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ITC (PSPD) Limited, with special reference to BHADRACHALAM.

Asset,” .

BHADRACHALAM. ATTRITION ANALYSIS AND RETENTION STRATEGIES is favorable or un-favorable, which is the perception of the employee based on the employees view about his work. It expresses the amount of agreement between one’s expectation of the job and the rewards that the job provides. Job Satisfaction is a part of life satisfaction. The nature of one’s environment of job is an important part of life as Job Satisfaction influences one’s general life satisfaction.

ATTRITION ANALYSIS AND RETENTION STRATEGIES, thus, is the result of various attitudes possessed by an employee. In a narrow sense, these attitudes are related to the job under condition with such specific factors such as wages. Supervisors of employment, conditions of work, social relation on the job, prompt settlement of grievances and fair treatment by employer. However, more comprehensive approach requires that many factors are to be included before a complete understanding of ATTRITION ANALYSIS AND RETENTION STRATEGIES can be obtained. Such factors as employee’s age, health temperature, desire and level of aspiration should be considered. Further his family relationship, Social status, recreational outlets, activity in the organizations etc. contribute ultimately to ATTRITION ANALYSIS AND RETENTION STRATEGIES .


ACKNOWLEDGEMENT A large number of individuals have contributed to project. This










contribution of all those persons who have directly or indirectly given their precious time and help along with proper guidance for making this report in the following shape. I am grateful to Sri. XYZ, GM (HR)-SUPPORT MANAGER, ITC (PSPD), BHADRACHALAM Asset for granting me permission to do the project work in ONGC, Rajahmundry. I am thankful to Sri. XYZ, HEAD-STI, ITC (PSPD) BHADRACHALAM for giving opportunity to do the project work. I extend my sincere thanks to all employees of ONGC for their co-operation in bringing this project work. I am very thankful to Mr. XYZ, Manager (HR)-IR, ITC (PSPD) BHADRACHALAM and Project - coordinator without whose guidance and support without which it would have been a castle in the air. And also I would like to extend my sincere thanks to all those who have supported to me including my teacher Mr. Anil Kumar. Lastly but not the least, I pay my gratitude to my parents, family members, friends, faculty members of XYZ College. and all the executives of ONGC, Rajahmundry for their moral support and whole hearted co-operation in bringing-out this report.



I, XYZ student of ITC PSPD BHADRACHALAM. Pursuing

M.B.A course

here by declare that the project work entitled “ATTRITION ANALYSIS AND RETENTION STRATEGIES.“ is an original work carried out by me, availing the guidance of my project guide. This report bears no resemblance with any other report submitted to AU or any other University for the award of any degree.

Place: Date:




INTRODUCTION • Need of the study • Objectives of study • Methodology of the study • Scope of the study • Limitation of the study


COMPANY PROFILE • Industrial Profile • Company Profile




DATA ANALYSIS • Data Analysis • Data Interpretation


• Findings • Suggestions

APPENDIX • Questionnaire • Bibliography • List of Respondents



INTRODUCTION TO TOPIC –ATTRITION: In the best of worlds, employees would love their jobs, like their coworkers, work hard for their employers, get paid well for their work, have ample chances for advancement, and flexible schedules so they could attend to personal or family needs when necessary and never leave. But then there's the real world. And in the real world, employees do leave, either because they want more money, hate the working conditions, hate their coworkers, want a change, or because their spouse gets a dream job in another state. In today’s competitive global world, hiring the right people & retaining them has become the greatest challenge faced by any organization. With increased job opportunities and business developments, Attrition has become the major problem faced by organizations. Retaining the key talent is essential for an organization’s sustainable growth and hence, countering & controlling attrition has become one of the major concerns in the business world. Clearly a competitive advantage in today's turbulent employment environment is not achieved easily. Building a stable workforce takes considerably more than just throwing money at people or giving them use of a fancy car. There's more involved than just a lot of aggressive recruiting or strong attention to retention. To achieve workforce stability, with all its financial and operational advantages, employers must invest energy in resources in a range of discrete strategies.









comprehensive model for building and maintaining that coveted condition of a solid, stable workforce that drives more dollars to the bottom line. The following categories fall under attrition  Superannuation  Voluntary Retirement  Death  Dismissal  Resignation  Abandons For the project, Attrition is defined as :


“Persons in the levels between PP1 and PP12 moving out of the organization by Resigning.� Consequences to ITC Bhadrachalam ITC is looking to diversify from its traditional tobacco business and in the long term wants to make Paper boards and specialty paper Division (PSPD) its flag ship business. This is due to the enormous growth opportunity that ITC sees in this segment. Unit Bhadrachalam is in the forefront of its business plans. Bhadrachalam has seen huge investments in the past because this industry is highly capital intensive. The boldness with which the Paper machine 4, a state of the art machine with an investment of Rs.735 crores (for a company of 220 cr. Turnover then) was contemplated and executed at Bhadrachalam which in turn paved the way for company turn around in the year 2000, after a gestation period of 3 years, is an example in itself. The sixth paper machine and a new pulp mill are installed in 2008. ITC is planning to invest about Rs 14,000 crores in the next 5 years in FMCG, Hotels, Agri and Paperboards. In order to under go a growth of such a magnitude it is very important for an organization to bank on its human capital. The attrition rate for ITC Bhadrachalam in the year 2008-09 is found to be about 15.91%. Although this attrition rate has come down, what seems to be the issue is the amount of young talent leaving the organization. Primary data analysis showed that the attrition was high among people between 18 to 35 years of age (accounting for 88% of total attrition) and in the junior management levels from PP1 to PP4 ( 73% of total attrition). Hence for an organization looking to grow exponentially in the coming years this loss of young talent at the time when they are supposed to contribute to the business plans is the major concern. Current Practices used in the industry to reduce attrition: Younger generation is in the constant look out for better opportunities with higher remuneration packages and many have succeeded in finding lucrative offers from overseas/ Indian paper manufacturing companies. Hence, changing jobs and hopping from one organization to the other is what the younger managers are on a constant look out.


The current practices being used in the industry to counter attrition are Promotions, flexible working hours, performance pay, Rationalization of salary, Transfers and Providing retention & loyalty bonuses. Several companies are coming up with innovative practices in order to retain key talent. Companies such as GE Capital, Network of the World and Interglobe in order to retain employees are employing training tools such as drawing lots to pair up young managers together, like a blind date, to test the interactive skills of managers. This is on account of the fact that in large organizations there are possibilities of two employees having not met each other at all!! At Information Technologies India Limited (ITIL) there is a `weekly Tequila evening’ where managers raise a toast for their hard work put in through the week. American Express Financial Center, an organization in which the retention rates are quite high seeks compensation competitiveness through continuous evolvement of innovative Human Resources practices. The Company has a good line of awards lined up for its employees like The Great Performers Award is the highest individual award an employee can look forward to which is awarded for customer service excellence within the company, The Long Service Award for those who have put in more than five years of service and many others. ‘People Responsibility Chart’ at every manager’s desk where the employees affix their signatures that the manager carried out a goal sharing, discusses with them their career plans is another special feature at AMEX. There is also an Expressline Program through which an employee can ask any work related issue with an assurance of a timely and confidential response. The Company has a Family Day -- which entails a day for movie, cocktails and dinner with the spouse which has been a huge success. There is a birthday celebration on a daily basis inside the premises in a department. Retention strategies at Infosys, apart from the common ones include Weekly cultural events named as TGIF (Thank God it's Friday), Friday Fun-does, Wealth sharing with its employees in terms of ESOP's (Employee Stock options), Pet-it Infoscions day for children of the employee's where games and Cultural programs are conducted, Inter


DC Sports meet Called SAMAVESH for its employees annually hence making it one of the most preferred employers in today’s Indian context. TCS has an “Economic Value Added” Model (EVA Model) which ensures that the compensation packages of its employees are determined by the value they bring to the organization. The more they deliver, the more they are rewarded. The various methods of Employee Recognition at TCS other than the EVA based increments include the Best project award in order to promote a spirit of internal competition across work groups and to foster teamwork, Spot Awards in order to ensure real-time recognition of employees, Long service awards in order to ensure company loyalty, Early confirmation of new employees, Project milestone parties in order to encourage efficient execution of projects, Nomination to coveted training programs in order to encourage self development, Recognition of Star Performers/High fliers in order to recognize outstanding talent among others. Other than these TCS offers a wide range of sundry benefits to its employees. Some of them include loans for housing, computers, Automobiles etc; Medical insurance for employees and family (including 50 per cent for dependant parents); Cultural programs like holiday homes across the country, Picnics / get-togethers, In-house gymnasiums and recreation facilities; Stress reduction and career development programs; The company also takes care of employees who travel overseas on on-site assignment by providing- air fares for spouse and two children, Competitive overseas allowances, Medical insurance coverage, Special language training for non-English speaking country assignments (Japanese / German), Assistance in accommodation and schooling. The thing that really comes out from the various companies such as Infosys, American Express, that have been able to retain employees is that a lot of initiatives taken cost little in implementation but make a world of difference at the place of work. Employees would do well to learn from these organizations and device various retention strategies because in the coming decades, organizations that focus on people would go a long way and outperform the rest. “Organization doesn't really accomplish anything. Plans don't accomplish anything, either. Theories of management don't much matter. Endeavors succeed or fail because of the people involved. Only by attracting and retaining the best people will you accomplish great deeds” -Colin Powell




The development of any economy depends upon its industrial development. Even in Agriculture based Country like India, now Industrial development plays vital role. The Changes introduced in EXIM policy leads to LPG and had accelerated development of Industries. The Industries consist of small scale, medium scale and large-scale industries. In these three types of industries, large-scale industries play a crucial role in economic development of the country. Among such industries ITC Limited is one of the largest and most diversified business houses represented throughout India.

Therefore, considering the importance of attrition level in the organization the student researcher choose the ‘Attrition Analysis of Managers in ITCPSPD’ as a topic to fulfill her dissertation work.



OBJECTIVE AND APPROACH TO THE STUDY OBJECTIVE OF THE STUDY The major objective of the study undertaken was to recognize the reasons for attrition in ITC Bhadrachalam & to determine ways & policies to counter attrition. The retention strategy formulation includes the study of the HR activities from exit process. Recommendations backed by data are given in order to formulate a complete strategy for retaining the younger talent in particular. Attrition is a major setback in a company’s progress. The expenditure on recruitment & training in case of filling up for an employee who has resigned adds up as extra costs for the organization. Moreover, the productivity loss for the period when the position was vacant is also considerable. After recruitment also it takes time for the new employee to get oriented and hence, the productivity is less. Lastly, constant manpower loss also reduces the credibility of the organization as a good work place. Recognizing & dealing with the reasons for attrition is the primary concern for Unit Bhadrachalam in order to get a more firm grip over the market which it leads today edge over its competitors and to ensure its expansion and fast growth. To know the causes for attrition of employees in ITC-PSPD and the retention strategies taken in order to encompass the organization’s ability to provide the best of professional climate.



METHODOLOGY: Content Analysis is a research technique for making inferences





identifying specified characteristics of contents of documents. This is a method of data collection and analysis. This is used for gathering data from archival





minute of meeting and the like. The content if the written materials serve as a basis of inference. The analysis is made objectively and systematically. Objectivity refers to making analysis on the basis of explicit rules, which enable different researchers to obtain the same results from the same documents. Systematic analysis refers to making inclusion or exclusion of content according to consistently applied criteria of selection; only materials relevant to research’s hypothesis are examined.


PROCEDURES Significant content analysis begins with some systematic problem, which requires specific data from






conceptualize the variables that are relevant to his problem. The procedure of content analysis involves certain steps.  The first step is to define the universe of content that is to be analyzed.  The second step is to specify the content characteristics to be measured.  The







categorization.  The last step in content analysis is to quantify the materials in any appropriate form. One form of quantification is counting the number of objects in each category. The application of this method is used for the purpose of explaining the possible casual factors related to some outcomes. 17

SOURCES OF DATA: PRIMARY DATA This study is based on primary data which is more acquainted for social science research. The primary data has been collected by overall observations of company’s working, company’s attitude on attrition and retention strategy. The student researcher has conducted





management staff to gather the information. SECONDARY DATA The secondary data has been obtained by collecting the information from the exit interview forms and also from the documents, data sheets and other materials served as secon TOOLS AND TECHNIQUES OF DATA COLLECTION:

Documents Schedule/Data Sheet This is a list of items of information to be obtained from documents, records and other materials. In order to secure measurable data, the items included in the schedule are limited to those that can be uniformly secured from a large number of case histories or other records. dary data. 18


SCOPE OF THE STUDY The study involves the attrition analysis and retention strategies pertaining to ITC PSPD’s Unit Bhadrachalam only. Although attrition problems exist in all 4 units of ITC PSPD, it is the highest for its Bhadrachalam unit. Though there may be a few common factors, generalization of this study to other ITC PSPD units or other business divisions of ITC is not considered suitable and is not advised. The scope of the study is limited to persons(managers) in the levels between PP1 and PP12 and also management staff grades and secretaries moving out of the organization by Resigning. APPROACH: Identify who are leaving: attrition was high among people between 18 to 35 years of age (accounting for 88% of total attrition) and in the junior management levels from PP1 to PP4 ( 73% of total attrition) and who worked for less than 2yrs in the company (accounting to 63% ). Why are they leaving? - Recognizing the reasons for why the talent groups are leaving

is critical in formulating retention strategies. The

reasons may vary from person to person, Department to department. Hence the second major task was to identify why people are leaving. Is it the Push or Pull that is making people leave? How to prevent them from leaving? Recommendations backed by data will be given in order to formulate a complete strategy for retaining the younger talent based on the data collected from the exit forms and discussion with the HR Managers.



LIMITATIONS:  Due to time constraints the detailed study was limited only to 1yr ie. 2008-09, whereas an overall comparative study was made on 5yrs ie. from 2004-05 to 2008-09.  The







documents cannot be assured.  Analysis of the data has been done based on the assumptions that the information provided by the respondents is genuine.



ABOUT ITC LTD: ITC was incorporated in 1910 under the name of the ‘Imperial Tobacco Company’. From humble beginnings it has today grown to be one of the most trusted and visible companies in India with a rich heritage spanning 99 years. Today ITC is one of India’s foremost private sector companies with a market capitalization of over US$ 7.5 billion and a turnover of US$ 2.6 billion. ITC ranks third in pre-tax profits among India’s leading private sector corporations and is rated among the World’s Leading Companies by Forbes Magazine. From it’s initial tobacco business the Company has diversified in a number of ways and at present holds an enviable multi-business portfolio encompassing a wide range of business ranging from it’s trademark Cigarettes & Tobacco






Packaging, Paperboards and specialty papers, Agri-exports, Foods,







stationary. ITC’s diversified status originates from its corporate strategy of creating multiple drivers of growth, anchored on its time tested competencies namely its unmatched distribution reach, superior brand-building capabilities, 24

effective supply chain management, and acknowledged service skills. Over time the strategic forays into new businesses are expected to garner a significant share of these emerging high growth markets in India. ITC’s Agri-Business is one of India’s largest exporters of agricultural products, making the company one of the country’s biggest foreign exchange earners. The Company’s “e-choupal”






significantly enhance is competitiveness by empowering Indian farmers with the power of Information Technology through






expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the company’s marketing reach. While the “e-choupal” initiative has benefited the farmers through enhanced farm productivity and higher farm-gate prices, ITC benefits from lower net cost of procurement (despite offering better prices to the farmer) having eliminated costs in the supply chain that do not add value. Additionally, ITC is significantly widening its farmer partnerships to embrace a host of valueadding activities: creating livelihoods by helping poor tribals make their wastelands productive; investing in rainwater harvesting to 25

bring much-needed irrigation to parched dry lands; empowering rural women by helping them evolve into entrepreneurs; enhancing livestock quality to significantly improve





support to make schools exciting for village children. ITC’s production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company to be rated on Corporate Governance by ICRA, an associate of Moody’s Investors Service, which accorded it the second highest rating, signifying “a high level of assurance on the quality of corporate governance” ITC employs over 15,000 people at more than 60 locations across India. As one of India’s most valuable and respected corporations, ITC constantly strives to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 1,38,632 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. ITC is widely perceived to be dedicatedly nation-oriented. “A commitment beyond the market” is its source of inspiration, says Chairman Y C Deveshwar.


This over-arching vision of the company is expressively captured in its corporate positioning statement: “Enduring Value. For the nation. For the shareholder” ITC’s Business Portfolio Corporate Strategy: ITC's corporate strategies are aimed at matching its core capabilities with market opportunities to produce superior shareholder value. ITC’s key corporate strategies are to:  Continue to focus on the core businesses of Cigarettes & Tobacco, Hotels, and Packaging & Paperboard.  Ensure that each of its businesses meets the three criteria of sustainability, namely Market Standing, Profitability






businesses that do not meet these criteria within an agreed time frame.  Ensure






competitive in the Indian global market.  Create distributed leadership within the organization by nurturing talented and focused top management teams for each of the businesses.  Institute













constitution. Such a system of governance must


achieve awholesome balance between the need for executive




for a







accountability. ďƒ˜ Secure the future growth of the Company by creating new businesses which leverage the strength of its core competencies, residing in various businesses. ITC PAPERBOARDS AND SPECIALITY PAPER DIVISION-ITC PSPD The Paperboards & Specialty Papers Division came into existence in November 2002 with the amalgamation of Bhadrachalam Paperboards Ltd. with ITC Ltd. ITC entered the field of paperboards in 1975 when it incorporated Bhadrachalam






Government of India approached ITC Limited to invest in the core sector industries, ITC decided to invest in Paperboards business, as ITC needs boards for making cartons to pack cigarettes, which will be a backward integration for its business. Accordingly, it decided to setup a Paperboard Manufacturing Unit in Khammam District of Andhra Pradesh with an initial investment of Rs.50 crores and thus Bhadrachalam Paperboards Limited, an 28

integrated pulp and paperboard manufacturing unit was incorporated in the year 1976. The plant is situated in a tribal area on the banks of river Godavari in the Khammam District of Andhra Pradesh. Eventually ITC emerged as a pioneering organization in the Paper and Paperboard sector in India. Vision To be a valued player in the global Paperboards and Specialty Papers industry through: • Leadership in quality – products, processes, services and people • Continuous enhancement of value for all stakeholders • Upholding societal values and expectations ITC PSPD Businesses Installed with an initial capacity of 40,000 Tons per annum in 1975, ITC with an intention to become a valued player in global paper and paperboard industry, is rapidly growing its scale of operations. With setting up of Unit Bollaram with 25,000 TPA in 1994, merger of Tissue Papers Unit at Kolkatta with 33,000 TPA in 2003 and acquisition of Unit Kovai at Coimbatore with 72,000 TPA in 2004 ITC Limited, PSPD emerged as a dominant role player in Indian


Paperboards Industry. From a capacity of over 60,000 TPA in 1995, it grew to over 180,000 TPA in 2002, 3600,000 TPA in 2005 and plans are on to touch 500,000 TPA by 2010 while exploring avenues in Paper manufacturing segment as well. ITC's Paperboards business is India's market leader across all carton-consuming segments including cigarettes, foods, beverages, pharma, personal care & toiletries, durables and match shells. ITC is the premier manufacturer of Specialty Papers in India, with a diversified product range. This Division pioneered the manufacture of Specialty Papers for the Indian cigarette industry in 1949. It currently offers a comprehensive range of Cigarette Tissues, Plug Wrap, Tipping Base, printed tipping papers and metallising Base. ITC's Specialty papers are used in the manufacture of cigarettes, decorative laminates, electrical equipment, fireworks and automotive filters. They are also used for fine printing, packaging and carbonizing. In the Value Added Product segment ITC accounts for 90% of market share in India and we benchmark ourselves with M-real, Storaenjo and Iggesund from abroad. In Recycle board segment internationally ITC benchmark’s with 30

Mayermanholf, Europe. While ITC is the leader in domestic market, companies like Balakrishna, NR Agarwal, Khanna, etc the other suppliers that compete with it. ITC supply’s its board to ITC’s Printing Packaging Division, Borker, Parkson, 21st Century, Kumar Printers, Bharat Box, Chandamama, Paper Products, Paper pak Grece, Amkore, CM printing, Bugler Tobacco, Cell, UK, Iran Tobacco, etc.



Branch Structure: ITC PSPD has its Divisional Head Quarters (DHQ) at Hyderabad. Its regional offices are in New Delhi, Mumbai, Andhra Pradesh, Chennai, Bangalore and Kolkata. It has 4 units of production at Bhadrachalam, Tribeni, Kovai and Bollaram. The DHQ is overall responsible for all the units and regional offices. Production Units of ITC PSPD: ITC PSPD has 4 mills for production for its various kinds of paperboards and paper: I.

Bhadrachalam: production unit for paperboards with a capacity of 300000 tonnes per annum


Tribeni: production unit for cigarette tissue, packaging paper and specialty paper with a capacity of 33000 TPA


Bollaram: production unit for coated paper and boards, poly extrusion and art boards with a total capacity of 25000 TPA


Kovai: production unit for coated duplex boards with a capacity of 72000 TPA

UNIT BHADRACHALAM The Bhadrachalam unit has a manufacturing capacity of 300,000 TPA of papers & boards and is the largest single location mill in India. The mill is focused on producing paperboards for packaging and graphics segments and its product range includes Cyber XLPac (folding box boards), Pearl/Safire Graphik (solid bleached boards) and high value boards apart from the Ecoviron range of recycled


boards and liquid packaging boards for Tetrapak in India. In September 2002 the Bhadrachalam mill commissioned India’s only Elemental Chlorine Free (ECF) pulp mill with a capacity of 100,000 Tons a year and in June 2004, an 80,000 TPY board machine from Voith. It is an integrated pulp and paper/paperboard manufacturing organization. The major facilities include Pulp mill, state of the art Paper and paperboard manufacturing machines (five), soda recovery plant, co-generation power plant and other auxiliaries. The basic raw material such as forest produce like wood and bamboo, coal and water are abundantly available in the close vicinity of the mill area. Apart from the above, the mill also uses Waste paper as its raw material. Unit Bhadrachalam has about 590 managerial workforce (including supervisory), and 1336 unionized employees. There are about 3000 contract workmen are involved in areas like loading, unloading, broke handling, internal transport, cleaning, plantations, colony maintenance, harboriculture etc. There are nine registered unions at ITC Bhadrachalam but only one is recognized. Before any major decision regarding unionized labor, the management discusses with all the nine unions. Organizational Structure Since its inception ITC Bhadrachalam followed a functional operating structure. While this suited well and brought in wonderful results then, the changing competitive world demanded a faster response to issues and what worked well earlier no longer met the


demand of the fast changing market demands. In view of this, ITC Bhadrachalam switched over to a Process Based Unit (PBU) structure where all the supporting service functions in a particular area report to the Operations head for their day to day working.


regards the functional expertise, the functions concerned seek assistance the PBU on Technical Services and operate. The method is found to be working well. The staff across the organization is divided into 12 levels ranging from PP1 to PP12. The designations at these levels are as follows PP12- Vice President (VP) PP11- General Manager (GM). D+-Director General (Corporate) PP10- Deputy General Manager (DGM) PP9- Chief Manager PP8- Senior Manager PP7- Manager PP6- Deputy Manager PP5- Assistant Manager PP4- Officer PP3- Deputy Officer PP2- Assistant Officer PP1- Junior Officer




Attrition is ‘A reduction in the number of employees through retirement, resignation or death. ’ The following categories fall under attrition  Superannuation  Voluntary Retirement  Death  Dismissal  Resignation The Dictionary defines “Attrition” as being “a reduction in numbers usually as a result of resignation, retirement, or death”. There are various factors that affect an individual’s decision to leave a job. While an employee leaving the job is considered attrition by one organization, it is looked at as ‘talent acquisition’ by the new organization and to the individual it means a career move, economic growth and enhanced quality of life /convenience or closeness to the 37

family etc. Hence, what is a problem for one may be an opportunity for another.

Factors affecting Attrition and Retention There are various reasons why people leave their current job. These reasons may vary from individual to individual and when data are collected from a large number of individuals leaving or who have left an organization, some consistencies may be observed providing more insights as to why people leave in large

numbers. If these


controllable-one attempts to control. If these are not within the control of the organization, the organization should prepare itself for managing the attrition. Managing attrition does not mean reducing attrition only. It could also mean bringing down the negative affects of attrition and increasing the positive affects of the attrition. To increase the positive effects of attrition and reduce the negative effects of attrition, appropriate retention and capacity utilization or talent utilization tactics should be used. In one of the organizations, attrition has been used 38

as brand building opportunity. Thus an organization may say that we provide talent for other companies or they may say if you join us your brand value goes up and you will get good jobs etc., Today when a person leaves it causes lot of disturbances in the organization. If it is a small organization the disturbance is even greater. Hence it is important to understand and manage attrition. There can be various reasons for people leaving their current jobs. Some of these include: FACTORS AFFECTING ATTRITION  INDIVIDUAL


Role Related


Peer pressure


Ambition/Career Options


Parental/Family Mobility

Personality factors

No Challenge

No learning

Style of Boss

Role of clarity

Role stress

Lack of Independence


Growth and Career paths

Pay Packets

Any method of controlling attrition or increasing retention should be based on a good understanding of the factors leading to attrition. The factors may be sometimes very simple and could be revealed by an examination of the statistical data. For example, in one Oil Exploration Company such an analysis is revealed that attrition is limited to those from the drilling division and financial services division. Those who left the drilling division were found to be older in age and those who left finance department younger in age. 40

Those who left the Drilling department left with VRS and got good jobs elsewhere because experienced people are in demand. Those who left the finance department left because the demand for young CAs and financial managers had gone up in the outside environment. In both cases there were push as well as pull factors operating simultaneously. Once the source/cause of attrition is identified, solving the problem becomes relatively easy. At least the organization can then determine if any internal interventions will help reduce attrition. Some of the possible interventions that could help in enhancing retention as follow:  Compensation  Financial Restructuring  New Incentive schemes-including Salary & perks restructuring  ESOP(Employee Stock Option Plan)  Performance linked Pay (PLP)


Loyalty pay is a good mechanism of retaining the employee. In the loyalty pay the individual gets his share of the performance linked pay or enhanced incentive pay proportionate to his stay. Organizations use most of the time compensation survey and hike up the salaries. The tendency to use “Golden handcuffs� with deferred compensation, investment options etc. is useful. However in a competitive world often they artificially hike up the salaries as the recruiters also work out mechanisms of buying out such handcuffed people at any cost. Hot skills premium is paid by some companies for those who have crucial skills in short supply. The premium can be removed as the skill availability increases or the need goes down. Organizational

climate and

employee satisfaction

surveys help in indicating the factors affecting attrition and help organizations take corrective action. The organization encourages some form of social networks, cultural programs, and team celebrations. These can be done with very little investments. By 42

encouraging employees to have picnic, social gatherings, celebrations and festivals etc. we encourage some amount of social networking and sense of belongingness. When the person and his family feel at home with a company and have developed a social network retention goes up. Loyalty to colleagues can be thus made a significant retention force. New forums and methods need to be thought of to suit the requirements and chemistry of a given group. Thus in one case there may be an investment club, in another Golf Club, and a third co-operative society a fourth a charitable group to assist local community and so on. Studies have linked the retention capacity of a firm to the induction and assimilation process. The new economy industry and the need to be competitive require that the person needs to be indicted into the company even before he/she joins it. If the new employee joining at the top level joins the organization with full understanding of the culture, and the role he is supposed to handle a lot of employee turnover can be contained.


“Employee turnover has a significant effect on companies’ bottom –line by inhibiting their ability to keep current customers, acquire new ones, increase productivity, and pursue growth opportunities” All








compelling, distinctive and exiting employee value proposition. Further, these strategies must cover three distinct





transformational and transactional. So, let us dwell upon the cultural aspects as relevant to the issues under construction. a. Culture is somewhat like "the operating system" of the organization. It drives the organization and its actions. It guides how employees think, act and feel. It is dynamic and fluid, and it is never static. Some aspects of culture are visible and tangible and others are intangible and unconscious. Some of the most visible expressions include the architecture and décor, the clothing people wear, the organizational processes and structures, and the rituals, symbols and celebrations. 44

Essentially organizational culture is seen in two broad dimensions.







functional, technical and control aspects, while the soft aspects






enthusiasm, collaboration and camaraderie, openness, sense of belonging, etc. A culture that is open, trusting, nurturing, authentic as well as empowering tends to attract and retain top talent. b. Transformational strategies that impact retention in good





counseling, competency and performance development programs, retraining, re-skilling, re-deployment and job rotation, challenging assignments, job enrichment and above all promotion of a knowledge building and knowledge



c. Transactional innovative, dynamic and competitive compensation strategies, various welfare initiatives, social and community activities, workload balancing, effective work-life integration, reward and recognition, 45

establishment of good communication and feedback network, etc, form the transactional strategies. Anti poaching measures may also find their place in this category. Although technology based defenses against an aggressive e-recruiter like various e-security mechanism work for sometime, the real potent measures are inherent in enhanced job satisfaction and strengthened relationships within the organization. In order to be able to orchestrate and implement effective retention strategies, the first step should be to understand the scope of the retention problem that is unique to one's organization. The target group, which is crucial to the company's operations and success, should be







appropriately. It is a paradox that the companies which invest heavily in recruitment and development and make a good job at that, are prone to more risk of poaching. A sound sensing and tracking system to assess the volume and causes of attrition by performance level could be useful. The ability to identify good performers, who are prone to leave for any job or management related issues


and timely intervention to address these issues could be effective. One of the biggest challenges HR Managers face in recent times is that of retaining young, enterprising talent. This is because the young generation is marked a high level of creative talent and knowledge but low level






customize their HR policies to cater to this relatively inexperienced but high performing group. A recent study conducted by Manpower subsidiary Right Management of the US has revealed that almost 61% of employees stick to their first job for less than three years. Many employees of the young generation opine that it is rare to find an employer that provides a compelling reason (be it in terms of work environment or career development) to stay back beyond a year or two. The trend is a major cause for concern for many employers, particularly in the prevailing scenario of talent crunch across most sectors. If one were to include the rising costs of recruitment and employee turnover, organizations incur 2.5 times an individual’s salary to find a replacement. This includes recruitment 47

and training costs, lost productivity and severance payments. In such a scenario, it is imperative for organizations to design a retention programe that primarily focuses on the needs of young employees. The most enticing options that may be included in a retention programe aimed at young executives include the ability to grow from within, a workplace that offers flexibility







camaraderie. The policy of creating career path for new recruits should be a carefully charted. It should take care of the career aspirations of employees besides providing significant training and skills-development opportunities. When such initiatives are backed by a positive work/life balance, employee retention becomes more realistic and easier to achieve. In the case of young employees, work/life balance may not necessarily mean spending time with one’s family. Instead, it may indicate time for pursuing the employee’s hobbies and personal interests. This could include activities like volunteering for an animal shelter or going on adventure trips.




also and

important employee 48




employee that


effectively backed by a congenial and informal work environment. The job in hand should provide ample scope for promoting individuals to managerial roles. This ought to be based on job performance in addition to behavioral parameters like leadership abilities. Retention issues in sunrise industries: The issue of low manpower retention is acute in knowledge-based industries like information technology, pharmaceuticals, biotechnology and telecom. Ironically, it is easy to find the real stars in these segments but extremely difficult (almost impossible) to retain them. Incidentally, most of these industries employ young graduates, fresh out of college with the fire to perform and desire to excel. A majority of these star performers are highly productive, innovative and establish new frontiers of learning and performance even as they execute their day-to-day work at office. It is the zeal to learn, unlearn and relearn new things that keep them going and scale phenomenal levels of performance. Some of the major limitations of managers in retaining young talent are:


• Lack of sustained challenge at the workplace • Limited growth prospects (both vertical and lateral) after a period of time • Limited








organization’s static compensation guidelines • Not giving all employees equal treatment, which make performers feel that they were not given their due. This is more so in the case of young performers who crave for instant recognition. As a result, many topnotch performers prefer to join a more capitalist venue where only the performers count. What do youngsters want? This is a question that is perplexing for even the most successful HR Manager. There is a paradigm change marking the aspiration, expectation, knowledge and skill levels of the new age employees. So, organizations are forced








performers before losing them to competition. One of the most preferred options among the new generation employees is that of lateral growth over vertical growth. Vertical growth enables self-actualization of skills and knowledge in a specific domain. Lateral growth on 50

the contrary provides an all-round, cross-functional exposure that enables executives to gain a holistic perspective about the various aspects of their employer. Thereby their worth to the organization increases. The new generation employees also expect their authorities to respect the opinions of others, both peers and subordinates.






professional is one who speaks without fear, acts without bias and believes in empowerment, both for himself and his colleagues. Endpoint In the final analysis, it is vital that organizations nurture and retain young executives by providing the right work environment for budding talent. This may be achieved with the aid of a challenging and stimulating work environment that not only tests one’s merits but also pushes performance levels to new highs. In addition, the reward system should be enticing not only in terms of high monetary rewards (in the short run) but also with respect to lateral and vertical growth in the long run.


Employee retention methods vary depending on the industry, and the organization’s goals and objectives. Research







commonality. Most organizations try to pacify employees by pay hikes, though money is not the primary reason for employee turnover. Employee turnover can chiefly be attributed to: • Uncongenial work atmosphere • Inadequate growth opportunities There are certain flaws when the company analyzes the plan for retention of employees. Unless it is properly and systematically analyzed it may fail to reflect: • The problem that would be resolved • The target employee group • Employees’ expectations • The High implementation costs Resolving turnover issues: To solve turnover issues companies should: 52

Build a talent retention strategy –The strategy should be practical and make the organization a place people would look forward to work in. Share responsibility - Research reveals that employees leave organizations because of • Hard task managers • Differences with managers • Absence of career growth The turnover problem however, cannot be resolved with the best retention plans and resources unless managers involve themselves in the process. This is because they influence their subordinates’ • Work skills • Work behavior • Work design Managers should be conscious of their junior’s jobs and assign challenging tasks so employees remain motivated. Some organizations even hold managers accountable for 53

their juniors’ turnover by linking juniors’ turnover rate with the manager’s pay. Yet, other organizations are incorporating the talent needs in their strategic plans by making the managers responsible for hiring and retaining employees. Today,


computer-based Programs help top management to gauge the managers’ effectiveness in retaining the subordinates. If necessary, managers are trained to develop their leadership skills. Plan for future - The HR department must be aware of the business environment and the organization’s future plans whether it is about developing a new product or a merger with another organization. In fact, HR should be proactive and develop strategies to manage and retain their employees during turbulent times. Be aware of factors affecting turnover- Turnover numbers might point to where the problem lies but cannot identify the problem. To determine the problems organizations must conduct • Formal



employee’s resentments 54



• Realistic quit preview-Employees who intend to quit are made aware of the risks involved switching over to a different organization. Maintain the balance - Retention strategies should be a blend of financial and non-financial motivators. Keep track of turnover - It is difficult for the managers to identify turnover as a critical issue unless they know how the business is affected monetarily. The cost of employee turnover should be translated in terms of its effect on sales or service rendered. Only then can line managers understand the affect of turnover. This should be measured • Department wise • Job wise Such an assessment would help the company identify the work that can be outsourced or given lower priority. The analysis is cost effective and organizations can prioritize the problems to be addressed. Sell organization’s brand – Existing employees should be treated as potential candidates for the organization’s 55

future requirements. Management must take pains to market the organization’s brand to them as enthusiastically as it would to attract outside talent. Organizations can certainly overcome the turnover problem provided they address the various issues that initiated the turnover. Retaining talented employees is one of the top most priorities of the employers today. Reasons for attrition are attributable to the innumerable changes engulfing work places like reorganization, higher performance standards and resultant high-pressure levels. The challenge is not only to attract the best talent but also to







development, Lifestyle decisions, job mobility, unbalanced work life, poor mentoring and stress are some factors, which influence an individual’s decision to continue or quit. Among







respecting employees’ concern right from their entry into the organization till their retirement. It also encompasses the organization’s ability to provide the best of work climates. Employee concerns 56

Employees expect employers to •

Provide induction

Create a good work environment

Motivate them to work

Train them

Provide a suitable compensation package

Implement reward strategies

Counsel them

Hold strict exit interviews

Appropriate HR intervention strategies alone can satisfy employee expectations. A workforce can succeed, provided well recruitment practices and reward systems are in place and employees’ personal goals are in consonance with the organizational goals. Retention will not be a major concern if the organization stands firm on its values and promises and builds employee trust. Before designing its retention strategies, the organization ought to do some homework in terms of:


Maintaining corporate image - This is an effective

way to attract the talented. The organization has to ensure that it is sought after for employment by cashing on its goodwill and reputation. •


Identifying the organization’s saleable features organization






opportunities and portray them effectively. This is almost equivalent to selling the organization to the new recruits and will help in building positive impressions initially. •

Identifying reasons for turnover - Hold strict exit








information must be ideally used to plan strategies for retention. Those issues that result in good people leaving should be dealt with immediately to obtain expected outcomes. •

Developing continuously - Change is the law of

nature and unless the organization adapts to changes and develops, it cannot mentor its employees and new recruits. Give the new recruits

every reason to work for the organization and build a longterm relationship.


Utilizing information - All information about the new

recruits should be kept in mind even after the recruitment process ends. This will help in identifying the potential and setting performance targets. Thereby, maximizing the recruit’s performance. •

Building a cultural profile - Matching the profile of

the recruit with the cultural profile of the organization is crucial. Organizations should look for the best fit into their territory with reviews from their colleagues, customers and managers.

Overcoming the hurdles Though the solutions to attrition among the fresh and young recruits vary from region-to-region and industryto-industry, some of the most common measures that can be adopted to ensure a high manpower retention rate could be to: • Allocate about a tenth of the star performer’s job for learning something new and innovative. • Use a proactive and level-headed mentor for star performers • Ensure the availability of challenging and highvisibility projects for the star performers. 59

• Ensure an adequate compensation package for star performers. As the adage goes, ‘If you pay peanuts, you get monkeys working for you’.

Retention Strategies •

Training programs - Organizations should design

training programs that match employee competencies with current trends. For example, PriceWaterhouse, Hewlett Packard and Ernst & Young introduced a new online training and counseling programe that significantly brought down the turnover rate. IBM set up a career centre where career development programs were emphasized. •

Work-Life equilibrium - This is essential, as it caters

to employees’ personal needs and in turn helps retain them. Steve Bigari introduced “McFamily Benefits” to tackle turnover in McDonald’s fast food restaurants in Colorado Springs. The scheme offers education, healthcare, housing and transportation facilities along with stock options to its employees. The idea was to create trust between the employee and the employer


Effective mentoring - Another reason for turnover is

lack of effective mentoring skills. Employees get demotivated in the absence of proper mentors.

Challenges - They help employees prove their worth

and bring out their latent potential. •

Autonomy - Giving employees responsible tasks, while

giving them the freedom to work in their own style motivates them to stay on. •

Good relationships - Healthy relationships among the

line members and staff members are an incentive for the employees to stay for a longer time in any organization •

Attractive compensation package - Compensation

plays an important role in attracting, motivating and retaining employees.

Emerging Trends in Compensation •

Performance related pay in addition to salaries

Making the key executives stakeholders even in

‘family’ Companies



Global reward systems to match global jobs

Giving equity to employees at all levels has become the order of the day. However, it has to be in tune with regional requirements. What may satisfy an employee in one place may not satisfy another in a different region. Such compensation might not motivate employees in the long run because it encourages irresolute behaviour. Loss of human capital, lower productivity and dismal performance levels are the unconstructive consequence of high turnover and then retention strategies have to be emphasized. This is the responsibility of line management and every employee of the organization has to view it as a calculated organizational challenge. Those ignoring the challenge fall prey to their competitors.



DATA ANALYSIS Data from exit feedback forms were analyzed using excel and Bar/Pie Charts. The formula used to calculate the attrition rate is no. of resignees Attrition rate= ___________________*100 Total manpower 94 Attrition rate=________*100 591 = 15.91% From a total of 94 resignees, 10 resignees are considered abondands, ie. they have not completed the exit process and so could not get the exit form out of 84 exit forms 69 were accessible from which the analysis is made. The three main reasons due to which the thought of leaving Unit Bhadrachalam has crept into the minds of the resignees are: A.Unattractive remuneration 64

B.Higher studies Other reasons were job profile not matching educational qualification, Excess work pressure and Locational





development oppurtunities,medical grounds.

rating 1 2 3 4 5 6 7 8 9 10

no. of people 9 5 2 5 10 5 9 6 3 6



Ratin g 1 2 3 4 5 6 7 8 9 10 Total


no.of people Percentage 6 9.68 4 6.45 3 4.84 1 1.61 3 4.84 1 1.61 9 14.52 7 11.29 12 19.35 16 25.81 62

Rat ing 1 2 3 4 5 6 7 8 9 10 Tot al

no.of people 6 11 7 6 4 5 3 2 1 56

Percen tage 19.64 10.71 19.64 12.50 10.71 7.14 8.93 5.36 3.57 1.79


Ratin g 1 2 3 4 5 6 7 8 9 10 Total


no.of people Percentage 15 25.86 7 12.07 6 10.34 4 6.90 3 5.17 5 8.62 3 5.17 9 15.52 3 5.17 3 5.17 58

Ratings 1 2 3 4 5 6 7 8 9 10 Total


no. of people Percentage 19 33.93 3 5.36 6 10.71 3 5.36 10 17.86 6 10.71 6 10.71 1 1.79 1 1.79 1 1.79 56

no.of rating people percentage 1 19 33.93 2 3 5.36 3 6 10.71 4 3 5.36 5 10 17.86 6 6 10.71 7 6 10.71 8 1 1.79 9 1 1.79 10 1 1.79 total 56


rating 1 2 3 4 5 6 7 8 9 10 total

no.of rating people percentage 1 14 24.56 2 6 10.53 3 5 8.77 4 8 14.04 5 9 15.79 6 5 8.77 7 2 3.51 8 1 1.75 9 4 7.02 10 3 5.26 total 57 71

no.of people percentage 16 26.67 12 20.00 3 5.00 1 1.67 3 5.00 4 6.67 0 0.00 6 10.00 3 5.00 12 20.00 60


rating 1 2 3 4 5 6 7 8 9 10 total


no.of people percentage 11 18.64 1 1.69 11 18.64 2 3.39 7 11.86 5 8.47 2 3.39 9 15.25 4 6.78 7 11.86 59

rating 1 2 3 4 5 6 7 8 9 10 total

no.of people percentage 27 46.55 9 15.52 6 10.34 6 10.34 2 3.45 1 1.72 2 3.45 3 5.17 1 1.72 1 1.72 58

ITC PSPD UNIT WISE ATTRITION ANALYSIS: PSPD UNIT TOTAL RESIGNEES PERCENTAGE Tribeni 136 19 13.97 Bollarum 32 5 15.63 Kovai 167 16 9.58 BCM 591 94 15.91 DHQ 181 17 9.39 74

Inference:as per the above graph, the no. of managers resigning from the company is very high in Badrachalam when compared to other PSPD units of ITC.

Inference:the attrition rate at ITC PSPD units over the past 1yr stands at 13.97%, 15.63%, 9.58% 15.91% & 9.39% in Tribeni, Bollarum, Kovai, BCM & DHQ respectively. 75

YEAR WISE ATTRITION AT ITC BADRACHALAM: Total no. of No. of Year Attrition managers resignees percentage wise attrition 2005443 76 17.16 06 2006457 50 10.94 07 2007487 99 20.33 08 2008543 126 23.20 09 2009591 94 15.91 10

Attrition percentage


23.2 20.33

20 17.16


15.91 10.94

10 5 0 2005-06











Attrition percentage

An overview of attrition over the past 5 yrs shows that the attrition rate with respect to resignations has fallen down to 10.94% in 2006-07 and raised sharply to 23.2% in 2008-09 and dipped to 15.9% in 2009-10.

No. of resignees 140 126

120 100







40 20 0 2005-06





Inference: the attrition rate is highest in 2008-09 when compared to past 5 yrs ie. 2005-06 to 200910.the attrition rate came down to 15.9% in 20010.




40 62 95 124 41 20

8 10 15 20 2 2

20.00 16.13 15.79 16.13 4.88 10.00

26 23

8 5

30.77 21.74

68 3


17.65 0.00

27 591

2 94

7.41 15.91


GRADE WISE : GRADE TOTAL RESIGNEES PP11 3 0 D+ 1 0 PP10 6 0 PP9 8 0 PP8 9 3 PP7 24 1 PP6 40 3 E 2 0 PP5 56 9 F 4 0 PP4 118 22 PP3 81 15 79


123 109 3 4 591

17 24 0 0 94

As can be inferred from the above gragh, the no. of resignees are high in PP1 & PP4 grades. Reasons: higher education,


AGE WISE: AGE WISE LESS THAN 25 yrs 25-35 yrs 35-45 yrs ABOVE 45 yrs TOTAL

RESIGNEES 41 38 10 5 94

It is clearly evident from the above diagram that most of the resignees are below the age group 35yrs. Reasons:


2-4YRS 4-6YRS 6-8YRS 8-10YRS 10YRS ABOVE Total

17 2 2 6 8 94

Inference:from the above chart it is evident that more than half the resignees have worked not more than 2yrs in the company.



DATA INTERPRETATION: The data ventured to be collected through content analysis. The responses obtained are then tabulated and analyzed and inferences are drawn. The statistical technique of percentage method is used for the purpose of data analysis. Based on the inferences drawn from the data, suitable findings are made along with the necessary summary and conclusion.


DIFFERENT PARAMETERS TO KNOW THE OPINIONS FROM THOSE WHO LEAVE THE ORGANISATION: There are actually 94 resignees from Badrachalam unit, out of which 10 are out of 84 resignees who actually completed the exit procedure, I was able to access 69 of the exit forms. 1.Opportunities for Individual and Career growth Excellent 29 42% Satisfactory 29 42% Need 8 12% Improvement Poor 3 4% No response -

42% says the opportunities for growth are excellent ,another 42% says satisfactory, 12% says need improvement and remaining 4% says they are poor.


Inference: from the above chart it is inferent that the oppurtunities for individual and career growth are quite good. 2. Recognition of Individual performance Excellent 20 29% Satisfactory 30 44% Need 14 20% Improvement Poor 4 6% No response 1 1%

44% says that the

recognition of individual performance is satisfactory, 29% says it is excellent, 20% says needs improvement, 6% says poor and 1% have not responded to the question. Inference:the recognition for individual performance is satisfactory.


3. Fairness of treatment Excellent Satisfactory Need Improvement Poor No response

20 38 6

29% 55% 9%

4 1

6% 1%

55% says that the fairness of treatment is satisfactory, 29% says it is excellent, 9% says it needs to be improved, 6% says it is poor and 1% have not responded. Inference:the fairness of treatment is satisfactory as it is evident from the chart.


4. Concern for employees Excellent 24 Satisfactory 36 Need 8 Improvement Poor No response 1

35% 52% 12% 1%

52% says that the concern for employees is satisfactory, 35% says it is excellent, 12% says it needs improvement and 1% did not respond. Inference:the concern for employees is quite satisfactory as inferred from the above chart.


5. Futuristic orientation /Long term perspective Excellent 18 26% Satisfactory 37 54% Need 8 11% Improvement Poor 6 9% No response 0

54% says that the futuristic perspective is satisfactory, 26% says that it is excellent, 11% says that it needs improvement, 9% says that it is poor. Inference:the futuristic perspectic as is evident from the chart is quite good in the company.


6. Level of co-operation Excellent Satisfactory Need Improvement Poor No response

and trust 30 28 10 1 0

at workplace 43% 41% 15% 1% 0%

43% says that the level of cooperation and trust at work place is excellent, 41% says that it is satisfactory, 15% says that it needs improvement and 1% says that it is poor. Inference:as it can be inferred from the above chart, the level of cooperation and trust at work place is quite good among the people in the company.


7. Organization wide Team work /Collaboration Excellent 18 20% Satisfactory 34 39% Need 34 39% Improvement Poor 1 1% No response 1 1%

39% says that team work is satisfactory, while another 39% says it needs improvement, 20% says it is excellent, 1% says it is poor and another 1% did not respond. Inference:it is evident from the above diagram that the organisation wide team work is quite satisfactory but needs improvement.


8. Degree of freedom at work Excellent 40 Satisfactory 22 Need 6 Improvement Poor No response 1

58% 32% 9% 1%

58% says the degree of freedom at work is excellent, 32% says it is satisfactory, 9% says it needs improvement and 1% did not respond. Inference:it can be inferred that the degree of freedom at work in the company is quite good.


9. Organization Image and Reputation Excellent 53 Satisfactory 14 Need 1 Improvement Poor 0 No response 1

10. Transparency of decision and communication Excellent 22 32% Satisfactory 10 14% 93

Need Improvement Poor No response





48% says that the transparency of decision and communication needs improvement, 32% says it is excellent, 14% says it is satisfactory and 6% says it is poor. Inference:the transperancy of decision and communication needs to be improved as inferred from the above chart though it is satisfactory.

11. Balance between work and home Excellent 7 10% Satisfactory 29 42% 94

Need Improvement Poor No response





42% says that the balance between work and home is satisfactory, 38% says it needs improvement,10% says it is excellent while another 10% says it is poor. Inference:the balance between work and home as is evident from the chart is quite satisfactory but needs to be improved.

12. Fit between organization and you Excellent 21 30% Satisfactory 39 57% 95

Need Improvement Poor No response



1 2

1% 3%

57% says it is satisfactory, 30% says it is excellent, 9% says it needs improvement, 3% did not respond and 1% says it is poor. Inference: from the above chart inferred most of the managers feel satisfied with self and job fit.

13. Complaint and Resolutions Excellent 11 Satisfactory 35 96

16% 51%

Need Improvement Poor No response



2 4

3% 6%

51% says complaint handling is satisfactory, 24% says it needs improvement, 16% says it is excellent, 6% did not respond and 3% says it is poor. Inference:as is evident from the above chart the complaint handling is quite satisfactory but needs improvement.

14. Opportunities to offer feedback and suggestions Excellent 22 37% 97

Satisfactory Need Improvement Poor No response

26 8

44% 14%

2 1

3% 2%

44% says the oppurtunities to offer feedback and suggestions is satisfactory, 37% says it is excellent, 14% says needs improvement, 3% says it is poor and 2% did not respond. Inference:it is inferred from the above diagram that the opportunities offered to give feedback and suggestions are quite good.

Fulfilment level of expectations of respondents 98

Ratings Levels 1 Not satisfied

Respondents Percentages 5 7%

2 Barely satisfied



3 Satisfied



4 Fairly satisfied



5 Fully satisfied 0 No response

12 4

17% 6%

INFERENCE:from the above chart it is inferred that the resignees feel that the expectations at the time of joining is fulfilled to some


What managers like about the company? Learning Environment 6 Freedom to work 3 New technology 2 Training 4 Company policies 3 Work Environment 5 Support from superiors 13 Colleagues 5 Infrastructure 2 Good top management 2 Company profile 3 Culture 2 Recognition 2 Challenging work environment 1 Total 53


INFERENCE From the above pie diagram it can be inferred that most of the employees feel that the support from the superiors can be considered to be the best aspect in the company.



FINDINGS From the study, the researcher has come to know that most of the respondents have ATTRITION ANALYSIS AND RETENTION STRATEGIES ; the management has taken the best efforts to maintain cordial relationship with the employees. Due to the good working conditions prevailing in this company, job satisfaction of each respondent seems to be the maximum. From the study, I have come to know that most of the employees were satisfied with the welfare measures provided by ITC (PSPD). The employees of ITC (PSPD) get more benefits compare to other companies.

The respondents are satisfied with the environment and nature of work factors

The respondent’s relationship with the superiors and colleagues are quite good

The Respondents are not provided with proper welfare facilities.

The communication and motivation of employees by their superiors in this organization is reasonable.

The Pay and promotion activities in this organization is also good .

The Respondents are overall satisfied with their job

The Parking facilities provided by the organization are not good that’s why most respondents disagree with this question.

The refreshment facilities are also need to be improved


SUGGESTION: Man Power planning Man power planning to be done giving consideration to the below mentioned points • Business plan and future growth plan • Economic trends • Cross-sector movement trends • Salary trends • Attrition trends An agency can be engaged by the DHQ every year to gather the requisite industry data for this activity. This becomes very important because at present there is a lack of proper manpower planning. The joinings are based on contingencies. There are one or two new joinings every fortnight and hence a proper induction program impossible. This is one of the factors for the high attrition rates in the first year of joining. Remuneration Remuneration is one of the major factors. Review of compensation package is necessary. 104

Make new recruits feel at home Arrange sitting place/office for new recruits before their joining – when someone joins, he should get a feeling that he’s welcome. At intervals, visits to other units of the division and other divisions of ITC should be organized in the first year of joining. Buddy / Mentor Program As soon as the new joinee joins Unit Bhadrachalam, he would be assigned to a buddy and a mentor. A buddy would be an existing manager in the middle management about 25 to 30 years of age and with 4 to 8 years of service. A mentor would be an existing manager from the senior management above the PP8 level. It is recommended that the buddy and the mentor be from different department as the new recruit. If his is not possible due to any reason then only the mentor and buddy can be chosen from the same department. Also the HR department has to take care that each new joinee gets a unique buddy (One individual cannot be the buddy to more than one new joinee unless exceptional circumstances). A 105

senior manager could be the mentor for maximum four new joinees. Corporate / PSPD Recruits BE/ B.Tech engineers should be recruited by ITC PSPD from IIT Rorkee, NIT Warangal, NIT Trichy, NIT Durgapur and other NITs and ITC-Corporate recruits should be considered only under very special circumstances only for special projects. This is because the very high salary difference among equals is one of the factors of de-motivation among the PSPD recruits. Although priority should be given to Telugu speaking candidates, candidates from other states should be considered on an equal ratio. Unique Joining Date Though the recruitment is a round the year process, there should be a unique joining date. BE/ B.Tech joinees should join the company on the 15 th of July every year followed by a extensive induction program, Diploma/B.Sc candidate should join on the 15th of april followed by an extensive induction program and Lateral recruits should join the 106

company on 15th of October. 15 th of January should be









contingencies new people could join. This would be possible if the man power planning is done in a professional manner. A few buffer people need to be recruited and assigned in special projects after their induction and based on need in production they need to be absorbed.



Ashwathapa K., Human Resource Management (third edition), Tata Mc Graw Hill Publication Company Ltd.

Chhabra. , T. N. Human Resource Management, Dhanpat Rai $Co(P)Ltd. India, ninth edition.

Kothari C.R., Research Methodology, New Delhi; New Age International Publication, second edition.



QUESTIONERIS ITC (PSPD)BHADRACHALAM Employer’s name:Id no :1.Opportunities for Individual and Career growth? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response 2. Recognition of Individual performance? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response 3. Fairness of treatment? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response 4. Concern for employees? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response 5. Futuristic orientation /Long term perspective? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response 6. Level of co-operation and trust at workplace? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response 7. Organization wide Team work /Collaboration? 109

(A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response 8. Degree of freedom at work? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response 9. Organization Image and Reputation? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response 10. Transparency of decision and communication? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response 11. Balance between work and home? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response 12. Fit between organization and you? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response 13. Complaint and Resolutions? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response 14. Opportunities to offer feedback and suggestions? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response


15. Are you satisfied with the other benefits apart from salary provided by the company or the organization? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response 16 . Do you have ESOP (Employee Stock Option Plan)? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response 17. Do you have Attrition system? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response 18 . Does your company is taking care of its employees with respect of the career growth development.? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response 19. Are you provided with the job-training program? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response 20. Do you feel the incentives and bonus plans of the company are satisfactory? (A)Excellent (B) Satisfactory (C) Need Improvement (D) Poor (E) No response



SI.NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20