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Acknowledgements
1
Ack
2
Contents Page
Content Page No
Title Page 1
Acknowledgements 2
Contents Page 3
Executive Summary 4
Introduction 5.. 7
1.1 Research Proposal 5
1.2 Rationale for Study 5
1.3 Theoretical Framework 5
1.4 Methodology 5
1.5 Action Plan 6
1.6 Possible Issues 6
1.7 Company Overview 7
1.8 Problem 7
1.9 Global It Scenario 8
1.10 Major Factors Contributing to Attrition 8
2.0 Result and Discussion 9.. 15
2.1 SWOT Analysis 9
2.2 Findings from Questionaiire 10.. 12
2.3 Communication 13
2.4 Leadership 13
2.5 Lack of Motivation 14
2.6 Delegation 14
3.0 Conclusion 15
3.1 Step by Step Conclusion 15
3.1.1 Communication 15
3.1.2 Leadership 15
3.1.3 Lack of motivation 15
3.1.4 Delegation 15
4.0 Recommendations 15.. 16
4.1 Communication 15
4.2 Leadership 16
4.3 Lack of motivation 16
4.4 Delegation 17
5.0 Bibliography 17
6.0 Appendix 18
6.1 Interview with Senior Management 18 - 19
6.2 Questionnaire 19 - 20
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Executive Summary
4
1.0 Introduction
Research Question:
1.2 Rationale for Study: As a new company in the IT industry MIND has
a small workforce with a high attrition rate of 22 % that is the reason why
I would like to find out how a company retain its employees using
Motivational Theories. I will analyze the company’s workforce and use my
business knowledge to identify where the motivation should come from
and suggest a framework of the motivational theory for the company to
use.
Analytical Tools
a. SWOT
b. Motivational Theories
c. Leadership Style theories
1.4 Methodology
Primary Data
Secondary Data
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1.5 Action Plan
6
1.7 Company Overview
Attrition
Company Manpower Company Manpower Attrition %
%
TCS 78028 11% Birlasoft 3500 17%
Infosys 66150 13% HCL 6500 31%
Satyam 24500 19% R Systems 1000 30%
JK Techno
1000 25%
soft
Nucleus 1000 26%
MIND 440 22%
7
1.9 Global IT Scenario
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2.0 Results and Discussion of Collected Data
Strengths’:
Weaknesses’:
Opportunities’:
Threats’:
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• Major competition in the IT industry
Awareness of Attrition
No
10%
Yes
90%
Yes
15%
Partially
40%
No
45%
10
Satisfaction with Current Leadership
Yes
No
44%
49%
Partially
7%
Level Of Motivation
High
34%
Low
61% Medium
5%
11
Salary Satisfaction Levels
No
17%
Partially
6%
Yes
77%
Yes
No
15%
26%
Partially
59%
Delegation Satisfaction
Yes
5% Partially
23%
No
72%
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From the above data and interviews the following
conclusions could be made about the four most important
factors regarding attrition
1. Communication
2. Leadership
3. Motivation
4. Delegation
2.3 Communication
1. Major Mistakes
2. Confusion of Objectives
3. Conflicts
4. Failure to reach deadlines
The above four listed results are something that the company
cannot afford to make. As an IT company, time is of the essence and
a job well done is the job that is appreciated. This can also result in
conflict between the leadership and the workforce, as the work that
needs to be done is not communicated properly within the
company. The important information is lost while being sent to the
person who has to carry out the orders.
2.4 Leadership
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mainly due to the fact that the business is relatively new and all the
needed procedures are not in place. The leaders have immense
pressure from the owners and shareholders to perform, or stock will
be lost. Due to that, the leaders need to make decisions fast and
they can’t make mistakes. This results in the employees being told
what to do directly without any consultation.
2.6 Delegation
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the whole group equally divides the work at hand. Due to the fact
that there were projects that were not completed properly, the
managers had to give more work to the employees that worked
harder, but this created the inequality that the employees faced.
3.0 Conclusion
3.1.1 Communication
3.1.2 Leadership
The current leadership is new and is not able to pass the correct
amount of work to the employees. This demotivates the employees
as they feel the amount of work is not distributed equally.
The main issue here is the fact that the company doesn’t offer any
kinds of monetary rewards. This doesn’t help the employee’s
motivation, as most people work for money, especially in IT
companies where a higher salary will attract more employees.
3.1.4 Delegation
4.0 Recommendations
4.1 Communication
To improve the communication problems faced by the company a
formal communication network should be set up. This can be done
by setting up a computer networking system known as intranet. This
will allow the employees to access information no matter which
level they are at. An internal E-mail and notification system can also
be set up with the help of the intranet
This provides
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3. An internal Email system reduces the amount of people the
data has to pass through before reaching its final destination.
This reduces the amount of data lost.
4. This also eliminates biased views as all the data/information
that has to be sent, is sent directly to the person concerned.
4.2 Leadership
All the above steps that the leaders should take should be in
accordance with the Hawthorne effect which comprises of
recognition, appreciation and rewards.
Financial Methods
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Quality Circles:-
4.4 Delegation
This motivates the employees as they are given the correct amount
of work to deal with.
5.0 Bibliography
17
6.0 Appendix
The Human resource part of the company is what forms the crux
of this company , each and every person we employ counts
toward the development of the company and the general moving
forward of the company. As it is an IT based solution provider, it
is the human resource capital that we depend on the most,
without them there would be no company. There is almost total
dependence on human resources here at MIND
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each year can add up to a lot of money spent. Better salaries
offered elsewhere attract employees from other companies
which lead to a lot of money being spent when that cost can be
avoided
4. What has been the attrition rate over the past 3 years
a. 2004 - 24 %
b. 2005 - 21 %
c. 2006 - 22 %
5. What steps has the company taken to deal with these issues
a. Employee retreat during weekends
b. Company meet , when all the employees get together
once a year for vacations
c.
6.2 Questionnaire
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Question 3: Are you satisfied with the communication
methods/networks at MIND
• Yes
• Partially
• No
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