ABSTRACT

In recent times it has been acknowledged by many organisation that employee

retention in one of the main challenges they are facing. Retaining their most
productive and skilled employee becoming difficult day by day for the organisations
and its very for companies future growth and development that they keep their
existing staffs. This research will analyse the existing HR practices that the INDIAN
organisations adopt to retain their key and important staffs. This study mainly points
out the important HR practices of organisation which affects the staffs decision to
stay with their companies.

The research divided into two parts.First part will be a qualitative approach and will
involve an in-depth one to one interaction with HR practitioners from an Indian
organisation to gain more data from them. Data gained from this will help the
researcher to build a more efficient tool for part two. Part two will involve a survey of
core and critical staffs of Indianorganisation. This is quantitative analysis. This part
analysis the research question - ''Which of the HRM factors plays an important role
in the decision of employees to stay in an organisation"?

The findings from this research will help in determining the different HR factors which
helped in employee retention of Indianorganisations. These factors belong to two
groups - HR Factors and Organisational Factors. The conclusion of HRM-retention

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association will be studied via organisational dedication and earnings intent by
means of multiple regression analysis.

This study will make a contribution in HR practices of Indian and other

worldsorganisation related to staff retentions via empirical evidence. This will point
that different HR factors that influences employee retention.

CHAPTER ONE

1.1 Introduction

In today's generation firms has to compete with new ideas, trends and innovations
like new products, technologies, globalisation, changes of rules and regulation,
demographic variability etc and at the same place they have to make sure that the
new changes have been updated or implemented in their services/organisations and
products (Kane 2000). The result of this ever changing environment in business
sector makes it hard for the organisations to retain their core and critical employees.
It has been noted that society is more knowledge based in recent times and human
resources are proving vital elements in the survival of an organisation or for the
fruitful running of businesses. According to Porter, M.V (2001), these days all the
employees are running for acquiring the services best talent pool available in the
market. The new concept of the Business Management system in the organisations
are to retain and motivate skilful employees who can overcome the hurdles of
organisation pressure, market downturn, recession or reorganisation etc (Clarke
2001).

It has been noted that in today's era employees’ commitment towards their firms is
less as compared to old times when employer used to get employees loyalty in
return of job security but now employers cannot promise the job stability and
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longevity to employees. According to Handy, C. (1995), “the trend of career portfolio
seems to be geared up in recent times". Employee loyalty has been decreased
whereas job flexibility has been increased due to volatility and divergence in market.
The divergence and volatility in job resulted in reduced job tenure and job insecurity
among the employees. Instability in job is contributing towards the increasing
inequality in social status, family income and economic security in India, UK and
other parts of world.

Human resources management (HRM) have been developed by organisations to

reflect their faith and values and also it helps in maintaining cordial relationship
between management and staffs. HRM also deals with employees problems and
needs. Organisation commitments towards employees are shown by implementing
HRM practices within the organisation and management trustworthiness (Whitener
2001 &Setton et al. 1996). This support of organisation towards employees result is
commitment of employees towards the organisation. Staffs performance and
attitudes are proportionate to their view and expectations towards the organisation

and it also reflects the treatment they get from the organisation. According to
multilevel HR practice model of Ostroff, C. & Bowen, D.E (2000) human resource
actions are directly linked with staffs perceptions and attitudes. New and well defined
programs are placed in Human resource practices in organisations to increase the
staff retention rate. Plans like flexi leave, flexi working time and child assistance are
given to staffs to entice them to remain with the company. In recent time it has been
noted that HRM has become more strategic in its aim and operation (Hays &
Kearney 2001). HRM is modes which connect staffs to its organisational values, aim
and goals but it has been noted that many changes had occurred in the HRM
practices in last decades. In considering the future forecast of HRM, it is sensible to
scrutinize the improvements and guidelines of HR policies in terms of their
significance to the current personnel especially in the area of drawing and retention
of staffs. Researchers on retentions have defined retention management as a
planned, logical procedure that begins with an assessment of the cause that staffs
join an organisation (Davies 2001; Solomon 1999)

1.1.1. The Influence of HR Practices on Retention

Human resource rules and policies that organisation make truly reflect their
philosophy and opinion and the connection between management and

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staffs.Sometimes policies are only meant for solving problems and needs of
employees. As explained by Oakland, S and Oakland, J.S (2001), Human resource
practices consist of selection and recruitment, Training/Development, performance
measurement practices, wage and reward systems, quality, health and safety,
information systems etc. In 90's several researchers and authors like Becker B.
&Gerhart B. (1996), Pfeffer, J (1994) had argued that good HR practices is the only
way for sustaining in developing market and it also helps in gaining competitive edge
over competitors. Human resource practices helps in creating a workforce that will
be unique and valuable to gain market advantage and it will be hard for competitors
to copy those practices (Pfeffer, 1998). According to Porter & Tripoli (1997), Number
of different researches at the organisational level concluded that many of the HR
practices influences the outcomes of organisation through influencing staffs
performance and attitudes.

In recent times it has been noticed that HRM practices has develop into more tactical
in its focus and function. HRM is supposedly being seen as a strategic employee
endeavour associated with organisational principles, aim and vision. As a result,

there is now biggerfocus on to determining and improvingstaff and organisational

working; equal jobopening and positive action proceduresplanned and executed by
human resources offices have added vastly to the variety if the workforce;
recruitmentsystem have develop into more refined way; member of
staffremunerations systems have increased ( Oakland and Oakland, 2001).

1.1.2 Strategic System - Retention Management

Researchers have said that retention management starts with finding the reason why
an employee agrees to join a particular company. As described by Fitzenz, J. (1990)
Retention management depends on following key parameters: company’s culture
and arrangement, staffing policies, wages and remuneration policies, staff support
systems in organisation and career growth prospects. The retention techniques that
can be very effective are career growth opportunities, incentives and rewards
programs. As per many studies it has been established that reviewing of advancing
HRM tools in training, reimbursement and incentiveinvolvement have shown that
these can guide to reduced return and non-attendance, enhancedvalueof work and
improvedeconomic outcome
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To determine the retention parameters among the employee groups within an
organisation and then paying attention towards these factors helps an organisation in
forming a successful retention tools in their system. There are many key factors like
wages, compensation, quality of work, work relationship, award and recognition,
working hours, communication etc helps an organisation in retaining their talented
and skilful employees.

1.1.3 Aim and Objectives of the Study

It has been noted that in UK, Indian and other part of world that despite having HRM
practices in place many organisations is losing their key staffs. The purpose of this
study is to critical analyse and examine the existing HR practices on the retention of

main employees in Indian organisations. HR practice and retention relationship will

be examined in this study and also fundamentals related to the HR practices, which
affects the employee decision to stay with an organisation, will be identified in this.
Result extracted from this study may help an organisation to expand its effective
HRM retention policies. Retention of an employee is very vital for organisation with
respect of its strategic polices. Study may help an organisation in recruiting those
individuals who can commit themselves to their organisation and it will also aid in
improving the retention percentage of their highly talented and skilled core
workforce.

The research objectives are:

 To evaluate which HRM factors is most influential for employees to make

them stay with company?

 To identify the factors that contribute to staff retention within the chosen
organisation
 To examine the association between HR Practices and preservation.
 To help in the development of an effective HRM retention policy for
organizations.

1.2 Background of the Study

In recent times when it has been seen that due to recession in market many
organisations have to cut down their head count few organisations have focused in
retaining their key staffs by investing money and time. The attention has been on
sorting out employees from the firms and not strengthening the bonds. The high loss
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rate of key staffs is expensive to organisations. Losing a important employee means
organisation is losing the vital human resource, key expertise and institutional
reminiscence with them (Entrekin, 2001). With the loss of key workforce from a
group, company only they suffer low productivity nut also they lose the expertise
which can be valuable for companies growth. Skilful employees have the better
understanding of market in which organisation works, how to achieve competitive
advantage in market, they work on companies weakness and convert them to their
strength and also have better knowledge of customers and products. As stated by
Gutherie, J.P (2001), the knowledge and information stored in these key individuals
is an important part of company equity. There has been substantial attention in the

management study relating to the improvement of key competences so that

companies market value and performance can be improved (Prahalad& Hamel,
1990). Keeping these important key staffs is important part of corporate strategic
model and also for gaining competitive edge in market.

It has been noted that there is not enough empirical studies related to the Indian
organisations retention policies. This raises few concerns like: is one HRM practise
is OK for all or do we need different HR policies for different group of staffs? These
and some other untouched issues will form the background of this study. In order to
achieve superior perceptive into the procedures and tools that organisation employ
to retain its staff, important research questions were created to carry out this study.

1.4 Value of the Study

It has been noticed that in current researches related to HRM literatures in employee
retention field is very limited in Indian organisations. There are many queries related
to the retention policies were asked by researchers. All these queries ask for theory
advancement and call for new models to be developed in the area of retention
policies especially in technical and engineering organisations of India, UK and other
parts of world. These unknown matters will be the research focus. In addition, this
study will progress the HRM literature on the rising pattern of the this era.
Fundamentally, this research will try to clarify the existing employment relationships
inIndian technical organisations.

This study will help in understanding the importance of retaining core employees in
an organisation. Study will add value in finding the reasons why retaining core staff is
beneficial to the organisations.
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1.5 Limitations of the study

According to Poole and Van de Ven (1989), a fine hypothesis is by description,

inadequate, comparatively accurate picture. There is constant strain among internal
uniformity and the scope of hypothetical models. The criterion for prudence, firmness
and consistency hasmotivated this thesis to communicate a small but internally
reliableoutline. The other face of the coin is the disapproval of the ideas for being an
unfinished illustration of difficult phenomenon. Numerous irrelevant, unrestrained
aspects could manipulate the model parameters. Though, this has to be counteredby
the detail that the study was mainlyrelated with retention management of core and
key importantworkforce in technical organisations of India.
One of the limitations were the facts gathered will be cross-sectional, so cause and
effect cannot be surely examined. Also, research will be restricted to specific kind of
industries hence the generalisation of the research may be limited due to the small
number of industry.

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Chapter Two: Literature Review

Introduction

In the recent times it has been observed that managing and developing people at
work plays an important role in improving the organisational functioning (Marchington
and Wilkinson 1997). As stated by Accenture (2001) in their statement that ‘people
are our most important asset’ reflects the importance of working staff. As per
Maguire, S. (1995) it has been established that there is common thinking of
appreciating and spending in the workforce among the successful companies.
Several theories established that Human Resource Management (HRM) is the
source of gaining competitive edge in the market among different players (Delery,
1998; Walker 2001). Employee retention is one of the important aspect of the HRM.
Moseley, Jeffers and Paterson (2008) stated that employee retention is key to

companies, as improved turnover generates unsteadiness and adds extra pressure

and stress on remaining employees, escalating job displeasure and therefore
affecting the turnover cycle.
Many of the organisations in recent times keep on struggling with retention because
they are depending on wages enhancement and bonuses to avoid turnover (Gumbus
and Johnson 2003). Fundamentally, many companies are now accepting that
retention is a strategic subject and correspond to a competitive edge in the market
(Walker 2001). The easiest means to retain staffs is to boost satisfaction levels; but
this will only be efficient if executed correctly (Denisi& Griffin, 2008). The challenge is
in handling or meeting different staff requirements, as these are diverse (Mello,
2010). Retention policy should be in place that deal with the requirements of staffs
who are more likely to leave.
This chapter explains the association between HRM practices and the retention of
core (important) staffs in the perspective of the Human Resource Architecture. It
inspects the roots of bad employee commitment and
speciallyinvestigatesappropriate literature to recognizefundamentals of HR policies
that influence staff retention.The related literature is presented in this chapter to
provide an overview of the areas covered in the study.

2.1HR Models of Architecture

A HR model of architecture is a structure by which to differentiate staffs in order to

plan human resource aid procedures. It has been observed that in between 1990s
and 2000s huge amount of downsizing was done in companies in order to enhance

8
productivity and cost reduction. Though, the continuous cycle of reforming and re-
structuring by organisations had changed the new employment association (Wright
1995). The growing model for this employment association took manyshapes.
The labour flexibility model by Atkinson’s (1985), proposes that corporations can
shape their employees actively to reach their organisations goals using flexible staff
scheme. Atkinson recognized 3kinds of flexibility employment scheme: (1)
numericalflexibility (2) functional flexibility and (3) financial flexibility. Thismodel
recognises “core” and “secondary” staffs. Secondary staffs includeprovisional, part
time or contractual staffs. Usually these staffs had been mentioned to as ''atypical''
and ''Contingent'' staffs in Europe and America respectively.These staffs are used for
numerical flexibility whichincludes the extension and reduction of staffs depends
onmarket variations and competitive demands (Lesperance 2001). Kaye and Jordan-
Evans (2010) stated that retention is even more important as a outcome of:

 The scarcity of skilled staffs,

 Transformation in staffs attitudes,
 The accessibility of new employment opportunities,
 The biggerrevenuelinked with employing new talent, and
 The reality that in the current market condition, acquiring talented staffs is the
separator.
Core or fulltime staffsgives corporations with functional flexibility and their skills and
talent can be transferred within the companybecause ofchange in demand of product
market and expertise. This set of the work force is multi-talented and well trained to
help a fast and soft deployment of staffs between works and assignments. Retention
is important for core employees because a leaving employee may have the crucial
skills and talent essential for a particular job or carrying out a task for a project. It has
been noted that because of such leavings product line may suffer. A key talented
staff may be hard to substitute – at least in the short term.
Finally, financial flexibility is explained as a condition where the amounta staff is paid
rest on the work done, working hours, or the organisational affordable sum (Atkinson
1984; Nollen 1996). It may include a change to paymentschemes such as
performance incentive (PI) to help either numerical or functional flexibility. Profit

Sharing and employee share ownership plans (ESOPS) are other examples of
financial flexibility.

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 The RC Company (2010) comes up with three types of factors that decide an
organisation's capability to draw and retain core staffs. Factors are shown below in
figure 1.

External
Factors
These are outside the
organisation such as
theglobal labourmarket or
overall economic climate

Attraction

and

Retention

ORGANISATIONAL
INDIVIDUAL
INFLUENCES INFLUENCES
Employment plans, policies Characteristics of
andthe variety of other individual employeesthat
factors whichmake up the may indicate likelihood
oftheir joining and staying
working climate orculture
witha given employer
inan organisation

Figure 1: Source: The RC Company 2010

Of the three groups mentioned above, organisational influences are the most
manageable; given a consideration of what is presently going on and what should be
occurring in an organisation. However, it may not be feasible or even legal to
managepersoncharacteristics, it is comparativelysimple to recognizeconnection
between them and job fulfilment and then adjustcompanies policies accordingly.

Organisational influences that impact retention of employees are: career growth,

incentives/numeration, positive feedback, staff engagement and administration.

Similarly, Lepak& Snell (1999) Lepak and Snell came up with the basis of a HR
model that line ups diverse employment means and employment associations. This

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model divided staffs into four sectionsas per the worth and exceptionality of their
skills/talentrelative to the “core processes” of the company. The 4 employment
sections are (1) internal growth (core), (2) acquirement, (3) contracting and (4)

coalition. The descriptions of these 4 types of employees are outlined in Table 1

below:

Section 1: Internal Growth Section 3: Contracting

High value, high uniqueness employeesare ‘core’ employees
and a source of competitive value. Their value and
uniqueness may be based on ‘tacit knowledge’ that would
be valuable to a competitor.
These employees would be developed internally and the
organisation would invest in their training anddevelopment.
Low value, low uniqueness employees are those with low-
level skills that are widely available in the market. In this
case labour is treated as a commodity to be acquired when
needed. There is no long term relationship, rather a
short-term economic exchange.
No investment in training and development.

Section 2: Acquirement
High value, low uniqueness employees are those whose skills
are valued but are widely available in the market, for
example, accountants. These employees are likely to be
career-focused and have a conditional loyalty to a specific
organisation.
HR strategy is to buy from the market, emphasising
recruitment and immediate deployment of skills. Little
investment in training and development.
Section 4: Coalliton
Low value, high uniqueness employees are those who are not
essential to creating value and are therefore not ‘core’ but
who have skills that the organisation needs from time to
time, such as lawyers.
This is an alliance relationship for example, a law firm who
looks after a company’s legal affairs. There would be little or
no training and development.

Table 1:Four Different Employment Modes of HR Architecture. Source:“The human

resource architecture: toward a theory of human capital allocation and development,”
Academy of Management Review, vol. 24(1), Jan 1999, p. 31 (1), Lepak and Snell,
1999

Section 1 stand for core and key staffs that an organisation will spend in, with
respect of training and development, compensation/bonus and reimbursement and
other self improvement HR plans that will guard their investment (Entrekin and Court
2001; Lepak and Snell 1999).

Section 2 stand for a substantial amount, independent skilled professionals like CA,
solicitors, academics, engineers. These key personnel have important skills and
talent that are not exclusive to a particular organisation and are reasonably
extensively spread in the labour market. These staffs have a provisional reliability at

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best and are dedicated to their occupation (Entrekin and Court 2001; Lepak and
Snell 1999).

Section 3stands forstaffs whose skills and talent are low in worth and exclusivity and
basicallystand forstaff as a commodity which is broadlyaccessible and can be
procured and disposed of as necessary. Employees are more often than not
contractual and sub let. Provisionalworkforce in office and secretarial sector, call
centre staff, cleaning and maintenance are jobs that comes into this group (Entrekin
and Court 2001; Lepak and Snell 1999).

Section 4 stands for small value high exclusivity employees that the organisation
need not to directly hire or employ. They are low in worth and unsuccessful to
improve value to the core procedures or add to a competitive gain. The skills are
exclusive in that a organisation do not want them frequently enough to validate their
full time service. An example - coalition between an organisation and an academic
institution to offer particular kind of study contributions on a regular basis where the
combinedworth of the associationsurpass the value both institution can create on its
own (Entrekin and Court 2001; Lepak and Snell 1999).

The HR architecture unveils two outlook: the first outlook is that every employment
form holds with it an intrinsically dissimilar form of employment connection.
Rousseau (1995) explains employment associations as the "psychological
agreement of individual philosophy, formed by the company, aboutconditions of an
exchange contract between personnel and their companies". As employment forms
change, so does the character of the psychological agreements.

The second outlook of the HR model contemplates the outlines of HR procedures or

HR compositions to aid describe the employment means, sustain the employment
connection and eventually sustain the strategic character of human resources.

2.3 HRM Practices

Fundamentally, key staffs execute the necessary responsibilities in the organisation,

and human resource systems of that organisation are intended to provide help and
handle this human resource (Gramm and Schnell 2001). In companies human HRM
procedures act as a moderator between HRM policies and HRM outcomes.
Sheppeck and Militello (2000) split HRM policies into four categories: employment
talent and job policies, accommodating surroundings, performance mark up and
strengthening, and market organisation. As argued by Stavrou‐Costea (2005) that

12
Efficient HRM can play an influential aspect in an organisational success. As per Lee
and Lee’s (2007) research, the result of HRM practices on company performance
like learning and development, team effort, reimbursement/incentive, HR
development, performance evaluation, and staffs security aidsenhanceorganisation
Business execution including staff's productivity, quality of product and the
organisation flexibility. Present HRM philosophy put importance on the benefits of
fulfilling employee requirement and facilitating staffs to have power over their
professional lives. Many organisations identify the requirement to offer the data,
flexibility and say that staffs want to add to organisational achievement (Capelli
2000). Companies attempt to pick and employ the correct candidates. On the other
hand, candidates collect information regarding companies and recent jobs market
trends and offers; because they cannot get full information of all options and their
possible descriptions, they depend on inadequate data’s (Chan & Kuok, 2011).Many
researches related employee organisation selection point out the importance of
having similarity between employee's principles and the organisational principles for
the reason that values are visualised of as essential and comparatively permanent
(Van Vianen 2000). It has been noted that less wages or salary may be the case of
employees leaving the company, but retention cannot be guaranteed by higher
packages. People remaining in company may because they have better
understanding with their working colleagues and are occupied and attracted by work
they do and thinks that it is refining their skills. Salary carries on being vital in
shaping motivation to execute (McCallum 1998). Previous motivational concepts like
expectancy and equity concepts had calculated dissimilarities in motivation and this
is because of altering valences of results as salary (Das 2002).Staffs will be satisfied
with their wages if they will feel that what the are getting in return of their time, effort
and dedication is same as other. If this is not the case then dissatisfaction might
happen within the employees. (Ryan & Sagas, 2009).Nonetheless, wages is read as
one of the options and it has been noted that time and again it is considered with
little exactitude (Mitchell and Mickel 1999).

Though a relationship is present among reimbursement fulfilment and dedication and

is one of the factors of company’s commitment, nonetheless, it has to be measured
as one of the portions in a multifaceted scenario (Boyd and Salamin 2001).
Organisation must not concentrate only on wages, remuneration and benefits, but
also towards other greatly appreciate demployment aspects like balance between
lifestyles and flexible working hours systems. Mentioned all are nonmonetary
remunerations known as intrinsic awards and they play an important part in

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compensation contentment (Mitchell and Mickel 1999; Parker and Wright 2001).
Employees are likely to stay with the company if they realise that their potential, hard
work and performance inputs are acknowledged and valued (Davies 2001).
Reimbursement gives recognition, but few other types of non-monetary appreciation
are also imperative.

This denotes that current HR procedures have a great deal of direct bond to
companies' strategy makingand performance matters than the conventionalway to
human resources management (Bach & Sisson, 2000).
High Involvement or commitment human practice methodology enhances
organisational efficiency by generating circumstances where staffs become greatly
involved in the company and put effort to achieve the organisation's objectives
(Arthur 1994; Bishop 1998). Many team leaders and managers in recent time
identify the profits of "high involvement and commitment" HRM practices that react to
staffs requirements, promote workforce to take liability for their professional lives,
and encourage staffs to perform in ways that help the company (Baron and Kreps
1999). Knowledge sharing, communication accessibility, development and training,
and numeration are some of the way constantly establish in this "high involvement
and commitment" group. High involvement and commitment practices are those
procedures that motivate staffs to take on high levels of accountability for the
accomplishment of an organisation’s objectives. According to D'Cruz& Noronha
(2011) stated that high loyalty and commitment HRM practices improvesstaffslevel of
ability, inspiration, data, and authorisation. With respect to make sure that this
procedure is doing well, HR unitmustexpand and execute HR practices that help the
employees to become self‐trained and self‐managed (Guthrie, 2001).

If high involvement and commitment HR procedures are used highly then it is

possible to have two bigger implications. One, as previous studies by different
authors (Arthur, 1994; Huselid, 1995; Shaw, Delery, Jenkins, & Gupta, 1998).
suggested that high commitment and involvement in to work procedures increases
staff retention. Second, bigger use of these procedures may add to organisations
exposure to allocations connected with the staff loss (Guthrie, 2001). Huselid (1995)
proposes, after conducting a research of over 900 US companies, that HR practices
can be classed into two groups: one that enhance skills, and second that increases
staff motivation. The researchobserves that 1st group HR practices i.e includes
recruitment, training, learning, and development are connected with incomes and
financial accomplishment, and the 2nd group HR practices i.e staff motivation
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includes performance evaluation and reimbursementactions are linked with
quantification of efficiency. Arthur (1994) likewise discovers an intense association
among staff retention and productivity in high involvement and commitment HR
practices.

2.4 HRM factors deciding retention

In the value chain of an organisation role of HRM is veryimportant. It has been

hypothesized by several researchers that the responsibility of HRM in a company is
a major factor in the organisation'scapacity to attain its organisational goals and
extend a viable competitive gain within the market where it functions.

This can be accomplished by the strategies every organisations endorses, and the
process it adopt to entice and keep the correctworkforce for its requirements
(Holland, et al., 2007). Studies done by many researchers reflected that there is
increasing indication that HRM can act as an important factors in retaining a high
skilled and talented employees. It has been noted that advanced HRM policies in
training, reimbursement and remuneration contribution have shown that these can
guide to decreased turnover and non-attendance, good quality product/services, and
enhanced financial result. Adding to this is the study done by Accenture (2001) in
INDIAN, Europe and other part of the world on retention strategies of the
organisations. These strategies comprises of following:

 Providing broad training and development—to all employees irrespective of

whether staffs are full time, part-time or contract.
 Giving opportunities to workforce to work on different projects to keep them
interested and challenged in work and at the same time giving them chance
to enhance their skills
 Authorising and delegatingemployeesby responsibility and making sure that
there is balance between personal and professional life and appropriate
working culture.
 Flexible working hours should be provided
 Proper Mentor and buddy should be allocated to staffs and staff must have
knowledge of their own progress growth.

 Staff should be updated with latest methodology and principles

 Making sure that staff have good access to their seniors
 Staff should be motivated to work towards business goals.
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  Staff benefits should be provided like club membership, insurances etc.
 Good reward and salary packages to be offered.
Appointing competent individuals is an alluring point of leaving in the process; but
forming and keeping dedicated employees is more expected to be assisted by the
introduction of a series of refined HRM setup (Y. Chew, 2005). As per Fitz-enz
(1990), staff retention management program is governed by quite a
fewimportantaspects, which must be handledcorrespondingly are: firm’s culture and
organisation, employmentpolicies, salary and reimbursementvalues, staff welfare
programs, and a learning and training opportunities and career growthscheme.
Subsequently,
companies’ make use of a broad array of these HRM aspects guiding retention and
involvement/commitment (Beck 2001; Parker and Wright 2001; Stein 2000).

In this study, all the factors are assessed and divided into two groups – one is HR
factors includes employee organisation fit, salary/benefits, leaning and training and
career growth, excitingopenings or opportunities. Other group is of organisational
Factors include top management actions, team unity, organisational environment
and culture and organisational strategies. In below section these two groups are
explained.

2.5 HR Factors in Retention

 Employee Organisation Selection (fit)

Recruitment is a process in which an organisation look for candidates and invite

promising employees whereas selection is a process through which an organisation
find out those candidates with the talent, learning knowledge, expertise, capabilities,
and other qualities that will aid it accomplishing its objectives (De Cieri&Kramar,
2008).The concept of employee-job (E-J) selection (fit)
stressescomplementingemployee and jobs with respect of credentials based on
understanding, talent and knowledge, or capability, and observing other personal
qualities of candidates that possibly will be fit for the evaluation of "fit." (Edwards
1991). Though, as the job complexityenhances, companies are adopting new
selection techniques to get more skilled workforce to do the job.Several employee-
job selection studies shown thatemployees attracted to works with difficulty levels in
the job and that will proportionate with their capability (Wilk and Sackett 1996).
Companies attempt to pick and employ the correct candidates. On the other hand,
candidates collect information regarding companies and recent jobs market trends

16
and offers; because they cannot get full information of all options and their possible
descriptions, they depend on inadequate data’s (Chan & Kuok, 2011).Many
researches related employee organisation selection point out the importance of
having similarity between employee's principles and the organisational principles for
the reason that values are visualised of as essential and comparatively permanent
(Van Vianen 2000). In this study, principle similarity and employee-culture fit are
considered as equal terms.
 Salary, Benefits/reward and appreciation of employee value
Salary is a vital attribute of HRM. Salary and benefits are the modes by which
employees measures whether the effort and time given by them to organisation is
worthwhile or not (Ryan & Sagas, 2009).

Organisations often offer salary packages better than the other players in market for
key talent. These packages comprise special salary payments, share options, or
additional benefits like bonus. Salaries have an effect on the recruitment process
and staff retention (Parker and Wright 2001; Williams and Dreher 1992) and thus
play an important part in the hiring process. Though, these studies correlate that
wages, by itself, will not be sufficient enough to keep staffs. It has been noted that
less wages or salary may be the case of employees leaving the company, but
retention cannot be guaranteed by higher packages. People remaining in company
may because they have better understanding with their working colleagues and are
occupied and attracted by work they do and thinks that it is refining their skills. Salary
carries on being vital in shaping motivation to execute (McCallum 1998). Previous
motivational concepts like expectancy and equity concepts had calculated
dissimilarities in motivation and this is because of altering valences of results as
salary (Das 2002).Staffs will be satisfied with their wages if they will feel that what
the are getting in return of their time, effort and dedication is same as other. If this is
not the case then dissatisfaction might happen within the employees. (Ryan &
Sagas, 2009).Nonetheless, wages is read as one of the options and it has been
noted that time and again it is considered with little exactitude (Mitchell and Mickel
1999).

Though a relationship is present among reimbursement fulfilment and dedication and

is one of the factors of company’s commitment, nonetheless, it has to be measured
as one of the portions in a multifaceted scenario (Boyd and Salamin 2001).
Organisation must not concentrate only on wages, remuneration and benefits, but
also towards other greatly appreciate demployment aspects like balance between
lifestyles and flexible working hourssystems. Mentioned all are nonmonetary
17
remunerations known as intrinsic awards and they play an important part in
compensation contentment (Mitchell and Mickel 1999; Parker and Wright 2001).
Employees are likely to stay with the company if they realise that their potential, hard
work and performance inputs are acknowledged and valued (Davies 2001).
Reimbursement gives recognition, but few other types of non-monetary appreciation
are also imperative. Acknowledgment from top management, team co-workers,
colleagues and customers improveloyalty and commitment (Walker 2001). It has
been noted that one of the most important aspect in retention is to allow employees
to participate in decision making and let them take the lead.

 Learning, training and career growth

Training is regarded as a type of human resources investment irrespective of

whether that investment is sanctioned by an individual or by the firm (Goldstein
1991; Wetland 2003). Training programs are meant to enhance the employee’s skills
once they were recruited to the organisation. Once an employee joins an
organisation he is expected to gain new expertise and knowledge through
companies training scheme and he must start applying those skills on the job, and at
the same time must communicate those with fellow colleagues (Noe 1999). World’s
several successful organisations are knowledgeable that the training and
development provisions they are making rest at the centre of their capability to entice
and retainthe finest staffs for their company. Hence it isessentialthat companies
must offer an chance for their personnel to learn (Bernsen,Segers, &Tillema, 2009),
as practicaldevelopmentplans will enhance thepotentials of their team and also it will
encourages workforce and consequentlybring about a morededicated staff group
(Kyndt, Dochy, Michielsen, &Moeyaert, 2009). Training and development could be of
increasing fundamental literacy, learning of new technology and getting familiar with
existing one, interactive communication, or training related to how to solve a
problem.
It has been observed that staff turnover and training level are inversely correlated i.e
the high turnover level means less training required. This hypothesis is established

on the interpretation that the if a staff stays for long time with a organisation, the
training outcome will be higher. A research done by Frazis et al. (1998) showed
That staffs of comparatively small companies spent about 59% of their entire training
time in formal training whereas in bigger orgainisation only 18% of staff invest time in
formal training. From the staff’s perspective if technical training is provided as per
18
company’s requirement then eventually it will reflect in the company’s productivity. If
productivity increases so does the wages of staffs will and hence giving them eason
to stay with company. It won’t be incorrect to say training can provide lower turnover
(Frazis et al. 1998; Wetland 2003). In summary, arrangement of proper training and
development can give positive result in the area of staff retention because through
this staffs feels that they are recognised for their abilities and talent and it generates
opportunities to expand their qualities (Kyndt, et al., 2009;Visser, 2001).

 Challenging and Exciting job opportunities and openings

It is very imperative that staffs should be engaged with the new exciting challenges
always else they will look for other opportunities where they will find the exciting jobs
to be done. One way to counter this issue is by allocating employees to the projects
in which they want to work and also keeping the options of inter unit or cross country
transfers. Engaging staffs with exciting and challenging projects and ensuring that
there is system in place through which performance can be measuredand
properfeedback is gives and all this is vitalfor a good performance setting in which
staffs can accomplish their personal objectives (Furnham 2002). The need and
eagerness of learningnew techniques keeps staffsfulfilled and inventive (Walker
2001). It has been noticed that staffs always look for bigger responsibility and in
quest of different
kind of works. Gaining cross function experience is also one of the factors which can
help in staff retention. In this if a employee stays with a company for a long period
then he can easily change his field like if he is good in technical then he can move to
management side to gain experience in that field. Shifting talented staffsin this way
not only guarantee that they will be tested, but also helps staffs to gain broad range
of experience within the group in the view that someday they will take leadership role
in the company.
Staffs who feels that company is not doing enough to provide them exciting and
challenging jobs and there is also not much scope of creativity and development,
those staffs will express their displeasure and will lack the dedication towards its
employers. More precisely, when the agreementlinked to self-sufficiency and
development and bonuses and openings were violated, staffs were more prone to

register negative attitudes and displeasure toward the company, will also show low
commitment, and biggersigns to leave the company (Phillips 1997).

19
 2.5.2 Organisational factor in Retention
 Top Management and Leadership
Leadership is explained as the actions of theperson that ends in non-coercive
affectwhile that person is managing and organising the tasks of a team to the
achievement of a common objectives (Bryman 1992). Leadership and top
management is theorisedwith respect of four responsibilities that are required to be
attained in every organisation: giving objectives and direction, giving
suretyassociation, generating loyalty and commitment and facing ever changing
challenges (Risher and Stopper 2002). Leaders and Managers are key to the
development of generating cultures, schemes and arrangements that promote
knowledge formation, sharing and development (Bryant 2003). It has been noticed
that after late 1990's organisations's started putting emphasis on how leadership and
top management behaviour impacting the performance of a company (Giambatista,
2004; Rowe, Cannella, Rankin, & Gorman, 2005). Lots of researchers had argued
that the style of leadership is important in achieving organisational success and it
also affect the total
performance of an organisation (Rowe, et al., 2005). Many theoriesindicated that
leadership improved organisational loyalty and commitment. However differences
among the transformational and charismatic leadership concepts can be found,
academicians nowadaysseeing them as they have many things in common which
they can share and coming up with new type of concepts known as the new

leadership or neo-charismatic theory (Gumbus and Johnson 2003;Nanus 1992).

Leaders from Transformational theory are considered as dynamic leaders with four
unique characteristics: charisma, motivation, logical stimulation and personanlised
consideration (Kouzes and Posner 1995). Many studies related to the leadership
have observed the influence of transformational and charismatic leaders, and
resultsshows that these leadership styles helps in obtaining bigger number of
followers,inspiration and loyalty as well as better organisational performance
(Podsakoff, McKenzie and Bommer 1996; Steyrer 1998). Hence, from the literature
review, it can be concluded that leadership behaviour has a constructiveimpact on
firmscommitment and turnover intention.

 Organisational culture and Strategies (policies)

Organisational culture is explained as the indistinguishablefactors that outline life in a
business company (Fitz-enz 1990; Sheriden 1992). Top Management and
20
leadershipthinking and approach, interactionsprocedures and policies, customs and
taboosact together to generate the exclusivity of each organisation (Furnham 2002;
Guzzo and Noonan 1994). It has been observed that workforce tends to join those
organisation where they find working culture and overall environment appealing. But
it has been seen in last decades that cultural styles of industries, the civilizing quality
of several organizations have transformed evidently. And as soon as the culture and
environment transformed, whether because of expansion, new management or
financial and policies interference, some staffs become uneasy and choose to leave
the organisation in search of new company whose culture will best suits them (Stum
1998). Structure is supplement of culture, which is created by environment, culture
and expertise. Structure beginsby job designing and workflow outlines, and
comprises ofstrategies and processes, control period, interactionassociations and
other aspects that govern how task is to be completed and conducted. In view of the
fact thatemployeeenter organisations partiallyfor the reason that they are engrossed
to the environment, working culture and configuration, and that's where retention
management starts. Managers and leaders who scrutinise how efficient their
organisational culture/environment and
arrangement are at retaining staffsrequire to do same from the bottom level (Judge
and Cable 1997; Sheriden 1992). From an organisational growthpoint of view, the
idea oforganisational environment and culture proposes an opportunity for
nurturingmodifications in performance and attitudes in bid to bring
onrequiredoutcomes. But to carry on this effectively, company's experts related to
development should

discoverif they can forecastspecificmanners and approaches based on outline of

company working culture. Supporters of tactical cultural
transformationcharacteristicallycraft a number of unconditionalpostulations. First,
organisations ownsnoticeableworking cultures, which influence quality and execution
of work. Second, even though cultures may be defiant to change but to some degree
they are
compliant and controllable. Thirdly, it is likely to recognisespecific cultural
characteristics that make possible or reducehigh-quality performance, and it must be
practicable for leader and managers to planpolicies for cultural transformation.
Finally, it is believed that whicheverprofits attained from the cultural change will
overshadow any non-functional cost.

21
All these researches and subjectivesupportrecommendsaencouragingrelationamong
corporations working cultures and staff loyalty and commitment (Koeneet al 1997).

 Communication and consultation

Effectual communication has come into view from the complete literature review as
an importantaspect of man management be it communicating the objectives, aims,
vision, policies and strategies of an organisation or the announcement of details,
information and data communication arrangement (Hart, Miller and Johnson 2003).
The management accountabilities for efficient communication comprise (1) making
sureemployee are informed on coressubjects, (2) fair and honest communication on
all subjects that canimpactworkforce, (3) motivating
employees to talk aboutorganisationsmatters and provide upward responses and (4)
making sure issues from employees are passed to higher management and
appropriate reply on time is given (Fourtou 1997; Mumford and Hendricks 1996).
Numerousofficial and casual communication meansare present; all intended to
promote an atmosphere of open channel of communication, shared skills and
knowledge and dataalsofaith in an effectual cross functional arrangement.
Standardstaffmeetings and other information'spermitworkforce to regulate their hard
work to sustainorganisationgoals. Chances for responsesofferstaffs an opportunity to
control their own work and organisation strategies. Grievance processofferaofficial
way through which staffs issues can be point outtherediscontentby a verdict or result
(Gopinath and Becker 2000). Team leaders and colleagues are therefore mainly
accountable for communicating role potentials and responsesregardingactivity
performance (Miller and Jangwoo 2001). Therefore, companies that runsefficient
communications make sure that internal communications aid their staffs
and create the linkamid positive facets of their job place and effectual management
strategies (Walker 2001).

 Team working relationships

It has been seen that staffs stay with organisation when they have good bonding with
their fellow co-workers (Clarke 2001). In today's generation it has been noted that
Companies promote team building chances and the projects opportunities where
team can work together. Also companies are putting emphasis on social dealings on
and off the job. One significance of team-orientedgroup is the relationship they
buildbetween team members. Fellow colleague’s helpfulness denotes to the
responsiveness of and the degree to which colleagues give notice to staff remarks
and concerns (Miller and Johnson 2003). Communications with fellow workers may
22
provide "an affective psychological function by providing emotional support against
the stresses of the organisation's socialisation initiatives anduncertainties of the work
setting" (Jablin 1987, p.702). In recent times, the attention on collaboration,
authorisation and flatter organisations places incentive on organisational behaviour
that sustains a sponsorship that staffs perform impulsively to advantage both the
company and one's team. Basically, staffs who function as a unit are more liable to
believe an augmented commitment to the jobteams efforts and the company as a
whole (Cohen and Bailey 1997; Meyer and Allen 1997). Subsequently, staffsbe likely
to stay in organisations due to the good association they have built at the workplace
(Clark 2001; Marchington 2000).

 Satisfactory working conditions

Personal and family life balance is the one of the most important factor that
management must realise to gather employee commitment is management's. In
leaving and staying of employee in a company sometimes depend on their personal
problems and circumstances. People will remain with an organisation that evidently
thinks and concerns for their career precedence's, wellbeing, geographic location,
family, and other individual requirements (Gonyea and Googins 1992). For example,
many organisations are offering flexi-hour schemes and are looking for different
plans that will help a staff to manage its personal and professional life (Perry-Smith
and Blum 2000; Solomon 1999). Gumbus and Johnson (2003) points that the
enhancement to several work-life proposals intended at an organisational culture
depend upon performance and staff commitment. For that reason, several
organisations have effectivelyformedanstaff friendly situation by
amalgamatingdedicated work configuration such as flexi-hours, telecon, work from
home and family-leave help to helpstaffs in generating a work/life balance.
Fewacademiciansproposes that for productivejob experiences to enhance
commitment considerably, staffs must think that such job experiences are aoutcome
of efficient management strategies (Parker
and Wright 2001). So construct a positive culture into improved commitment mayrely
on how better managers thrive at realising employees to credit good

management for their constructive experiences.Previousstudy in organisational

behaviour and HRM has shown that an organisation's commitment to its
staff tends, in return, to generate a further committed andresponsible employees
(Eisenbergeret al. 1990; Organ 1990) Hence, it come into view that the
employee/environment-selectionhypothesis presumes that, as staffsaccumulate
23
positive jobexperiences, corresponding commitment increasesconsequently.(Lahiry
1994).

2.6 Organisational Commitment

In literature there are so many explanations of organisational commitment in the. It is

said that organisational commitment is multidimensional, linking staffs’ commitment
to the company and their enthusiasm to accomplish its objectives, keep its ethics
and foster its membership (Bateman &Strasser, 1984). Various attitudes and
mannersassociated to loyalty are acknowledged by Mowday, Steers and Porter
(1979). Porter, Steers, Mowday and Boulian (1974) acknowledged the chief factorsof
commitment as ‘acknowledging and understanding the goals of the organisation and
the eagerness to work with loyalty to the organisational membership’. Sheldon
(1971) identified commitment as aaffirmativeoutcome of Functional turnover i.enon-
performing staffs leave, but good performing employees remain whereas
Dysfunctional turnover means that better performing staff leave, but non- performers
remain.
Buchanan (1974) reflects that commitment is a link among the staff (individual) and
the company. Organisational behaviour is evaluated by monitoring organisational
loyalty. This is the personnelapproach at the job place is strongly correlated to his or
her organisationalcommitment (Koch & Steers, 1978; Porter, et al., 1974). Bateman
and Strasser (1984) identify that loyalty to an organisation is connected to (i)
attitudinal performance and workforce behaviour, (b) work satisfaction
efficientlyenhanced, (c) staffs job and role of accountability and (d)
personnelfeatures like staff age, job period and more.Commitment is also explained
as the level of recognition and participation that persons have with their
company'sassignment, principles and objectives (Mowday et al. in Price, 2003). It
has been commented that this commitment is subjectiveto the company’s rules and
policies (Kyndt, et al., 2009), and particularly by the organisational environment
(Kaliprasad,2006). Foote, Seipel, Johnson and Duffy (2005) also explained that
authors have recognized organisational loyalty as both anpredecessor and a result
of any number of work‐

connected factors. They include that the bulk of researchesdescribe organisational

commitment as loyaltyaimedparticularly toward the company as an administrative
body. Porter et al. (1974) defined organisational commitment as:
(1) The confidence in and recognition of organisational aims and purposes.
24
(2) The eagerness to provide greater efforts on behalf of the company.
(3) A clear-cutintent to stay in the organisation.

Primarily, the meaning of commitment depend on the view that devoted

staffs have aaspiration to stay employed with their company (Meyer & Allen,
1997).Thenotion of organisational commitment was the centre of research carried
out in public, private, and non‐profit sectors. One section of research that attracted a
greatdeal of attention in the late seventies and early eighties involved the concepts
ofcommitment‐related attitudes and commitment‐related behaviours (Angle & Perry,
1981;Mowday, et al., 1979).
Some section of studies aredetermined on the cost of staff commitment.Reichers
(1985,) considers that ‘though the literature is fairly clear with respect tothe
outcomes of commitment, the antecedents of commitment seem to be much
morevaried and inconsistent…due to the several different ways in which commitment
has beendefined and operationalized’. As per Steers (1977) and Gellatly (1995),
importantconclusions of staff commitment issuperior levels of turnout byemployees.
As mentioned above in a studyset of nurses in a hospital, it was recognized that
thoseworkersof less commitment towards organisation verifiedbiggerabsenteeism
(Somers, 1995). Becker (cited in Silva, 2006,) affirms that study on organisational
commitment proposes that commitment is of 4kinds: i)towards
organisation, ii) towards leadership and management, iii)towards current team
leaders and iv) towards work colleagues. All mentionedaspects have proposition for
HRM.
Allen and others (stated in Price, 2003,) discussed that one factor of commitment
isaffective dedication, which indicates to personnel emotional connection towards
company. That is an employee with affective commitment towards a companyis
committed since they have sameprinciples with the organisation and its associates
(Sommer, Bae, &Luthans, 1996). Normative commitment defines to commitment
related on a wisdom of responsibility and the accountability a selfsenses toward the
company(Allen et al.,in Price 2003,). Those with normative commitment stay with the
company becausethey sense that they have to. Continuance commitment

(Allen et al., cited in Price, 2003,) indicatestowards individual’s awareness of the

expenditures and riskslinked with departing a company. Staffs with continuance
commitment stay with the company because of monetarycompulsion and
compensations, like health benefits andpensionsetc (Sommer, et al., 1996).
Meyer and Allen (1997, p. 35) suggest that ‘commitment develops as a result of
25
experiences of satisfying employees’ needs motivational and/or are compatible with
theirvalues’. it has been stated that if organisations is able to manage experience of
employees profitably then, they will be able to cultivate the needed commitment; on
the other hand, if staffsthoughts that theorganisation is not committed to them, they
willreactwith feeling of less committed to the organisation, replicated in their intention
to remain or depart(Meyer & Allen, 1997).
Generally, INDIANworkforcedemonstrate a better level of faithfulness to their
organisations, but differences can be predicted given personal dissimilarities or
geographicaspects and other factorslike age, education, term, wages, and position
etc.. It is easy to assume that dissimilarity in personal characteristicsand
workvariables may guide to disparity in reliability. The idea of
organisationalcommitment is related to the degree to which workforcestay loyal to
their company,whilework participationrecounts to the likeness level of individuals
towards the accomplishmentof their job relatedgoals.It is supposed that viaimproving
jobs, escalating rewards, and authorisingstaffs-employers can raise the
organisational commitment of their employees (Ongori, 2007).Retention ask
forpaying attention to and doing job with staffs.

Chapter Three
Research Methodology

3.1 Introduction

As per Collis and Hussey (2005) research is a systematic technique by which the
data could be collected, examined and deduced so as to understand the incidence
about which the researcher is a lot fascinated.

The chief motive of the research was that the scholar must search the aspects in the
corporation that has an influence on the senior persons working in the corporation
with reference to the retention of the higher management staff. The chief motive of
assisting the corporation is making it capable enough to formulate plans that are
associated to the retention of the staff and the corporation has to update the persons

about the outcome of the research. The research has been prepared after a suitable
study with reference to the professional growth, compensation, affirmative
appreciation, staff member involvement and administration that have an affirmative
influence on the retention of the employees in the corporation. The approach that

26
has been employed in the current research is the procedural approach that was put
forward by the Collis and Hussy (2009) in which the qualitative as well as the
quantitative approach have been employed. Hence these methods give an
authorization also that was not granted by Gill and Johnson (2002). In the current
research the researcher has employed the primary as well as secondary technique
to look for the information.

The procedure of procuring an answer to certain question in a methodical way is

called the research methodology. It comprises of the several stages and processes
that are used by the scholars to investigate the theme of the study and the scopes
related to it. Any person who is occupied with certain exploration or research has to
be familiar and assertive with the investigation techniques and processes as well as
the procedures to do the research. The research methodology blends the
investigation techniques and processes along with the motives and the causes that
are reason for the use of these processes.

Every research methodology has 3 standards. The standard can be defined as a

means of collective group of entire norms, sense and ideas that describes the
methodology of the study. The 3 standards of the study as talked over are:

1. Quantitative
2. Qualitative
3. Mixed research

3.2 Secondary Data

The data which is gathered for some definite cause and has been provided and can
be pulled out from the archives of the corporation and from its journals is termed as
Secondary data.

In my research I have employed primary as well as secondary kind of the data. The
technique used to gather primary data is a properly planned questionnaire. The
resources that were used for the gathering secondary data were the HR strategy
27
handbook of the companies involved and the data from the web pages and business
journals of the firm.

3.3 Primary Data

The data which is gathered for the study during research under process is termed as
primary data. The primary data can be gathered by three ways:

1. Observation
2. Questionnaire
3. Interview

3.3.1 Quantitative research

The present research is done mostly on the grounds of gathering of quantitative

information. Quantitative data here implies the quantifiable extents and measures. It
is valid for problems or difficulties that can be characterized or revealed by a
particular computable measure. Its features are:

 The human conduct engaged in the research is constant and can be

projected.

 The technique is based on inference from the genuine information that are
quantifiable entities.
 The emphasis of the research is founded on quantifiable entities that are
employed to recognize any theoretical incidence.
 The character of the research is objective type.
 The aims of this study are to define and describe a specific method and
forecast the results.
 The data gathering process is founded on exact and strict techniques of
quantity.
 The outcomes can be comprehended generally.
 Data study is founded on numerical methods.

The human resource principally comprises of the managing of the persons,

quantitative research approach is a technique in which the participants or the person
who are under study or used for gathering data gives the scholar with more
enhanced and thorough responses which have proven important for examining the
information required for this study. For some company to do certain research based

28
on quantitative numerical on the performance of the firm, it is extremely essential to
investigate the performance of the staff.

3.3.2 Qualitative research

The qualitative research has developed out the social science and it is concerned
with the social behaviour of the people. The qualitative technique has emerged from
social science and is basically the study of social behaviour of people (Collis and
Hussey, 2009). Under the present research qualitative study has also been adopted
as internal environment of every organization differs and thus a generalized
statement regarding the satisfaction levels of employees and other aspects cannot
be Quantitative method is adopted in this research to illustrate the background of the
research and to dwell more into the research questions qualitative approach is used.
The main aim of this research was to examine and verify the current HR policies on
the retention of core employees in an Indian technical organisation . This is study is
divided into two parts in order to achieve its goal successfully.

Stage One requires an in-depth one to one interview with HR managers or

practioner's from Reliance Radio FM. This qualitative methodology was adopted
with the aim to obtain enough information and data from the Indian organizationHR
policy makers.

The two stages of the research were considered essential to best answer the
research questions. Each stage of the research obtained important data to help and
add to the development of the tool of the following stage.

This research is intended to correct the gap in the existing literature and offer
important perceptions that may describe the dissimilarities in HRM policies and
practices that influence the retention of key (core) staffs of an organisation. For that
reason it is relevant that the study summarises the necessary information more
agreeable to assessment and discussion. As a result, the two-stage approach was
deemed the most competent research design to successfully investigate the wide
objectives of the researchachieved by means of merely quantitative analysis.

3.4 Research Approach

According to Collis and Hussey (2009), a research approach gives a way of a

research and opens the chance to consider about the diverse methods may
provide to, or bound the research.

3.4.1 Inductive approach

29
Inductive approach is the approach of expansion of a hypothesis which forms as the
basis of the research. This approach is also known as a foot to head approach. It is
generally related to qualitative research.

3.4.2Deductive approach

Deductive approach is the opposite of the deductive research and a definite issue is
the centre of the research (Collis and Hussey, 2009). Hence it is also known as a top
to down approach. It is generally associated and is followed in quantitative research.
In the present research the researcher has adopted an deductive research as there
is no hypothesis and researcher is framing the study on a specific issue.

3.5 Research Strategy

Case Study

This comprises of a thorough analysis of a certain situation or a person or an

organization.

Survey

A survey is conducted by distributing a predesigned set of questions among the

targeted participants (Collis and Hussey, 2009). In the present research the survey
strategy has been utilized by implementing questionnaires based method. The
survey was used because retention and human resource strategy is different in
different organizations hence a studying a single case would to be sufficient for the
study.

3.6 Data Collection

The primary has been collected through two methods:-

 Questionnaires
 Interviews
3.6.1 Questionnaire Methods
The design of the questionnaire was associated to the formation of plans instead of
the retention concept and they too have structure concerns. The structure of the
study is taken by the aspects or the grouping from the section two. The
questionnaire was designed by means of plain and simple concepts about the study.
The questionnaire was made keeping in mind the main objective to provide the
answer to the study questions. In that the questions were converted into topics and
the participants were requested to give their opinions about it. The structure of the
30
study was dispersed in 6 sub segments in which the particulars of the retention could
be specified.

A. Retention Strategies

B. Career Development

C. Remuneration

D. Positive Recognition

E. Staff Engagement

F. Management

Before circulating, the questionnaire was circulated to 10 participants for the

analysis. The pilot study is a very essential entity of analysis of the questionnaire
before the circulation. The questionnaire was sent to the participant over the e-mail.
The participants were told that the secrecy of their identity will be maintained and
only on their desire the identity would be disclosed otherwise not.

Strengths of the questionnaire Based Data Collection Instrument

The main benefit in the data gathering process based on questionnaire was the
influential method which can be applied in the specified time span. Further, it was
tremendously handy together for the researcher as well as the participants.

Further, the questionnaire based method let the participants to give their responses
liberally devoid of any constraints and fear (Collis and Hussey, 2009). Moreover, due
of the guarantee of the secrecy of the individuality, the participant gave unbiased
feedbacks. Besides, the questionnaire provided sufficient time to recall and reply and
also had possibility for altering the answers. It was very advantageous taking in
account the several restrictions related with different data gathering methods.

3.6.2 Interviews

Interviews are discussion with subjects under study on a certain theme or topic
under study. Various issues and questions are out forward and a detailed feedback
of the participant is on the queries are acquired.

There are three types of interviews, namely

 Structured interview
 Unstructured interview
31
  Semi- structured interviews

Structured Interviews

In structured interview a general topic is given and they are asked to discuss their
opinion upon it. Every respondent is given sufficient time to put forward their views. It
is fixed format interview in which the questions are prepared beforehand and ask in a
same order.

Unstructured interview

According to Minichiello (1990), unstructured interviews are those wherein neither

the query nor the reply are prearranged. Moreover, they are dependant on
communal contact between the associate and the interviewer to extort the data. On
the other hand, under unstructured interview a set of questions are put forward to the
respondents and they can provide their feedback at a later time.

Semi-structured interviews

Semi- structured has both the properties of structured interview and unstructured
interview. In this type of interview the research needs to depend on certain
standardized questions. But there the researcher can break the pattern of the
questions according to the response of the respondent.

In these research the author has choose the semi- structured interview as it is very
important to get the proper information from the respondent so the pattern of the
questions needs to change according to the response.

3.7 Sampling

Random sampling was employed. The sample comprises of senior managers and
personnel from some well known companies of India. The name of the company has
not been disclosed as per the request of the mangers.

Distribution

The questionnaire was sent to 50 participants over the e-mails. The address of
persons which were selected to mail the questionnaire has to be provided from the
management roll of the selected companies. The questionnaire was kept along with
a cover note and the scholar had asked to return the questionnaires to him once they
are done with it.
32
Also questionnaires were e-mailed to managers from companies in the business in
order to study their opinions about the problems.

3.8 Limitations of the Study

 Because of the character of the interview cantered technique, a noticeably

less populace of the businesses can participate for the research.
 The verdict and the outcomes could not be summarized in general. Here, this
implies that the verdicts and the remarks documented from a specific
interview at any instance cannot be same as other.

The documentation and the analysis of the questionnaire had been done in a
particular time intermission. This has a main disadvantage as the situations and
atmosphere may vary previously or in the time to come and therefore there can be
few disagreements in the information documented as compared to the genuine skills
that may differ to some extent as per the time frame for which it is noted. For
example, the company may have provided incentives to the staff keeping in mind the
profit in view or any other cause; consequently this would have raised their
enthusiasm intensities and could influence the participant’s own opinion on the
matter of the questionnaire.

 The employee can be partial in the response

There are prospects that some persons may be partial and may not give exact
information of what they have been through and their true opinions. This may be
because of the individual gratifications and doubt about the secrecy of the
questionnaire or may consider the questionnaires to be a segment of an in-house
research of the company and therefore it is better to provide positive responses to
the query rather than giving genuine information.

 Lack of faith on format

The participants may not be assured of the secrecy of their identity. He/she may be
afraid that their individuality may be exposed and as a result feel reluctant to give
actual response or any information at all.

Questionnaire could not be distributed in comprehensive form. There may be

situations where the participant may not get the complete questionnaire because of
the technical causes or some other reasons. Consequently, this will lead to
inadequate data.
33
  Lack of interest

There will be cases when the participant might not be interested in replying the
queries however could have replied with just for formality sake and hence providing
unusable data which can at times be distracting as well.

Chapter 4

Results and Findings

4.1 Conclusions of the questionnaire A

The retention approach about the influence on the inspiration to work at the
firm

Q No. Motives Differ Approve

1 The firm is a fine investor in 10 40
persons
2 The firm nurtures an 20 30
atmosphere in which the
miscellaneous persons can
work collectively and
efficiently.
3 Staff is treasured as the 05 45
possessions to the firm

4 The firm helps the staff in 20 30

maintaining perfect work life
equilibrium

34
 The retention strategy about the influence on
the inspiration to work at the firm

The company assists the

employees and ideal work life…
Employees are valued as the
assets to the company
The company fosters an Agree
environment in which the… Disagree
The company is a good investor
in people

0 20 40 60
No.of Respondents

As shown in the overhead table, an appealing portion of participants approve that

they are valued as possessions to the firm. 30 participants approve that the firm
assists employees to maintain ideal work-life equilibrium. Furthermore, 30
participants agree that the firm nurture an atmosphere where mixed individuals can
work collectively and effectively. Also, 40 participants agree that the firm is an
outstanding investor in its human resources or staffs.

Career Development

Q No. Motives Differ Approve

Company offers
human resources the
under mentioned aid
for their career growth
5 The firmoffers 20 30
monetary help
6 The firmoffers 14 36
education holiday
7 The firm offers 10 40
operational exercises

35
 Career Development

The company provides effective

training

The company provides study

leave Agree
Disagree
The company provides financial
assistance

0 20 40 60
No.of Respondents

From 50, 30 participants approved that the firm provides monetary help such as
educational loans, etc. to their staffs. Furthermore, 36 approved that the firm offers
leaves for education to their staffs. Also, 40 participants approved that the firm offers
operational exercise to their staffs.

Remuneration

Q No. Motives Differ Approve

8 Total Remuneration 12 38
is reasonable
9 Marginal welfares 14 36
are fine
10 Salary Gratification 8 32
11 Worthy Service 6 54
Incentive

36
 Remuneration

Good Service Bonus

Pay Satisfaction

Agree
Fringe benefits are good
Disagree

Total Remuneration is
competitive

0 20 40 60 80
No.of Respondents

From 50, 38 participants approved that the complete compensation of the firm is
reasonable. Furthermore, 36 approved that the peripheral paybacks of the firm are
fine. Also, 32 participants approved that they are gratified with the pay provided by
the firm. Moreover, 54 participants approved that firm offers fine service incentives to
the senior staffs.

Positive Recognition

Q No. Motives Differ Approve

12 Managers get 10 40
acknowledgment on
worthy performance
13 Firm provides 12 38
worthy performance
promotions

37
 Positive Recognition

Company offers good

performance appraisals

Agree
Disagree
Employees get recognition on
good performance

0 20 40 60
No.of Respondents

From 50, 40 participants approved that the staffs of the firm get appreciation when
their performance is good. Also, 38 participants approved that the firm provide
worthy performance promotions to their staffs.

Staff Engagement

Q No. Motives Differ Approve

14 Care about the 14 36
well-being of the
branch
15 Happy with the 20 30
designation in the
branch

38
 Staff Engagement

Satisfied with the role in the

department

Agree
Disagree
Care about the welfare of the
department

0 20 40 60
No.of Respondents

From 50, 36 participants approved that they care regarding the well-being or the
prospect of their branch. Also, 30 participants approved that they are happy with
their designation or job allocated in their specific branch.

4.2 Findings of the Questionnaire B (Respondents from other companies of the

industry)

Management

Q No. Motives Differ Approve

1 Management 14 36
converses evident
vision and objective
2 Management 8 42
assists fresh
thoughts
3 Management 10 40
recompenses staffs
of the firm

39
 Remuneration

Management rewards
employees of the company

Management supports new

ideas Agree
Disagree
Management communicates
clear vision and mission

0 20 40 60
No.of Respondents

From 50, 36 participants approved that the management of the firmconverses

evident vision and objective to their staff. Besides, 42 participants approved that the
management of the firmassists fresh thoughts. Also, 40 participants proven that the
management of the firm recompenses their staffs.

Possible Reasons for Leaving the Company

Q No. Motives Differ Approve

4 Unsatisfied with the 12 38
current profession
5 Receiving less 14 36
salary
6 Anticipated to start 42 8
own venture

40
 Possible Reasons for Leaving the Company

Desired to get self employed

Getting lower remuneration

Agree
Disagree

Unsatisfied with the present job

0 20 40 60
No.of Respondents

From 50, 38 participants approved that they are displeased with their current
profession and it is the chief motive for resigning the job. Also, 36 participants
approved that they get lesser salary and due to this they commonly quit their job.
While, just 8 participants approved that they wish to start their own ventures and
because of this they desire to quit their job. This connects with the finding of the
staffs of the company group in which from 50, 36 participants approved that they
care about the well-being or the prospect of their branch. Also, in the company group
participants approved that they are happy with their job or designation allocated in
their individual branch.

4.3 Quantitative Findings

A fact has been evolved from the findings of the study that there exists an extremely
important link among the features of the firm and the retention of the staffs in the
similar firm. The firm has also selected a method which will offer the worker a
genuine route and give few suggestions by means of which the staff could be
retained in the similar firm as well. This method is focused in the direction of the
career development of their staffs. This line up with the conversation in the literature
review in which it was said by Schuler and Jackson (2006) that the better opponent
is one which enhances their staff in order to make them ready to face all the
possibilities that could arise and also for the time where they could put in their full
strength so as to attain their objectives. In case the staffs and the company have to
accomplish a competitive benefit over its opponents in that situation they have to
improve the expertise of the employees. The term career development could be
41
observed as a tool by which the managers are capable to look for the requirements
and desires of their staffs. By providing the opportunity by which the careers of the
individuals could be progressed is that they would have to be dedicated for the
company in which has employed them.

The chief administrative aspect is the career development in that by the model of
The company the persons search that nearly 90 percent of the staffs got that there
was no future in the firm for career development and nearly 89 percent of them
mention that their individual desires for the growth were not satisfied the way they
wanted and nearly 79 percent of them mentioned that neither of them in the firm had
been through the training and guidance packages that would enhance their skills.
The conversation in the literature review syncs with this feature of the findings and it
shows that it will be a severe condition for the firm’s retaining strategies. As talked
over in the review that growth aspect is there in each big firm and when any staff
member senses the requirement to utilize it they can effortlessly do. So as to
recognize this goals of the firm and they should do what the firm has assured to
them. The researcher have termed the career development as the procedure by
which constant or active and they have to go through from several levels or stages
and in each level they have to answer every non-similar queries, jobs or subjects.
Horwitz (2008) mentions that in the time to come the nations such as Japan, china
and several other Asian nations will be confronting a severe risk of absence of
trained and partially-trained employees. Accordingly in that situation the entire load
of the trained staff will be confronted by the nations and after that they will confront
few issues in the worldwide market with reference to the staffs.

The advices made by the scholar are very supportive for the organization when the
firm is deciding the yearly policy with reference the career development of the staffs.

In the firm nearly 89 percent of the individual’s mention that the questionnaires were
done in the firm in specific interval and nearly 89-99 percent mentioned that they
were not pleased about the sub-groups available in the administrative aspect that
was positive credit. It was the scholar’s advices that the performance management
and the development mechanism should be comprised in the research.

This syncs with the conversation in the literature review in which it was observed that
from years the staffs of the dissimilar firms expected that their job profile should be
extremely innovative, valuable and the job should be very stimulating (Phillips and
Connell, 2003). The findings and the outcomes of the questionnaire reflects the
42
conversation in the literature review that for maximum of the staffs their works
reveals their persona and they sense the necessity that they need to employ their
brains in any kind job they are working on in their occupation and they are of the
opinion that this would be an significant input for the development and the progress
of the firm. In case during their profession they do not figure out of what they are
expecting from the profession they will not look for another career, instead they will
hang on the similar profession.

Presently, the staffs in the firm are turning out to be enough capable to manage the
atmosphere of the office in which they are employed. Besides, the basic answer to
this is that they should build up their interaction skills so as to make our task easier.
Hence the staffs should select that firm in which the interaction structure is extremely
supple (Phillips and Connell, 2003).

Numerous personnel are searching for that mechanism wherein the staffs get more
incentives which demonstrate their input in the firm (Schuler and Jackson, 2006). In
the firm wherein they are not rewarded on performance basis, then the employees
search for the firm which provides the right worth of their services and the aptitudes.

Moreover in the firm the staffs desire that their appreciation should be returned in
form of money and not just as reward for the hard work that they have paid to the
firm. For several ages in the firm the simple gadget that is the cause of the
encouragement is the firm’s consistent response that it takes from the staffs and
enhances the area wherein they are behind others.

4.4 Qualitative Findings

This section gives the outcomes of the qualitative section of the proposed study. It is
an in-depth interview with HR managers of a large Indian Organization was
conducted. The interview questions were made to reflect below research questions:

1. Is the importance placed on HRM factors linked to retention?

2. How are these influential HR factors managed in organizations?

43
Respondents’ Profile

The partaking company was from India and function in various areas like
telecommunication, exploration, education, Oil and Gas, Insurance etc. This
organisation is one the largest organisation of India with over more than 10000
employees. From Interview it has been noted that more than 52% of employees in
there organisation are core employees.
The rationale for getting the percentage of core staffs of participating organisation
was to find out the significance the organization give on retaining a sensible level of
core staffs within its organisation. The company does nevertheless admit that cost
restraints and the nature of the working sector were the influential factors for their
lesser selection of core staffs. Two HR managers were interviewed. One of the
managers, Mr. Aman Nagane, is there in the company for more than 2 years and the
second manager interviewed, Miss Shefali Shukula, is there in the company for more
than 1 year.

4.4.1 Human resource management department role in improving retention of

core employees
In regards to this aspect, the interviewees acknowledged HR factors in relative to
retention of their core staffs. Mr. Aman Nagane told that effective recruitment plays
an important role in retaining their core employees. Moreover, Miss Shefali Shukula
told that exciting job opportunities are considered as most important factor. On the
other hand He further argued the interview discussion and told that training, learning
and career growth were considered as the most significant factor in retaining their
core employee. While, Mr. Aman Nagane told that compensation equity should also
be considered as important factors as most of the organizations have good
packages of their staffs. Arguing the statement Miss Shefali Shukula thinks that
remuneration and employee recognition has a bigger impact on employee retention
than compensation equity.

4.4.2 Organizational climate encourages core employee retention

The interviews were asked to recommend some organizational factors with respect
to the core employee retention. Mr. Aman Nagane recommended effective
leadership and management policy to retain their core employees. Moreover, they

44
also told that good leadership and better management policies helps in employee
retention vastly. On the other hand Miss Shefali Shukula feels company culture and
policies was important for core employee retention. Similarly, Mr. Aman Naganere
commended interaction and consultation and they feel these as important factors.
Miss Shefali Shukula feels that association at work place is an important factor. On
the other hand, Mr. Aman Naganeargue and recommended that working culture is
an important factor that plays role in employee retention.

From the interview it has been established that factors like professional and personal
life balance, team unity and adequate working conditions are responsible for
changing the working nature. Exciting job chances and training, learning and career
enhancement were also pointed out as important issues for today's Generation
employee. Many of the interviewees termed effective leadership and management
as a important factor for the employee retention.

This section offered the outcomes of the one to one in-depth interviews with 2 HR
managers of the Industry. The interviews investigated the association among the
acknowledged HRM factors and the retention rates of the participating business units
of the Industry. Additionally, it inspected the efficient running of these HRM factors
by the partaking company.

4.4.3 Relation between organization’s commitment towards their employees

and retention

With respect to this aspect Mr. Aman Nagane told that the organisation commitment
towards it employees is reflected by its HR practices and management
trustworthiness. In return of this commitment employees reciprocate back by
showing their commitments towards the organisation. According to Miss Shefali all
through his tenure in the company he has observed that Commitment policy can be
seen as equal and opposite reaction of employers and employees towards each
other. It can be good or bad. Organisation handling which employees receive can be
reflected from employees’ attitudes and performance.

4.4.4 Relation between providing higher responsibility and retention

It was the view of the respondents that retention of employees can be enhanced by
high-involvement job pattern. Mr. Aman Nagane told most of the cases retention
efforts are to be considered from employer’s side and hence new and well defined

45
practices has been introduced by the company in the view of getting good and
positive results out of it. He further also point out that including staff in decision
making also creates employee engagement. Miss Shefali Shukula also supports Mr.
Aman Nagane statement that by giving higher responsibility and involving the staff in
decision making process increases the likelihood of the employees achieving the
common goals.

4.4.5 Aligning employee benefits based on individual employees

Mr. Aman Nagane told in many incidents it has been seen that not all practices can
be enjoyed by all employees like child care plans and flexi-hour working benefits
cannot be taken by every employee’s. Further Miss Shefali Shukula also observed
that requirements depends on the employees career stage like younger employers
will need more salary, growth opportunities and more leave but where as a person
with family will need job security and benefits like fund and all. Also requirements will
depend on genders – a woman employee need will be different from men.

4.4.6 Role of higher managers in retention

Mr. Aman Nagane told that the answer to most people leaving organisation is
because of their line manager, supervisor or team leaders. One may enquire what it
is about this office association that formulates that it is the biggest cause why so
many persons leave their employments. Miss Shefali Shukula told that it is the
shortage of faith, contact, applicable and well-timed feedback, positive reception, fair
treatment and information

4.4.7 Role of HR strategy of the company is Retention

Mr. Aman Nagane told that HR strategies influence employees attitudes by shaping
staffs views regarding how organisation work and impacting their anticipations of the
nature and wisdom of their association with the company. Miss Shefali Shukula told
that inside the company there is a common concept that HR practices cooperate with
insight of organisational endorsement to shape employee loyalty. As told by Mr.
Mathews the objective of HRM in their company is to make sure that the company is
capable to attain achievement via its work force.

46
4.4.8 Relation between Salary and retention

As told by Miss Shefali Shukula that the salary scheme has a significant role in
implement strategies. Work quality, employee’s behaviour and their loyalty and
willingness to improve are all proportionate to the salary paid. Mr. Aman Nagane
also had the view that a good amount of salary and benefits as compared to the
other players in the market can guarantee that a business draws and retains
high‐quality workforce.

4.4.9 Developing Owner-staff relations

Mr. Aman Nagane told that Staff commitment and loyalty may be encouraged by
owner-staff associations that permit the achievement of organisation financial
objectives as well as make available to staff. Miss Shefali Shukula told that
workforce commitment and loyalty in the corporation influences how better the
organisation executes in different styles. If it is seen that staff commitment changes
in specific expected style from a cultural style to another, company's development
experts can attempt to reinforce staff commitment and, so, organisational efficiency
by altering the company culture.

Mr. Aman Nagane told that promise builds as an effect of knowledge of fulfilling
requirements and desires of the human resources and needs motivational and/or are
well-matched with their principles. Miss Shefali Shukula told that if organisations are
able to manage experience of employees profitably then, they will be able to cultivate
the needed commitment; on the other hand, if staffs thoughts that the organisation is
not committed to them, they will react with feeling of less committed to the
organisation, replicated in their intention to remain or depart.
As per Mr. Aman Nagane Effective communications reinforce member of staff
recognition with the organisation and create confidence. Miss Shefali Shukula told
that in their company a uniform both way communication, mainly one to one with
staffs, was recognized as a significant aspect in building trust and a sense of being
appreciated. Both Mr. Aman Nagane and Miss Shefali Shukula considered both
ways communication as a key management capability and as core management
accountability.

47
4.4.10 Balanced working conditions and retention
Mr. Aman Nagae told that their company is offering flexi-hour schemes and are
looking for different plans that will help a staff to manage its personal and
professional. Miss Shefali Shukula told that the enhancement to several work-life
proposals intended at an organisational culture depend upon performance and staff
commitment. Mr. Aman Nagane told that their company believe in a healthy, well-
balanced workplace that treats the employee as an individual, a family member, and
a member of the community. Miss Shefali agrees with Mr. Aman that a healthy work
environment is very important factor to retain staff.

Chapter 5
Discussion
The main aim of this section is to amalgamate the qualitative and empirical
outcomes from chapter four to offer a respond to the principal research question of
this study i.e. whether HRM practices can in fact influence the retention of core
staffs.

The influence of HRM factors on retention of core employees was examined in two
stages. The stage of the study that is one to one in-depth interview was carried out
to verify the findings of literature review investigating the present retention
management policies of Indian organizations. Therefore, this qualitative method
gives larger insight to the visions of the HR strategy formulators on the retention of
their staffs.

Firstly, the conclusions of the Stage 1 established the validity of the HRM-retention
factors acknowledged from the literature review. More explicitly, the results give facts
that these retention HRM parameters were present policies implemented by
partaking organizations to fight attrition. If high involvement and commitment HR
procedures are used highly then it is possible to have two bigger implications. One,
as previous studies by different authors (Arthur, 1994; Huselid, 1995; Shaw, Delery,
Jenkins, & Gupta, 1998)

Suggested that high commitment and involvement in to work procedures increases

staff retention. Second, bigger use of these procedures may add to organizations
exposure to allocations connected with the staff loss (Guthrie, 2001). Huselid (1995)
proposes, after conducting a research of over 900 US companies, that HR practices
can be classed into two groups: one that enhances skills, and second that increases

48
staff motivation. The research observes that 1st group HR practices i.e. include
recruitment; training, learning, and development are connected with incomes and
financial accomplishment, and the 2nd group HR practices i.e. Staff motivation
includes performance evaluation and reimbursement actions are linked with
quantification of efficiency. Arthur (1994) likewise discovers an intense association
among staff retention and productivity in high involvement and commitment HR
practices.

Secondly, findings from this qualitative approach pointed that firms that administer
their HR efficiently may have superior retention of their staffs. As reported by Huselid
(1995) that from the trial of 968 organizations that those adopting complete staff
employment and selection process, broad staff participation and training, and proper
performance evaluation related to incentive reimbursement were expected to have
inferior staff turnover, superior productivity, and improved business financial result.
Many other researches seem to endorse this perception (Delaney and Huselid
1996).

Thirdly, the outcomes of Stage 1 point towards those holistic and differential HR
strategies were likewise accepted by partaking companies. Even though it may be in
some instance that few organisations deal with all staffs in the similar way, despite of
their worth and exclusivity, findings of this study confirm that most of the firms make
noteworthy divisions in the approaches they adopt for diverse skill groups and that
they are vital factors of company performance. High Involvement or commitment
human practice methodology enhances organisational efficiency by generating
circumstances where staffs become greatly involved in the company and put effort to
achieve the organization’s objectives (Arthur 1994; Bishop 1998). Many team
leaders and managers in recent time identify the profits of "high involvement and
commitment" HRM practices that react to staffs requirements, promote workforce to
take liability for their professional lives, and encourage staffs to perform in ways that
help the company (Baron and Kreps 1999). Knowledge sharing, communication
accessibility, development and training, and numeration are some of the way
constantly establish in this "high involvement and commitment" group. High
involvement and commitment practices are those procedures that motivate staffs to
take on high levels of accountability for the accomplishment of an organization's

49
objectives. According to D'Cruz& Noronha (2011) stated that high loyalty and
commitment HRM practices improves staffs level of ability, inspiration, data, and
authorization. With respect to make sure that this procedure is doing well, HR unit
must expand and execute HR practices that help the employees to become
self‐trained and self‐managed (Guthrie, 2001).

The last part of the study is the stage 2 and it verified the HRM retention model,
created from the findings of Literature review and Stage 1. This quantitative
approach verified the associations among the HR factors, organisational factors,
company commitment and intention to remain.

The results of this research shown positive interconnections between the HRM
factors and the organizational commitment. These detailed factors includes two
bundles: HR factors - organizational selection, recompense, reward and
appreciation, training learning and career growth, exciting and challenging jobs
prospects and Organisational factors - managerial and leadership, organisation
strategies, team unity and satisfying job environment. Study on social exchange
hypothesis has reflected that staffs' commitment to the company is originated from
their observations of the owners' dedication to and backing of them. Previous
research also exposed that staffs understand HR practices as symptomatic of the
embodied organisation's dedication to them (Settoon et al. 1996). They respond their
observations by providing their commitment towards the organisation. Some authors
propose that for good job experiences to enhance commitment considerably,
workforce must think that such job practices are a outcome of efficient management
strategies (Parker and Wright 2001).

The results of the research study also established a noteworthy connection between
company's commitment and intent to remain. In their complete re-evaluate, Meyer
and Allen (1997) stated a constructive association among emotional commitment
and staff retention. Both emotional and calculative dedication is deemed to amplify
the possibility that a person will stay with a company (Meyer, Bobocel and Allen
1991). The findings also attract awareness to the mediating position of dedication.
Implied in the model is that company commitment moderated the associations
among organisational selection, team unity, organisation strategies and intention to
remain. It was seen that commitment does have a partly moderating influence on
some of the independent parameters and intent to remain. The outcomes exposed

50
that it moderate reward, appreciation and remuneration, training, learning and career
growth and job environment, and intent to remain.

Fundamentally, key staffs execute the necessary responsibilities in the organisation,

and human resource systems of that organization are intended to provide help and
handle this human resource (Gramm and Schnell 2001). In companies human HRM
procedures act as a moderator between HRM policies and HRM outcomes.
Sheppeck and Militello (2000) split HRM policies into four categories: employment
talent and job policies, accommodating surroundings, performance mark up and
strengthening, and market organization. As argued by Stavrou‐Costea (2005) that
efficient HRM can play an influential aspect in a organizational success. As per Lee
and Lee’s (2007) research, the result of HRM practices on company performance
like learning and development, team effort, reimbursement/incentive, HR
development, performance evaluation, and staffs security aids enhance organization
business execution including staff's productivity, quality of product and the
organization flexibility. Present HRM philosophy put importance on the benefits of
fulfilling employee requirement and facilitating staffs to have power over their
professional lives. Many organisations identify the requirement to offer the data,
flexibility and say that staffs want to add to organisational achievement (Capelli
2000).
Ostroff& Bowen (2000) stated that HR strategies influence employees attitudes by
shaping staffs views regarding how organisation work and impacting their
anticipations of the nature and wisdom of their association with the company. There
is a common concept that HR practices cooperate with insight of organisational
endorsement to shape employee loyalty. As stated by Armstrong (2009), the
common idea of HRM is to make sure that a company is capable to attain
achievement via its work force. A familiar matter in HRM study is to grasp of ‘new
style’ HRM procedures intended to reach high levels of worker capability, flexibility,
and loyalty (Bach & Sisson, 2000). This denotes that current HR procedures have a
a great deal of direct bond to companies' strategy making and performance matters
than the conventional way to human resources management (Bach & Sisson, 2000).
The findings of the research also suggested a major and constructive association
among age and organisational commitment. This result is constant with earlier
research.

51
Mathieu and Zajac (1990) stated that age was considerably more connected to
emotional commitment as compared to calculative commitment.

Another outcome of this research was a good relationship between gender and
organisational commitment. This is endorsed by authors like Angle and Perry (1981)
and Beutell and Brenner (1986) who illustrated that female staffs are more
committed to company than male staffs.

In synopsis, the outcomes of the experiential analysis of the model given in this
study established that commitment can be affected by organizational selection,
salary, remuneration, reward and recognition, training, learning and career growth,
challenging and exciting job prospects, managerial and leadership attitude, company
strategy, team unity and job environment. Furthermore, commitment operates as a
mediator of reward, recognition, pay and reward, training, learning and career growth
and job environment on intent to remain. Commitment also moderates organizational
selection, team unity, organization strategy on intention to remain. Researchers on
retentions have defined retention management as a planned, logical procedure that
begins with an assessment of the cause that staffs join an organisation (Davies
2001; Solomon 1999).

It has been proposed by many researches that retention of employees can be

enhanced by high-involvement job pattern. In most of the cases retention efforts are
to be considered from employer’s side and hence new and well defined practices
has been introduced in the view of getting good and positive results out of it.
According Perry-Smith, J & Plum, T.C (2000) in many incidents it has been seen that
not all practices can be enjoyed by all employees like child care plans and flexi-hour
working benefits cannot be taken by every employee’s. It has been observed that
requirements depends on the employees career stage like younger employers will
need more salary, growth opportunities and more leave but where as a person with
family will need job security and benefits like fund and all. Also requirements will
depend on genders – a woman employee need will be different from men (Beck,
2001).

In recent times it has been noticed that HRM practices has develop into more tactical
in its focus and function. HRM is supposedly being seen as a strategic employee
endeavour associated with organizational principles, aim and vision. As a result,
there is now bigger focus on to determining and improving staff and organisational
working; equal job opening and positive action procedures planned and executed by
human resources offices have added vastly to the variety if the workforce;
52
recruitment system have develop into more refined way; member of staff
remunerations systems have increased ( Oakland and Oakland, 2001). There have
been lots of changes in HRM policies in last ten-twenty years and many reforms
have been introduced in this.

Chapter 6

Recommendations

The researcher feels that there are not enough opportunities for them in the firm from
the career development point of view. Third essential entity in the research is that in
the industry segment the remuneration fluctuates immensely as compared to the
government sectors. Typically all of the persons that were in the industry sector were
happy with the salary offered and other peripheral advantages whereas 65 percent
of the persons mentioned that they were not happy with the compensation and they
feel that they deserve more than that. Consequently, the scholar think there is further
more scope in research as he feels that staffs were not happy as their profession
was pitiable however the chief issue was that they were not in fact positioned in the
exact profession that they wish for.

For ultimate achievement, firm needs to present a comprehensive effort connecting

the owner and worker. This necessitates creating a mechanism associating the
method and necessities of the trade to the encouraging aspects of the individual and
shaping mutual objectives capable to direct the firm’s growth and then integrating
their execution.

Executing the recommendations is a multi stage procedure Prioritization of career

development by senior management of the organization. Achievement on any career
development and service package is vastly reliant on the keenness displayed by the
frontrunners of any firm. Therefore, it is suggested that top management need to
display proof of emphasizing on career development priority.

53
Grasping the devotion of workers by discussion of their positive and lengthy career
at The Company particularly for detailed and for positions that is hard to fill.

A flawless employment of technical experience, for instance video conferences and

mock presentations provides a finest technique of reducing the price of interacting
while providing the fine opportunity for one to one communication with the
individuals.

Factory strategies for executives to provide the details on the significance of career
development for retention are identified as necessary aids.

6.1 Action Steps

 Operational with executives to form a career development strategy in The

company
 Enhancing a finest method for enlarging the career development to the
employees by using a regular mechanism of video conferences and mock
presentation that enlarges the career development chance for the staff
consistently.
 Starting use of fees based on IT for amplifying the significance of career
development for retaining staffs to the executives for careers.

6.2 Resources

RESPONSIBLE STAKEHOLDERS

 Top management
 HR department

FUNDING

To be selected together by conferences of top management and HR department.

Action: Functioning with executives to form a career development strategy in

The company

Stakeholders Resources Timeline

54
Top management Within existing Ongoing

HRD department

Action: Enhancing present method of delivering the career development strategies

(i.e by employing highly skilled personnel)

Stakeholders Resources Timeline

The company top The IT services growth needs Starting 2013
management , HR capital from higher
department, managers management

Career growth will progress and will apply in integrated departmental Human
Resources strategy.
Stakeholders Resources Timeline
Department of Human Existing 2013-2014
resource

6.3 Workforce Planning

The firm has to initiate a thorough study of present worker’s expertise and
anticipated talent necessities.

Time span for applying workforce planning is 1 – 2 months earlier to beginning on

the staff retention programs.

55
Improve The Company’s HR’s accessibility in the direction of data/techniques so that
they can effortlessly retain the employees. Planning procedure can be supported by
putting in fine labor like IT based techniques. By putting in these constituents,
management of the Company can get more assistance in forming and forecasting of
their human resource sets and retaining them.

Action Steps

Enhancing a method to provide proprietors of the firm a brilliant manner to grasp the
attention of the human resources, including the documentation of sharing based
methods and support

6.4 Sustaining presented plans and Services

The service based trades of the IT segment in India provides a broad spectrum of
groups of printed and electronic data possessions for businesses and proprietors of
the service firms. Software and IT oriented facilities can be obtained for workforce
planning.

Resources

RESPONSIBLE STAKEHOLDERS

 Top management
 HRD department

FUNDING

To be decided together by summits of top management and HR department

New Actions

Action: Enhancing a method to provide proprietors of the firm a brilliant

Human Resource Planning, including the documentation of IT orientedMethods and
support.
Stakeholders Resources Timeline

Top management and HR Higher management 2012-2013

56
 department

b. Expand current planning operation

Stakeholders Resources Timeline

HR department Financial resources need 2012-2013

capital for HR department

c. Improve and employ a IT based planning tool and sustain plans

Stakeholders Resources Timeline

Top management and HR IT based fees to be obtained Starting 2013

department from IT contractors capital
needed from higher
management

6.5 Training line managers for encouraging and retaining employees

Firm has to procure the headship in start and easing the development of important
career negotiations. With the help of training, line managers can be imparted to
improve expertise in hosting important career development oriented debates with
staffs rather than basic performance oriented debates that are common standards.
The time span for starting this training could be nearly30 days and to may be started
at any time in the course of the staff retention programs. To find the effect of the
programs, it is essential that firm evaluate the outcome and proficiency of the
programs that have been agreed.

Develop the Company’s managers’ admittance to information/tools to hold

their capability to retain the workers
57
Accessibility to the data assists the HR to incorporate sustainability of staff and form
a flexible office. As well as, the supportable programs of HR for workforce will
enhance the office and upsurge the staff sustainability too.

Action Steps

 Enhancing methods of consultations and management for execution of the

outstanding strategies and engagement activities for managers.
 Assisting prevailing initiatives and facilities.
 Enhancing a method to provide owners of the firm an outstanding means to
grip the devotion of the staff, including the documentation of IT based means
and support.

While numerous consultations have focused on business problems and

administrative splits, and recruitment initiative are directed by The company, an
opportunity comes for doing brilliant work and engagement activities to The company
employers.

Resources

RESPONSIBLE STAKEHOLDERS

 Top management
 HRD department

FUNDING

To be decided mutually by summits of top management and HR department.

New Actions

Enhancing a method to provide owners of the firm an outstanding means to grip the
devotion of the staff, including the documentation of IT based means and support
Cultivate a comprehensive worker engagement activity
Stakeholders Resources Timeline

•Top management needs capital from higher Starting 2013

58
 •HRD department management

Cultivate and apply a Retention Plan

Stakeholders Resources Timeline

•Top management needs capital from higher Starting 2013

management
•HRD department

Action: Enhancing methods of consultations and management for execution of the

outstanding strategies and engagement activities for managers.

Stakeholders Resources Timeline

•Top management need capital from higher Starting 2013

management
•HRD department

Indicators of effective implementation

Mentioned under are few of the signs that the firm can apply in measuring the
efficiency of the programs:

 Increased production

 Improved career development strategies

 Lessened price of employing and retaining skills

 Lessened level of absconding

59
  Lesser degree of resigning of brilliant staffs

 Greater engagement and devotional extent of staffs

Conclusion

In the study the investigation about the firms aspects were included that has an
effect on the retention of the staffs. By the study this has been revealed that the firm
could improve on the enhancement about the aspects by which the senior staffs
could be retained in the firm were also shown in the study. The planning that is
formed on the retention of the senior staff is extremely hard to activate. The
procedure by which the planning that is formed for retaining the senior staff to be
proficient, the executive and the administrators must play their role for that as well.

The key objective of this segment is to integrate the qualitative and experiential
results from section 4 to provide and reply to the major research query of this
research i.e., whether HRM exercises can actually effect the retention of core
employees.

The effect of HRM aspects on retention of central staffs was inspected in two
phases.

Stage 1

The stage one of the research that is face to face detailed consultation was done to
confirm the answers of literature review examining the current retention board
guidelines of Indian managers. Hence, this qualitative technique contributes greater
60
awareness to the visualizations of the HR plan makers on the retention of their
employees.

First, the deductions of the Stage one recognized the rationality of the HRM-retention
aspects accredited from the literature review. Evidently, the outcomes provide
evidences that these retention HRM factors were current guidelines applied by
participating firms to combat resignations.

Second, findings from this qualitative method revealed that companies that manage
their HR proficiently may have greater retention of their employees. As stated by
Huselid (1995) that out of the test of 968 companies that those agreeing whole
employee recruitment and assortment process, broad staff participation and training,
and proper performance evaluation linked to incentive repayment were anticipated to
have lesser manpower incomings, greater efficiency, and enhanced trade monetary
outcome. Numerous other studies appear to approve this insight (Delaney and
Huselid 1996).

Third, the results of Stage one direct in the direction that all-inclusive and varied HR
policies were similarly recognized by participating firms. Still it might be in few cases
that some companies behave with all employees in the same manner, in spite of
their value and uniqueness, results of this research verifies that maximum of the
companies do notable separations in the methods they embrace for varied talent
sets and that they are vibrant features of firm performance. Further, this result
approves the academic HR model specified by Lepak and Snell (1999) which
encourages a dissimilar investment plan for dissimilar kinds of employees.

Stage 2

The end portion of the research is the stage two and it confirmed the HRM retention
model, formed from the results of Literature review and Stage one. This quantitative
method confirmed the relations between the HR aspects, administrative aspects, firm
assurance and objective to continue.

The outcomes of this study displayed affirmative interlinks among the HRM aspects
and organizational dedication. These comprehensive aspects comprises two
packages: HR aspects –organizational assortment, remuneration, incentive and
gratitude, exercise education and career development, thrilling and stimulating
professions forecasts and Organizational aspects - decision-making and headship,

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organization policies, squad unison and satisfactory career atmosphere. Research
on communal give-and-take theory has revealed that employees ‘dedication to the
firm is initiated from their opinion of the proprietors ‘devotion to and support of them.
Earlier study also revealed that employees comprehend HR exercises as indicative
of the personified organization’s commitment to them (Settoon et al. 1996). They
reply their interpretations by giving their dedication to the firm. Few writers suggest
that for fine career know-how to improve dedication significantly, manpower needs to
feel that such job performs are a result of effective management policies (Parkerand
Wright 2001).

The outcomes of the study also proved a significant association among firm's
dedication and determination to stay. Meyer and Allen (1997) mentioned a positive
link between sentimental dedication and employee retention in their entire re-
evaluate. Together sentimental and quantitative commitments are believed to
increase the probability that an individual will be with a firm (Meyer, Bobocel and
Allen 1991).The conclusions fascinate consciousness to the intervening situation of

commitment as well. Inferred in the model is that firm dedication facilitated the
relations between organizational assortment, team unison, firm policies and
determination to stay. It was observed that dedication do have a partially facilitating
effect on few of the autonomous factors and intention to stay. The consequences
revealed that it facilitated prize, gratitude and compensation, exercise, education and
career development and profession atmosphere, and intention to stay.

The results of the study recommended a main and positive link between age and
organizational dedication as well. This outcome is persistent with previous study.
Mathieu and Zajac (1990) mentioned that age was significantly more associated to
sentimental dedication than quantitative dedication.

One more result of this study was a fine association among gender category and
organizational dedication. This is validated by writers such as Beutell and Brenner
(1986) and Angle and Perry (1981) who demonstrated that feminine employees are
more dedicated to firm than masculine employees.

In summary, the results of the empirical study of the model mentioned in this
research proved that dedication can be influenced by organizational assortment,
remuneration, compensation, prize and gratitude, exercise, education and career
development, stimulating and thrilling career visions, executive and headship
62
approach, firm policy, team unison and work atmosphere. Also, dedication works as
a facilitator of prize, gratitude, salary and prize, exercise, education and career
development and work atmosphere on intention to stay. Dedication also facilitates
organizational assortment, team unison, organization policy on objective to stay.

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