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A

Project Report
On

ATTRITION MANAGEMENT
At

KIRLOSKAR PNEUMATIC COMPANY LTD.


HADAPSAR, PUNE
Submitted By

SHRUTI KUMARI
(Roll No. 60)
Batch 2013-2015

Submitted To

GLOBAL BUSINESS SCHOOL & RESEARCH


CENTRE
DR. D. Y. PATIL VIDYAPEETH, PUNE

In Partial fulfilment of degree of Master of Business Administration

ATTRITION
MANAGEMENT

UNDERSTAND. MANAGE. COMPETE.

Global Business School & Research


Dr D.Y. Patil University
Pune 411 033

CERTIFICATE

This is to certify that Ms. Shruti Kumari a bonafied student of the MBA
programme of this Institute for the academic year 2013 2015 having Roll No.60,
has completed her Summer Internship Project titled Attrition Management as
partial fulfilment of the Master of Business Administration Course.

Course Coordinator

Director

GLOBAL BUSINESS SCHOOL & RESEARCH CENTRE

DECLARATION

I, SHRUTI KUMARI, declare that the project work entitled ATTRITION MANAGEMENT
submitted to D.Y. PATIL VIDYAPEETH, is a record of an original work done by me. I hereby
declare that all the facts and figures included in the dissertation is a result of my own research
and investigations including formal analysis of the entire project work. The result embodied in
this thesis has not been previously submitted for any examination of this University or any
other University.
This declaration will hold good and in my wise belief with full Consciousness.

Date:

Signature of the Student

Place: Pune-411 033

[SHRUTI KUMARI]

ACKNOWLEDGEMENT
With utmost sincerity, I would also like to convey my thankfulness to Mr. Sadashib Padhee
(VP-HR) for giving me the opportunity to work with Kirloskar Pneumatic Co. Ltd.
I would like to cease this opportunity to express my heartfelt gratitude towards Mr. Jagdish
Purandare (DGM-HRD), my company guide, for his insightful guidance and for all his
endeavours in supervising my entire project. My sincere thanks to him for showing faith in me.
I would also take the privilege to express deep sense of gratitude to Mrs. Meghana Abdagire
for giving me a brief knowledge about the entire training process and encouraging me
throughout my summer training, Mrs. Nayana Kasbe, for efficiently coordinating the program
and all other personnel of the HR department at KPCL, who had lent a helping hand on various
occasions throughout the duration of the internship.
I am very grateful to Dr. A. Keskar (Advisor) & Dr. K.K. Velluri (Director), D.Y. Patil
Vidyapeeth, G.B.S.R.C., who has been a source of inspiration for summer project of two
months time duration.
I would express my gratitude towards Prof. Tapati Sarmah, my faculty guide for sharing her
exceptional knowledge in the domain of Human Resource Management, along with the
members of the placement cell at Dr. D.Y. Patil GBSRC, who facilitated this learning
opportunity for me.
My sincere thanks to Prof. Rachna Gandhi and Prof. Ansumalini Panda for their valuable
guidance and direction in successful completion my project.
Finally, I would like to take this opportunity to express my deepest gratitude to all those who
have directly or indirectly contributed in the completion of this project.

SHRUTI KUMARI
5

INDEX

Sr. no

Title

Page no.

Title page

Cover page

ii

Institute certificate

iii

Company certificate

iv

Declaration by student

Acknowledgement

vi

Table of contents

vii-viii

TABLE OF CONTENTS
Chapter
no.
1

Page no.

EXECUTIVE SUMMARY

INTRODUCTION

Title

Abstract
Theoretical aspects of Attrition Management
Application of work in the Company
Need for the study
Statement of problem
Survey Methodology
3

OBJECTIVE OF THE STUDY

31

INDUSTRY PROFILE

33

COMPANY PROFILE

44

LITERATURE REVIEW

62

RESEARCH METHODOLOGY

66

Scope of the study


Research Process
Types Of Research
Methods And Sources Of Data Collection
DATA ANALYSIS & INTERPRETATION

71

FINDINGS

96

10

LIMITATIONS

99

11

SUGGESTION & RECOMMENDATION


Retention Strategies by KPCL

101

12

CONCLUSIONS

106

13

ANNEXURE

109

14

REFERENCES

113

EXECUTIVE
SUMMARY

This project is done on Human Resource Management topic in the area of Attrition
Management. The most challenging job for any manager is to retain their employees. This
report seeks to utilise primary research in order to offer a greater understanding of the complex
issues raised by staff attrition. Specific aims were to:

Identify trends in leavers' behaviour and the reasons employees change jobs/organisations
Identify the employers' perspective on employees' reasons for leaving
Identify retention strategies that have a positive influence on retention.
Why do employees leave?
A significant difference was established between what employers assumed were key causes of
turnover, and the actual reasons employees gave for leaving. Employers largely failed to take
into account the importance of providing opportunities for development for their employees
and the training required for it.

The top 3 causes apart from Lack of opportunities for personal and career development and pay
benefits were:
Issues with work tasks
Technical training
Technology

What can employers do to minimise the incidence of, and impact of employee turnover?
Developing an employee retention strategy involves three stages:

Identify the level and cost of turnover and benchmarking it against competitors

Understand why employees leave

Implement retention strategies

Attrition is a reduction in the number of employees through retirement, resignation or death


refers to attrition. In the best of words, employees would love their jobs, like their co-workers,
work hard for their employers, get paid well for their work, have ample chances for the
advancement, and the flexible schedules so they could attend to personal or family needs as
and when necessary. But then theres the real world in which employees do leave. Attrition
measures the amount of recurring revenue lost during a particular time frame, expressed on a
monthly/annualized basis.

Decreased
Productivity

Drivers of
Attrition

Greater
Attrition

Cycle
Of
Attrition

Cost
Reduction/

Increased
Costs/

Austerity

Reduced
Revenue

Employee retention involves taking measures to encourage employees to remain in the


organization for the maximum period of time. Corporate is facing a lot of problem in employee
retention these days.

10

COMPENSATION

SUPPORT

ENVIRONMENT

Key Areas
in Retention

RELATIONSHIP

GROWTH

The review of the literature indicates a wide and diverse range of potential retention strategies.
On the basis of the secondary sources consulted, retention practices can be grouped under the
following categories:
1. Compensation & Benefits levels
2. Compensation & Benefits systems (e.g. pay for performance; skill-based pay, etc.)
3. Recognition and Rewards
4. Training, Professional Development, Career Planning
5. Orientation & Integration
6. Healthy Workplace or Well-being Programs
7. Job Design & Work Teams
8. Employee Participation & Communication

11

9. Manager Training & Accountability


10. Flexible Work Time
11. Diversity Management
12. Work-life Balance
13. Performance Management & Feedback

Based on the conclusions derived after the in-depth and comprehensive study, few implications
can be made about employee retention. Employee retention is vital to the long term health and
success of any business organization. Companies can look into various options like bonding
programmes, stronger career path, benefits and communication. Making work a fun place,
sponsoring education and ongoing learning for the workforce.
Employee attrition is significant business concerns for the organisations, one even bigger than
attracting talent, especially in todays knowledge driven marketplace where employees are the
most important human capital assets. Attrition impacts an organizations competitive
advantage. A company is not hurt because certain persons have left. The company is hurt
because it takes away certain knowledge, and there is no ready replacement in the market.
However when jobs were scarce, the technology changes were less rapid, voluntary attrition
was small and companies managed it. However, with technology changing rapidly and
manpower costs increasing, attrition is high and hurts badly.
According to my study most of the employees are likely to seek a new employment as the
economy booms. It is likely that the voluntary turnover would rise due to the improving
economy.

12

INTRODUCTION

13

ABSTRACT
Employees are the most valuable assets of an organization. It is they who add value to the
organization in terms of quantity and quality as well. To find, attract, develop and retain the
right talent is a major part of management. Therefore, it is indispensable to maintain a
permanent and promising workforce; which over the years has become a tough task for
employers and thereby increased attrition in the organizations. Attrition is a major problem
which highlights in all the organizations. Attrition is said to be the gradual reduction in the
number of employees through retirement, resignation or death. It can also be said as Employee
Turnover or Employee Defection. Whenever a well-trained and well-adapted employee
leaves the organization, it creates a vacuum. So, the organization loses key skills, knowledge
and business relationships. Modern managers and personnel administrators are greatly
interested in reducing Attrition in the organization, in such a way that it will contribute to the
maximum effectiveness, growth, and progress of the organization. Attrition costs a lot. It's one
of the largest costs in all types of organizations, yet it's also one of the least understood.
Organizations need to find new approaches to retain the most effective manpower.
Retaining the employees involves understanding the intrinsic motivators as individuals differ
a lot. Retaining employees is a critical and ongoing effort. Staff requires reinforcement,
direction and recognition to grow and remain satisfied in their positions. Managers must
recognize this and understand that establishing such fundamentals demonstrates their
objectives to support nature and motivate their employees.
This study is an outcome of the topic called A Study on Attrition Management. This research
is an attempt to find out the causes of attrition from different dimensions and have proposed
some ways in which this issue can be addressed. It undertakes the effect of the same on
employer and employee both. In this research, I have made an attempt to bring out employee
retention approaches, strategies for retention and the costs related to attrition. Following this
some strange reasons for attrition have been discussed in this regard. The positive side of
attrition has also been discussed upon. Further, the remedial measures have been discussed
herein. Managing attrition is not just a 'nice thing to do', it is the route to survival.

14

TheoreTical aspecTs of aTTriTion


INTRODUCTION
What is ATTRITION?
Attrition is defined as a gradual reduction of the size of workforce through normal means,
such as retirement, resignation or death. This is normal in any business and industry.
Attrition rate is defined as the rate of shrinkage in size or number.
This type of reduction in staff is one way a company can decrease labour costs: the company
simply waits for its employees to leave and freezes hiring. 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. 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.

VICIOUS CIRCLE OF ATTRITION


15

Hence urge for employee retention arises. Effective employee retention is a systematic effort
by employers to create and foster an environment that encourages current employees to remain
employed by having policies and practices in place that address their diverse needs. The
organisation is fully at loss when employees leave their job once they are fully trained.
Employee retention takes into account the various measures taken so that an individual stays
in the organisation for the maximum period of time. It is beneficial both for the organisation as
well as the employee.

In short Retention is all about:


R- REMUNERATE COMPETITIVELY
E- ENCOURAGEMENT AND EXPECTATION
T- TRAINING AND DEVELOPMENT
A- ANNUAL REVIEW CYCLES
I- INFORM AND INVOLVE
N- NUTURE

A strong retention strategy becomes a powerful recruitment tool. Retention of key employees
is critical to the long-term health and success of any organization. It is a known fact that
retaining your best employees ensures customer satisfaction, increased product sales, satisfied
colleagues and reporting staff, effective succession planning and deeply imbedded
organizational knowledge and learning. Employee retention matters as organizational issues
such as training time and investment; lost knowledge; insecure employees and a costly
candidate search are involved. Hence failing to retain a key employee is a costly proposition
for an organization. Intelligent employers always realise the importance of retaining the best
talent.

16

Attrition in Manufacturing Industries

Companies in India as well as in other countries face a formidable challenge of recruiting and
retaining talents while at the same time having to manage talent loss through attrition due to
industry downturns or through voluntary individual turnover. Losing talents and employees
result in performance losses which can have long term negative effect on companies especially
if the departing talent leaves gaps in its execution capability and human resource functioning
which not only includes lost productivity but also possibly loss of team-work, harmony and
social goodwill. With attrition rates being a bane of every industry, companies are devising
innovative business models for effective retention of talent. There are a lot of factors
responsible for attrition and employers are getting increasingly conscious of the factors that
can keep an employee committed. Attrition may be defined as gradual reduction in membership
or personnel as through retirement, resignation or death. In other words, attrition can be defined
as the number of employees leaving the organization which includes both voluntary and
involuntary separation. The employee gradually reduces his/her ties with the company than
crib about the underlying factors causing attrition. It is symptomatic of a much deeper malaise
that cuts deeper into the innards of organizations. Attrition rates vary from sector to sector and
industry to industry. Apart from the unavoidable ones like resignation, retirement, death or
disability, the causes are found to be many and varied. They vary according to the nature of
business, the level of the employees and the nature of the responsibility shouldered by them.
The obvious, common and main reasons are the ergonomic discomfort experienced by the
employee and the functional incompatibility between the corporate management and the
employees. Very often an employee finds himself among colleagues and superiors he is unable
to cope up with. Or he finds himself totally out of tune in his functions with the employees
functional requirements, failing to rise to the employers expectations. Another important
reason is that the employees remuneration is not voluminous enough to bear the brunt and
cushion the concussions of his family and social life.
Employee retention refers to policies and practices companies use to prevent valuable
employees from leaving their jobs. How to retain valuable employees is one of the biggest
problem that plague companies in the competitive marketplace. Not too long ago, companies
accepted the revolving door policy as part of doing business and were quick to fill a vacant
job with another eager candidate. Nowadays, businesses often find that they spend considerable
17

time, effort, and money to train an employee only to have them develop into a valuable
commodity and leave the company for greener pastures. In order to create a successful
company, employers should consider as many options as possible when it comes to retaining
employees, while at the same time securing their trust and loyalty so they have less of a desire
to leave in the future. Employees need to be retained because good, faithful, trained and
hardworking employees are required to run business. They have acquired good product
knowledge over the long run and a trained employee can handle customers better and also solve
problems of peers who are new to the organization. When an employee leaves he takes away
with him all company information such as ongoing projects, etc. Goodwill of the company gets
hampered due to more employee turnover rate and the competitors start poking their nose to
recruit best talents from them. Efficiency of work is hampered to a large extent. For example
If an employee leaves in the middle of an ongoing project its very difficult to fill that Vacuum
and a new employee can never replace an old and talented employee so this leads to delayed
completion of projects and less work satisfaction among other team members.
In the present context the present paper is ascertained to study attrition management in
Kirloskar Pneumatic Co. Ltd. (manufacturing industry) in Pune, Hadapsar.

Kinds of Attrition
Voluntary attrition- Voluntary attrition takes place when the employee leave the
organization by their own will. Pull factors like higher emoluments elsewhere, better
opportunities of growth and promotion etc. are responsible for this kind of attrition.
Involuntary attrition- Involuntary attrition takes place when the employees leave the
organizations due to some negative forces or push factors like faulty promotion policy,
biased performance appraisal etc.
Compulsory attrition- It takes place due to the rules and regulations of the government
and that of the organization as well. It includes attrition taking place due to attaining
the age of retirement, completion of tenure etc.

18

Natural attrition- It takes place due to the causes and factors that are beyond the
control of the individual and organization as well. These factors may include end of
life, insanity etc.

Causes of Attrition
Internal causes- These causes are pertaining to the internal environment of an
organization. Therefore, they are controllable.
Salary
a. Insufficient salary
b. Delay in payment
c. No / delayed increment
d. Wage compression
Promotion
a. Biased promotion
b. No / delayed promotion
Transfer
a. Forceful transfer
b. Transfer to a place employee is not willing to go
Workplace Infrastructure & amenities
a. Lack of hygiene
b. Lack of basic facilities like water, canteen, etc.
Task
a. Monotony of task
b. Task labour mismatch
c. Team issues
d. Lesser job autonomy
Instability in leadership
Leading to confusion related to directions and commands which generate
frustration among the workforce.
19

Lack of Flexibility
a. Lack of flexibility in timing, choice of task etc.
b. Introduction of new technology
c. Employees incompetency / unwillingness to learn and understand
Lack of job security
a. Fear of being expelled/ retrenched/terminated
b. Faulty performance appraisal
c. Underestimation of performance
d. Power distance & politics
e. Communication gap between management and workforce
External causes- These are the causes which are beyond the control of an organization
as they belong to the external environment. These causes may be related to:
a. Better pay
b. Chances of promotion
c. Better perks
d. More fringe benefits in other organizations
Individual/Personal causes
a. End of life
b. Marriage
c. Pregnancy
d. Shift of family
e. Mental imbalance
f. Over - sensitivity
g. Wish to go abroad
h. Attrition of the group members
i. Self-employment
j. Education

20

Some peculiar reasons


A. Attrition and Employee Stock Option Plan (ESOP)
A peculiar paradox has been observed in case of ESOP as a motivational tool and the
attrition rate. Generally it is perceived that ESOP on one hand generate funds for the
organization and on the other hand it may curb attrition rate as it increases participation
of employees in management, increase in their financial resources and satiation of their
esteem needs as well which will ultimately lead to their long- term commitment with
the organization. However, while considering an altogether different perspective, ESOP
may increase the rate of attrition as the earning from ESOP may be sufficient for the
livelihood of the employee or it may sometimes exceed his income leading to his
disinterest to continue the job.
B. Attrition and perception about growth opportunities
Employers perception and presumptions- Employers may have a perception that
employees are already well aware of their growth and career opportunities in the
organization or they may perceive that the old staff will convey the things to the new
one. But actually the new workers may not be aware of these things, further they can
be misguided and misled by their colleagues.
Employees perception- Employees may have a perception that:
a. Employers may get annoyed if they are asked about the career opportunities in the
organization
b. Employers may take it negatively which may be detrimental to job security,
increment and promotion etc.
c. If there are growth opportunities, employers will themselves convey the same and
their silence means there is no scope of growth in the organization.

Effects of attrition
Effect on Employer/ Organization
a. Loss of productivity
b. Loss of quality
c. Increase in cost
d. Loss of consumers and decrease in brand loyalty
e. Loss of goodwill
21

f. Loss of secrecy in case the key employees leave the organization


g. Loss of key personnel
h. Lack of competitiveness
Effect on employee
a. Stress from new job
b. Monetary loss
c. Effect on career
d. Effect on family life
e. Loss of skill- if the gap between quitting from one organization to other is long
f. Emotional loss, if the bonding with the staff of previous organization was good
However, it is also possible that the employee gets better environment and remuneration in the
new organization and the things can get positive for him.

Costs associated with Employee Attrition


Attrition results in increase in costs. These costs may be related to
Cost of Exit Interview
Recruitment costs- Cost of advertisements, agency costs, employee referral costs,
Internet posting costs, cost of the internal recruiter's time to understand the position
requirements, develop and implement a sourcing strategy, review candidates'
backgrounds, prepare for interviews, conduct interviews, prepare candidate
assessments, conduct reference checks, make the employment offer, and notify
unsuccessful candidates.
Cost of Training- Cost of trainers, cost of training equipment and materials, cost of
refreshment, cost of technology
Cost of Administrative Proceedings- Cost of issuing I cards, access cards
Cost of Signing Bonus- It is given to the works for joining the organization; it is also
a significant part of cost.
Lost Productivity Costs- As the new employee is learning the new job, the company
policies and practices, etc., they are not fully productive. It includes the costs
associated with the low productivity of the new employee.

22

Lost Sales Costs- These costs are the lost revenue which occurred as a result of project
loss due to key employee attrition.

Steps to Reduce Attrition


Focus on Exit-interviews.
Compliment and thanking employees for their valuable contribution. Recognize and
celebrate their success.
Setting up a feedback mechanism to maintain consistency in performance and high
motivation levels.
Give them job security.
Providing opportunities of learning by constantly upgrading the skills of employees.
Paying attention to employees personal needs and participation.
Communicate goals, roles and responsibilities so that people know what is expected from
them.
Education
Feeling valued by their managers or superior in the workplace is a key to high employee
motivation and morale.
Treat the employees well & provide a dignity of job.

23

ATTRITION & RETENTION MODEL


Gender
Education

Personal
characteristics

Marital Status
Age
Tenure

Attrition of
Employees
Monotonous Nature of Job
Lack of Motivation
Poor Mentoring
Power & Politics

Negative
characteristics
of job

Dissatisfaction with
colleagues
Low Career Growth
Irregular Working Hours
Achievement not recognized

Gender

Personal
Characteristics

Education
Marital Status
Age

Retention of
Employees
Self-Esteem

(Organisational
Outcome)

Participation
Accountability
Growth Prospects

Job
Characteristics

Feeling of
Accomplishment

Satisfaction
Motivation

Interpersonal
Relationships

Involvement

Working Conditions

Work
Compatibility

Involvement
Job Security
Amenities
Authority

24

Strategies for Retention


Fostering a Culture of Management Concern- Companies today must show an interest
in helping people develop to their fullest potential. In addition to reducing bureaucracy,
high- performing, high-tech companies provide freedom in scheduled hours, and lifestyle
choices.
Providing Relevant Training- Companies should think of training as career
development.
Job Enlargement- Employees should not be locked into positions because theyre so
good at it. Managers must continually ask: Whats the next step for this employee? In
other words more tasks and responsibilities should be assigned to make the position more
challenging.
Realistic goals
Defining career path and demystifying career growth- proper succession planning
Rewarding Managers- Many companies say they value people and train their
management team to cope with people issues. Yet these same managers are too often
rewarded solely on their technical skills and financial results.
Strengthening the Team- Marginal performers in management must be weeded out.
Workers Participation in Management
Profit sharing
Gain sharing
Fair Performance Appraisal
Clearly identify the people you want to keep- Many executives have focused on whom
they should get rid of rather than on whom they should keep. Unfortunately, those who
decide to leave are often high-impact performers who can find other work quickly.
Effective Communication System

To retain top talent in the future, executives will need to clearly identify, develop, involve, and
recognize key people. Traditional compensation plans must be challenged, needless
bureaucracy should be eliminated, and growth opportunities should be provided. Executives
who create a dynamic, new human resource model will retain the high-knowledge talent needed
to succeed in tomorrow's globally competitive environment.

25

Other Retention Strategies


Corporate Social Responsibility (CSR) towards employees
It comprises a wide range of intrinsic and extrinsic rewards and motivation. It is concerned
with a humanitarian aspect towards the employees of the organization. It is the first and
foremost responsibility of an organization to take care of its employees physical and mental
well-being. CSR towards employees encompasses all monetary and non- monetary aspects.
Monetary aspect includes reasonable remuneration, bonus, increment, HRA, post retirement
pension, etc. while the non- monetary aspect may include congenial environment, fair
performance appraisal, recreational activities, learning and development. Both these aspects
are equally important while considering control on attrition.

Herzbergs Two Factor Theory, CSR towards Employees & Attrition


Hertzberg Two-factor theory describes two factors Motivators These factors are related to the intrinsic aspect of the job itself, such as
recognition, achievement, personal growth etc..
Hygiene factors These factors are related to the extrinsic aspect of the job such as salary,
fringe benefits, work conditions, status, job security etc.
Hygiene factors are essentials, they do not show direct contribution in productivity but their
absence certainly leads to decrease in production. Motivators have a positive correlation
with productivity; their presence results in increase in productivity and their absence leads
to fall in the same. Thus both these factors should be paid attention to boost the morale of
the workers leading to lesser attrition as morale and attrition have inverse relationship i.e.
Higher the morale, lesser will be the attrition and vice-versa.
Applying Emotional Intelligence
Emotional intelligence refers to the ability and capacity to know and control own emotions
and that of others in such a manner that the energies and potentials may be channelized in a
positive direction and utilized to enhance productivity. To develop emotional intelligence
one has to develop empathy and farsightedness. Following are some ways to apply
emotional intelligence to control attritiona. Being proactive
b. Lessening communication gap between management and workers
26

c. Devising and communicating career and growth opportunities


d. Using intrinsic motivation
e. Understanding group dynamics
f. Conducting motivational sessions for the employees
g. Praising the employee publically but criticizing privately
h. Developing a rapport with the workers
Change in leadership style
Leadership can play a significant role in controlling attrition. With the change in
organizational dynamics the style of leadership should also change. One of the much
applauded style is the transformational leadership. Transformational leadership comprises
of the four dimensions: idealized influence, inspirational motivation, intellectual
stimulation, and individual consideration. Such a leadership helps the employees in finding
out their hidden talent and latent skills. They come to know about their strengths and the
scope to enhance them. This acts as an undercurrent in unleashing their energies with full
faith in their capabilities resulting in a passion for work, greater connectivity with
organization and its goals and control on the tendency of the workers to leave the
organization.
Leaders should recognize, promote and praise hard work; employees should be given due
credit and compliments. Leaders should be open to discussions and have a welcoming
attitude towards the suggestions of the workers. First they should understand and accept the
value of employees and then make the employees feel that they are valuable to the
organisation; this will bring more openness, harmony, trust in relations. All these factors
will be helpful to control attrition.
Flexibility
Flexibility is necessary for greater degree of co-ordination, ease and smoothness in the
organizational working. It is the demand of time as in the present context it has become very
difficult to manage talent. Undue strictness and rigidity is no more considered the obvious
right of the employer. Flexibility can be related to the following factorsa. Time
b. Choice of task
c. Transfer

27

d. Targets
e. Leaves
f. Methods
g. Place of work in the organization
h. Number of breaks

Conducting stress interview


Exit interviews become instrumental in assessing the level of satisfaction or dissatisfaction
of the employee. It should be well planned and questions should be well-framed. It should
focus on the issues like
a. Work Environment
b. Organizational culture
c. Peer group
d. Senior- subordinate relationship
e. Performance appraisal
f. Individual growth

The Importance of Retaining Employees


A company spends lots of money in developing an individual person and makes him
ready to work great and understand the corporate working culture.
When an employee resigns his job from present company, it is more likely that he/she
may join the competitors firm.
If an employee working in an organization for many years, they can understand the
particular firms guidelines, so thus they can adjust better.
Replacing employees costs money. The cost of replacing an employee is estimated at up
to twice the individuals annual salary (or higher for some positions, such as middle
management), and this doesnt even include the cost of lost knowledge.
Bringing employees up to speed takes even more time. And when youre short-staffed,
you often need to put in extra time to get the work done.
The goodwill of a company is maintained when the attrition rates are low. Higher
retention rates motivate potential employees to join the organization.

28

Customers and clients do business with a company in part because of the people.
Relationships are developed that encourage continued sponsorship of the business. When
an employee leaves, the relationships that employee built for the company are served,
which could lead to potential customer loss.

Positive effects of attrition on the organisation


Attrition is not always negative, it may have some positive results also. Some of the positive
results may include the following Advantages of new knowledge- New employees bring new knowledge; their knowledge
and skill may open new avenues for the organization.
Advantage of new technology- It will decrease the cost, thus the price of the final goods
or service will be cheaper; further leading to increase in demand and profits.
Introduction of new ideas- New ideas may help in increasing product line and product
mix or they may become helpful in starting new joint-ventures and working in
collaboration.
Lesser negative impact of groupies- Sometimes the existing groups may be rigid or the
group members may be reluctant towards others, in such a case attrition of a group
member may be positive for the organization.
Reduction in surplus staff- It will lead to reduction in cost of maintaining the surplus
employees ultimately leading to total cost.
Creation of a healthy and competitive environment in the organization- New
workforce may be more competitive, old employees may learn from them. They may get
inspired and compete with them.

29

Drivers of
Attrition

Individual

Organizational

Career
Aspirations

Family

Job Related

No Challenge

Mobility

Personality

No Learning

Factors

Style of Boss

Job Clarity

Job Stress

Lack of
Independence
30

Others

Culture

Peer Pressure

Growth &

Work

Career Paths

Environment

Pay Package

Poaching

Application in the company

Need for the Study


The success of any manufacturing organization depends largely on the workers, the
employees are considered as the backbone of any company. The study was mainly
undertaken to identify the level of employees attitude, the dissatisfaction factors they face
in the organization, why they choose to stay and for what reason they prefer to change their
job. Once the levels of employees attitude are identified, it would be possible for the
management to take necessary action to reduce attrition level.
Since they are considered as backbone of the company, their progression will lead to the
success of the company for the long run. This study can be helpful in knowing, why the
employees prefer to change their job and which factors make employee dissatisfy. Since the
study is critical issue, it is needed by the originations in order to assess the overall interest
and the feelings of the employees towards their nature of job and organization.
To address the reasons why attrition occurs, Stay Survey was conducted of Grade 61
employees. This study can be helpful to the management to improve its core weaknesses by
the suggestions and recommendations prescribed in the project. This study can serve as a
basis for measuring the organizations overall performance in terms of employee
satisfaction. The need of this study can be recognized when the result of the related study
need suggestions and recommendations to the similar situation.

Statement of problem
Managing attrition does not mean reducing attrition only. It could also mean bringing down
the negative effects of attrition. To do this the organizations should put up appropriate
retention and capacity utilization or talent utilization tactics. There are various retention
strategies used by the organizations today.
31

The aim of the present report is to study factors like salary, superior subordinate
relationship, growth opportunities, facilities, policies and procedures, recognition,
appreciation, suggestions, co- workers by which it helps to know the Attrition level in the
organizations and factors relating to retain them. This study also helps to find out where the
organizations are lagging in retaining.

32

SURVEY

METHODOLOGY

Generate the Survey Trends

5
4

Analyse Data
The data received was collated & analysed to
get detailed insight

Collect and Validate Data

Suggested recommendations

The responses received from all participants were validated


& intended interpretation

Invite and Seek Consent for Participation


A formal invitation e-mail was sent to the employees requesting for
participation & the interaction with the engineers was scheduled

Finalize the Target


The target employees were selected for interview

Design the Survey Instrument


The parameters of the study were finalized and a structured
questionnaire was designed as a primary data collection tool

33

Overview/Background of my work in the Company

As explained in the above diagram, the project undertaken by me was done in the above
mentioned sequence. As we know attrition is a critical issue in every organization, hence it
requires a detailed study of the problem. I made a detailed study of various articles to gain more
insight about the problem.
Basically what every companies do is conduct a Stay Interview & Exit Interview. The basic
reason behind conducting these two types of interview is to know what employees feel about
the workplace, to know their grievances and thereby take steps to overcome their problems.
Employees are assets for every company if treated with care and intelligence. But, at the same
time if they are not handled properly they turn out to be liabilities. Managing employees
requires proper engagement activities to be framed so that both the ends derive adequate
amount of satisfaction. The company should properly plan its work so that the company is
benefited and the objectives are met. On the other hand, the company should also make sure
that the employees also feel benefited in return. The company should know what actually
makes their employees happy and motivated to work.
Companies while conducting Exit Interviews try to identify trends in leavers behaviour and
the reasons employees change jobs/organisations. On that basis the company frames certain
retention strategies so as to make a positive influence on retention, or least leave with a positive
view of the organisation. The most common questions asked in Exit Interview is how the
employees felt working with the company, were they happy with the workplace environment,
how was their relation with their superiors as well as their colleagues, what is the reason for
leaving job etc.
Proactive feedback from the employees as Exit Interview is too late. If you know why an
individual employee stays, you can obviously reinforce those factors. And if you know far
enough in advance what factors might cause them to leave, you can get a head start in ensuring
those turnover causes never occur. Retention is an individualized process that needs to be
handled proactively. This is why Stay Interviews are conducted, as a tool used for retaining
the key and talented employees. It may also be known as Pre-Exit Interview. What actually
happens is a target employees are chosen to be interviewed, analysis is made and steps are
taken to retain them. Commonly questions relating to workplace and job satisfaction are asked.

34

As explained in the above diagram questions were framed concerning Stay Interview as a
tool-kit. These questions are the primary tool of my study. These questions formed the basis
towards managing employee engagement and their retention attributes thereby curbing
attrition. In other words, it is a list of possible stay questions to ask the employee, and most
importantly, a list of acceptable retention actions that are available to any manager for
improving an employees job and for minimizing possible retention triggers.
After finalising the questions, the target group to be interviewed was selected. Only such
employees are prioritized whom the managers feels and estimates that they might actually
leave. For my project the target employees were the employees of Gr. 61 i.e. G.E.Ts. These
were the employees holding key positions, talented employees as well as the employees to be
groomed as potential future leaders.
Once the target employees were selected, the third step involved sending them a formal
invitation regarding the interaction and seeking their consent for participation. A formal
invitation was sent to the respective employees from the HR department informing them about
the interaction schedule and place.
On the scheduled date the interview was conducted. It was a One-on-One interview. The
greatest advantage of conducting this type of interview setting is that employees feel free to
answer the questions. As it is highly personalized, the interviewee feels the confidentiality. The
information thus collected by this means is more accurate and insightful. In this process, I got
to know how the employees feel working at KPCL and also what they expect from the
companies. Employees were even asked to their suggestions as to encourage retention.
The data collected thereof, were thus taken into account for analysis and interpretation. The
trends of attrition and retention factors were analysed.
The final and the last step involved generating the results derived from analysis of the data
collected. On that basis I put forth my recommendations as to few things that the company
should do to manage attrition and retain its talent.
Stay Interviews should be scheduled periodically, usually once a year during a slack business
period. Its usually a good idea to interview all key employees around the same time, so that
the company can implement common actions at the same time. Conducting them less
frequently can be problematic in periods of high turnover, especially for new hires who
naturally have a higher risk of leaving, conduct stay interviews at four and eight months.
35

If companies are not diligent in fully understanding the factors inuencing the intent of their
workforce to stay, they could face a wave of turnover in the near future that could cripple some
companies. And, with studies telling us that 50% of our workforce is looking for another job
or totally disengaged from their jobs, retention has never been more critical.
So, organizations should give some hard thought to its talent management process, whether it
just wants an engagement rate or a benchmark comparison to its competitors, or does it wants
to know the real issues that are affecting its employees and what it can do to impact them?
There is a way to keep your eye on the organization and nd out its called the stay interview.

INTERNAL FACTORS

EXTERNAL FACTORS

Employee Brand
Candidate Behaviours
Candidate Skills
Job Fit
Others

Recognition
Training & Development
Performance Management
Communication
Manger Quality
Compensation
Others

EMPLOYEE TURNOVER

36

Job Characteristics

Personal Characteristics

Gender
Education
Marital Status

RETENTION
OF
EMPLOYEES

Self Esteem
Participation
Accountability & Authority

Age

Growth Prospects
Sense of Accomplishment
Prestige
Interpersonal relationships
Working Conditions
Involvement
Satisfaction
Motivation
Involvement
Work life
compatibility

37

Job Security
Amenities

OBJECTIVES

38

Objectives
To retain the existing key and talented employees.
To gain insight about why employees choose to stay at KPCL.
To engage employees in identifying their personal career aspirations effectiveness and
value added contribution to KPCL, with the ultimate aim of fitting the Right Person -tothe-Right Job to enhance personal goals.
To give employees a chance to offer suggestions for areas of improvement.
To help reveal vital information for employees about what they like and dont like about
their jobs.
To let employees know and aware that their skills, contributions and dedication are
valued and appreciated by KPCL.

39

INDUSTRY PROFILE

40

KIRLOSKAR GROUP

HISTORY
The Kirloskar saga began in 1888 when Laxmanrao Kirloskar set up a small bicycle repair shop
(now near the Shreekrishna theatre on Kirloskar road) at Belgaum and later Laxmanrao and his
brothers set up a model industrial colony called Kirloskarvadi Indias first industrial
township. In January 1910 when the Kirloskar were being ousted from Belgaum to make room
for a new suburb, they found themselves in dire need of a place to live and work and hence the
birth of Kirloskarvadi.
Laxmanrao Kirloskar, founder of the Kirloskar Industries was born on 20th June, 1869, in a
small village, Gurlahosur in Belgaum District. He started his life as a school teacher and later
on, opened a cycle repair shop in Belgaum. But his ambition and mission could not be satisfied
by a small workshop at Belgaum.
When the Municipality of Belgaum ordered Kirloskar to vacate their place, Laxmanrao
Kirloskar could not find a suitable place for his workshop. But thanks to the timely help of the
Ruler of Aundh who offered him a place arranging loan of ten thousand rupees, he started his
factory in an arid waste land by the side of a renowned railway station, named Kundal Road.
The factory later blossomed into famous Kirloskar Industries and the station came to be called
Kirloskarvadi.
Laxmanrao Kirloskar set foot on 32 acres of barren land strewn with cacti and infested with
cobras. Driven by his faith in human ability, Laxmanrao banded together 25 workers and their
families and succeeded in transforming the barren expanse into his dream village. Ramuanna,
41

Laxmanraos brother, planned and administered the township, Shamburao Jambhekar doubled
as engineer and all-round healing man, K.K.Kulkarni, an unsuccessful student, became a
manager, treasurer and odd jobs man, Mangeshrao Rege was the clerk and chief accountant,
Anantrao Phalnikar, a school drop-out flowered into an imaginative engineer. Such was
Laxmanraos faith in the human being that, Tukaram Ramoshi and Pirya Mang, both convicted
dacoits, became the trusted guards of Kirloskarvadi! Superstitious farmers were extremely hard
to convince and Laxmanrao Kirloskar took two years to sell his first iron ploughs.
Today Kirloskar brothers are a 1.20 billion US Dollars engineering conglomerate driving
critical industries. They are century old pioneers in areas of specialization like power,
construction and mining, agriculture, industry and transport, oil and gas and environment
protection with a range of world-class industrial products and turnkey services.
They are made up of 8 major group companies, each led by the best engineering and managerial
talent in India. In addition to engineering, they have interests in civic utility systems and in
Information Technology and communication.
The Kirloskar Group is an Indian conglomerate with sales exceeding $2.5 billion. The company
exports to over 70 countries over most of Africa, Southeast Asia and Europe. The flagship &
holding company, Kirloskar Brothers Ltd established in 1888, is India's largest maker of pumps
and valves and also undertakes construction projects through its subsidiary Kirloskar
Construction And Engineers Ltd. The group is headed by Sanjay Kirloskar.
India's first iron plough from the Kirloskar Group, not only became an instrument of wealth
for the entire society but also kick started an industrial revolution in India. Today, building on
its core engineering strength, the group's scope of operations spans across a gamut of industrial
equipment ranging from pumps & valves, eco-friendly diesel engines & silent generating sets,
air & gas compressors, air-conditioning and refrigeration equipment, a wide range of anticorrosion coatings and castings for automotive sector.

42

HISTORY

43

Type

Private

Industry

Conglomerate

Founded

1888 (As Kirloskar Brothers Limited)

Headquarters Pune, Maharashtra, India


Area served

Worldwide

Key people

Sanjay Kirloskar, (Chairman & MD)

Pumps
engines
compressors
chillers
valves
pig iron

Products

construction
transmissions
automobiles through a joint venture with Toyota
infrastructure pumping projects
bridges & flyovers
submarine pipelines
construction

Website

http://www.kirloskar.com

44

Kirloskar companies
Kirloskar Brothers Ltd.
Kirloskar Brothers Limited (which includes Kirloskar Brothers Ltd, Aban Construction
Company, SPP Pumps (UK), Kirloskar Ebara Pumps Ltd, Braybar pumps Ltd, (South Africa)
and The Kolhapur Steels Ltd is Indias largest pump manufacturer. Kirloskar Brother produces
Centrifugal pumps from 0.1 KW to 26MW with single pumps pumping liquids in excess of
35,000Liters/sec thus producing some of the largest pumps by size and horsepower. Kirloskar
Brothers Limited was established in 1888 and incorporated in 1920. It is the flagship company
of the $ 2.1 billion Kirloskar Group. The market leader in fluid management, KBL provides
complete fluid management solutions for large infrastructure projects in the areas of water
supply, power plants, irrigation, oil & gas and marine & defence. It engineers and manufactures
industrial, agriculture & domestic pumps, valves and hydro turbines.

Kirloskar Oil Engines Limited


Incorporated in 1946, Kirloskar Oil Engines Limited (KOEL) is a part of the Kirloskar Group.
KOEL manufactures air-cooled and liquid-cooled diesel engines and generating sets ranging
from a power output of 5 kVA to 625 kVA and 1800 kVA to 6300 kVA. They also offer engines
operating on alternative fuels such as biodiesel, natural gas, biogas and straight vegetable oil
(SVO). Their generating sets are branded as Kirloskar Green Gensets. KOEL also offers
customized power solutions including both standby and prime power requirements. KOEL is
one of the world's leading players in the generating set market.

Kirloskar Ferrous Industries Limited


KFIL is the flagship company of the Kirloskar Group. KFIL was promoted by Kirloskar Oil
Engines Limited & Shivaji Works Limited (SWL). KFIL was incorporated with the objective
of catering to the requirement of high quality Pig Iron and intricate, thin walled grey iron
castings to the emerging in Tractor, Auto, Engine and other related segments.

45

Kirloskar Proprietary Limited.


Kirloskar Proprietary Limited was established in the year 1965. Kirloskar Proprietary Ltd. is
the registered owner of intellectual property consisting of various trademarks and copyrights
in India and many foreign countries. It has granted licenses thereof to several companies in
Kirloskar group. Besides protecting and defending these marks from infringers it also looks
after enhancing the image of Kirloskar brand

Kirloskar Middle East FZE.


For more than 3 decades, customers in the Middle East, Africa and South East Asia have been
using various products manufactured by the Kirloskar Group in India.
There was continuous need to establish an identity in the Middle East region, which will be
close to the end customers as well as the distributors in the region with the basic objective to
give quick response to the customers requirements and make the products & services available
at their door step.
With this vision, Kirloskar Middle East FZE (KMEF) was born in November 1996. It was
decided that Marketing set up and Warehousing facility would be established simultaneously,
so that a range of products would always be available for customers without delay. KMEF is
now expanding operations to include packaging of compressor engineered sets and pump sets
in UAE.

Kirloskar Pneumatic Co Ltd (KPCL)


Kirloskar Pneumatic Co Ltd (Kirloskar Pneumatic) was established in 1958 to manufacture air
compressors and pneumatic tools in collaboration with Broom and Wade, UK. In 2002, it was
merged with K G Khosla Compressors Ltd and the new entity was renamed Kirloskar
Pneumatic.

46

Kirloskar Integrated Technologies Limited. (KITL)


KITL was founded in 2008 and is based in Pune, India. They have extensive research
background in renewable energy and have filed several patents in this area. The customers
range from farmers in rural areas, to governments and defence, as well as independent power
producers, among others.
KITL is committed to developing and distributing green technology solutions to reduce
greenhouse gas emissions. Currently, the focus is on bio-energy, solar, and tidal and marine
energy solutions. They offer both stand-alone and hybrid solutions, customizable for the needs
of their customers.

Kirloskar Chillers Private Limited


Produces centrifugal chillers from 250 TR to 2400 TR and air-cooled and water-cooled screw
chillers from 40 TR to 550 TR for air conditioning and process cooling applications. It also
offers products for hot water generation including chillers with super heaters & heat pumps.
Established in 1995, Kirloskar Chillers is the largest chiller manufacturer in India, and the first
to have its products certified under the AHRI 550/590 certification program. The factory at
Saswad, near Pune, also has the first AHRI-certified chiller test facility in India. It is also the
only Indian company to manufacture centrifugal & screw chillers under one roof.

Toyota Kirloskar Motor Private Limited (TKML) produces Toyota Vehicles in India

Mysore Kirloskar (MK) produced lathes including CNC types

Kirloskar Electric Company (KEC) made electrical equipment like transformers,


generators and motors, etc. It is not part of the Kirloskar Group anymore.

Kirloskar Institute of Advanced Management Studies (KIAMS) was conceived in 1991


as a training institute and a knowledge hub where Kirloskar Group managers taught and
learned management. In 1995, the training institute was opened to managers all over
the country.

47

Products & Services


The Kirloskar group of companies was one of the earliest industrial groups in the engineering
industry in India. The group produces pumps, engines, compressors, screw & centrifugal
chillers, lathes and electrical equipments like electric motors, transformers and generators (it is
the world's largest genset manufacturer). While he established the group, his son also played a
role in the leadership of the company.
The company under Shantanurao Laxmanrao Kirloskar achieved one of the highest growth
rates in Indian history, with 32,401% growth of assets from 19501991.
In 1988, Rajiv Gandhi, the then Prime Minister of India released a commemorative stamp
marking the Kirloskar Group's 100th anniversary.
In 1974, in cooperation with Deutz-Fahr of Germany, Kirloskar began manufacturing tractors.
They have since ceased tractor production.
The Kirloskar Group also set up India's second oldest township Kirloskarvadi in Maharashtra,
which is now a 100-year-old township in 2010.

Engines, Gensets and Power Solutions

Pumps and Fluid Handling Solutions

Compressors, Refrigeration and Process Gas Systems

Solutions for Pump Packages

48

API Process Pumps and Steam Turbines

Centrifugal & Screw Chillers

Anti-corrosion and Anti-erosion Coatings

Green Solutions

Pig Iron and Castings

Foundry - Steel Castings

Trading and After Sales Services of Kirloskar Products

Educational Institute (Management)

Trading and Servicing of Pumps & Valves in Europe

49

Achievements
The groups two largest companies, Kirloskar Brothers Limited and Kirloskar Oil Engines
Limited, own many patents.
Kirloskar Brothers Ltd created the worlds largest irrigation project which was commissioned
in March 2007 (the Sardar Sarovar Dam project for the Gujarat Government. This was done
for Sardar Sarovar Narmada Nigam) and on 14 March 2008 commissioned the worlds second
largest water supply system with the worlds highest head in Andhra Pradesh. Kirloskar
Brothers is associated with India's nuclear program and has made canned motor pumps for
pumping heavy water which are deployed at Indian Nuclear Power Plants. Kirloskar Brothers
Limited is also a supplier of FM UL certified pumps along with its subsidiary SPP Pumps
(UK). It was the first Indian company to get FM certification for its valves. Kirloskar Brothers
has a presence is numerous countries including Egypt.
Kirloskar Brothers is also one of the first pump companies to have an all women operated and
managed manufacturing plant at Coimbatore, which is the second largest metropolitan city of
state Tamil Nadu in India. The company was one of the country's top ten wealth creators in
2007.
Kirloskar Brothers won the first "best of all" Rajiv Gandhi National Quality Award in 1992.

50

COMPANY
PROFILE

51

KIRLOSKAR PNEUMATIC COMPANY LIMITED


HADAPSAR, PUNE
History
Kirloskar Pneumatic Co Ltd (Kirloskar Pneumatic) was established in 1958 to manufacture air
compressors and pneumatic tools in collaboration with Broom and Wade, UK. In 2002, it was
merged with K G Khosla Compressors Ltd and the new entity was renamed Kirloskar
Pneumatic.

The doyen of Indian industry Late Shri Shantanurao L. Kirloskar incorporated Kirloskar
Pneumatic Co. Ltd. (KPCL) on 27th March 1958. Today it is a well-diversified engineering
company. The company started its operations with the manufacture of Air Compressors and
Pneumatic Tools and soon branched off in manufacture of Air Conditioning and Refrigeration
equipment, Process Gas equipment and Hydraulic Power Transmission machinery. The
company also earned an enviable reputation for its Systems Engineering and Turnkey Project
expertise. KPCL has the distinction of acquiring advance technologies from world over,
adapting them to suit Indian conditions and continuously updating them to maintain the highest
standards of quality and reliability.

KPCL has its Head Office & Factory at Hadapsar, Pune, one plant at Saswad (20 Kms from
Hadapsar-HO) and one plant in Nasik. Sales & Service offices are situated in major cities in
India. It was certified for ISO 9001 Quality Systems by the Indian Register Quality Systems
(IRQS) in February 1993 and re-certified in 1996, 1999,2002,2005,2008. In the year 2008,
KPCL achieved coveted achievement of getting certified for Environment and Occupation and
Health Management System. (EMS (ISO 14001) and OHSAS 18001). KPCL became an IMS
certified company in 2012.

52

Operations
Kirloskar Pneumatic operates in compression systems and transmission products. Compression
systems segment consists of air compressor (ACD), Air conditioning & refrigeration (ACR),
Transmission (TRM), Road Railer and Process gas (PGS) divisions.
At Kirloskar Pneumatic, up-to-date manufacturing facilities, including CNC machines,
stringent quality control procedures and systems, research and development, foundry, heat
treatment facilities, screw rotor machines, gear grinding machines, metallurgical &
Metrological laboratories, tool room and an integrated computer system, have all been set up
with the sole idea of achieving the highest standards of quality and performance.
Kirloskar Pneumatics is among the first few companys in India, to secure the ISO 9001
certification, in all its operations. Also, Kirloskar Pneumatic is certified for Environment
Management System, ISO 14001: 2004 and Occupational Health and Safety management
System Standard OHSAS 18001: 2007.
Companys Products are manufactures under the survey of renowned inspection agencies such
as Lioyds, MMD, IRS, NTPC, EIL, PDIL, DGS&D, RITES and many more, and are well
accepted not only in India but also in the countries of South East Asia, Africa, the Middle East,
West Asia and The United States of America.

53

ORGANIZATIONAL STRUCTURE OF KPCL


SBU Head ACR

CHAIRMAN

SBU Head ACD

SBU Head TRM

SBU Head PGS

Business Head
Refrigeration
System

Business Head PGS

Business Head
AEPSS

Business Head
Vapour
Absorption
Chillers

Health & CSR

MD

HRD
SBU Head HR

T&D

HRM & Factory


Manager
Head Strategy

Head IT
Head Corporate
QA

Head Finance
54

Head
Communication

CORPORATE PROFILE
KEY EXECUTIVES
Mr. Rahul C. Kirloskar (Executive Chairman)

Mr. Atul C. Kirloskar (Director)

Mr. Sanjay C. Kirloskar (Director)

Mr. Vikram S. Kirloskar (Director)

Mr. A. C. Mukherji (Director)

Mr. J. Y. Tekawade (Director)

Mr. G. Krishna Rao (Director)

Mr. P. S. Jawadekar (Director)

Mr. D. R. Swar (Director)


Mr. Sunil Shah Singh (Director)

Mr. Aditya Kowshik (Managing Director)

Mr. Rahul C. Kirloskar, Executive Chairman is a top notch technocrat associated with
Kirloskar Group of Companies for more than twenty three years at senior levels in different
capacities. Participated in an intensive course of top management professionals of major
international companies on Total Quality Management (TQM) in Japan, conducted by Japanese
Union of Scientists and Engineers (JUSE), has given a lot of thrust for reducing overheads and
is taking all possible steps to reduce the overhead cost and thereby further improve the
profitability of the Company and make the products more competitive.

55

The Directorship of Mr. Rahul C Kirloskar in other companies is as follows:

Name of the Company

Board position

Green-Tek Systems (India) Ltd.

Director

Kirloskar Brothers Ltd.

Director

Kirloskar Oil Engines Ltd.

Director

Kirloskar Proprietary Ltd.

Director

Asara Sales & Investments Pvt. Ltd.

Director

Pratibha Communications Pvt. Ltd.

Chairman

COMPANY SECRETARY:
Mr. Jitendra R. Shah

LOCATION OF PLANTS:
Pune, Saswad and Nashik

BRANCHES & OFFICES:


HADAPSAR PLANT

SASWAD PLANT

KIRLOSKAR PNEUMATIC CO. LTD.

KIRLOSKAR PNEUMATIC CO. LTD.

Hadapsar industrial estate,


Hadapsar, Pune-411 013.

Saswad Industrial Estate, Near Waghire


College

Tel: (020) 26727000

Taluka: Purandar, District: Pune

Fax: 020-26870297/26870634

Tel.: 02115222403 / 222409.

E-mail: KPCL-HO@kpcl.net

Fax: 02115-222406
E-mail: KPCL-Saswad@kpcl.net

56

CORPORATE PHILOSOPHY
VISION
Its time to grow
KPCL will achieve a sale of Rs.1425 crores by the year 2016-17.
ACR & PGS will achieve a sale of Rs.8,000 million with a focus on KC compressor exports,
CNG & API compliant Refrigeration & Gas compression packages for the Domestic & Export
markets and entering into Domestic market of Vapour Absorption Chillers.
ACD will achieve a sale of Rs.4500 million by increasing market-share in Rotary Compressor
market and strengthening the leadership position in Reciprocating Compressor market.
TRM will achieve a sale of Rs.1750 million by maintaining the leadership position in Railway
Traction Gears market; strengthening the position in Wind Mill Gear Box market and entering
into Industrial Gear Box business.

MISSION
We will demonstrate an EDGE to all our Stakeholders in our offerings for converting /
transmitting energy.
We will strive to make our Company an employer of Choice

VALUES
In an ever changing world one thing that will remain constant is our Commitment towards all
our stakeholders.
Each one of us will be guided by the following values.

Customer Focus

Our activities / actions will be focused on enhancing internal / external customer's satisfaction.
57

Commitment

We commit to achieve our targets / goals. We will be responsible / accountable for our
commitment.

Continual Improvement

We will consciously work to improve our procedures, processes and systems with an objective
to improve our business processes.

Ethical Business Practices

We will be fair in our dealings with all our stakeholders. It will be based on integrity, honesty
and transparency

58

59

Competitors
Company

Alfa Laval (India)

Atlas Copco (India)

BEML

Ingersoll Rand

ISGEC Heavy Engg.

Nitin Fire Protectn

Praj Industries

Kirloskar Pneumatic

Forbes & Company

Elecon Engg.

Ricoh India

Walchandnagar Inds

Action Const. Equip

CMI FPE

Kabra Extrus.technik

Premier

Swiss Glascoat Eqtp

Polymechplast Mach

Incon Engineers

Koa Tools India

Mirch Tech.

Sales
(Rs.Million)

Current
Change (%)
Price

P/E Ratio

Market
Cap.(Rs.Million)

52-Week
High/Low

11541.74

3946.50

0.00

54.90

71670.35

3948/3940

25204.31

2724.00

0.00

27.21

61384.38

2724/1487

28089.10

725.00

5.53

611.32

28609.77

697/126

5813.69

683.00

2.71

31.35

20991.14

710/301

25126.34

2384.45

8.34

17.14

16219.99

2229/783

3520.62

65.00

0.31

129.41

14204.56

70/49

7662.12

72.95

2.96

20.15

12573.40

79/30

5488.09

630.00

-3.08

21.50

8348.82

655/320

3103.39

603.90

-1.63

0.00

7918.46

650/471

5952.07

65.25

-2.61

26.61

7298.70

69/19

6331.20

166.50

-4.88

40.41

6961.42

179/42

7265.14

112.00

-4.96

0.00

4486.57

121/41

6678.50

27.45

-4.85

70.95

2854.42

32/8

5328.95

499.00

-4.96

0.00

2592.60

598/207

1799.42

63.00

1.69

13.91

1976.35

65/23

2408.32

66.90

3.08

7.84

1971.18

78/46

756.14

50.75

-2.40

6.84

260.00

57/28

208.50

4.20

0.00

17.27

24.70

18/4

4.96

3.57

0.00

44.14

15.45

4/3

19.20

0.30

0.00

260.69

10.43

0/0

0.36

0.00

0.00

0.00

0.04

0/0

60

PRODUCTS AND SOLUTIONS


Pioneering industrial revolution in India, Kirloskar group has contributed immensely in every
field of its operation during its 120 year-long journey, and holds a place of repute in the industry
for its good business values and customer focus. Established in 1958, Kirloskar Pneumatic
Company Limited started with the manufacture of Air-compressors and Pneumatic tools.
Immediately thereafter, the company expanded its activities in the field of air conditioning and
refrigeration machinery. Further diversification in the manufacture of Hydraulic Power
Transmission equipment followed.
Kirloskar Pneumatic is held in high esteem for Process System Engineering and Turnkey
project expertise. The result of success in this area is reflected in Companys association with
virtually with every project and industry in the country.

AIR COMPRESSOR DIVISION (ACR)


Kirloskar Pneumatic Company Ltd is in compressor business since 1955. From a product
manufacturer in the domestic market to a company offering total solutions from designing
systems to manufacturing customized products and systems, KPCL has come a long way. The
customer-centric work culture along with technical excellence has been the hallmark of this
success. The graduation was steady and strategically aimed at specific market segments.

Reciprocating Air Compressors


Reciprocating Air Compressor Division offers products for a wide range of market segments
such as general engineering to critical operation & processing applications in key sectors like
Railways and process industries like Refineries & Petrochemical Industries.

Screw Air Compressors


Screw Air Compressors division caters its niche market segment right from General
engineering workshop till the operation & processing unit in different sectors.

61

Centrifugal Air Compressors


KPCL has a technical tie-up with Cameron Compression of USA for packaging and marketing
Centrifugal Air Compressors in India.

AIR CONDITIONING, REFRIGERATION & PROCESS GAS DIVISION


(ACR & PG)
Compressor for Refrigeration Systems
The reciprocating range of refrigerant compressors has wide applications in the area of
industrial refrigeration which includes food & beverage processing and preservation, ice plants,
process refrigeration which includes pharmaceuticals, chemicals etc. The range also caters to
HVAC applications including water chillers etc.

Refrigeration System
Kirloskar Pneumatic Co Ltd is a leading name in Industrial Refrigeration, Process Refrigeration
and Preservation. They provide turnkey products and solutions with designing, manufacturing
and packaging, installation, commissioning, after sales and training. KPCL Provides
refrigeration and gas compression systems used in conjunction with hydrocarbon which is
highly specialized market segment in the field of industrial refrigeration.

62

Gas Compression Solutions


KPCLs customized solutions feature activities like designing, manufacturing, packaging,
installation, commissioning, after sales service and training. KPCL has been serving the
Process Gas Sector in following segments:

Vapour Absorption Chillers


Kirloskar Vapour Absorption Chillers (VAC) is a highly efficient machine. KPCL has
established manufacturing facility at existing Saswad factory, Near Pune. The manufacturing
facilities include Fabrication, Assembly and Performance Testing at full load etc. VACs are
used in Power plants, Pharmaceuticals, Chemicals/Fertilizer industries, Tyre industries, Textile
industries, Food Processing sector, Hospitals & Hotel Industries, Paper industries, Paint
industries, Steel industries etc.

TRANSMISSION DIVISION (TRM)

TRM is the fast track business unit of KPCL. With 6 products on board, this SBU specially
cater the need of the Rail, Defence and Non-conventional energy sectors. TRM especially hold
its mastery in different types of gears & gear boxes with capacity ranges from sub megawatt to
higher megawatt range.

63

AWARDS & ACCOLADES


Recognition of KPCL's Performance in CII Assessment
KPCL has been commended for Significant Achievement
on the Journey towards Business Excellence in the CII
21st National Quality Summit held at Bangalore on
8th Nov 2013.

Recognition of KPCL's Perfomrnace in RKQP Assessment


KPCL received Award

&

Certificate of

Recognition for achieving highest score in Criteria of


People, People Results & Society Results in RKQP 2013
Assessment.

Recognition of KPCL for receiving the award for Best Innovative Project
KPCL received the award for Best Innovative
Project for KRM 1200 Railway Brake Compressor for
the year 2012-13 through hands of Senior Assessor Dr.
Satishchandra Joshi and Mr. Aseem Srivastav Mentor K
Group EnCon Committee on 21st Feb14.

64

Recognition for KPCL's Quality Circle in 26th CII - QC Competition


KPCL received Consolation Prize Quality Circle
Competition Trophy at CII 26th QC Competition Maharashtra state Level held at Kolhapur on 17th Oct
2013.

Recognition of KPCL's QC Story at Quality Improvement Success


Story Presentation
KPCL received 2nd Winner Trophy at Quality
Improvement Success Story Presentation a Special
Program held at Quality Circle Excellence Centre, Bhosari
Pune on 23rd Nov 2013.

Recognition of KPCL's Kaizen at Mini Convention


KPCL Kaizen teams received Gold & Silver
trophy at 46th Mini Convention of QCFI Pune
Chapter

65

held

at

Pune

on

8th

June

2013.

Recognition of KPCL's Kaizen in NCQC 2013


KPCL received Excellence Award Trophy at 27th
National convention on Quality concepts (NCQC
2013)

held

at

Kolkata.

Recognition of KPCL's Best HR 2013-14

KPCL received MCCIA Best HR Award


for 2013-14 on 10th June14.

66

SWOT ANALYSIS
Strength
Established brand image around the world over the centuries.
Technical expertise and Leadership

Continuous improvement of product and quality


Companys CSR have helped to develop its brand and reputation among the people.
Employee development is given at most care
Wide portfolio of customers
Good infrastructure facility
Weakness
Lack of innovation
Old Machines

Opportunities
Continuous innovation of products
Use of non- conventional energy

Threats
Electricity tariff hike
Fuel Price inflation

67

LITERATURE
REVIEW

68

Review on literature

Despite several studies carried out on attrition management, the strategic human resource
researchers are still investigating the causal mechanisms between HR practices and firms
performance mostly related to voluntary turnover as a critical component (Shaw, Gupta and
Delery, 2005) as employee retention plays a vital role in bridging the gap between the macro
strategies and micro behaviour in organizations. This is because it ensures stability and
connects the experiences of individuals in organizations on a continuous basis to the critical
measures of success factors in the organization. The decision of leaving the organization is not
easy for an individual employee as well as significant energy is spent on finding new jobs,
adjusting to new situations, giving up known routines and interpersonal connection and is so
stressful (Boswell, Boudreau and Tichy, 2005). Therefore if timely and proper measures are
taken by the organizations, some of the voluntary turnover in the organization can be prevented.
The reasons for employee turnover may vary from external environmental factors such as
economy that influence the business that in turn affects the employment levels (Pettman 1975;
Mobley, 1982; Schervish, 1983; Terborg and Lee, 1984) to organizational variables such as
type of industry, occupational category, organization size, payment, supervisory level, location,
selection process, work environment, work assignments, benefits, promotions and (Mobley,
1982; Arthur, 2001). The other factors that influence employee turnover in organizations
include the individual work variables like demographic variables, integrative variables like job
satisfaction, pay, promotion and working condition (Pettman, 1975; Mobley 1982; Arthur
2001) and the individual non-working variables such as family related varibles (Pettman,
1975; Mobley, 1982).
Any of the above factors could be the reasons, but the decision process to leave or stay in the
organization is to be periodically examined to understand the specific reasons that prompted
them to take such a step and the organizations should be mainly concerned about voluntary
turnover and not involuntary turnover as it is within their control.
Also it is found that employees who perform better and are intelligent enough have more
external employment opportunities available compared to average or poor performance
employees and thus they are more likely to leave (Trevor, 2001). High rates of voluntary
turnover of such employees are often found to be harmful or disruptive to firms performance
(Glebbeck & Bax, 2004). When poor performers, choose to leave the organization, it is good
69

for the organization (Abelson & Baysinger, 1984), thus it is important to differentiate between
functional and dysfunctional turnover and accordingly encourage or discourage employee
turnover. Further voluntary turnover of critical work force is to be differentiated into avoidable
and unavoidable turnover (Barrick & Zimmerman, 2005). Estimates of the loses for each
employee vary from a few thousand dollars to more than two times the persons salary
depending on the industry, the content of the job, the availability of replacements and other
factors (Hinkin & Tracey, 2000).
In some industries chronic shortage of qualified employees has driven up the costs of turnover.
Therefore the acquisition, development and retention of talent form the basis for developing
competitive advantage in many industries and countries (Pfeffer, 1994, 2005). Organizations
failing to retain high performers will be left with an understaffed, less qualified workforce that
ultimately hinders their ability to remain competitive (Rappaport, Bancroft, & Okum, 2003).
Three studies incorporated attitudinal and/or behavioural changes over time to better predict
turnover. Sturman and Trevor (2001) found that quitters performance over time did not
significantly change while stays performance slope was positive. Demographic factors cannot
be ignored as age, tenure, level of education, level of income, job category, gender have
influenced employee retention and have been found to have stable relationship with turnover
intention. Of the above demographic factors, age, tenure and income level was found to be
negatively related to turnover intention (Arnold & Feldman, 1982; Cotton & Tuttle, 1986;
Gerhart, 1990: Mobley et. Al, 1979; Price & Mueller, 1986; Wai & Robinson, 1998; Weil
& Kimball, 1995); level of education is positively associated with turnover, the more educated
the employees there is a tendency to quit (Berg, 1991; Cotton & Tuttle, 1986); with respect
to job category, (Wai & Robinson, 1998 and Price and Mueller, 1986) found that nonmanagerial employees are more likely to quit than managerial employees.
Relationship between gender and turnover showed mixed result. Cotton and Tuttle (1986)
and Weisberg and Kirshenbaum (1993) found females more likely to leave than males.
Miller and Wheeler (1992) and Wai and Robinson (1998) reported no relationship between
gender and turnover. However the reasons for employee turnover vary from one organization
to the other and from one person to another as they are not getting what they expect from the
organization (Ongori, 2007; Mobley 1982 and Dickter, Roznowski and Harrison 1996) also
called for more research and theory pertaining to how the turnover process occurs over time.

70

The following chart indicates the attrition trends for the financial year 2012-13 & 2013-14 for
different industry sectors and across different levels of department. This survery was conducted
by Deloitte in which 209 organisations from 18 sctors participated. The graph shows that the
highest attrition rate is experienced by ITes and Media industry for both the financial year.
Whereas the average attrition trend is 13.4% for the financial year 2013-14 which is 0.8% less
than the previous financial year.
The next part of the graph indicates the voluntary attrition trends across different levels
comprising of Clerical Level, Junior Management, Middle Management, Senior Management
and Top Management. According to the survey the highest attrition is at Clerical level.
The second graph shows the reasons for attrition according to the survey. It is revealed that the
major contributors to attrition are career prospects, personal reasons and better utilization of
skills.
Also the measures taken to curb attrition are highlighted. Apart from this, the major HR
challenges are shown namely Career Mangement, Attraction and Developing Potential
Leaders. It is suggested that industries need to initiate faster growth opprtunities, performance
linked incentives and skill enhancement training programs.

71

OVERALL INDUSTRY ANALYSIS

72

RESEARCH

METHODOLOGY

73

Scope of the Study

This study provides to understand factors affecting attrition and retention of employees of
KPCL. The study mainly focuses on the employees of Gr.61 i.e. Sr. Engineers. Moreover, only
selected facets of job characteristics have been considered for the study. Therefore the scope
of the study is limited to the geographical location of the sample size and also to the selected
dimensions of personal characteristics. The study throws light through valuable suggestion to
decrease attrition level in the organization. This study can help the management to find the
weaker parts of the employee feels towards the organization and also helps in converting those
weaker part in to stronger by providing the optimum suggestions or solutions.
This study has a wider for scope in any kind of organization since attrition is general one and
makes the employees to put forth their practical difficulties and need factors in the organization.
This study can help the management to know for which the reason employees tend to change
their job, through dissatisfaction factors faced in the organization and also helps to recover by
providing the optimum suggestions or solutions.

Research Process

Review of Literature
Define
Research
Problem

Design Research
(including Sample
size)

Research Concept &


Theories
Review previous
Research Findings

Analyse
Data

Interpret & Report

Collect
Data

Feedback

74

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

Research Instrument and Statistical Techniques


Normally two types of data are used for the purpose of carrying out research. For this survey
also I have collected these data i.e.
a. Primary data
b. Secondary data
Primary Data:
Primary data is one, which is collected from fresh sources and for the first time while
conducting the research.
For the project, primary survey has been undertaken through a survey instrument consisting of
structured questionnaire filled by employees by the way of personal interviewing
Secondary data:
Secondary data is that data which has been collected for some other purpose.
There are two types of sources for collecting secondary data:
a. Internal sources
b. External sources
Internal sources of secondary data includes the data generated within the organisation
E.g. Employee Engagement Survey Result
External sources of secondary data are the sources outside the organisation
E.g. Annual Publications, Books, Magazines and Internet etc.

75

Research methodology
The methodology used for my project is as follows:
Research approach methodSurvey Method
Area of studyThe survey was carried out in Kirloskar Pneumatics Company Limited, Pune. A survey was
effective to study the attrition management in the company.
ResearchExploratory and Descriptive
Data SourcePrimary Data and Secondary Data
Research TechniqueOne-on-One interview
Time period of study2 months (2nd June-2nd August)
Target respondentsSr. Engineers at Kirloskar Pneumatics Co. Ltd.
Sample sizeThe sample is 25 employees which includes the employees of Gr. 61 (Sr. Engineers)
Sampling methodSampling procedure used for this study is Simple Random Sampling
Sample of studyThe sample is a basic unit consisting of the elements of the population to be sampled. Sample
population includes employees from KPCL in Pune. The population includes the employees of
the various department in the organisation.
76

Sample designTo select the samples, the sampling technique used was Simple Random Sampling. The main
benefit of Simple Random Sampling is that it guarantees that the sample chosen is a
representative of the population. This ensures that the statically conclusions will be valid.
In this technique each member of the population has an equal chance of being selected as
subject. The entire process of sampling is done in a single step with each subject selected
independently of the other member of the population.
Tool for data collectionThe research instrument used in this study is structured questionnaire which consists of 14
questions. It was predetermined before conducting the survey. The questions are open ended.
Statistical tools used in the studyFor the analysis of data percentage analysis is used.

77

DATA ANALYSIS
&

INTERPRETATION

78

This survey was conducted with a sample size of 25 employees.


Q.1. What are the top 3 factors you might consider important that will continue to keep you here
at KPCL?

Reasons for Working


44%

Others
Career Opportunities
Sense of accomplishment
Brand Alignment
Autonomy/Choice
People/HR Practices
Work Tasks
Pay
Learning & Development
Organization Reputation/Culture

8%
8%
8%
20%
20%
28%
28%
32%
64%
0

10

20

30

40

50

60

70

INTERPRETATION:
The above graph represents that most of the employees feel the work culture and the
organizations reputation as the prime reason to continue working with the company. Whereas
if we further see. We find that 32% employee feel that they get better training and development
programs at KPCL, which is why they choose to work with the company. 28% employees feel
that they are paid well in this company and like their work tasks.
The following are the other stated reasons by the employees:

79

Q.2. What do you love best about your work / working in?

LOVE FOR WORK


32%
24%
16%
12%

12%
8%

8%

8%
4%

4%

INTERPRETATION:
The above graph depicts that 32% employees like the trainings imparted to them and they feel
that they get more development opportunities at KPCL. The next thing that employees love
about their job is the task allotted to them. Around 24% employees love work in their present
areas of job. The third reason that the employees stated was interaction with the
clients/customers. 16% of the interviewee feel that in the process of interacting with the
customers they actually get to know their demands, which helps them to design and deliver
customer specific products and satisfy customer requirements. This gives them a sense of
accomplishment. Meanwhile they also develop better communication skills in the processes of
interaction.

80

Q.3. What will motivate you to excel further in your current position & make your job more
satisfying?

Motivators
30

28%

25
20

24%

24%
16%
12%

15

8%

10

8%
4%

4%

INTERPRETATION:
The top 3 motivators as indicated in the graph is Work tasks, Recognition, Leadership and
Learning & Development. 28% of the interviewed employees feel motivated by their work
tasks. They love to do their work and the challenges in their work. 24% employees said the
support of their seniors motivates them and the leadership they are given to handle projects
motivates them. While, the next 24% employees feel motivated by the appreciation received
from seniors and colleagues and also they get motivated when their ideas are accepted. The
third major motivator is the learning and development imparted to the employees.

81

Q.4. Does KPCL adequately support your career goals?

Support for Career Goals


16%

24%

60%

Yes

No

To some extent

INTERPRETATION:
60% of the employees feel that KPCL adequately supports their career goals and is providing
them enough opportunities to groom their skills. Whereas 24% of the employees feel that they
the company is not supporting their career objectives and 16% employees feel somewhat
supported in their career goals

82

Q.5. Does KPCL fully utilize your talent?

Skills Utilization
Yes

20%
40%

No

40%

To some
extent

INTERPRETATION:
The above graph represents a mixed view regarding skill utilization. About 40% of the
employees feel that KPCL gives them sufficient opportunities to utilize their skills. At the same
time 40% employees feel that their skills are not utilized to its maximum potential. 20% of the
employees are of the opinion that they are utilizing their skills to some extent.

83

Q.6. How can KPCL support your career goals?

SUGGESTIONS FOR SUPPORTING


CAREER GOALS
30

28%
24%

25
20

16%
15
10

8%
4%

4%

4%

0
Learning &
Development

Resources

Leadership

Career
opportunities

Work Life
Balance

Communication

Recognition

INTERPRETATION:
As a part of suggestion for supporting the career goals, 28% employees suggest that more
technical training should be imparted so that the employees gain skills for their work and they
should be given site knowledge. Also they suggest that the company should sponsor education
to more employees. The second category of suggestion that 24% employees gave was the need
for resources. Employees feel that they are not equipped with the modern tools and techniques
which lowers the productivity. Hence they require more and better resources so as to utilise
their skills efficiently and effectively. The third suggestion is given in the area of leadership.
16% employees suggest that there is an urge for formulating better plans and prompt decisions
so that the work culture is not delayed.

84

Q.7. If given a choice to choose your own career path in the future, which function or career
path that you think you will like to embark on so that you can contribute your very best
to KPCL?

CAREER PATH
36%
28%
24%
16%
8%

Technical

No Change

Job Rotation

Job
Enlargement

Job Rotation
in Branch

INTERPRETATION:
According to the survey 36% employees fantasise doing the research and designing work. They
want to do the technical work. Whereas 28% employees feel satisfied with their current profile.
They feel that they are working are working in the area of their interests. Furthermore as shown
in the graph, 24% employees want to completely move to other areas of work i.e. job rotation.
Few wanted to move to PGS and manufacturing department, while few hold opinion of getting
linked with the corporate department. Moving down we can see that 16% employees want job
enlargement i.e. they want more authority and responsibility to execute their work and also
they want leadership in handling projects. 8% employees want a job rotation in branch.

85

Q.8. Are the training & development provided by the company adequate & met your needs?

Training & Development


8% 4%
48%
40%

Yes

No

Average

Not received

INTERPRETATION:
The graph shows that 48% employees are satisfied with the training and development
programs. While 40% employees are not happy with the trainings imparted. 8% employees feel
that the training and development is average and not up to mark. Only 4% employees havent
received any trainings till now.

86

Q.9. What are your suggestions for improvement in the area of Training & Development?

Suggestions
Others
28%

Behavior
4%

Skill
60%

Knowledge
8%

INTERPRETATION:
60% employees suggest that more technical training should be imparted to the employees so
that they gain more knowledge about their work and execute it properly. Employees suggest
that more advanced and skill development trainings should be given. 8% employees suggest
that IMS Training and awareness programmes should be conducted. 4% employees suggest
that certain motivational trainings should be conducted by the company. The other reasons
stated by the employees were regarding the time constraint and few felt that the content of
training was missing.

87

Q.10. Do you have enough recognition for your contributions?

Recognition
8%
4%
8%

12%
68%

Yes

No

To some extent

No expectation

Not made impact

INTERPRETATION:
The graph shows that most of the employees are recognised for their contribution. The
company takes a deal of effort and ensures that contribution of the employees are recognized.
The chart clearly states that 68% employees have been recognized for their contributions.
While 12% employees feel that their contributions are not recognized by the company. 8%
employees feel that there were moments when they have been rewarded, yet they feel that there
were moments when they feel that they had made an impact which was not recognized. 4%
employees do not feel the need for recognition, whereas 8% employees said that they havent
made any impact that needs recognition.

88

Q.11. What kind of recognition do you prefer?

Recognition Preferred
4%

Any type

4%

No expectation

4%

Add. Responsibility

4%

Spontaneous award

4%

Kaizen

4%

Movie ticket

8%

Employee of the month

20%

Monetary

24%

Trophy

32%

Certificates

40%

Appreciation
0

10

15

20

25

30

35

40

45

INTERPRETATION:
Of the various kinds of rewards given by the company, 40% employees feel that only an
appreciation for their work by their managers motivates them and makes them feel proud. 32%
employees prefer certificates as a part of recognition. They feel that these letters of credit adds
to their achievements. 24% employees prefer trophy, while only 20% employees prefer to have
monetary rewards for their contributions. 8% employees prefer Employee of the Month as a
part of recognition. And 4% employees prefer to be rewarded with movie tickets, Kaizen award
& Spontaneous award. Apart from these, 4% employees want more responsibility as a part of
recognition, while the rest employees prefer to be rewarded with any type of reward and few
do not have any expectations.

89

Q.12. What do you like or respect most about your supervisor?

Supervisor's Strength
32%

24%
20%

12%
8% 8% 8% 8%
4% 4% 4% 4% 4% 4% 4%

INTERPRETATION:
32% employees feel that their supervisors have very good technical knowledge. Moving
downwards, the graph shows that 24% employees feel that their supervisor provides solution
to their queries and helps them better understand the situation. 20% employees like the
supportive nature of their superiors. They feel that they get enough support from their
supervisors. The rest qualities that employees like about their supervisors includes supervisors
management skills, communication skills, his way of thinking, the freedom given at work (to
pursue work in a manner which the feels convenient), decision making ability, co-operative
nature etc. to name a few.

90

Q.13. In which aspects you think your supervisor can do better?

AREAS OF IMPROVEMENT
28%

20%
16%

16%

4%

4%

INTERPRETATION:
The above graph shows that 20% employees feel that their supervisors should interact and
guide them regarding their career prospects rather than only discussing about case to case
progress. 16% employees feel that their supervisors should control their temper and respect
employees. Majority of the employees i.e. 28% employees feel that their supervisors should
improve their communication skills. Down the line, the graph shows that 16% employees feel
that their supervisors should be more competent and a develop decision making ability.
Whereas 4% employees feel that their supervisors are not motivating and also they fail to
deliver their commitments on time.

91

Q.14. Have there been any moments where you were very unhappy working at KPCL?

Unhappy Moments
20%

80%

Yes

No

INTERPRETATION:
80% employees felt unhappy moments working in the company whereas 20% employees had
no unhappy moments working at KPCL. The reasons for being unhappy are as follows:

92

Q.15. A. What are the top 3 factors that you might consider leaving KPCL?

Factors for leaving


68%
60%

24%

20%
12%

12%

8%

8%

8%

4%

4%

INTERPRETATION:
The top 3 reasons stated by the employees for leaving the company is salary. Career
opportunities and the work tasks. 68% employees say that if they are paid higher in other
company they would leave. 60% state career prospects as a major reason for leaving the
company. They feel if they get better career opportunities and more exposure elsewhere they
would leave the company. The major reason that 24% employees said was the job profile.
Employees felt that they were not having a clear job profile and the tasks allotted to them did
not match their profile. 20% employees feel the work culture is not motivating which might be
considered as factor for leaving.

93

B. Internal and external factors constituting employees to leave

FACTORS
45

45%

40
35
30
25
20
15

13%

10
5
0

Internal

External

INTERPRETATION:
Of the reasons stated for the previous question, 45% employees have shown internal reasons
for leaving the company. Whereas 13% employees stated external reasons for leaving the
company.

94

Q.16. Do you get enough information about the company?

Information Received
4%
4%

Yes

No

Partial
92%

INTERPRETATION:
The company provides enough information regarding the strategies, performances, procedures
etc., this is clearly shown in the graph. 92% employees feel that they get enough information
regarding the companys policies and procedures. Only 4% feel that the information they get
is not sufficient. While the remaining 4% feel that there is partial flow of information.

95

Q.17. Which communication channel would you prefer to get the information?

Communication Channel
52%
40%
36%

8%
4%
Shashwat

Speak-out

E-Mail

Susamwad

Oracle

INTERPRETATION:
52% employees stated Shashwat as the most preferred communication channel. Whereas 40%
employees prefer Speak-out as the preferred channel to get on spot answers to their questions.
The third most preferred communication channel is E-mail. Susamwad and Oracle are the
least preferred communication channel.

96

Q.18. Do you think workplace comm. is adequate within your department & interdepartment?

Workplace Communication (Dept.wise)


Average
8%

Not good
16%

Good
76%

INTERPRETATION:
As the graph shows there is good communication within the department. 76% employees said
that there is good communication within the department. Only 16% employees said that the
workplace communication was not good within department and 8% employees said the
communication was average in their department.

97

Inter Dept. Communication


Average
4%

Good
44%

Not good
52%

INTERPRETATION:
The graph shows that inter departmental communication is not good. 52% employees face
inter departmental communication problem. While 44% employees feel the communication is
good inter department. The rest 4% employees consider interdepartmental communication as
average.

98

Q.19. If you were given a free hand to make changes what changes would you make in the
organisation?

Org. Changes
84%

36%

20%
16%

16%
8%

Simplify
Processes

Young Work
Force

Canteen

8%

Technology 5 Days Week Engagement Work Tasks


activity

INTERPRETATION:
36% workforce consider the processes in the company is complex and lengthy. Hence it needs
to be modified. Whereas 20% employees think that there is an urge of recruiting more youths
in the organisation. They feel that the old employees are not contributing much to the
production. 16% employees said they would improve the canteen food and also the technology.
Whereas 8% employees would implement the MNC culture and some recreational activity as
a part of engagement activity. 84% employees feel that work is not allocated as per the profile,
hence they require a clear job profile. Also deadlines should be set for every work so that
employees dont waste time in unproductive work.

99

Q.20. Suggestions for enhancing work environment

Enhancing Work Environment


28%
24%

16%
12%
8%

8%

8%

8%

8%
4%

100

4%

4%

4%

INTERPRETATION:
The graph shows that there is need for effective communication so as to ensure smooth working
and the company should also recruit fresh talents. This would lead to inflow of new ideas. 24%
employees feel that modern technology should be adopted so as to simplify the work processes.
16% employees feel that the work tasks should be better qualified. Deadlines should be set and
there should be proper time management. Another major factor to enhance the workplace
environment is cooperation among co-workers and need for motivation which12% employees
stated.

101

Q.21. Suggestions to encourage Retention

Retention
Salary
Conveyance
Recognition

52
72

Increment
Explore knowledge
Training
Resources
Dept. change

24
8
8

Others

8 8

16
16

INTERPRETATION:
52% employees said that salary would be the most preferred retention factor, which is common
for every company. Another major concern for retention is provision for transport facility. 24%
feel the need for conveyance for their retention. Whereas recognition and increments hold equal
status i.e. 16%. Employees said they should be recognized for their contributions and should
be given proper increments. Apart from these training, resource requirements, department
change etc. were each demanded by 8% employees as retention factors. 72% employees gave
other reasons for their retention which is described in the following chart:

102

FINDINGS

103

Summary of Key Findings


From the analysis I can say that organization culture has a positive impact and at the same
time a high value in the process of employee retention practice compared to other elements.

From the analysis done we can say non-monetary factors also play a positive impact on
employee retention.

From the overall analysis of literature review, we can state that the demographic variable also
plays an important role in employee. Like it is tougher to retain an employee with a higher
qualification and experience than an employee at a graduation and entry level. Another
important element which effect the employee retention is marital status.

Perceived lack of recognition was also cited as a contributor to low job satisfaction. Some
respondents described a climate where bad performance was recognized but good
performance was not. Other workplace climate issues that were often cited as contributing to
poor performance were lack of teamwork and motivation.

Respondents also frequently cited communication as a significant factor. Many employees


expressed a desire for more two-way flow of information and a voice in decision-making.
They wanted a forum for sharing their ideas for system improvement.

When asked what incentives kept them at KPCL, pay and benefits were most frequently cited.
However, a number of respondents also said they liked their work, and found it interesting.

Overall, participants indicated that they had good working relationships and communication
within department is conducive, whereas inter departmental communication is a critical issue.

The most serious problem that arises is technology and need for technical training.
Retention policies followed provides the employees both monetary and non-monetary
benefits.

Various other workshops conducted which helps the employee to be motivated and keep
working.

The exit interviews are conducted as and when required by the company.

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There is a positive significant relationship between superior support, work environment, work
life balance and recognition on employee retention.

68% employees agree that recognition is received for their contributions.


48% employees agree that training is imparted periodically.
92% employees agree that they get sufficient information about companys policies,
procedure and performance.

64% employees feel that there is support from superiors and colleagues.
Employees feel that turnover is a serious concern for their organisations management.

105

LIMITATIONS

106

Limitations of the Study


The research study is limited to a few aspects:

Time was the most critical limiting factor.

The study was limited to the extent of information provided by the employees of a
particular grade only.

The outcome of the study cannot be generalized. The study needs to be tested on a larger
dataset.

The responses from the employees could be casual in nature, chance of bias is present.

The study has considered only limited variables while assessing attrition, retention, and
other perceived attitudes of the employees.

107

SUGGESTIONS

&
RECOMMENDATIONS

108

Implications of the Study


Based on the conclusions derived after the in-depth and comprehensive study, few implications can be
made to manage attrition. Employee retention is vital to the long term health and success of any business
organization. Organizational issues such as time and investment involved in training; knowledge lost
due to attrition; mourning and insecure co-workers and a costly replacement of candidate costs a lot to
the organization. Employee retention does matter. The concept of employee retention should be very
distinctly understood and realized by organizations. The retention strategies designed should be such
that the retentive forces are maximized and the debilitating forces minimized. Attempt should be made
not to orchestrate the retention strategies in isolation but ensuring that it forms a part of the overall
strategies for fortifying the pull on the human talent, which include sourcing, staffing and development
strategies in addition. It should also be noted here that retention policies should be highlighted at par
with other policies so as to ascertain that the employees feel they are highly valued. Once the employees
working in the organization are made to feel that the organization holds high degree of attachment
towards them, it shall be easy to incorporate retention strategies, thereby curbing attrition. The
organization should inculcate the value of people asset.

Organizations should have a proactive retention strategy which helps in reducing employee turnover.
Retention plan strategies should be different for different level of employees, because their roles are
different; their needs are different; what motivates them are different and what makes them leave are
also different. The intrinsic motivation and involvement factors, as well as age and education level
contribute to the sustenance of employees in the organization. Thus based on the findings, it can be said
if the employees are motivated and involved in the work they can be retained. The ease of retention
would depend on their degree of motivation and involvement.

Many organisations are adopting some fundamental actions to retain employees, including salary
surveys to stay shoulder to shoulder of the market, culture-building exercises for employees, exit
interviews, counselling, employee development programs, rewards and recognition, as well as increased
pay and benefits. As we know pay is a common reason why employees generally prefer to move to other
organisation. But apart from salary there are certain factors which contributes to attrition. Based on the
primary and secondary data collected upon managing attrition, the following suggestions can be raised.

Like out of 25 respondents, 84% employees feel that the work allotted to them does
not match with their job profile. So the organisation should ensure that when assigning
the tasks to the respective employee it should match his competency and interests. If

109

the organization put this into practice it will have a positive effect on employee
retention, at the same time it will be very beneficial for the organization as well.

Taking into consideration career opportunities, 60% said that they need more exposure
and their potential remains under-utilized. The organization should provide exposure
and explore the talents of the employees. Even though the employees are satisfied with
their nature of job, it is identified in the study that many employees prefer to change
their job due to lack of growth opportunities in their job. So the companies can look for
some innovative technologies to decrease their attrition level by providing growth
opportunities.

One way for a company to prevent employees from giving valuable information to
competitors is to make it a policy to enforce strict non-competing and confidentiality
agreements amongst its employees. The existence of such agreements could in fact deter
a competitor from hiring a valuable employ because they might not want to risk possible
legal entanglements with the other company.

Deadlines should be set which will benefit both, the organization as well as the
employees. By the way of setting targets, the employees will be engaged in their
respective works which will help in utilizing the skills of workers as well as the
organization can deliver its commitments on time. Also the best performing or the target
achiever should be awarded which will motivate him to further excel and remain
committed towards his work.

Many employees have suggested improvement in working environment and employee


motivation in the survey. So the companies should give attention to the factors which it
can improve itself internally.

Taking into consideration the elements like modernisation of technology, it would help
the organization in a good manner. If the organization could support the employee in
the above mention element, like if the employees are better equipped with resources
and technology, the end products will be standardized and will give competition to other
similar products. On the other hand wastage can be reduced both in terms of manpower
and time.

Day care assistance should be given. Attrition rate among the female employees can be
reduced to a good level. From the study it was showing that employees does not have
this opportunity.

110

Considering the primary data tool i.e. benefits, we can see conveyance is not offered. If
the organization take a step forward in this practice it will help the employees.

From the secondary data i.e. reviews and articles we could see that an employee
employer relationship is very important. It plays very crucial role in employee retention.
So the organization should develop and put into practice programmes which help to
improve this area. Some interactive sessions should be organised at regular and frequent
intervals. At the same time the organization should have clear communication process
which will help to solve 90% of the problems faced.

Secondary data also reveals the importance recruitment process. As it is said if the right
person is hired for the position it will be easy for their retention. So the organization
should have strong and apt recruitment process and at the same time it should be well
executed.

Reciprocity is the key. Employees are investors in the company and expect a return on
investment. The return can be in the form of recognition, empowerment and authority.

Each generation of employees has different reasons for staying. For the first time in
modern history, there are varied generations working side-by-side in most companies
of this industry. Generational differences continue to pose new challenges to todays
employers. Thus, retaining them needs a generation-centric approach.

Train intelligently. Provide on-going retention training in manageable bites make it a


continuous effort and find ways to size the retention plan to the specific demographics
of the organization. The company may give training like Personality Development and
Self - improvement training to the employees, every three or six months once this status
has to be reviewed and necessary action can be taken. It is better to have such training
in the future. Organizations should focus more on technical training needs.

The companies should conduct regular meetings to know about what exactly employees
expect. Organizations should focus on exit interviews.

Better performance linked incentives and Skill Enhancement Training Programs.

111

Retention strategies used at Kirloskar Pneumatic


Company Ltd.
Recognizes and appreciates the achievements by giving rewards (certificates, monetary
and non-monetary rewards). Various reward schemes have been developed by the
company. E.g. Spontaneous Award, Fast Tracker Award, Kaizen Award, Employee of
the Month Award, etc. to name a few.

Gives an environment where employees want to work and can have fun. Various CSR
activities are initiated wherein employees volunteer.

Provides training and development and personal growth opportunities to the employees.
Intranet (Shashwat) and Susamwad is used as they provide full access to the
information.

Employees Training & Development Assistance Scheme is undertaken as a part of


education initiative. This scheme aims to provide financial support to the employees
who are self-motivated to undertake part-time degree / diploma courses to improve their
knowledge and skills in their profession, which can contribute in improving their
effectiveness and performance.

Celebrate birthday of employees, sends them a birth card for warm wishes and gifts.
Medi claim policy, accidental policy are used for higher job satisfaction as well as to
retain the employee.

Co-operative society, wherein the members get loan faster and at a lower interest rate.
Society gifts are also given to members.

Employee referral policy is also used in which they give incentive from 10000 to 25000
according to the post.

112

CONCLUSION

113

A Final Word
The main aim of any organization is to earn profit. But to attain the maximum profit, the
organization should concentrate more on employees and the ways to retain them for their long
run. From the study it is identified that Work Tasks, Technology and Technical Training are
the top three factors which might lead to attrition, apart from lack of growth opportunities and
salary which are the common factors for employees to change their jobs in almost every
organization. This study concludes that to reduce attrition, the company should adopt New
Innovative Technologies and Effective Training Programs for the growth of their employees
within the organization.
The company should also think of recruiting people who are in the vicinity of the industry, so
that the family related problems will not lead to attrition. But on the other hand, company
should recruit people from different regions so that it can adopt the culture and work style of
other regions, rather than being specific to a particular state while recruiting.
From the study done we can say that, the best way to improve employee retention is to
understand what the employees want and need from the work place and provide it. Organization
must meet employees demand within limits of course. Management cannot approve all the
demand is a fact, but at the same time they can take efforts to convince the employees.
Organization should also take efforts to bring most of the retention policies into practice which
will give a positive effect on the issue. Even the employees should understand the limits of the
organization and act accordingly. If there is a better understanding between the two parties the
problem of employee retention is solved to a great extent. Both the parties should be aware of
the surroundings and current matters. Every company should understand that people are their
best commodity. Without qualified people who are good at what they do, any company would
be in serious trouble. In the long run, the retention of existing employees saves companys
money.
One way for a company to prevent employees from giving valuable information to competitors
is to make it a policy to enforce strict non-competing and confidentiality agreements amongst
its employees. The existence of such agreements could in fact deter a competitor from hiring a
valuable employ because they might not want to risk possible legal entanglements with the
other company. Of course, all this could possibly lead to animosity with the employee who

114

could feel that his or her options are being limited. Many employees don't always remember
signing such a document, so a copy of it should always be kept on file for the employee to refer
to. This area could prove to be a highly sensitive one between employer and employee, so
extreme caution is suggested in all instances.
It is clear that there are massive costs associated with attrition or turnover, and while some of
these are not visible to the management reporting or budget system, they are none the less real.
There is no universal attrition management solution for every company. Each organization has
to build its own motivation system based on compatibility between organizational and
individual goals. The following factors can be concluded:

Attrition is inevitable; it will always prevails; it can only be minimised.


Turnover is a costly drain on company resources.
Intrinsic factors are equally and sometimes more important than extrinsic factors while
controlling attrition.

Effective leadership; to a great extent, may be helpful to control attrition.


Attrition does not always have a negative impact on the organization.
The company should adopt New Innovative Technologies and Effective Training
Programs.

115

ANNEXURES

116

QUESTIONS
1

ANSWERS

What are the top 3 factors you might consider


important that will continue to keep you here at KPCL?

What do you love best about your work / working in


KPCL?

What will motivate you to excel further in your current


position & make your job more satisfying?

At the moment does KPCL adequately support your


career goals & fully utilize your talent? If not, how can
KPCL support your career goals?

If given a choice to choose your own career path in the


future, which function or career path that you think you
will like to embark on so that you can contribute your
very best to KPCL?

Are the training & development provided by the


company adequate & meet your needs? If not, what are
your suggestions for improvement in this area?

Do

you

have

enough

recognition

for

your

contributions?
What kind of recognition would you prefer?
8

What do you like or respect most about your


Supervisor?
In which aspects he/she can do better?

Have there been any moments where youve very


unhappy at KPCL? Please briefly describe what &
why.

10 What are the top 3 factors that might make you consider
leaving KPCL?

117

11 Do you get enough information about the Company?


E.g. on companys direction, strategies, performance
results, organization changes etc.?
Which communication channel would you prefer to get
this information through?
12 Do you think workplace communication is adequate
within your department & inter-department?
13 If you are given a free hand to make changes, what are
the 1-2 things you will like to change about our
organization as a place to work?
14 What suggestions do you have to:
-

Enhance

work

environment

/work

culture

- Encourage retention

NOTE:
The annexure contains open ended questions

118

REFERENCES

119

BIBLIOGRAPHY

KPCL Induction Handbook


Dr. K. Lavanya Latha, A Study on Employee Attrition and Retention in Manufacturing
Industries, Vol.- 5

WEBLIOGRAPHY

www.kirloskarkpcl.com

http://www.google.co.in/search

http://abhinavjuornal.com/management&technology/Jul13/8.pdf Vol. II

www.shri.org.sg/_surveyreports_SETSITR.asp

www.ddiworld.com/.../retaining-talent-a-benchmarking-study_es_ddi.pdf

http://www.citehr.com/human-resource-articles.html

www.reed.co.uk/consulting

www.gjimt.com/GianJyotiE-Journal.htm, GIAN JYOTI E-JOURNAL, Vol. 1, Issue 1


(Oct-Nov 2011)

http://humanresources.about.com/od/retention/Retention_of_Em
ployees_Tips_and_Tools_for_Employee_Retention.htm

http://www.deloitte.com/view/en_IN/in/services/consulting/human-capital-advisoryservices/bc30cd09c073e310VCMgnVCM1000003256f70aRCRD.htm

For Questionnaire:

www.examiner.com

jobsearchtech.about.com

www.businessballs.com

humanresources.about.com

hiring.monster.com

www.tlnt.com

www.blogging4jobs.com

www.recruiter.com

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