is for higher salary and better benefits .At the same time the attrition cannot be attributed to employees alone
ORGANIZATIONAL MATTERS WORKING ENVIRONMENTS JOB MATTERS SALARY AND OTHER BENEFITS PERSONAL REASONS
Figure:1.3
and learning
superiors, good encouragement, friendly approach from one and all, and good motivation.
COMPANY PROFILE
II
Figure 2.1
The youngest Vice President of fifth largest public utility in US called LONE STAR GAS had decided to come home and serve the country. He was featured on the cover page of most popular political weekly called Junior Vikatan. He was introduced to Tamil Nadu as "America" Narayanan by the Tamil magazine 'Junior Vikatan' in a cover page article, since then he is commonly called as "America" Narayanan by auto drivers, Slum dwellers and others in Tamil Nadu. However, he wants to be a humble public servant; hence, uses his name as Americai (means 'humble' in Tamil) V. Narayanan. Having lived in USA for 13 years and having built himself up to the top ranks of an American Company, Narayanan, now living in Thiruvanmiyur has decided to enter Tamil Nadu politics. He met Karunanidhi, Panruti Ramachandran, P.Chidambaram and G. K. Moopanar. Founder of ICM and an MBA (USA), CPA (Texas) & CMA. He worked in the US for over 13 years and held various management positions in Fortune 500 companies. Prior to forming ICM he was with Lone Star Gas, USA, as Vice President/Treasurer. ICM Solutions was founded in 1994(formerly ICM Exports) by the same professionals who founded ICM Computer Consultants in 1988, which today is one of the largest computers and peripherals leasing companies in South India.
Figure2.2
Ms. Kalyani Narayanan, CEO of ICM Solutions, served as CEO of Allfon Systems, a US based multinational software start-up Company for over 5 years before assuming her position at ICM Solutions recently. Prior to Allfon, she was with another multinational IT Solutions company, Covansys. She has obtained her degree from the University of Houston, Texas, and worked for various companies in the US such as Sprint, and Pennzoil before relocating back to India. Ms. Narayanan has managed several software projects under various technologies, from mainframe to client server to web based solutions, both in the US and in India and US-India (onsite-offshore) based. As Mr. Thomas L. Friedman says in his book 'The World is Flat', in this 21st century, globalization has offered tremendous potential world over where people are able to do what they do best and outsource everything else to the respective markets. Such phenomenon is not only for larger companies who could afford to experiment and take the risk to learn from it, it also applies to SME segments. Moreover, outsourcing software services to India is no longer a risk - it is a way of doing business. We, at ICM, believe that we have the capability to delight you with our expertise in various software services. And we would like to make it worth your while to explore us with our 'No Risk' offer.
Find out where we are - by actively seeking client satisfaction feed back and analyzing our own performance metrics Figure out where we should be - set achievable objectives based on where we are and enhancing our processes that would allow us to accomplish that
Be there - by effectively communicating this to the entire team and by carefully measuring and monitoring constantly to ensure that we get to where we want to be.
Of course, this is not a single cycle process but an iterative process that constantly engages everyone in the company to relentlessly show improvements. It is my duty and responsibility as the CEO of ICM Solutions that the company's objective is met where everyone - the clients, the employees, and the community - come out as winners and no one is compromised. So far, in our 18+ years of being in business, many clients have helped us to serve them better and the relationship has promoted us from a mere "client - vendor" relationship to one of "partnership". This indicates that we are on the right path and we look forward to more such partnerships to get us closer to accomplishing the objective.
2.4 HR OF ICM:
MR. B.SIVA General Manager Hr in ICM group who deals wit the recruitment, appraisals, team management, customer relationship management. Managing the entire gamut of hr involved in all facts of recruitment. starting with screening of resumes and shortlist the prospective candidates as per requirements. salary negotiation and convincing the candidate to accept our offer and join the company issuing the offer letters for the candidate recruited, as per the company norms counseling employees, addressing behavioral issues and seeking resolution for the issue, while maintaining confidentiality and in adherence to the company policy. Over seeing entire gamut of operations with key focus on bottom line profitability by ensuring optimal utilization of available resources. Ensuring compliance with statutory requirements laid down under different Acts governing Insurance and IT regulations. Facilitating process improvement initiatives and ensuring maximum efficiency in various levels. Evaluating the processes & procedures to locate & alleviate possible bottlenecks. Monitoring the overall functioning of processes, identifying improvement areas and implementing adequate measures to minimize execution time which leads to customer satisfaction. Managing customer centric Insurance operations & ensuring customer satisfaction by achieving delivery & service quality norms. Leading & monitoring the performance of Tele callers in terms of reports submitted to the management with relevant to the policies processed throughout the monthTo ensure efficiency in operations & meeting of individual & group targets.Identifying training needs across levels through mapping of skills required for different roles & analysis of the existing level of competencies.
2.5 SERVICE REGULATIONS AND RULES Grade and salary structure: GRADE:
The employees are graded as junior staff senior staff managerial staff .
TRAINING:
Leading & monitoring the performance of employees in terms of reports submitted to the management with relevant to the policies processed throughout the month To ensure efficiency in operations & meeting of individual & group targets. Identifying training needs across levels through mapping of skills required for different roles & analysis of the existing level of competencies.
SALARY :
Salary is paid on 1st of every month for all grade peoples. ESI at 1.75% and PF 12% are deducted from the salary employee. contribution from
ALLOWANCE: ATA Attendance Allowance HRA- House Rent Allowance EDLI-Employee Contribution
Medical Reimbursement-Taken According To The Grade Wise. Educational allowance (every month 100/-per child for 2 children). SPORT ACTIVITIES: Easy T20 cricket club-cricket games.
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RESIGNATION:
CATEGORIES OF RESIGNATION NORMAL AND ABNORMAL RESIGNATION.
Normal Resignation
If an employee want to resign his/her job he must firm inform to his immediate superior and then he will for ward to administration department through their HOD/DIC by proper channel mode and then it will be back within 7 days to the consent employee.
Abnormal Resignation
If an employee performance is not satisfactory and his performance is poor the management may give resignation letter to the employee.
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Topic Reusable Components and Frameworks Web Technology Web and Application Servers Client Server and Development Tools Config. Mgt.Tools Databases Operating Systems
Tools COM/DCOM, XML JSP, Java, DHTML, HTML, XHTML, ASP.Net, VB.Net, C# Apache, IIS, Tomcat, JBoss JAVA, VB, C++, C MS VSS Oracle, SQL Server, MySQL SCO UNIX, Solaris, Windows NT, Windows 2000, Linux
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PROJECT MANAGEMENT
Project management is the discipline of organizing and managing resources in such a way that these resources deliver all the work required to complete a project within defined scope, time, and cost constraints.Our project managers use PMBOK as the guiding tool to ensure that all aspects of project management are appropriately defined and controlled. The first challenge of project management is ensuring that a project is delivered within the defined constraints. The second, more ambitious challenge is the optimized allocation and integration of resources to meet those pre-defined objectives. At ICM, our PMs effectively utilize the resources and knowledge base to meet the agreed upon objectives. Our continuous improvement in the activities such as status reporting, usage of tools and tracking mechanism constantly improves our productivity thus providing a better value for money for our customers. Project Planning Scope Definition / Change Management Estimation / Time Management Resource Management Organizing the work / WBS Communication Management / Client Management Quality Management Issues Management Cost Management Risk Management
Table 2.2
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All successful projects adequately document objectives and deliverables. These documents are a mechanism to align sponsors, clients, and project team's expectations. At ICM, depending on the size of projects, the following items are documented:
Table 2.3
Contract Scope Statement - Statement of Work - Requirements Statement Project Management Plan / Project Initiation Document Work Breakdown Structure (WBS) Change Control Plan - Change management processes Risk Management Plan - Identify risks and mitigation plans Communications Plan - Status reports, conference calls, chats, emails, escalation processes, etc. Governance Model - Appropriate SDLC model to adhere to for the project and various steps involved in such a model Risk Register - Risks encountered Issue Log - Issue Resolution Register to track and handle all the issues Resource Management Plan - Includes the roles and responsibilities, training needs, reporting structure, etc. Project Schedules - Typically done using MS-Project Status Reports - Identify variances, completed tasks, potential slippages, % complete, etc.
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QUALITY CONTROL
ICM Solutions understands the challenges involved in keeping our customers smiling every time.We understand the importance of delivering quality, reliable, robust solutions to the delight of the customers. Our quality processes are evolved based on our rich experiences across variety of engagements in the past. We strive to continuously improve our processes through the 'lessons learned' exercise that we religiously go through after completion of every project.Some 'quality consultants' who tend to be academic without the practicing experience do not set up the processes and procedures at ICM. Our processes are set up with inputs from project managers, programmers, testers, and others who are involved in the projects. The quality auditors ensure that there is enough control around the processes to make it fool proof
Table 2.4
Quality Control Activity Create requirements matrix which would be tracked till end of project (1) Client Review (2) Team Review (1) Coding standards review (2) Review of logic as per specification (3) Provide feedback or Signoff (1) Review of all test cases for coverage
Testing
Release
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METHODOLOGY
Methodology is a set of rules that defines what needs to be done, when it needs to be done, and who is responsible for doing it. It also explains the relationships between all the efforts and actors. It includes a set of policies, procedures, standards, processes, practices, tools, techniques, and tasks that practitioners apply to the technical challenges of the project. Setting an appropriate development methodology for a particular software project is especially important if the project is outsourced and developed offsite. The methodology must reflect the increased need for determination of exact project goals, elaboration of detailed development plan, and specific testing and quality control procedures to guarantee excellent communication level and mutual project objectives vision of a software developer and a customer.
Still we are open to use any other methodology our clients prefer. During recent years we have worked with Rational Unified Process, Object-oriented methodology, Prototype/Iterative based methodology, and Extreme Programming.
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Table 2.5
Consulting
We communicate to outline your needs and expectations, timescale, budget and project milestones. Project stages are scheduled, and product functionality is determined. A product is designed, and its prototype is delivered for client's approval, detailed specifications are made ready. During this stage all the programming is done. The stage can include multiple milestones when partially functional product is delivered to the customer for control, approval, and possible alteration making. This stage is accomplished in parallel with product construction and assures the final product quality as well as product functionality at milestones. The final product is delivered to the customer, including the documentation and installation instructions if needed. We provide product support and maintenance after the delivery.
Construction
Testing
Delivering
Support
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INTEGRATION
Almost all Fortune 2000 companies are planning several major IT projects in the next several years. Some of them will include Online E-Commerce, B2B, B2C, integration of new with existing ERP systems, acquisitions or redesign changes, business intelligence, CRM and mobile solutions. Most of these new systems will be implemented using the data of today's legacy systems, which leads to integration of these applications.
Table 2.6
Architecture cost from integration development, execution and operational environment set up. It includes the license, new hardware and implementation costs. Integration cost from development of the number of interfaces and communications between systems. Operating cost from on-going maintenance of the EAI system
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Technology solution providers understand that and focus solutions around specific main functions.
There is typically three reasons in application integration over using APIs: 1. Evolving technology. Using application integration tools would easy the pain in performing the work in comparing in using APIs. 2. Maintenance of the integration of the existing applications. It takes too long to maintain integration of application than use an EAI tool. 3. Scalability of your corporate solution. When your company solution evolves, it's too difficult to use API in comparing an EAI tool. A typical API merely allows implementing a full-featured communication exchange with a third party application or component. From other side a suite of EAI services performs event exchange, routing, connectivity, and business workflows implement
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ICM MODEL
ICM provides value to our customers by offering them various relationship models to suit the needs of the customers. A sample of such models is illustrated below.
Figure 2.3
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CAREER
The work environment at ICM Solutions is focused and driven, yet casual and healthy. We believe in constantly "Redefining Margins", and so we encourage employees to think-out-of-the-box, come with better ways to do things. The team-driven environment supports productivity and excellence while having fun. ICM's culture is,
Challenging assignments of various types Rewards proportional to individual accomplishments and company success Participative management style and delegation of authority Flexibility in our policies and operating approach wherever possible to remove obstacles to individual productivity and innovation Recognition that people create success
Incentive programs designed to provide substantial rewards for accomplishments through bonuses and salary increases
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CLIENTS SPEAK
Hauers Lines - India Lone Star Gas - USA I found ICM to be professionally competent PCK Buderus(India) Special Steels Pvt Ltd. & courteous. More than anything else I value their respect for theirs andwas ours. This Having worked with the principals of time ICM,both I found there never a will enable them tothe make a mark reason tolike question ofglobally. the after seeing the installed I would to expressintegrity my happiness people orfor theour product. company and is run by very intelligent, -- Mr. Srikanth software Stock The Management Scheduling of customer progressive individuals whose ethicdone and ability to all produce will Managing visit. This has turned out to bework very well fulfilling the Director lead to successwe in had any foreseen project in this project. I would to like to take requirements this opportunity to congratulate you and all the concerned programmers a job well done -- Mr. Krishnan.P.L -- Mr. Herb Bailey Managing Director Controller
US Based Large Insurance Company Congratulations and sincere thank you to all for a very successful Phase I delivery! This is truly one of the best run projects in my 12+ years tenure! A wonderful job, thank you again -- Mr. Paul Corrado Manager VISMA Intl - India(Chennai) Software consulting and development is not so much about programming languages as it is almost viewing things from the clients' point of view, ... ICM has done very well in converting our general ideas to working processes, Improving our efficiency manifolds. Our gratitude and congratulations to them. -- Mr. Vishwanath Director
for our MIS & Business needs -- Mr. T. Gangadharan Managing Director
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OBJECTIVE OF STUDY
Primary objective:
To study the attrition in ICM solutions .
Secondary objectives:
To find out the reasons of attrition in insurance business.
To find out the factors which motivates employees to change their jobs? To know various techniques that can be utilized to manage attrition.
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REVIEW OF LITERATURE
V REVIEW OF LITERATURE
Johnson and Gill (1993) describe motivation in work organizations as the processes by which people are enabled to and induced to choose to behave in particular ways. Motivation is therefore coupled with a search for the ways by which members job performance and productivity may be enhanced or maintain. Employee involvement has a direct correlation with productivity, quality, efficiency, absenteeism, and even motivation. Employee involvement has received much attention in the area of work organization in recent decades. Although changes in the work organization during the last decades are diverse and difficult to summarize by a few key concepts, there has emerged an agreement that employee involvement and monetary incentive systems are important measures in modern personnel management (Delery and Doty 1996), (Appelbaum et al. 2000), (Godard 2004). Addison et al. (2000) shows that establishments of different sizes might be affected differently by employee involvement. Employee involvement produces improved enterprise performance through diverse channels including enhanced discretionary effort by employees (Jones et al 2003). There is also a high association between peer review and employee involvement in work organization and better the peer review, better is the efficiency towards work. Employee involvement also affects the important 16 dimensions of individual performance, organizational citizenship behavior, defined as individual discretionary behavior that promotes the organization and is not explicitly rewarded. The main principle behind all initiatives for increasing the involvement of workers is to get the lower-level staff more involved in the decision making and work processes, and to grant these employees greater autonomy and control over job tasks and methods of work (Cappelli and Rogovsky 1994). Typical measures teamwork, lean management, and reduced hierarchic levels (Godard 2004). Hackman and Oldhams Job characteristics model has been used to develop the conceptual model for the research. The Job Characteristics Model by Hackman and Oldham (1976) focuses on the interaction between the psychological states of employees, the job characteristics that are believed to determine these states and the attributes of individuals that determine how positively a person will respond to a complex and challenging job. Few of the aspects of the model have been amended with reasons. This amended model then generates a base for the theoretical skeleton of the research model. Naqvi and Ramay(2008) revealed that job satisfaction and organizational commitment had a negative effect on turnover intentions, whereas perceived alternative job opportunities had a significant positive correlation with turnover intentions and is the major factor associated with turnover intention among its professionals.
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Van Dick et al. (2004) have also identified job satisfaction as a predictor of turnover intention; however, they argue that it is a mediating variable between organizational identification and attrition. Abbasi and Hollman (2000) sought to determine the impact of employee turnover on an organization and found that excessive employee turnover often engenders far reaching consequences and at the extreme may jeopardize efforts to attain the organizational objectives. Maslow (1943) propounded the Hierarchy of Needs theory originally applied as a general theory of psychological motivation. However, the usefulness of its theoretical model was adopted by organizational theorist McGregor in 1960, who applied Maslows theory in the work place. Hale (1998) stated that employers cited recruitment costs of 50% to 60% of an employees first years salary and up to 100% for certain specialized, high-skill positions. Bowen and Shuster (1986) stated that while all constituting elements of an organization are important for its success, it is its enhanced ability to attract and retain the best quality talent that separates it from the others. Mirvis and Lawler (1984) suggested that Quality of working life was associated with satisfaction with wages, hours and working conditions, describing the basic elements of a good quality of work life as; safe work environment, equitable wages, equal employment opportunities and opportunities for advancement. Walton (1973) suggested eight major conceptual areas for understanding quality of work life.
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RESEARCH METHODOLOGY
VI RESEARCH METHODOLOGY:
Research in common parlance refers to a search for knowledge. Research is an endeavour to discover answers to problems (intellectual and practical) through the application of scientific method to the knowable universe Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them.
6.1 HYPOTHESIS:
Ho: Rate of attrition of employees is independent of income H1: Rate of attrition of employees is dependent of income Ho: Rate of attrition of employees is independent of working life in organisation
DESCRIPTIVE RESEARCH:
Descriptive study is a fact finding investigation with adequate interpretation. It is the simplest type of the research. It is more specific than an exploratory study, as it focuses particular aspect or dimension of the problem being studied. It is designed to gather descriptive information and provides information for the formulating more sophisticated studies. Data are collected by using one or more appropriate methods like: observations, interviewing and mail questionnaires.
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SAMPLING METHOD:
In this research effort Convenience Sampling has been used. This method is used to make research procedure faster by obtaining a large number of accomplished questionnaires rapidly and efficiently. The sample for conducting the survey contains employees of above mentioned companies.
A) PRIMARY DATA:
Primary data is the information collected during the course of an experiment during experimental research. It can also be obtained through observation or through direct communication, with the person associated with the selected subjects, by performing surveys or descriptive research. There are several methods of collecting primary data. We have used Questionnaire to collect data.
B) SECONDARY DATA:
Secondary Data means data that is already available in various reports, diaries, letters, books, periodicals, etc. Secondary data is that, which has been used previously for any research and is now in use for the second time. In short, data presented in research reports when used again in further research, is called secondary data.
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SAMPLING DESIGN
Population Sampling Unit Sampling Size : 50 members : Employees : 28
RESEARCH INSTRUMENT:
Questionnaire was used to conduct the survey among the 28 employee which includes open-ended and closed ended questions.
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VII DATA ANALYSIS AND INTERPRETATION Table 7.1 Classification of Respondents Based On Salary
ATTRITION REPORT
Sl No. 1 2 3 4 5 6 7 8 9 10 11 12 Month January February March April May June July August September October November December Opening balance 37 36 31 36 37 35 33 34 34 34 32 32 Total No. of Employees Joined 2 0 5 3 2 0 1 2 0 0 0 0 15 Employees Left 3 5 0 2 4 2 0 2 0 2 0 0 20 Closing balance 36 31 36 37 35 33 34 34 34 32 32 32 Attrition % 3.85% 13.89% 0.00% 5.13% 10.26% 5.71% 0.00% 5.56% 0.00% 5.88% 0.00% 0.00%
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INFERENCE
From the above chart the respondents are classified based on the salary .the highest attrition at January to February month 0.14%.. And the overall attrition percentage based on organization matters is 50.27%
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Sl No. 1 2 3 4 5 6 7 8 9 10 11 12
Month
Opening balance 32 30 30 30 28 28 28 27 27 27 27 27
Total
Employees Left 2 0 0 2 0 0 1 0 0 0 0 0
5
Closing balance 30 30 30 28 28 28 27 27 27 27 27 27
Attrition % 3.13% 0.00% 0.00% 6.67% 0.00% 0.00% 3.57% 0.00% 0.00% 0.00% 0.00% 0.00%
January February March April May June July August September October November December
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INFERENCE
From the above chart the respondents are classified based on the Age .the highest attrition at March to May month 0.07%, June To August 0.03% And the overall attrition percentage based on organization matters is 13.36%
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Employees Left 2 2 2 1 2 2 1 0 3 0 0 0
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Closing balance 29 27 30 29 27 27 28 28 26 28 30 34
Attrition % 3.23% 6.90% 6.25% 3.33% 6.90% 6.90% 3.45% 0.00% 10.34% 0.00% 0.00% 0.00%
36
INFERENCE
From the above chart the respondents are classified based on the Superior .there is a variation in attrition ,the highest attrition is on 0.11% based on organization matters is 47.29%.
37
ATTRITION REPORT
Sl No. 1 2 3 4 5 6 7 8 9 10 11 12
Month
Opening balance 34 36 34 33 32 30 30 29 29 30 32 34
Total
Employees Left 2 2 2 1 2 0 1 0 0 0 0 0
10
Closing balance 36 34 33 32 30 30 29 29 30 32 34 38
Attrition % 2.63% 5.56% 5.71% 3.03% 6.25% 0.00% 3.33% 0.00% 0.00% 0.00% 0.00% 0.00%
January February March April May June July August September October November December
38
INFERENCE
From the above chart the respondents are classified based on the Working Environment .the highest attrition at April to June month 0.06%, June To August 0.03% And the overall attrition percentage based on organization matters is 26.52%
39
ATTRITION REPORT
Sl No. 1 2 3 4 5 6 7 8 9 10 11 12
Month
Opening balance 38 40 38 37 36 34 30 31 31 32 30 32
Total
Employees Left 2 2 2 1 2 5 1 0 0 4 0 0
19
Closing balance 40 38 37 36 34 30 31 31 32 30 32 36
Attrition % 2.38% 5.00% 5.13% 2.70% 5.56% 14.29% 3.13% 0.00% 0.00% 11.76% 0.00% 0.00%
January February March April May June July August September October November December
40
INFERENCE
From the above chart the respondents are classified based on the Traning.the highest attrition at March toAugust 0.13% And the overall attrition percentage based on organization matters is 49.94%
41
ATTRITION REPORT
Sl No. 1 2 3 4 5 6 7 8 9 10 11 12
Month
Opening balance 36 35 36 36 35 33 33 34 32 31 32 33
Total
Employees Left 1 1 1 1 2 1 1 2 2 0 0 0
12
Closing balance 35 36 36 35 33 33 34 32 31 32 33 33
Attrition % 1.39% 2.70% 2.70% 2.78% 5.71% 2.94% 2.86% 5.88% 6.06% 0.00% 0.00% 0.00%
January February March April May June July August September October November December
42
INFERENCE
From the above chart the respondents are classified based on the Job Matters .the highest attrition at March to October And the overall attrition percentage based on organization matters is 33.03%
43
ATTRITION REPORT
Sl No. 1 2 3 4 5 6 7 8 9 10 11 12
Month
Opening balance 33 33 33 33 32 33 33 33 34 34 34 35
Total
Employees Left 0 0 0 2 0 0 0 0 0 0 0 0
2
Closing balance 33 33 33 32 33 33 33 34 34 34 35 35
Attrition % 0.00% 0.00% 0.00% 5.88% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
January February March April May June July August September October November December
44
INFERENCE
From the above chart the respondents are classified based on the Relocation .the highest attrition at March to May And the overall attrition percentage based on organization matters is 5.08%
45
TABLE 7.8
Sl No.
Month
Opening balance 35 37 39 42 42 41 39 37 36 36 36 34
Total
Employees Left 0 1 1 1 2 2 2 2 2 2 2 2
19
Closing balance 37 39 42 42 41 39 37 36 36 36 34 34
Attrition % 0.00% 2.50% 2.33% 2.33% 4.65% 4.88% 5.13% 5.26% 5.26% 5.26% 5.56% 5.56%
1 2 3 4 5 6 7 8 9 10 11 12
January February March April May June July August September October November December
46
INFERENCE
From the above chart the respondents are classified based on the Organization Matters .the highest attrition at june to May And the overall attrition percentage based on organization matters is 48.71%
47
Sl No.
Month
Opening balance 34 36 39 39 39 39 39 39 39 39 37 35
Total
Employees Left 0 0 0 0 0 0 0 0 0 2 2 2
6
Closing balance 36 39 39 39 39 39 39 39 39 37 35 33
Attrition % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 5.13% 5.41% 5.71%
1 2 3 4 5 6 7 8 9 10 11 12
January February March April May June July August September October November December
48
CHART 7.9
INFERENCE
From the above chart the respondents are classified based on the Working hours .the highest attrition at September to December And the overall attrition percentage based on organization matters is 16.25%
49
ATTRITION REPORT
Sl No. 1 2 3 4 5 6 7 8 9 10 11 12
Month
Opening balance 33 33 33 34 35 35 34 34 34 34 34 34
Total
Employees Left 0 0 0 0 1 1 0 0 0 0 0 0
2
Closing balance 33 33 34 35 35 34 34 34 34 34 34 34
Attrition % 0.00% 0.00% 0.00% 0.00% 2.78% 2.86% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
January February March April May June July August September October November December
50
INFERENCE
From the above chart the respondents are classified based on the Higher Studies .the highest attrition at April to July And the overall attrition percentage based on organization matters is 5.63%
51
ATTRITION REPORT
Sl No. 1 2 3 4 5 6 7 8 9 10 11 12
Month
Opening balance 34 34 32 32 30 30 30 31 32 31 30 30
Total
Employees Left 0 2 0 2 0 0 0 0 1 1 0 2
8
Closing balance 34 32 32 30 30 30 31 32 31 30 30 28
Attrition % 0.00% 5.88% 0.00% 6.25% 0.00% 0.00% 0.00% 0.00% 3.13% 3.23% 0.00% 6.67%
January February March April May June July August September October November December
52
INFERENCE
From the above chart the respondents are classified based on the Personal Reasons .the highest attrition at januvary to March 0.06%,April to May 0.07% And the overall attrition percentage based on organization matters is 25.15%
53
ATTRITION REPORT
Sl No. 1 2 3 4 5 6 7 8 9 10 11 12
Month
Opening balance 28 28 28 28 28 28 27 26 25 25 25 25
Total
Employees Left 0 0 0 0 0 1 1 1 0 0 0 0
3
Closing balance 28 28 28 28 28 27 26 25 25 25 25 25
Attrition % 0.00% 0.00% 0.00% 0.00% 0.00% 3.57% 3.70% 3.85% 0.00% 0.00% 0.00% 0.00%
January February March April May June July August September October November December
54
INFERENCE
From the above chart the respondents are classified based on the Performance .the highest attrition at May to September And the overall attrition percentage based on organization matters is 11.12%
56
HYPOTHESIS:
NULL HYPOTHESIS:
ALTERNATE HYPOTHESIS:
57
CHI SQUARE
OBSERVATION 10 9 5 7 5 4 5 2 3 CHI SQUARE TEST EXPECTATION 10.56 7.68 5.76 7.04 5.12 3.84 4.4 3.2 2.4 O-E -0.56 1.32 -0.76 -0.04 -0.12 0.16 0.6 -1.2 0.6 (O-E)2 0.3136 1.7424 0.5776 0.0016 0.0144 0.0256 0.36 1.44 0.36 (O-E)2/E 0.029697 0.226875 0.100278 0.000227 0.002813 0.006667 0.081818 0.45 0.15 1.05
INFERENCE:
The Is 1% of Significant Difference Between The Independent Income And Dependent Income.
58
CHI SQUARE
OBSERVATION EXPECTATION O-E (O-E)2 (O-E)2/E 2 6.46 -4.46 19.8916 3.079195 10 6.12 3.88 15.0544 2.459869 5 4.42 0.58 0.3364 0.076109 10 6.84 3.16 9.9856 1.459883 3 6.48 -3.48 12.1104 1.868889 5 4.68 0.32 0.1024 0.02188 7 5.7 1.3 1.69 0.296491 5 5.4 -0.4 0.16 0.02963 3 3.9 -0.9 0.81 0.207692 CHI SQUARE TEST 9.499638
INFERENCE:
The Is A Significant Difference Between The Independent And Dependent Organization Matters
59
OBSERVATION EXPECATION O-E 10 9 3 5 8 4 0 5 6 CHI SQUARE TEST 6.6 9.68 5.72 5.1 7.48 4.42 3.3 4.84 2.86 3.4 -0.68 -2.72 -0.1 0.52 -0.42 -3.3 0.16 3.14
(O-E)2 11.56 0.4624 7.3984 0.01 0.2704 0.1764 10.89 0.0256 9.8596
(O-E)2/E 1.751515 0.047769 1.293427 0.001961 0.03615 0.03991 3.3 0.005289 3.447413 9.923432
60
INFERENCE:
The Is A Significant Difference Between The Independent And Dependent Superiors
61
OBSERVATION EXPECATION O-E (O-E)2 (O-E)2/E 0 2.4 -2.4 5.76 2.4 5 2.88 2.12 4.4944 1.560556 3 2.72 0.28 0.0784 0.028824 15 9.3 5.7 32.49 3.493548 8 11.16 -3.16 9.9856 0.894767 8 10.54 -2.54 6.4516 0.612106 0 3.3 -3.3 10.89 3.3 5 3.96 1.04 1.0816 0.273131 6 3.74 2.26 5.1076 1.365668 CHI SQUARE TEST 13.9286
INFERENCE:
The Is A Significant Difference Between The Independent And Dependent Working Environment.
62
FINDINGS
MAJOR FINDINGS:
Majority of the respondents are dissatisfied with their income
Majority of the respondents are satisfied and aware about their future benefits contributed by the company. Majority of the respondents are dissatisfied with the equity of compensation provided to them at the same level of employment. Majority of the respondents agree that working environment is clean and transparent and proper infrastructure is provided by the organization.
Majority of the respondents agree that they have to work extra time to fulfill target causes stress.
63
SUGGESTIONS
From the study it was found that the employees were highly disappointed by their salary structure.
Only one type of training program is given like seminar and conference related to their specific job is given.
Superiors should continually review the employee performance and give them as a positive support, individual Interest should maintained.
Attrition Rate in ICM solutions has been strongly agreed by the employees.
64
CONCLUSION
CONCLUSION
In this research work, we have examined the reasons of attrition in ICM SOLUTIONS. All the attributes have highest value with their corresponding factors. From the above discussion, We can conclude that attrition is a common phenomenon in any industry, Resulting, employees face a great difficulty to sustain the job. If we consider the factors which is related to the quality of work life, in that case Degree of employment conditions are one of the curtail factor for attrition. Rewarding the employee ca help to reduce the attrition ,yearly performance appraisal ,care about the employee welfare these things can reduce the employee make stay in the job for long time. Since the data we got were too small to put that into chi square test, the results may vary if we have put much more data. Future research scope is always there.
65
BIBILIOGRAPHY
BIBILIOGRAPHY
Books
Dr.C.b.Gupta , Human Resource Management ,Sultan Chand&sons. Biswajit patnayak ,Human Resource Management Monicka.s schmid ,First Language Attrition
WEBSITE
www.icmsolutions.co.in
www.icmconsultants.co.in
www.icmindia.com
ANNEXURE
Accomplishments
Self Rating
Employer Rating
Communication
Written Skills
Oral Skills
Attitude
Punctuality
Attire
5. Time Management
Estimation of Time
Adherence to deadline
Time consciousness
General 1
Strengths
1 Weakness ( which you require additional help and training to improve on) 2
Management Comments
Salary Performance
Experience